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Agenda

Agenda. Questions? Review Global Economic Development (Chap 3) Problem: How fast is the satellite traveling? Criticisms of Rostow’s Model, underdevelopment persists e.g. Haiti Rostow as an “internal growth theory” Emergence of trade centres and market areas

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Agenda

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  1. Agenda • Questions? • Review • Global Economic Development (Chap 3) • Problem: How fast is the satellite traveling? • Criticisms of Rostow’s Model, underdevelopment persists e.g. Haiti • Rostow as an “internal growth theory” • Emergence of trade centres and market areas • Effects of decreasing production and tpt’n costs • Basic/non-basic distinction and export base theory • Staples theory

  2. Trade centres with a linear market

  3. Today • Regional Economic Change • Staples Theory in Canada • Growth Pole Theory

  4. Staples Theory • A Canadian theory of Harold Adams Innis • Staple: a crude commodity or resource product • Staples emerged at different times and places • With distinctive upstream and downstream linked industries • Influencing regional economic development

  5. Global demand for Staples has regionalized impacts in Canada

  6. Staples Theory • East-West sequential development of Canada: Fish, furs, timber, agriculture, minerals • Staple exports determined exogenously by global markets • Economic and social character and settlement geography, the essence of Canada , results from dominant staple • Staple trap: prosperity is dependent on external markets, ~ capital, ~ technology • Dependency of the dominions, Canada is not alone

  7. Staples Theory II • Role of the state is to foster economic development based on comparative advantage in staples • …maintaining a positive balance of trade • …creating employment • Diversifying regional economies • Upstream linkages to supply staple industries from local sources • Downstream linkages to process and add further value to staples at home

  8. Protecting the cottonwoods can be a real challenge!(Downstream from Oldman River Dam, 1994)

  9. Growth Pole Theory • Economic growth is not uniform • Emerges at certain points in space (urban centres) • Which benefit from a “key industry” (pôle de croissance) and related sectors • Spatially clustered centres of growth • Surrounded by “backward,” or underdeveloped hinterland in the periphery

  10. Favorable Impacts of the Growth Pole on the Hinterland • Trickle-down effect: growth pole buys resource products, invests some of its surplus cash, absorbs some of unemployed, recreation and urban field effect: cottage country • Thus concentrated growth at the centre “spills over”

  11. Unfavorable Impacts of theGrowth Pole on the Hinterland • Backwash effect, growth at the centre comes at the expense of periphery. • Less efficient peripheral services cannot compete with those of the growth pole • Selective out-migration strips away the most innovative and entrepreneurial; brain drain • Capital flows from periphery to the core to secure the highest return

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