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The Roepke Lecture in Economic Geography Location Theory, Location-Allocation Models,


and Service Development Planning in the Third World
Author(s): Gerard Rushton
Source: Economic Geography, Vol. 64, No. 2 (Apr., 1988), pp. 97-120
Published by: Clark University
Stable URL: http://www.jstor.org/stable/144118
Accessed: 15-08-2017 20:11 UTC

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Economic Geography

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ECONOMIC GEOGRAPHY

VOL. 64 APRIL, 1988 No. 2

THE ROEPKE LECTURE IN ECONOMIC GEOGRAPHY*

LOCATION THEORY, LOCATION-ALLOCATION MODELS,


AND SERVICE DEVELOPMENT PLANNING

IN THE THIRD WORLD

GERARD RUSHTON

The University of Iowa

The absence of an integrated system of settlements providing services and


facilities is often cited as a cause of underdevelopment in rural areas. Location-
allocation analysis systems provide an explicit framework for diagnosing service
accessibility problems, measuring the efficiency of recent locational decisions and
the current levels of settlement efficiency, and generating viable alternatives for
action by decision makers. Development objectives are realized only when these
models are applied within a broader location theory framework in which the often
antagonistic behaviors of the many actors are recognized.

The debate about the role of location tral place theory, was based, I will call it
theory in planning services for regional "service development theory." The expe-
development has raised many interesting riences of third world countries in devel-
questions. I believe that from this debate oping new service systems have contrib-
an outline of a new theory for the location uted significantly to the development of
of services is emerging, and that, like all this theory.
good theory, it will have a universal The evolution of this theory has not
appeal to the solution of service delivery been simple, and an interesting debate
problems everywhere. Because this new that began about ten years ago is far from
theory will have social and political com- over. Both sides of the debate argued that
ponents, in addition to the economic improvements in access to services are
components on which its progenitor, cen- essential for rural development and there-

'The Roepke Lecture in Economic Geography was tion of this paper. He also acknowledges support
established to honor the late Professor Howard G. from NSF Grants SES-7925069 and SES-8616644
Roepke who served on faculty of the University of and the benefit of discussions in the past five years
Illinois at Urbana-Champaign from 1952 until 1985. on the subject of location theory and regional
The lecturer is chosen by the geography faculty of development planning with Eric Belsky, Paul Den-
sham, Hugh Evans, Gerald Karaska, P. D. Mahadev,
that institution in consultation with the editor of this
journal. The paper was read at the Annual Meeting Michael McNulty, Dennis Rondinelli, Vinod K.
of the Association of American Geographers, April, Tewari, and Lakshman Yapa. He also thanks
1988. The author would like to thank Ron Schultz Carolyn Rushton for editorial assistance.
and Sam Ratick for their comments at the presenta-

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98 ECONOMIc GEOGRAPHY

fore argued for designing "integrated region to region. The task of spatial plan-
regional planning projects" [56;95]. ning is to derive this optimal form for the
Johnson [56], an economic historian, social, physical, and economic conditions
showed how the availability of urban ser- of each area. The method, they believed,
vices was critical to rural development. was to integrate social and spatial rela-
He found that many developed countries tionships, recognizing that just as existing
had invested heavily in linkages between spatial organizations constrain, maintain,
town and country in the early stages of or enable changes in social relationships,
their economic development. In this way, so changes in spatial organizations can
he argued, formerly isolated rural regions affect future social relations. These pro-
became an integral part of the developed jects recognized a relationship between
world. Any comparative advantages they social and spatial structure: the power of
had over other regions could then form any actor over others is affected by the
the basis of mutually advantageous inter- spatial organization of activities; the goals
regional trade. Others, from contempor- of one group in a given region might be
ary observations, argued that inaccessi- antithetical to the goals of another;
bility to resources for the production changes in the spatial organization of
process and to basic human services is a activities can affect the relative powers of
barrier to increased agricultural produc- different groups in the long run.
tivity and increased social welfare in rural In such conditions, resource allocation
areas. Both arguments provided the rati- decisions made rationally at a sectoral
onale for a number of projects which level appeared to become a system of
sought to strengthen rural development patronage at the local level. The solution,
by developing urban services [42;75; they argued, was to maintain the rational-
92;97;99;107;108;109;127]. These spa- ity of resource allocation at the local level
tially redistributive policies were a part of by seeing the demand conditions of the
sectoral policies designed by govern- rural population as the driving force in
ments to increase resources available to inducing suppliers to locate wherever the
dispersed rural populations. rural demand assured sufficient support.
The debate is really about the imple- The planning questions were to identify
mentation of these arguments. On one the locations that would best meet the
side, there are those who adopted the needs of the rural population and to
theorems of central place theory-the determine whether these locations were
deduced spatial structures [193]-and at- viable for the supplier of the service. The
tempted to implement them in real condi- difficult problem was to reconcile the
tions. To them, the practise of regional sometimes conflicting needs of suppliers
planning was to examine the current patt- and consumers and to reconcile the loca-
ern of central place activities and spatial tional criteria of different sectors of the
linkages between producers and consu- economy.
mers and then to identify projects that Adoption of central place logic to the
would strengthen the existing urban sys- planning of services for rural develop-
tem by bringing it closer to the ideal spa- ment accepts three principles: (a) the
tial structure [23;95;99]. purpose of an urban function is to meet
On the other side of the debate were the service needs of a dispersed rural
those who adopted the logic of central population; (b) the locations of these
place theory but argued that the theorems functions are to serve the rural population
were specific to particular geographical with efficiency and equity; and, (c) the
and social-political conditions that were behavior of consumers and providers in
not found in most developing countries the service system should reflect typical
[86;111]. They believed that the spatial behaviors in the particular social, cultu-
form that provides goods and services ral, and economic context of the applica-
efficiently and equitably is different from tion-behaviors that often lack consensus

