Growth Pole Development . Growth Poles Theory . The core idea of the growth poles theory is that economic development, or growth, is not uniform over an entire region, but instead takes place around a specific pole.
Growth Poles Theory • The core idea of the growth poles theory is that economic development, or growth, is not uniform over an entire region, but instead takes place around a specific pole. • This pole is often characterized by a key industry around which linked industries develop, mainly through direct and indirect effects. • The expansion of this key industry implies the expansion of output, employment, related investments, as well as new technologies and new industrial sectors.
What is a growth pole? • A central location of economic activity • A point where economic growth starts and spreads to surrounding areas • An urban location where economic activity ignites growth and better quality of life in the urban periphery. Source: Dr Mandla S. V. Gantsho, Vice President - Infrastructure, Private Sector, African Development Bank
What are clusters? • Clusters are geographic concentrations of interconnected companies and institutions in a particular industry. • The cluster approach enables the policy debate and actions to be more strategic.
Importance of clusters • Studies illustrates that businesses located in a cluster has a stronger growth and survival rate than those located outside it. • Physical proximity of companies in a cluster facilitates exchanges of information and talent. • Industry specific equipment is often more readily available within a cluster. • High concentration of knowledge in a single location encourages entrepreneurs to spin out more new start ups than would otherwise be launched. • Clusters drives productivity and competition of firms.
Clusters VS Growth poles • The terms are used interchangeably at times but there is a basic difference. • Introduced by Francois Perroux in 1949 growth poles were identified as an abstract economic space. • These active ‘spaces’ or ‘zones’ control the economic activity of the area and is different from clusters in that the latter may be a specific industry with attendant spin off activity whilst a growth pole may consist of many different clusters.
Potential Cluster Areas By investing in a local economic development, Strategy to further promote: • Energy • Maritime • Food Sustainability • Light Industry • Tourism
How do we do this ? • Understanding what exists; • Industries • Natural resources • Human Capital • Determine how to make existing industries/resources perform efficiently • Clusters • Innovation • Entrepreneurship • Training
How do we do this ? • Determine how to use the natural resources more efficiently: • Tourism Development • Agriculture, Argo Processing • Identify suitable industries for opportunities identified • Identify and consult with Key Stakeholders • Private • Public • CSO’s