Development is one of the main theme that many societies, cultures, regions need as a measure of their development in terms of economic growth, the level of modernization and social welfare to act against the standard of cities that are not developing economically. Growth generally does not take place simultaneously in all places but sometime it becomes concentrated in another place than another one. According to Francis Perroux, “growth does not appear everywhere at the same time, it occurs in poles, centres and points with variable intensity, it spreads with different channel with variable terminal effects on the economy as a whole”. A growth pole can be defined as a geographical concentration of economic activities. This makes it to be more or less identical with cluster and agglomeration. Growth pole frequently is associated with core-periphery models which argues that uniform development is not necessarily possible and development should focus on specific selected places. In this essay I will discuss more about this model by explaining advantages and disadvantages of this model in terms of the development.
The core idea of this theory is that economic development, or growth is not uniform over an entire region, but it rather takes place around a specific region. There are different steps that Perroux specified in his theory that explain how development occur and it impacts on different places. This theory identified an area for resource exploitation and funnel money into the site to develop the resources. According to this theory, all sectors and all dimensions of economy can’t be planned for at the same time and consequence of growth may not spread and impact with same intensity. This pole is also characterized by a key industry around which linked industries develop, most of time through indirect and direct effects. This pole is identified by four types of poles which are: income, technical, planned growth pole and psychological.
Income growth pol, it is where the location of economic activities generates income that positively influences the local demand for goods and services through a multiplier process, technical growth pole states a geographically concentrated supply chain based on backward linkages and forward. Planned growth pole this is where government tries to stimulate the economic development regionally by a policy of locating governmental agencies in backward regions.
Positive outcomes for economic growth if there is an availability of factors such; abundant population, wealth and jobs in the community. Here we can include the availability of hotels, banks, school and hospital. If growth is centralized in the core areas, it creates adverse effects in areas of periphery, it simples brings a huge difference between periphery and core areas economically. For examples, core areas have a well-designed buildings structure which shows that are more developed economically. This theory explains that growth in core areas increases while it decreases in periphery areas.
Advantages of growth pole model.
Growth pole spreads a positive impact on nearby localities and labour areas. This can make a new multi-national companies act as growth pole for other similar companies. Growth pole makes those multi-national companies to encourage more companies to locate in that country or area one they see all the benefits that a country or area gives.
Growth pole makes many companies and market in urbanization to spread or to be widely known and that gives more benefits on their economy when their companies are known.
Growth pole makes nature to be beauty in the urbanization process and this gives more attraction even to the tourists to spend their money there for accommodation, restaurants and makes the services to be easily found in the core places.
There are many growing sectors that are influenced by the growth pole in terms of economic activity. It gives rise to dialectical relationship between the concepts of development and growth.
A growth pole increases the development of tertiary sectors and the most important thing is that those sectors are not separated but they are closed even with urban areas where there are many people living there, others who are looking for job opportunities. Growth pole makes easier for them to know where there are opportunities without stressing themselves about the distance for their house to those sectors and also from sectors to another sectors.
Growth pole is good in a population strength, population is one of the main challenges in terms of development but in growth pole, this population it becomes grouped and not scattered that make it simple for the provision of their needs.
Disadvantages of growth pole model.
Only a limited range of companies find that moving to developing world location is beneficial. They move to those developing world only if the economy makes sense and what is more bad is that, they also use up the resources that many domestic companies use and they make these domestic corporations to close down.
Rural funds are invested in urban areas to take advantages of entrepreneurial activities and relatively rapidly growing market for goods and services. This leaves many rural areas poor and without any tangible economic growth because of these investments that are made. Core areas grow economically even their buildings structures can tell how is growth in urban areas compare to the poorly places of periphery.
Growth pole makes only a concentration to the urban areas and rural areas remain behind in any development process. This is because economic growth and development can only be seen in urban areas.
Rural residents move to the expanding urban areas for improved access to jobs and urban amenities. This results the division of economic classes even in urban areas whereby money being given only to those who are available working and other who are not they remain poor and make them to fall under the low economic class. This makes less people to remain in rural areas to work for rural industries because many people move to urban areas.
Rural firms in the innovation stage of their life cycle move to urban areas to benefit from closeness to specialised services, expanding market and skilled labour. They gain skill and not go back to their rural areas to expand and contribute to the economy of rural areas. People in rural people remain with many questions, clueless in skills of labour even their small markets are not good economically. This also results less availability of small markets in rural areas because firms and market owners they also want to benefit in urban areas.
Political influence and government spending may shift to move rapidly growing core areas. This can only occur where government spend more in urban areas and ignore the rural areas. This results poverty in rural areas, poor education, less health facilities and linkages.
The population becomes high in urban areas and lower in rural areas because of economic development. This high population also comes with different challenges such as poverty, crime, high population density, high prices of land and inputs, congestion and traffic problem.
Housing development are more concentrated on the core areas that in rural areas. That is why most of rural areas do not have good houses. Health facilities are lacking in rural areas because of this growth pole.
Linkages and road networks are highly developed for the urban cities such as; large highways, railways and bridge. While in rural areas the development does not give people accordingly.
Educational facilities, mostly are located at central areas such as; colleges, universities and private school. That is why many people from rural areas are even poor in knowing many languages.
In conclusion, growth pole model can be bad or good in the economic development depending on the situation. It can be good for areas that experience the upward transition from being able to benefit from the spread from core metropolitans. It can be bad based on the downward transition usually the rural areas who struggle to gain economic growth due to movement of money away from their areas.