Models of Regional Development
Models of Regional Development
The purpose of the article is to present models of regional development in the theoretical
aspect. The author relates to various manners of perceiving its development and the resulting
consequences in the form of characteristic factors, obstacles and control instruments.
1. INTRODUCTION
During recent years, many countries have noted a renaissance of regional issues. A
turn towards regional thinking is connected with the crisis of the 70’s, which affected the
economies of highly developed countries and was visible through: a slowing of the
economic growth rate, increased unemployment, acceleration of inflation processes and an
increase of debt and interest rates. Also in Poland, it can be observed that regional
development of the country has become an object of serious consideration. The reasons
for this are to be found in the strive to join the European Union (one of the conditions of
membership is co-operation with organs responsible for regional development and
adapting to required standards in Europe), challenges of civilisation, changes of the
functioning principles of the Polish economy, and in the increasing awareness of local
communities, which are trying for themselves, to solve problems of their own functioning.
L. Bagdziński included the following factors among the main causes of the increasing
importance of regionalism and the growing awareness of territorial autonomy among local
communities:
• drawbacks of the scientific and technological revolution,
• conflicts in spatial management, visible mainly in deterioration of the natural
environment,
• the search for new methods of social development,
• utilisation of the positive features of locality in the process economic development
[based on 1, p. 9].
• eco-development,
• the neo-classical theory,
• the post-Keynes theory,
• endogenous development.
A description of each model follows:
Polarised development is treated as a concept binding three separate partial theories,
bringing together three models reflecting various aspects of regional development. This
theory contains the location theory, the development pole theory and the innovation
diffusion theory. Polarised development is a non-uniform development, whereby
differences regard not only income spans and unemployment rates, but also disproportion
in the condition of the natural environment, infrastructure possessed, access to capital,
services, possibilities of gaining education and training. Development processes do not
appear everywhere and at the same time. “There are privileged places providing
comparative benefits defined by economic activities. These are places that effectively
compete with others for capital from investors. The sources of privileged positions of
certain locations and towns are various. Often, they are beyond the domain of economy
and location factors” [2, p. 24-25]. Factors stimulating economies in the surrounding areas
are most often (though not always) urban agglomerations or towns that have their own
“propulsion units”. Polarised development offering an opportunity to utilise broadly
understood resources and development predisposition may, at the same time, lead to
neglect of less obvious opportunities for development, which would need a stimulus –
intervention from outside. This happens because any help for poor regions is regarded
harmful to economic efficiency and slows down the overall dynamics of development
[cf. 3, p. 14-15].
The paradigm of integrated development, sometimes called integral development, can
be connected with Marshall’s concept of an industrial district, which was recalled and
developed by the eminent expert in this area, G. Becattini [see 4, given for 5, p. 43 and
further]. He defined a district as “a social and territorial unit characterised by an active
presence in a given geographical and historical space – a community of individuals and a
population of companies between which (i.e. between the local community and the
companies) there exists a perfect osmosis. For districts, there exists a relatively
homogeneous system of values and manner of thinking, which– based on the principle of
mutuality – expresses certain work ethics, activity and family. A common system of
values is one of the initial condition for development and reproduction of a district in
accordance to which (system of values) principles and institutions develop to propagate
them and to pass them down from generation to generation. These institutions include the
market and company, as well as the family, churches, schools, local government, political,
cultural, charity, religious and artistic organisations, etc. This does not mean that there are
no conflicts of interests between various members of a district. However, the rule is their
submission to a higher, common cause” [5, p. 45].
The sustainable development hypothesis, also called uniform development, undertakes
an attempt to formulate the paradigm of a state’s spatial policy, taking into consideration
both effectiveness criteria and public aspirations for equality and justice. The core of the
sustainable development hypothesis consists in the concept of constant improvement of
the quality of the life of local communities supported by balanced social, economic and
ecological factors. The whole idea is based on the assumption of the necessity to make
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decisions that are economically effective, socially acceptable and environment friendly.
“Development (...) should take place in such a manner as not to disrupt any of these areas.
A decision cannot create a threat in this scope” [6, p. 66]. The paradigm of uniform
development pays special attention to economic development, which, stimulating an
increase of public wealth and raising its living standard has positive impact on the other
domains and on social development and is concentrated on satisfying collective needs as
fully as possible. However, not all scholars agree that a paradigm of uniform development
exists at all [cf. 7, p. 13]. They claim that the term contains an inherent contradiction,
since the essence of development is a lack of balance, an irregularity in a given area and
evening out proportions can take place only through transfer of its results to other areas.
Hence the suggested name “development balancing paradigm” for this mode of
proceeding.
