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.
• 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
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
•
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.
SOUTH WEST PENINSULA
GROWTH POLE
SOUTH WEST PENINSULA
GROWTH POLE
SOUTH WEST PENINSULA
GROWTH POLE
SOUTH WEST PENINSULA
GROWTH POLE
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