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LOCATION THEORY 99

among the various persons or groups who Latin America, and Africa preceded the
participate in the decision making pro- recognition of their logical congruence
cess. with central place theory by location the-
Where services already exist, applica- orists [11;61;87;114]. It was argued that
tion of the logic of central place theory location-allocation models provided infor-
involves: an evaluation to discover which mation that aided locational decision
rural populations do not have adequate making for many development activities
geographical access to important goods [9;28;31;32;46]. The adoption of location-
and services (principle a); a decision rule allocation models [101] took place on a
to select the locations that can serve these project by project basis first in India
needs within the constraints of limited [9;31;85;100] then in Africa [46] and in
resources most effectively (principle b); Latin America [26;28].
and an evaluation of the likely behavioral By allowing decision makers to be
response of consumers and providers in actors whose objectives and values were
the particular context to the hypothetical inputs to the model, significant progress
change in service provision to determine was made in developing practical tools
whether the needs identified would for making locational decisions. What
indeed be met by the proposed action was taken from theory was the central
(principle c). The appropriate geogra- place logic that urban service systems
phical arrangement of the services for represented an adaptation of the goals of
rural development is thus derived from service providers-public or private-to
the logic. There is no guarantee, for the needs of local populations. Rejected
example, that the result of the application was the adoption of any particular spatial
of this logic in a specific context would be pattern of activities to accomplish this or
a hierarchical arrangement of goods and any particular objective function to be
services in urban centers. The form that optimized. Discussions of different inter-
best accomplishes a given purpose will pretations of central place theory such as
change according to the context. The task that of Saey [103] were simply irrelevant.
of spatial planning is to establish the Instead, "decision makers" were invited
degree to which the current spatial struc- to state their goals and objectives, the
ture of services is an impediment to geographical environment was captured
development, to estimate the develop- in a geo-coded information system, and
ment that might come from improving the spatial pattern that best met their
access to specific services, and to derive objectives was computed.
optimal interventions consistent with the The general practice of making loca-
social, physical, and economic conditions tion decisions in developing countries
of each area. The inappropriateness of remained untouched by these develop-
conventional methods of regional analy- ments. The major international organiza-
sis to accomplish this purpose is clearly tions involved with development either
illustrated by Rondinelli and Ruddle [97, explicitly rejected or ignored formal facil-
p. 186-90]. Implementing this view of the ity location models in favor of more tradi-
relationship between central place theory tional, subjective, graphical approaches.
and service development planning Each international agency has described
proved to be impossible without the its experiences in facility location method
development of location-allocation model- and practice: UNESCO [44]; USAID
ing methods. [95;96;97]; WHO [60]; WORLD BANK
[38].
Early applications of location-allo-
LOCATION-ALLOCATION MODELS
cation models searched for location patt-
Location-allocation models were seen erns that were optimum with respect to
by some as operational models for meet- defined criteria. Later, researchers began
ing these tasks, and their use in India, to compare the results from such models

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100 ECONOMIC GEOGRAPHY

with the existing system of locations, every 15,000 people. In the state of Kar-
arguing that a comparison of the two was nataka, in South India, the Directorate of
a test of the locational efficiency of the Health interpreted this to mean that they
decision process with respect to the crite- should divide each taluka within each
ria optimized in the model. This new area district in their state into small regions
of locational modeling, described else- which they called "population blocks."
where by Ghosh and Rushton [34, Ch.], These areas contained approximately
was designed to answer questions such as 15,000 people each and were defined by
how to: administrators who were reasonably famil-
(1) find a set of locations that are optimal iar with the local territory. They were
with respect to predefined objectives; asked to define these areas so that each
(2) compare the performance of real would focus on a center linked by good
geographical systems with estimates transport facilities to the surrounding vil-
made for their normative counterparts. lages. After approving these regions in
(3) compute an optimal set of new loca- 1972, the state health planning unit ap-
tions to add to the existing set; proved the establishment of new primary
(4) assess the benefits and the costs of any health units only in "vacant population
constraints on location decisions that are blocks" in which government health ser-
present in real-life decisions; vices did not already exist.
(5) evaluate the quality of past (recent) In one district in Karnataka (Bellary
location decisions; District, with a population of 1,122,920 in
(6) investigate alternative decision mak- 1971), the effect of implementing this pol-
ing principles and to illustrate, by simula- icy on geographical accessibility to health
tion, the alternative location systems that services was investigated. Shortest road
would develop if these principles are distances between all 600 settlements in
employed; the district were computed using a shor-
These application areas illustrate pro- test path algorithm. The vertex-substitu-
gression in the use of these models from tion, heuristic, location-allocation algo-
normative modeling in question (1) to the rithm designed by Teitz and Bart [117]
modeling of decision making behavior in was used to evaluate recent clinic location
question (5). What is interesting about decisions. Without any reference to the
applications (5) and (6) is that they are population blocks, the algorithm
used to identify inefficiencies in the deci- searched for locations where the reduc-
sion making process and to validate im- tion in person kilometers was greatest and
proved methods of making decisions. compared this with the person distances
Modeling in such a context is an aid to saved in the locations actually selected.
decision making rather than a replace- Results showed that recent location deci-
ment of the decision maker as in applica- sions saved a smaller and smaller percent
tions (1) and (3). of the potential savings available. The
five primary health units which opened in
CASE STUDY: EFFECT OF A REGIONAL the area from 1976 to 1979 realized 77
percent of the potential distance savings
CONSTRAINT ON THE LOCATIONAL
of five optimal locations, whereas the
EFFICIENCY OF DECISIONS
seven units opened between 1979 and
In 1972, the Central Ministry of Health 1981 realized only 62 percent of the
in India implemented a program to make potential savings available in the seven
primary health care more accessible to optimally located sites.
rural areas. Stating that its goal was to In 1981 only 15 of the 67 population
bring the services of "primary health blocks in Bellary District were without a
units" within convenient reach of rural primary health unit, and so the question in
populations, it set a goal of having one the District Health Office appeared to be
primary health unit for approximately the relatively simple one of where new