The fourth model listed – eco-development, is connected with observance of the
values of the natural environment and careful shaping of spatial order. It is an attempt not
only to find optimal relations between man and nature, but also to improve the quality of
the environment, since, as a result of subjugating and changing of nature by man, we can
observe man’s increasing dependence on nature. This model, a synonym of safe social and
economic development guarantees survival and development to present and future
generations by preventing, minimising or complete elimination of changes and damage
brought by human activities. It is usually defined as a model of social and economic
development of a certain area based on assumptions of natural determining factors while
maintaining ecological balance [cf. 8, p. 3-17 and 9, p. 119-123]. In this situation,
technological development and improving technological solutions should have a
significant influence not only on the economic development of the region, but also on the
improvement of the natural environment. Eco-development is sometimes identified with
sustainable development1. However, most authors2 do not connect these two theories of
development, emphasising the essence of each – sustainable development is a balanced
development, while eco-development is a self-sustaining development. The basic rules of
eco-development include:
• complex and dynamic perception of natural, social and economic phenomena in a
given area,
• interactive perception of reality, within which there exist a number of bonds and
relations between various ways of utilising space,
• consideration of components of the natural environment as elements that can perform
various functions,
• evaluation of changes in the environment from a viewpoint of values, whereby, the
main feature is nature’s ability to ensure permanent development [cf. 12, p. 49-50].
The neo-classical concept is based on the claim that there exists a natural tendency for
differences to even out, with regard to possession, by a region, of development factors due
to their movement from region to region. Levelling out differences between regions takes
place as a result of transfer of capital from relatively cheaper (thus less developed) places.
Similarly in the case of surplus labour; cheap manpower migrates to places where the
price of labour is higher, causing attenuation of amplitudes. Therefore evening out the
level of development is a result of the following market mechanisms: spreading
1
For example, S. Kozłowski treat development in this manner [cf. 10, p. 33 and on].
2
The author of the article is inclined towards such a view, cf. also [11]
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of economic activity to less developed places and reduction of pay in places hitherto more
developed. Opponents of this model, emphasising that, indeed, an immediate result of
differentiation of employment opportunities and condition is the flow of resources from
places where chances for a job are small to places with better employment prospects,
however, the positive impact of such migration is short-lived, especially for the region
from which labour migrated. It is obvious that migration assumes a selective form –
people with higher qualifications are more mobile and willing to migrate over longer
distances and for longer periods of time. Thus, in the long run, selective migration
intensifies unevenness of economic capabilities, as it deteriorates the labour supply
structure on the market in regions with high unemployment, while simultaneously
improving the situation in regions with low unemployment. Therefore, on the one hand,
the flow of human capital leads to a reduction of the price of labour in regions of
immigration, and, on the other hand, to a deterioration of the quality of labour in regions
of emigration.
A completely opposite approach is presented by the post-Keynes development
paradigm based on the demand model of production and employment by J. M. Keynes
[see 13]. The starting point for formulating this theory was the hypothesis of the tendency
for extreme rates of pay of production factors to even out. “In more developed areas,
productivity is much higher than in areas at a lower level of development, which is why,
even in a situation of considerably higher costs of production (...) economic activity is
much more profitable there than anywhere else. Highly utilised places are attractive so
attractive that they draw new production factors: labour and capital, flushing them out (the
backwash effect) from the surrounding areas [14, p. 172]. For this reason, in accordance
with the theory, a limited spatial range of the influence of more highly developed areas
leads causes regional disproportion to deepen.
The paradigm of endogenous regional development is based on the internal
development potential of a local community, whereby, this potential is understood as the
inherent development capabilities of a region determined by the resources it possesses.
Therefore, the basic factor in development is activation of the inherent potential of the
region, taking into account even (or at least) such features as the uniqueness of the region
or the distinctness of its tradition. These strengths have to be identified, skilfully utilised
and systematically improved, as it is the manner of utilisation of these resources that the
region’s social and economic development depends upon. This concept, based on the local
culture and tradition, refers to the approach by C. Weaver and W.B. Stöh, where
“development is stimulated only by the inner needs of a region and export is strictly
controlled by the region (innovation is local, inhabitants are actively involved), otherwise
called selective autarchy and strategic regional superiority” [15, p. 364].
A collection of all the presented models, together with a short description is contained
in Table 1. One should bear in mind that these theories explain real-life phenomena in an
incomplete manner, as these phenomena are more complicated than the paradigms
attempting to explain them. One could say that all of them are right, but only with regard
to certain fragments of the social and economic reality and only at a certain time, since, in
the process of social and economic changes there occur many kinds of phenomena and
with various intensities. How difficult it is to include all these elements while, at the same
time, ignoring factors characteristic only for a given region, one can see when one tries to
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3. SUMMARY
The article undertakes an attempt to present how important knowledge of regional
development paradigms is. It allows one to identify the advantages and disadvantages of
each of them, and thus, to select the most beneficial one the current social and economic
situation of the region. This choice must be made in accordance with the vision of
development of the country. A conscious decision regarding the selected option will not
only make it easier to apply the appropriate tools and development methods, but will also
simplify the formulation of a regional development strategy.
BIBLIOGRAPHY
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„Gospodarka lokalna w teorii i praktyce”, Wrocław: Prace Naukowe Akademii
Ekonomicznej we Wrocławiu, nr 734: 1996.
[3] Winiarski B. „Nowe struktury europejskiej przestrzeni”, (w:) L. Cybulski, J.
Gogolewska (red.) „Postęp w integracji europejskiej a rozwój regionów”, Wrocław:
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1996.
[4] Becattini G. „Dal settore industriale al distretto. Alcune considerazioni sull’unita
d’indagine dell’economia industriale", Rivista di economia e politica industriale
1979, nr 1.
[5] Pietrzyk I. “Polityka regionalna Unii Europejskiej i regiony w państwach
członkowskich”, Warszawa: Wydawnictwo Naukowe PWN S.A. 2000.
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