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Monday 28 August 2017

Evaluating the role of Growth Pole (point) Policy in Promoting Rural Industrialisation (by BUHE S. NLEYA ,OSWALD S. CHISANGA AND LINDERRROSE MOYO

Growth Pole Policy has failed to promote rural industrialisation in developing countries because of a number of underlying factors such as failure of strategic positioning of growth points, lack of massive financial support and infrastructural development, siphoning of funds by the elites in the government meant for industrialisation into personal coffers, lack of consultation of rural people to participate in the process as well as lack of incentives to encourage the private sector to expand and open up branches in rural areas. This has resulted in designated growth points becoming white elephants with no meaning full industrial sector to talk about serve for beer halls, little grocery stores and grinding mills.
Growth points (GPs) are centres of economic activity which are artificially created for stimulated growth, through industries that will trigger a chain of reaction of production and promotion of associated services with the ultimate goal of improving quality life of the periphery surrounding that particular growth point (Conyers, 2001 pg 11). Growth Point (GPs) also denotes settlements which are earmarked or designed for economic and physical development (Wekwete, 1987).  The concept of growth pole was developed by (Perroux, 1955) and indicated that that development has to be brought about a certain concentration and agglomeration of economics in an abstract space and with variable intensities; the growth spreads by different channels and eventually affects the economy as a whole.
It is widely argued that Perroux’s initial concept of growth pole denoted an individual plant; one that occupied an abstract economic space, rather than a specific geographical space such as a city or region (Vanneste, 1971; Monsted, 1974; Mitchell-Weaver, 1991). In his latter writings, as Vanneste (1971) points out, Perroux refined his concept of growth pole as a dynamic unity in a defined environment. The unit is simple or complex: (a) a firm, or (b) group of firms not institutionalized, or (c) group of firms institutionalized, such as private and semi-public undertakings. Based on these features of the growth pole concept, other authors (Davin, et al, 1959) associated a functional attribute to the concept. They postulated that a growth pole is formed when an industry, through the flow of goods and incomes which it is able to generate, stimulates the development and growth of other industries related to it (technical polarization); or determines the prosperity of the tertiary sector by means of the incomes it generates (income polarization); or stimulates an increase of the regional economy by causing a progressive concentration of new activities ‘‘psychological and geographical polarization’’. Industrialization is defined as modernization process; where by social change and economic development are closely related with technological innovation resulting in largely transforming a human group from agrarian society to industrial one.
The conception of growth poles in the urbanization process sparked a momentum to jumpstart economic growth in developing and industrializing countries in the 1960s and 1970s, mostly countries in Latin America and Southeast Asia, by pursing a growth pole strategy. Planners and development economists set about identifying locations, which they believed, could act as growth poles or growth centers in the national urban system. In Africa the ‘growth point’ strategy remnants were first adopted in the of colonial era, with the strategy part of a broader initiative to reduce rural urban disparities, for instance in Zimbabwe it was adopted in the late 1970s (Manyanhaire et al, 2011 pg 3).
It brought much enthusiasm among governments at independence in most African countries as they viewed growth pole policy as the highway to industrialise rural areas and transform them through encouraging decentralization of investment in industry, so as to correct imbalances between rural and urban areas instigated by colonial governments through marginalising and under developing rural areas, in favour of development of cities, mining and commercial farms that proved to be a sphere financial benefits (Kambudzi, 1992 pg 268-74). This would help in decongestion cities and towns curb rural to urban migration due to creation of employment opportunities and availability of basic services to people in rural areas leading to a nationally balanced development pattern. However this policy has been practiced in several developing countries but most of the growth poles have never been successful because of different factors overlooked by the responsible governments (Dixon, 1990 pg 34).
Political gimmicks in many African governments have contributed to the failure of growth pole policy to industrialise rural areas from the onset, as despite the critique used to select a place and evaluate its potential as a growth point being set up in terms of economic considerations, the practical process of identifying GPs, departed from the set character and was heavily influenced by political considerations, for example in Zimbabwe (Zwizwai at.el,  2004     pg 21) notes that political influence, prestige, support and party structures were considered more important than the location of a growth point and in some areas proximity of a place to a rural home of a political heavyweight sufficed to locate growth points.
This resulted in the government not seriously considering the differences and diversity of rural areas, in terms of resources and potential business efforts that would in turn encourage industrialisation, such as certain resource based industries or agro based industries for a particular growth point. In Tsholotsho in Matabeleland North and Nyika in Eastern Highlands, the government did not support saw milling and furniture industries despite availability of timber (Conyers, 2001 pg 270).Therefore government incompetence in terms of implementation  of the growth pole policy in terms of resource availability has contributed to lack of industrialisation of rural areas in Zimbabwe since independence. Parr(1999) state that  the strategy is inappropriate when the pursuit of the growth pole strategy and the related concentration of infrastructure are not in keeping with the character of the location or the region in which it is being pursued.