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LOCATION THEORY 101

clinics should be located within the va- in neighboring areas (Figure 3). As fewer
cant population blocks so that accessibil- "vacant population blocks" remain, these
ity would be most improved. By insisting analyses show that it will become more
on the use of "blocks," however, the and more difficult for the health authori-
general access to primary health services ties to find locations that significantly
is affected. The research question then improve the geographical accessibility of
becomes: What is the cost of insisting that the population to health care. Thus, the
these health units be located in the vacant cost of the constraint will increase, the
blocks, rather than wherever in the dis- longer it is allowed to remain. Indeed, in
trict they would most increase geogra- this analysis, the greatest reductions in
phical accessibility to the rural popula- distances to nearest health center for pla-
tion? The same location-allocation model ces selected from vacant population
was used to identify, in sequence, 15 blocks (Figure 2) was achieved when
places which, if added to the 55 existing three places out of the 15 were selected
places, would most reduce the distance tofrom one block and two from another.
the closest place offering government Thus, even after this simulation, three
supported health services for the rural vacant population blocks would have
population. Known in the location-allo- remained. The results shown in Figure 1
cation literature as the "add principle," are thus underestimates of the extent of
this was applied under two different con- the loss in efficiency caused by the govern-
ditions. In the first case, all places were ment's constraint.
considered by the algorithm to be eligi- In the face of evidence that this ap-
ble. No requirement about locating in proach of designating population blocks
vacant population blocks was imposed. and using them in the decision making
The top line in Figure 1 shows the reduc- process forces the government to make
tion in distances from health centers that less than optimal decisions: Why would a
would occur if each of the 15 identified government constrain local decision-
places were to be added to the system. In makers in this way? Four possible expla-
the second case, the algorithm was con- nations are offered here:
strained in the same way that the state (1) The higher authority-in this case the
government constrained the decisions of State Ministry of Health-believes that
the local health planners. In this case, only the device of the population block is an
places in vacant population blocks were aid to good locational decision making in
eligible. From these eligible locations, the that it forces geographical dispersion of
algorithm selected, sequentially, the loca- the health facility sites. A related study by
tions that would give the greatest reduc- Krishnamurthi [63] showed that a coordi-
tion in person-distances to the nearest nated set of 65 locations selected from the
health facility site. The bottom line, Fig- 65 population blocks in Bellary District
ure 1, shows the reductions in total dis- could have achieved 95 percent efficiency
tance that are possible when locations are in geographical accessibility in compari-
chosen, subject to this locational require- son with 65 locations optimally selected
ment. with respect to the region as a whole. This
The loss in potential improvement result shows that it was possible to de-
caused by the constraint generally in- velop a relatively efficient set of locations
creases as the number of places increases, with this constraint providing that the
Figure 2. Some vacant blocks have popu- overall pattern of sites selected was coor-
lations that are well-located with respect dinated. This study shows, however, that
to health units in adjacent blocks. Still when some locations have already been
other population blocks, which already selected that are sub-optimal with respect
have health units, have substantial popu- to their local areas, the regional constraint
lations that are geographically inaccessi- prevents the selection of locations that
ble to those health units and to other units would be significantly more accessible to

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102 ECONOMIC GEOGRAPHY

110,000

90,000

co

.@ 70,000 -
E
0

all places
o Pare available
ffi 50,000

only places in vacant


population blocks are
eligible

30,000 , , ,
55 60 65 70
Number of Centers

Fig. 1. Application of the Vertex Substitution Algorithm to Identify Fifteen New Primary Health Units in
Bellary District, India

120 -
_ _

100 -

80-

60 -

0 S
-J 40 0 0 0.
a) ~~0 0
a 20-

00

55 60 65 70

Number of Centers
Fig. 2. Percent Loss in Efficiency Caused by the Original Constraint

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LOCATION THEORY 103

0~ ~~> 0
C) 0~~~0
/ Zo Eto~d~oO / (
0 0~~~~~~~ 00>0 C

0 8& 0\90~~0 ~li~~ ' /0 >0)o

o 00? %q on
C, Z
0 0 9 0C
8 g '
0~ > 0 tX / Show except f or~arge Pc
0,0-0 ( ,ONaP 0 >000>
0 O 0 (O O> /1_P

\0 ~ 0 o,000

ilotneters

Q Location Selected by
the Algoritlom

>~~~ ~~5 ~a. Population of Places Proportional to Areas


/ 0 ~~~~~~~~~~of Circles; Boundaries of Population Blocks
T ~~~Shown except for Large Places

C. b. Algorithm Selections from All Eligihle


K ilometers Places

c. Algorithm Selections from


- -Center Serving Only Itself tion Blocks

Fig. 3. Effect of a Regional Constraint on Locational Decision-Making

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104 ECONOMic GEOGRAPHY

the population. Locational decision mak- health planners that they believed they
ing will be particularly improved when could ask for a change in the long-stand-
the higher authority cannot ensure that ing state policy of sending nominations
local decision makers will not make loca- for new health centers only from vacant
tion decisions that leave large rural popu- population blocks.
lations at large distances from sources of The District Health Officer told us in
health care. If such poor decisions are a 1982 that he was being asked to nominate
possibility, use of the location constraint five more locations for new primary
will ensure that the result will be better health units. We sent him a copy of one of
than if the constraint were absent. our analyses in which we had computed
Though not the best locations, they are the best five locations which, if added to
better than the worst decisions that could the current 59, would most increase accessi-
be made if the constraint were not there. bility of people to primary health facili-
In this explanation, decision makers hope ties. During a return visit in 1987, the new
that by restricting the choice to a well- Health Officer told me that the five we
defined set of alternatives, a better deci- had suggested in 1982 had been adopted
sion will be made. by the government, and health units had
(2) Use of the population blocks validates been opened in these locations. I do not
the decision making process. A file in the know at this time how successful they
district health offices in Bellary District have been in improving people's health in
describing the nomination process for the area.
one primary health unit, for example, This is a brief description of only one of
concluded a presentation of facts about a many experiences I have had in India
village with a note that the village being since 1971 when I first worked with an
nominated was in a "vacant block." Indian Ministry of Agriculture team on
(3) Use of the population blocks validates "Rural Services Planning." I have often
the process of decision making in that been surprised at how frequently the
villages requesting a primary health unit Indian Government bureaucracy has de-
for their village can be denied on the veloped sensitive measures of geographi-
grounds that a facility is already located cal access to services that were better at
in their population block. From corres- the time than those used in academic
pondence we found in the files of the geography. Tewari and Jena [118], for
district health office, it appeared that vil-example, describe many of the rules de-
lages found this to be an acceptable veloped by the Indian Ministry of Educa-
explanation for receiving a government tion to ensure that secondary schools are
rejection of their request. located well. While visiting the offices of
(4) A final possible explanation is that the the Deputy Commissioner of Bellary Dis-
population blocks are needed as a valid trict in South India in March, 1980, I
reporting mechanism by the state to the noticed that he had selected voting sta-
Central Indian Ministry of Health when, tions for the district recently. His descrip-
periodically, it asks states to report the tion for each polling station included
"proportion of the population blocks that information on the "total number of vot-
do not yet have a health unit." ers assigned," the "maximum distance
The reaction of the state's senior health that voters will have to travel to reach the
planner to the results of the computer polling station," and "whether for all
simulation that showed the difficulties of voters or men only or women only." On
selecting good locations from among the the particular notice I examined, all vot-
remaining 15 vacant population blocks ing stations were "within 2 kilometers."
was that, if this were known locally and Clearly, the deputy commissioner was
reported to the state, the requirement thinking of a location set-covering model
would be changed. We found no evi- [18].
dence, however, in talking to the local

