Butterworth : a growth pole.

Abstract

In recent times much attention has b een focussed on the spatial development of countries, especially in those countries of the world referred to as the Third World. Many factors have given rise to this interest. It has arisen due in part to the important position of development today both as a means of enhancing the wealth of man's environment, and as a means of raising living standards. It is also a result of the problems being experienced by many countries due to the large spatial inequalities in development that has arisen in these countries. In Transkei a history of racial discrimination and the impact of its close relationship to its former colonial power, South Africa, have combined to produce a spatial pattern of development in which inequalities have become evident. Unfortunately, meaningful efforts have not been evolved to manage the inequalities in such a way as to achieve a balance in spatial development. The need therefore exists to study the factors causing variations in spatial development in Transkei and to suggest methods through which the evolving pattern can be adapted to conform to, if a balance in spatial development is to be obtained from the present pattern of inequalities. Arising from the background given, this study set out within the growth pole framework to examine the linkages between Butterworth, the most industrial region in Transkei and the rest of the space economy. Forty nine industries and a total of 645 industrial employees of various categories were selected for the study. Linkages were measured with respect to sources of raw materials, destination of finished goods, origin of industrial employees and the destinations of remittances by industrial employees. Through the use of techniques such as percentage concentration, correlations, and regression analysis among others for the analysis of the data, the following information emerged from the study: (i) agglomeration economies for the industries in Butterworth are minimal. (ii) Linkages between Butterworth industries and the rest of the Transkeian space economy are minimal. The minimal agglomeration economies and linkages have been due to the fact that industries are set up in Butterworth neither because a market exist for its products nor that raw materials exist that are to be utilised in production. This implies that industrial developments as at present is not being properly guided to ensure the attainment of a balanced spatial pattern of development. From the above findings, it has been proposed that programmes geared towards the establishment of linkages such as the production of raw materials for the industries will be more beneficial than the present regional development strategy. The need for support measures for the industries in Butterworth has also been proposed as a method of raising their economic efficiency and hence their ability to transmit developmental impulses to other regions in Transkei.