Transcript The core idea of the growth poles theory is that economic
Growth Pole Development
GROWTH POLES THEORY
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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.
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This pole is often characterized by a key industry around which linked industries develop, mainly through direct and indirect effects.
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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
THE EXPECTED IMPACT OF GROWTH POLE DEVELOPMENT
EXPLORING THE POTENTIAL OF THE 5 GROWTH POLES & CLUSTER DEVELOPMENT
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
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Studies illustrates that businesses located in a cluster has a stronger growth and survival rate than those located outside it.
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Physical proximity of companies in a cluster facilitates exchanges of information and talent.
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Industry specific equipment is often more readily available within a cluster.
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High concentration of knowledge in a single location encourages entrepreneurs to spin out more new start ups than would otherwise be launched.
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Clusters drives productivity and competition of firms.
CLUSTERS VS GROWTH POLES
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The terms are used interchangeably at times but there is a basic difference.
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Introduced by Francois Perroux in 1949 growth poles were identified as an abstract economic space.
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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.
SOUTH WEST PENINSULA GROWTH POLE
SOUTH WEST PENINSULA GROWTH POLE
SOUTH WEST PENINSULA GROWTH POLE
SOUTH WEST PENINSULA GROWTH POLE
POTENTIAL CLUSTER AREAS
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By investing in a local economic development, Strategy to further promote: Energy Maritime Food Sustainability Light Industry Tourism
HOW DO WE DO THIS ?
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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 ?
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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