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LOCATION THEORY 105

LOCATION-ALLOCATION MODELS IN that if surrounding each center after the


SERVICE DEVELOPMENT PLANNING first period there are 10,000 people, then it
will normally be impossible to find loca-
Methods to improve access to services
tions in the second period that will have
in developed countries typically are short
more than one-third of 10,000 people in
term in scope and involve transport re-
the proximal areas surrounding them.
lated changes [78;81]; whereas, in devel- This apparently became clear to a Work-
oping countries, methods used are typi-
ing Group set up by the Government of
cally long term in scope and involve
India [41, p. 21] when, after holding hear-
changes in locations of services. Models
ings on the problems of service system
based on service development theory
planning, it agreed that standards should
attempt to quantify the relationship be-
not "be applied mechanically to any spe-
tween specific services at specific loca-
cific area," and that establishing mini-
tions and their effects on the production
mum threshold population and distance
and consumption system. The theory de-
standards:
scribes how the needs of suppliers and
should be a collective decision taken
consumers are reconciled within variable
by the concerned departments (agri-
geographical environments, how this recon-
culture, education, health, roads and
ciliation is possible within different social-
electricity) taking terrain conditions
political conditions, and how some of
and the settlement pattern of the area
these relationships might be expected to
into account. It is only when these
change if the geographical organization
standards are mutually agreed upon
of services is changed. I believe that these
by the operational agencies concerned
models have, within the past five years,
with the provision of certain services at
begun to meet these conditions. Service
the local level, that their phys-ical con-
development theory is, therefore, a the-
vergence at appropriate locations could
ory about "models in use" rather than a
come about, as envisaged.
theory about behavior in the pre-model
Past practice for locating primary
age. It is a theory of action rather than a
health centers in the Karnataka case study
theory about action [119, p. 24]. It is a
described above is captured succinctly in
model of the process of reconciling the
a memo to District Health officers from
needs of consumers and suppliers. The
the State Directorate of Health Services
remainder of this article discusses some
(dated 21 December, 1971):
of the problems that arise when these
It is proposed to establish Primary
models are used in this way. Health Centres for every 30,000 peo-
ple instead of the present 80,000 to
RECONCILING MULTIPLE OBJECTIVES: SUPPLY-
150,000 population served by each Pri-
SIDE CONSIDERATIONS
mary Health Centre. ... It is evident
Bureaucracies set different and some- that all the above institutions at or
times contradictory criteria for selecting below Taluk level cannot be converted
locations. Consider the case of the Govern- into Primary Health Centres but only
ment of India [40, p. 10] in its discussion some of them will become Primary
of the development of health and nutri- Health Centres. It is now for the Dis-
tion services: "The present standard of trict Health and FP Officers to suggest
one public health center for a block popu- which are the institutions which should
lation of 80,000 to 100,000 supported by 8 be converted into Primary Health
to 10 Sub-Centres, each serving a popula- Centres so that they may serve 30,000
tion of 10,000 may be accepted as the population each. Care should be taken
minimum norm for the fifth plan...in sub- to select proper institution that is con-
sequent plans, the coverage of a Sub- veniently situated in order that it effec-
centre may be reduced to a population of tively serve the surrounding 30,000
4,000 to 5,000." The contradiction here is population.

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106 ECONoMic GEOGRAPHY

The assumption, implicit in this memo, farther than five km. from a PHP and that
is that the problem of finding existing existing health centers remain. The crite-
health facility locations that can be up- ria of minimizing average distance should
graded to the Primary Health Centre generally lead to the selection of places
Level can be solved by simply asking the with the larger local populations. This,
local administrator to select the locations. presumably, would be the goal of health
But if, as in this case, many such centers planners attempting to apply these crite-
already existed, it will often be impossi- ria in local areas. Mehretu [73, p. 371]
ble to find new locations with natural ser- attempted to implement these objectives
vice areas of about 30,000 people. literally and separately within the con-
Different "operational agencies" find it straints of small areas previously defined
difficult to agree upon minimum popula- by a grouping algorithm. Although his
tion threshold and distance standards philosophy of meeting coverage (equity)
because the consequences of not meeting criteria first before addressing efficiency
a particular set of standards affects each criteria will appeal to many, the crude
of them differently. Most service agencies allocation method he employed preemp-
consider threshold populations to be essen- ted locations that represented the best
tial to offer an adequate quality of service. compromise between equity and effi-
Their staffing patterns are usually deter- ciency with limited resources. As the
mined and approved in relation to these number of facilities increases, it is possi-
levels. So it is not easy for them to com- ble to select locations that simultaneously
promise with colleagues from other agen- provide efficient and equitable access to
cies and agree to service areas that are services, providing that inefficient loca-
significantly different in size. Unfortu- tions were not selected at some earlier
nately, though theorists refer to threshold phase. Decision makers who readily ac-
populations as if they were population cept the logic of Mehretu, addressing the
counts, the demand for services is related issue of equity first and then turning their
to population characteristics which often attention to efficiency, will not be able to
correlate only roughly with total popula- select these best compromise locations.
tion counts. This increases the difficulty of The problem in this case originated in a
integrating their supply in space. ministry that translated its fundamental
In many developing countries, edicts goal of improving access with equity into
appear from ministries that confuse goals a set of specific locational criteria that
with the means to achieve goals. Mehretu were not sufficiently abstractly defined.
[73, p. 365], for example, describes three The problem was compounded when
quantitative goals in the plan to improve Mehretu et al. [74] failed to interpret t
rural health in Bourkina Faso [39]: (1) problem as a multi-objective optimiza-
every village with a population of 730 and tion problem [98].
over will be assigned one Poste de Sante An alternative supply side approach to
Primaire (primary health post (PHP)); (2) reconciling multiple objectives in loca-
every rural household should have access tion selection is illustrated by the typical
to a health facility within a maximum of practise of the World Bank. Its staff
five kilometers; and (3) the allocations of appraisal reports of development pro-
existing health centers will be retained. jects involving multiple locations typi-
No method is suggested for reconciling cally include sophisticated analyses of the
these multiple objectives-they are sim- costs and benefits at the locations pro-
ply regarded as additive criteria. Con- posed by the country applying for the
sider, however, this interpretation of their loan. Analyses to determine comparative
problem: for increasing numbers of loca- rates of return typically are not con-
tions (p), find the p-locations that minim- ducted for alternative loeotionn in order
ize average distance to the closest place to identify the locations for which the rate
subject to the constraint that no village is of return would be maximized. Yet the