Furthermore governments in developing nations have failed to channel development grants and action towards enhancing massive infrastructural development of growth points such as construction of roads to open up linkages and markets, provision of electricity in abundance and tap water which in turn act, would entice various industries to open new branches and spread their investment opportunities.  This has resulted in many industries being ignorant to invest in growth points, for example in South Africa growth points were established in national states after 1969 such as Isithebe in Kwazulu Natal   but until this present day, investor attitudes continue to favour established towns and cities, the chief reason being the investor goes where or she expect positive cost benefit analysis and minimal risk to business (Manyanhaire et al, 2011 pg 6).
The growth pole strategy is not feasible when various enabling factors are absent of sufficient capital outlay for successful implementation of the strategy effective policy instrument by which the strategy can be implemented and an administrative capacity equal to the task of implementing and coordinating the strategy. Therefore South African government failure to support infrastructural development has contributed to lack of industrialisation of rural areas as they are still caught in the downward spiral depopulation and decline.
Another mistake made by developing nations such as Tanzania and Kenya in as far as industrialisation of rural areas is concerned in terms of growth pole policy, was being overambitious immediately after independence in trying to redress rural urban inequalities as soon as possible through extensively establishing many growth points based on inappropriate western concepts and experiences and not the beneficiaries’ experiences (Henderson, 2000 pg 13). Thus one can articulate that wrong assumptions and no careful planning analysis to guide its application and implementation growth poles resulted in failure to capture different scenarios or situations of rural areas so as to come up with appropriate growth pole centre which would then spear head industrialisation.
Another reason for failure of growth pole policy to industrialise rural areas is that most developing countries seem to ignore essential ingredient for growth, as most centres designated for growth poles do not have the requisite potential or strong human resource base from where to ignite the processes of cumulative causation and subsequent growth. Thus, the decisions concerning these growth centres continue to be controlled from central government whom do not have information at finger tips of what is actually happening on the ground. In Zimbabwe an apparent continued lack of capacity among most district councils reflects the nature of disarray within the planning system making it difficult to achieve the elusive industrialisation of rural areas through growth points (Manyanhaire et al, 2011 pg 8).
Furthermore growth points have failed to achieve their mandates because of plethora of corruption that exists in most developing states due to lack of effective checks and balances to maintain transparency and accountability of funds designated for propelling growth points. This has resulted in the financing resources meant for industrialisation of rural areas being siphoned and diverted into personal use by elites at the expense of majority that live in rural areas and constitute almost 70% of developing nation’s population.
According to (Gantsho, 2008 pg 20-23) a growth point to become viable and sustainable there should be the right mix of policy and planning. A successful growth point planning strategy captures the wide base of the social and economic dynamics, as well as a clear plan to maximize the utilization of the resource base available to propel growth. Also other factors must be at play, like innovation or identification of new resources, in conjunction with favourable government policy support.
A number of innovative and flexible regional planning tools and development strategies that are been employed in other areas that could be considered in the African context. The approaches may differ due to variations in local and historical circumstances but nevertheless, the underlying principle is basically the same. Countries like India (Mukherjee, 2007; Bhandari, 2006) and Estonia (FAO,1997) have resorted to the growth poles strategy as the planning tool to accomplish rural developments that are functionally linked to the urban system, for instance The Indian Growth Pole Strategy for Rural Development in order to attract private sector initiative to accelerate employment-generating activities in the rural areas, the Indian government adopted a rural development strategy titled: Providing Urban Amenities in Rural Areas(PURA) with the sole objective of stimulating high growth in rural economies.
PURA envisages a combination of physical, electronic and knowledge resources at the local level in selected rural settlements by selecting a ring of 10 to 15 villages, connecting them with high quality transportation and telecom system, setting up key education and health facilities around the ring, attracting industry and commerce to the ring, and enabling internet connectivity for linking up with “far-flung areas”.
After regaining political independence Estonia adopted in 1995, a National Agricultural Strategy for the development of the rural economy. An important objective was to promote the development of competitive enterprises, efficient markets structures and international trade relations. The strategy viewed the development of competitive enterprises, efficient markets structures and international trade relations as necessary prerequisites to achieving the broader goal of improving the rural standards of living (FAO, 1997).In order to accomplish this vision of rural development, the strategy conceives a concrete program of developing regional growth centers aimed at strengthening local governments’ financial and administrative capabilities,  and improved channels for effective citizen participation in solving problems of common concern. For this to occur, the Estonian government is seeking to promote the emergence of regional growth poles through additional investments in infrastructure and the provision of transitory incentives for industries and services to locate in those poles.
In a nutshell one can say that as long various loopholes exists in the planning and implementation of growth pole policy in developing countries, industrialisation of rural communities will continue being a dream. Therefore the government needs to wake up and tighten their screws so as to gradually improve the living conditions for the poor in rural areas, which in turn would limit rural-urban migration.







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