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LOCATION THEORY 107

Bank is usually familiar placements of withvaccine supplies and tim-


similar in
structure investments that have been ing their delivery to primary health cen-
made in other areas, and data usually exist ters in India to determine improved cov-
on their performance in different loca- erage. Working in a region of Honduras,
tions. Thus, it should be possible to pre- Moore and ReVelle [76] determined the
dict the rate of return for new locations number of health facilities and their loca-
from audited rates of return of past tions in a hierarchy of services so that the
investments. As in any market site evalua- population which has access to compo-
tion study, it would be possible to make nents of service is maximized within a
past rate of return the dependent variable total budget available for investment in
and to find the functional relationship facilities. In a rare attempt to reconcile
with predictor variables describing the provider and user needs, Tien and El-Tell
characteristics of the area and its relation- [120] computed a hierarchical pattern of
ship to other providers in the system. primary health facilities to enhance both
From such an equation, calibrated on the accessibility to health services and the
past data of investments, a predictive availability of physician-provided servi-
equation could be calibrated to predict ces in Jordan. They incorporated into the
rates of returns at alternative locations. objective function the fact that physicians
Nichols [79] has developed a predictive must be able to reach the primary health
model of rural branch bank loans and facilities conveniently from their base in
deposits in an Indian district based on the the larger places.
records of branches that have been
opened in the last ten years. The model RECONCILING MULTIPLE OBJECTIVES:
then predicts the use of branch banks at
DEMAND SIDE CONSIDERATIONS
alternative locations. Ghosh and McLaff-
erty [33, p. 61-88] have reviewed a num- When improvements in access to par-
ber of U.S. studies with a similar purpose. ticular urban services are made, what will
Location-allocation models can be be the likely benefits to the agricultural
used to simulate the operation of complex productivity and human welfare of an
service systems and to test the relative area? What will be the expected increase
efficacy of alternative interventions by in utilization of services, such as educa-
service suppliers. Such research, which tion and health, if their geographical
investigates the logistics of implementing accessibility to a defined rural population
service systems, requires an understand- is increased [8;125, p. 378]? Gwatkin [43]
ing of the operation of the organization in discusses the evidence that such changes
question and a willingness on its part to in utilization will lead to an improvement
alter established patterns of control. in health. The impact of changes in sup-
Eaton et al. [27] simulated the ambulance ply characteristics depends upon user
operations in the emergency medical sys- reactions to these changes.
tem of Santo Domingo before the arrival In health services, for example, before
of 50 new ambulances for the city. They suggesting changes to the existing spatial
provided the Minister of Health with per- structure of health services, we need to
formance evaluations of alternative de- know how population characteristics,
ployment patterns. past behavior patterns, or geographical
Often, service points themselves re- relationships of the village to health ser-
ceive service from elsewhere in a chain of vice providers affects the frequency and
locationally organized activities. Reid et nature of contacts in the system. Studies
al. [89] used the set-covering algorithm toin Bangladesh, for example, have shown
determine placement of medical supply that diarrhoeal treatment services from
centers in Ecuador, while Subramanyam clinics were used 50 percent more fre-
and Sekhar [115] determined improved quently by boys than by girls even though
coverage of populations by simulating incidence rates of disease requiring this

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108 ECONoMic GEOGRAPHY

treatment was similar between the sexes. TECHNICAL CHARACTERISTICS OF SOLUTIONS

This finding, together with the sharp


Until about ten years ago, it was com-
decline of use with distance from the clin-
mon for analysts to view each locational
ics, led to the decision to develop home-
criteria as requiring a particular algo-
based oral re-hydration services instead
rithm for its solution [51 ]. The pioneering
of constructing more clinics. Many stu-
work of Church and ReVelle [18], Hills-
dies have shown a sharp decline in utiliza-
man [48;49], and ReVelle and Church
tion of health services with distance from
[90], in developing the unified linear
the nearest health facility [57;88;112]. I
model, however, has shown that many
know of only one study that reached a
different objectives can be shown to be
different conclusion [2].
special cases of the p-median problem
When per capita utilization of a center
and consequently solved by any of the
is known to relate to the scale of the facil-
methods that are known to solve that
ity and its distance from the consumer,
problem [29;45;64;69;117]. Although know-
ReVelle and Church [90] show that a
ledge of this development does not ap-
function can be computed that will show
pear to have diffused widely among users
the aggregate utilization in the system as a
of location-allocation models, it does prom-
function of the scale of facilities-thus
ise to change many areas of application
allowing conclusions to be reached on the
qualitatively.
optimal scale of facilities in the system.
The unified linear model allows the
Gore [37, p. 220] has argued that "it is
analyst to provide the decision maker
impossible to predict the outcome of spa-
with information about the performance
tial policies under such conditions"; but if
of location plans with respect to many
one has carefully observed how social
alternative objectives and allows the com-
and economic interactions are function-
putation of new location plans that are
ally related to spatial arrangement, pro-
optimal with respect to a single or weigh-
viding that the causes of these relation-
ted combination of several objectives. By
ships remain unchanged, it is possible to
editing the data on distance from a can-
predict how people will interact if the
didate site so that "distances" are a weigh-
spatial organization of resources is
ted linear combination of characteristics
changed [1].
of the candidate site as well as of distance
To assess the developments that may
to it, a partial generation of solutions can
be possible through improved geogra-
be made that range from solutions that
phical access, one must be able to predict
maximize site characteristics and ignore
the probability that a person will choose
spatial accessibility to solutions that max-
to engage in an activity and select a
imize spatial accessibility and ignore site
specific location for that activity as it
characteristics [55;98, p.141]. This infor-
relates to the characteristics of the person,
mation is usually displayed in "solution
their geographical relationship to the activ-
spaces" that are computed by the location-
ity, and to any relevant characteristics of
allocation analyst for the decision maker
the activity at the location that might
[102]. After examining these spaces, deci-
affect their likelihood of choosing it. Pro-
sion makers can reformulate their objec-
babilistic discrete-choice models, widely
tives and the analyst can determine the
used in travel demand analysis and, more
locations that meet the revised objectives.
generally, in consumer choice [22;47;
The p-median curve, for example, shows
53;54], have yet to be used to determine
the number of locations that are needed
the benefits of accessibility improve-
to serve the population of an area at any
ments to rural services. Beaumont [10]
given average distance when these loca-
and Hodgson [52] have advocated the
tions have been selected to minimize the
incorporation of spatial interaction mod-
average distance of all people to their
els in location-allocation algorithms as a
closest center. Although the curve will
solution to this problem.
always be downward sloping to the right,

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LOCATION THEORY 109

its precise shape will depend on the dis- models have typical characteristics that
tribution of demand and the transport present obstacles to their adoption in ser-
structure of the particular study area. A vice development planning. The solution
decision maker who knows the cost of space for multiple location problems in-
establishing a new center can compute cludes a large number of suboptimal solu-
the cost/benefit ratio by comparing the tions that are so close in value to the
reduction in average distance (the benefit objective function value for the optimum
of the additional location) with the cost of solution that the usual measurement er-
establishing and operating the new loca- rors are large enough to ensure that any
tions. Because the p-median curve is one of a number of "solutions" may in fact
always convex-reflecting a decrease in be optimal with respect to the objective
the rate of reduction of average distance function. These errors include errors in
with each unit increase in the number of estimating demand, distance, time, or
centers-there is a decrease in benefits cost relationships between places and
from each additional facility as decentral- aggregation of data to administrative
ization takes place. data units [6;16;20;35;50;82]. Until an ade-
If the analyst is free to solve for differ- quate "theory of errors" for location-
ent objectives using the same algorithm, allocation models is developed, users of
one can expect more frequent compari- these models must exercise good judg-
sons of the performance of given location ment by not rejecting sub-optimal solu-
patterns or plans for new services against tions prematurely-they may, in fact, be
a wider range of objectives, as described optimal-and, more positively, by search-
by Brill [13], ReVelle, Cohon, and Sho- ing for sub-optimal solutions that may be
brys [91], and Schilling et al. [106]. Such optimal given the likely data errors.
comparisons enable decision makers to An example of how different ap-
make better judgments about their origi- proaches to data lead to differences in
nal choice of objectives. Fisher and Rush- solutions to optimal location problems is
ton [32] argue that decision makers usu- provided in Figure 4 where locations
ally need this information in order to were selected for 27 primary health units
know whether their choice of objectives to add to the seven hospitals in a district in
was correct. The argument is that deci- South India. The criterion used was to
sion makers often act "idealistically" minimize average distance of people to
when they define standards of expected their closest provider of health care. The
service for some activity that they are analysis in Figure 4a used distances be-
charged to provide. The phrase "no child tween places defined as shortest paths on
should have to walk more than five kilo- the road network. Results of the analysis
meters to a middle school" is typical of in Figure 4b used distances defined as
such a standard [38]. In making the stan- euclidean distances computed from Car-
dard, however, the decision maker usu- tesian coordinates. Differences between
ally has no knowledge of what it will cost the two, shown in Figure 4c, show that 14
to meet the standard. of the 27 locations are the same in the two
Computer-interactive planning sys- analyses, but that 13 locations are differ-
tems are becoming the normal way for ent. These differences are local differen-
decision makers and planners to work ces in most cases, though, in one case, a
together to explore alternative uses of regional shift from the central to the east-
resources. In these systems, the process of ern part of the study area is apparent.
identifying and evaluating alternative Which distances are most representative
locational arrangements of resources is of the problem context is generally
generalized with clearly defined roles thought to depend on the length of the
developed for human intervention in the trip. Unless strong physical boundaries
process [24;36;58;59;84;93;94]. restricting movement are present, local
Solutions from location-allocation journeys, particularly those on foot or

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110 ECONOMic GEOGRAPHY

C 0 >8 > S ~~~~~~~~~ ~ ~ ~~Kilometers /

+ -Unserved Places

< IAY 8 4 -Center Serving Only Itself


m -Fixed Centers (hospitals)

+ -Unserved Places

/iw -& / * -Center Serving Only Itself


A -Fixed Centers (hospitals)

a. Distances defined as shortest paths on


road network

b. Distances defined by euclidean metric

+ c. Differences between the two solutions

?0df + X

* +~~~~~~~~
0~~~~~~~~~~~ C.

t _
v D l_~~~~ Kilometers
O~~~~~~~~~~~~~~~~ 13 20 30

Ca ~ ~~~~~ D + +
+ Centers Selected With:
+ + shortestpath distances
+euclidean metric distances
8 centers in both solutions

Fig. 4. Sensitivity of Optimal Locational Solutions to Alternative Definitions of Distances Between Places

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LOCATION THEORY 111

wagon, are generally best represented by argued that differences between the per-
Euclidean distances. Applications of loca- formance of the locations chosen and the
tion models do not generally make these performance shown by location-alloca-
distinctions. tion analyses to be possible can support a
conclusion that decision makers were
MEASURING LOCATIONAL EFFICIENCY unable to identify the optimal locations or
that they ignored or gave inappropriate
A theory of service development must weights to the criteria they were expected
be based on measures that tell when loca- to use.
tion decisions meet development objec- Equity considerations require that mea-
tives and when they do not. The standard sures of access be made separately for
measurement tool has been the geogra- different social and economic groups.
phical variance in the ratio of inputs to However, such measures of access are
demand-doctors or hospital beds per often directly interpreted as a measure of
1,000 people, for example [57]-but the the decision makers intent to favor or to
measure is poorly correlated with the be biased against the group in question.
direct measures of accessibility that are McLafferty [71] and McLafferty and
computed in location-allocation models. Ghosh [72] used location-allocation mod-
Evaluating efficiency requires answer- els to show that in some environments it is
ing questions about the actual perfor- impossible to locate some services so that
mance of the system in achieving its goals they do not favor a particular group.
in comparison with levels of performance Instead of following traditional ap-
that could have been achieved with the proaches which correlate social charac-
same resources distributed differently. teristics and relative access levels-a mean-
Decision makers will often want to esti- ingless statistic-they show how these
mate the savings in resources they would models can be used to compute a "refer-
have made if they had produced the same ence distribution" describing the range of
level of services from fewer resources social benefit distributions that are possi-
optimally located, or to estimate the addi- ble given the constraints of the environ-
tional services that could have been pro- mental context. The extent to which the
duced with the same amount of resources behaviors meet particular development
optimally located. Assuming that deci- objectives can then be judged by compar-
sion makers are efficient in combining ing actual behaviors with these reference
inputs to produce outputs at any site, distributions.
locational efficiency focuses on the ques- Since it is difficult to study the process
tion of whether the selection of locations of decision making, McFadden [70] has
is the best. They might be interested in argued that performance is often mea-
the number of better alternatives that sured by examining the outcomes of the
were rejected, in whether reasonable deci- decisions, with the presumption that
sion making procedures, if followed, when decision makers act as if they
would have performed better than the optimize a given criteria or as if they fol-
alternatives selected, and in the level of lowed a given decision rule, an impartial
output which similar decision makers observer can conclude that they follow an
had achieved elsewhere. The argument implicit choice criterion and that future
for using "best practise" as the measure of behavior might, therefore, be forecast by
efficiency is that the theoretical ideal of that decision rule. These are standards
selecting the optimal combination of loca- against which decisions should be evalu-
tions may be unrealistic. As Farrell ob- ated. Although the ratio of the perfor-
served [30, p. 255], "it is far better to mance on the objective function of the
compare performances with the best actu- actual distribution to the optimal distri-
ally achieved than with some unattaina- bution is the common measure of loca-
ble ideal." Tewari and Jena [30] have tional efficiency, the alternative measures

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112 ECONoMic GEOGRAPHY

described above illustrate the scope for a Different groups have different powers,
richer evaluation of alternatives than is and it may well be that forms of political
currently found. participation do not permit such an open
and equal form of participatory decision
SOCIAL AND POLITICAL PARTICIPATION IN making as implied above. It is described
LOCATION ANALYSES here as an ideal toward which decision
If territories are to be organized to making could move as administrative
meet the needs of local people, they need structures and their relationships to popu-
to participate fully in plan development. lar participation evolve.
New technical possibilities are becoming Altering the spatial organization of fa-
available which allow a fuller, more open cilities changes the constraints within
participation than has been possible in the which people act and enables them to act
past [24]. One method involves the direct in new ways. Social and political struc-
comparison of "solutions" by representa- tures, through their power and control
tives of user groups. Askew [7] suggests over individuals, facilitate or impede at-
the use of concordance analysis for this tempts by people to develop their region.
purpose. Logan [68], for example, has recently
Other methods involve the determina- used a location-allocation model to show
tion of the objectives of the participants how a plan in Sierra Leone to distribute
and their commitment to equitable dis- rural health care facilities using the struc-
tribution of the benefits of development. ture of the existing administrative system
These objectives can be elicited indi- is one in which people are 37 percent
rectly by asking representatives of differ- farther from facilities than in an optimal
ent groups to evaluate alternative sets of plan determined by the model. As Brom-
locations identified by prior analyses, or ley [14] has described, the reality in many
the objectives can be elicited directly developing countries is that decision
using preference elicitation techniques. making processes are often controlled by
Locations are then identified that are interest groups beholden to small elite
optimal with respect to the expressed groups and to outside sources of finance
preferences. Depending upon the com- to which these countries frequently turn
position of the groups whose objectives for the capital needed for investments in
have been elicited, it may be necessary to infrastructure.
involve suppliers of the service in separ- The idea that regional analysis might
ate analyses to determine the viability of be for the purpose of informing decision
the locations selected for providing a makers of options rather than for making
satisfactory level of service. Von Winter- decisions is an important idea and de-
feldt and Edwards [124, p. 260-65] illus- serves development. Evaluation of alter-
trate this approach for single location native, feasible development projects
selection, but their multi-attribute utility should involve a forecast of expected
approach has not yet been adapted for outcomes under alternative assumptions
the multiple-location case in a develop- about the value of any of the factors that
ment context. Unlike developed coun- may affect these outcomes. These fore-
tries where the ideas of the Swedish time- casts should identify the people and pla-
space school have been rapidly adopted ces that stand to gain from the project and
and extended [65;81, p. 360], I know of no any groups or places that will be adver-
example of a developing country where sely affected by the project. Considering
norms for spatial accessibility have been the paucity of data, the speed with which
determined through a social, participa- conditions change, and the changing
tory process for different social groups priorities of decision makers, regional
and where the accessibility of villages analysis methods might be more useful if
and social groups have been systemati- they are designed for decision-support
cally assessed with respect to these norms.capability.

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LOCATION THEORY 113

Political problems of reconciling mul- agree upon the terms of an exchange, and
tiple objectives often arise. It is common mechanisms to ensure that both parties to
for the needs of people served by tradi- a transaction perform their contractual
tionally weak sectors of an economy, duties.
such as health, to be ignored. In 1983, for
example, I interviewed one of the twelve
EFFECT OF MODEL USE ON THE LOCUS OF
regional ministers of health in Bolivia
DECISION MAKING
about the process of distributing health
resources in his region. I was struck, upon The development potential of alterna-
entering his office, by the large map on tive courses of action suggested by any
the wall behind his desk showing the geo- model are evaluated by the five groups
graphical distribution of primary health who participate in what Moos and Dear
resources in his region. After acknowl- [77] call "the dialect of control"-the pol-
edging the gross disparity in resource iticians, bureaucrats, interest groups, and
allocation per capita between the Indian influential and ordinary citizens. For
communities on the Alto Plano and the these groups, the challenge is to agree
Ladino communities farther east, he said upon interesting criteria for the model to
that his greatest achievement recently explore. If they do agree to explore the
was to persuade the government to agree implications of given criteria, the model
to a moratorium on the construction of estimates the likely development impacts
new primary health facilities. He said that of alternative actions and their distribu-
the Minister of Public Works, the sector tion among socioeconomic groups. Thus,
that actually constructed the facilities, the model logically connects desired ends
had been making the location decisions and proposed actions through knowledge
and had been making them without any of social and economic relationships in
consultation with his ministry. He had, he specific environmental conditions [121, p.
said, been less successful in persuading 280].
the central government to prevent Amer- The detailed spatial accounting system
ican church groups from constructing generated by a location-allocation model
health facilities in locations of their choos- is information that has to be reckoned
ing. It was he who had to find and deploy with in the political process of resource
scarce manpower resources after the allocation. So long as the ledger is blank,
church group had built the clinics. politicians have the opportunity to vie
In such an environment, location-alloca- with one another to bring the spoils back
tion models are unlikely to be used to plan to their constituents, but with the ac-
new facilities. Instead, they can be used counts open and with enough detail to
to measure the unequal degree of access count the costs and returns for alternative
to primary health services between social locations, politicians have to pause before
groups andt to compare access to recentlythey intervene to counter the bureaucrats'
opened facilities with access to other recommendations. Thus, control over the
unselected locations identified by the allocation of resources for services typi-
model. There is a cost to transactions that cally shifts from politicians to bureau-
occur between geographically separated crats when facility location models are
points, and this cost is not adequately used. When bureaucrats have superior
captured by the transport cost between technical knowledge about the produc-
the places. Reducing these transaction tion system, the politician, as discussed
costs is a large part of spatial develop- by Moos and Dear [77, p. 247], has a
ment planning. According to North [80], tendency to defer, since superior knowl-
the key to this reduction lies in develop- edge and information can be passed on
ing instruments to measure the attributes by the bureaucrat to the population at
of the goods or services exchanged, an large and can be used to undermine their
exchange process through which parties support for politicians where their deci-

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114 ECONOMic GEOGRAPHY

sions appear to be arbitrary. In a similar lated in the planning process [113]. Un-
way, control by interest groups over the less planning addresses these forces,
service resource allocation process can be merely changing form will not promote
tempered by information from the mod- development. If doctors are not trained
els. The interests of the five groups are to practice in typical rural conditions,
not, of course, identical, so studying how opening rural health centers that are opti-
differences are resolved in relation to mally located will not lead to improve-
information from the model is an impor- ments in rural health [128]. If people
tant task that has hardly begun. bypass pharmacies to receive their drugs,
Access to the spatial accounting infor- an optimal location pattern of pharma-
mation provided by the models is also cies will not improve health [122;123]. If
likely to change the balance of control the standard of care offered by govern-
from centralized to decentralized deci- ment-provided health clinics is perceived
sion making. Although decentralization to be low, their optimal location will not
often leads to increases in corruption [12, solve the problem of low use-levels [5].
p. 35], the presence of spatial accounting Some economic anthropologists and
information from the model serves to geographers argue, moreover, that given
lessen the likelihood that the official's dis- the social structure of many developing
cretion will lead, as a result of bribes, to countries with many social elites located
poor location decisions. in towns, to develop urban-rural connec-
Finally, model information will encour- tions by merely strengthening the existing
age making decisions according to the urban system is to strengthen the ability
same set of rules without these rules being of urban groups to exploit rural popula-
clumsy adaptations to local conditions, as tions [15;105].
inevitably occurs when the rules are
made at the center. Even the efficacy of
CONCLUSIONS
simple rules for decision making can be
checked by the model [83]. In this way, There is irony in that the same theory,
use of these models could become a part central place theory, that was unable orig-
of "adaptive development administra- inally to provide a detailed guide to loca-
tion" [12, p. 43; 62] which focuses on the tional decision making for service devel-
adaptation of plans to local conditions opment planning must now, if it still
and to the learning experience of admin- aspires to empirical validity, describe the
istrators as development projects unfold. way in which decision makers use models
to solve their locational planning prob-
DEVELOPMENT-NOT BY SPATIAL FORM
lems. So location theory must change, but
in what way?
ALONE
As normative theory-its use in service
Altering spatial form alone will not, of development planning-it must be capa-
course, induce development. Historical ble of finding the spatial organizations
forces that led to the existing geographi- and spatial interventions that are opti-
cal pattern of activities must also be mum within the cultural, social, political,
altered [15;111]. These historical forces and economic context of the society in
are the decision making bodies them- question. Developing this theory will obvi-
selves and the administrative structures ously not be easy, and the results of
within which they work [17]. By focusing empirical research will be a primary
on pattern as process instead of on the input to this process. If we knew, for
change mechanisms that create the pat- example, how behavior changed as spa-
terns, some regional planning approaches tial structure changed, we would know
neglect these critical mechanisms of how to define a structure that would
change. Yet, it is these change mecha- optimize behavior. Such questions have
nisms that must be influenced and manipu- not been asked in development studies.

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LOCATION THEORY 115

Instead, the few studies to date that link activities is determining whether the new
changes in the spatial availability of ser- patterns of interactions that are engen-
vices to development do so only by estab- dered will reinforce or undermine exist-
lishing broad correlations between the ing social relations in space. There is the
two [126;127], rather than by attempting possibility that social relations may be
the more difficult task of partitioning the transformed by the new patterns of inter-
components of change in development actions, and that the former mutual depend-
that can be ascribed to improvements in ence of social structure and interaction
availability and those that would have patterns will be destroyed. Skinner [110]
occurred through factors unrelated to presents evidence to support his argu-
service availability. ment that the spatial organization of field
Since normative theory must, to some administration in nineteenth century
degree, wait for further development of China was designed in the less developed
positive theory-which is quite undeve- periphery of the region to extend the
loped on this subject at this time [110; government's rule in tribal areas and to
111]-how can interventions be made in provide a training ground for beginning
service development planning? Despite administrators so that the more successful
many unsolved problems in facility loca- would have a career ladder to the more
tion modeling, the models are developed difficult posts in the economically deve-
sufficiently to support an improved pro- loped core of the region where the chief
cess of locational decision making. Con- task was to manage the political opposi-
sequently, we argue for an approach for tion to the government by the merchant
stimulating rural development using a class.
decision-support system based on a loca- I reject the popular regional develop-
tion-allocation analysis system which is ment theme expressed succinctly by Gore
capable of evaluating current levels of [37, p. 216] that "the only changes in the
locational efficiency, including the effec- spatial pattern of 'development' which it
tiveness of recent location decisions and is possible to achieve through spatial pol-
generating alternative systems of services icies are spatial redistributions" This is
that are consistent with the objectives of not a zero-sum game as Gore asserts. The
decision makers and with the needs of a relationships that are manipulated when
rural development strategy to promote the same amount of available resources
growth with equity. for development are distributed in a
The state of any complex system in the more efficient geographical pattern are
future is not known, of course, from cur- not mere "contingent relationships" [37,
rent changes in its structure. Difficult p. 217] but are relationships that influence
questions remain. How, within the con- the amount of development that takes
straints set by macro policy considera- place. Spatial redistributive policies that
tions, are the behavioral strategies of change the number of people, and the
suppliers and consumers to be reconciled types of people who have access to a
within the dynamic conditions of rural package of inputs and social services that
development [21;66;67]? How do the are conducive to development, change
dynamics of system change lead to set- the development path of the country.
tlement structures with different degrees Some countries have recognized this and
of spatial optimality [3;4;25]? have continued to develop and imple-
As positive theory, a new location the- ment spatially specific intervention poli-
ory will have to explain how decision cies and have benefited from this fact.
making about services takes place in the Others will continue to heed those who
complex social and economic contexts in urge macro changes in the economy as
which service development planning the only way to effect substantial overall
takes place. A key problem in anticipat- "development." I do not agree with Gore
ing effects of spatial reorganization of [37, p. 224] that "the idea that desirable

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116 ECONoMic GEOGRAPHY

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