CIIAY'I'EH I1

THEORIES OF REGIONAL DEVELOPMENT- A REVIEW

I'he task of' building a strong theoretical base lbr the kind of' study attcrnpted herc
is a complicated one. This is because 'there is today no one theory of Regional
Development that commands u~liversal assent". 'I'he popular theories, which arc
discussed and debated at length in the academic circles and which are assumed to have
great reference value, have yet to attain sound analytical structure. In fact, hichardson
opines that 'the state of art of regional growth theorising is very primitive'2. 'I'he reason
for this state of affairs in his view is inadequate time and efforts put into the developrrient
of regional growth theories when compared to the general growth theories and also the
tendency of the theoreticians to make their theories and models more operational and
policy-oriented rather than evolv~tiga sound lheoretical structure

Regional growth theory, which is still undergoing a process of' evolution, hns its
own points of weakness, Instead of'concentrating on these weak points, we have heavily
resorted to the general growth theories with free use of their methods, tools and
assumptions in our regional analysis, This excessive reliance on general growth theories
has resulted in overlooking some of the distinctive features of regional growth process
such as inter-regional factor flows, space, distance and location. Further, there are
models, which are highly abstract about the basic concept of space and its zone of
influence, This high degree of abstractness has niade these models unrealistic, as they do
not meet the ground reality.

On account of these drawbacks there is now no single theory which can

comprehensively explain the overall development process in a given region, in general
and that of a backward region, in particular. At present, we have numerous theories,
which give us only partial insights into certain aspects of the process of regional
development. Keeping this general condition of the present status of regional growth
theories, a humble attempt has been niade here to review some important thcorics of
regional development. It is hoped that this review would be quite helpful in analysing
various aspects of development of a region, clearly and comprehensively. I'his facilitates
construction of a sound theoretical framework giving valuable insight into the intricate
process of regional development.

Dualistic growth process

Most of the theories of regional bvowlh point towards dualistic pattern of

development, wherein certain spatial units tend to develop faster than the rest of the
region due to a number of natural, historical and locational factors. 'I'his phenomenon has
been illustrated by Perroux in his classical article on growth pole, in which he has stated
that " growth does not appear everywhere at the samc time; it becomes manifest at points
or poles of growth, with variable intensity; it spreads through different channels with
variable terminal effects to the whole of the economy" '.
 The neo-classicists attribute dualism in income to the malfunctioning of
equilibrium mechanism. Such malfunctioning occurs mainly because of market
imperfections and institutional constraints which hinders proper factor and resource
movements, adversely affecting efficient regional allocation of resources. In their view,
economic growth takes an uneven course and any deliberate attempt to even out the
growth process over space can only be achieved at the cost of reduction in overall
national growth. They assume that the entrepreneurs behave rationally while planning
their locational and investment activities and they obviously concentrate otr those places
where profits are high. Similarly, factor labour always tends to tnove to those places
where wages are high and job opportunities are more. 'I'hus, there is harmonv and solf-
adjustment in the system brought about by the free play of market forces which ensures
work to move to where labour is available or labour to migrate where jobs are plentiful.
This brings about a balance between supply and demand in the long run Any inequality
in profit, wages and employment between different regions is only temporary and
frictional by nature which automatically tend to be eliminated by corresponding capital
and labour movements.

~ ~ r d and
a l ~~ i r s c h m a n ~deviate lioln this assumption of cquilihrating
mechanism of market and questioned its elltctiveness in reducing econotnic disparity at
subnational level. They distinguish two types of effects, which in their view are mainly
responsible for dualistic pattern of development. These are 'backwash' or 'polarization
effect' and 'spread' or 'trickling down efrect'. l'he backwash effect is regarded as
'unfavourable' as it leads to the flow of labour and capital out of the periphery in search
of higher returns in the core. This leads to depression in the economic activities of the
periphery bringing about further economic degradation The spread effect, on the
contrary, is 'favourable' for greater balancing of developmental activities as it paves the
way for the inflow of investment activities from the core to the periphery, l'he process is
mutually reinforcing, as there will be exchange of goods and services between the core
and the periphery to further its own developmental activities. In the process, new core
regions may develop having their own sphere of spatial influence.

A relative balance between these two elr'ects is of crucial importance fbr

harmonious development of a region. When the spread effects are powerful, they act as a
stimulant promoting further develop~tlent ia the region arid also bring al)out ylcatcr
economic integration between the core and the periphery, giving rise to a more
homogeneous spatial system. On the contrary, if backwash effects dominate, regional
inequalities will be widened, as there will be little functional complementarity hetween
the two.

This analysis of the interplay of centrifugal and centripetal forces initiated a great
deal of debate on economic convergence versus divergence as possible outcome of
economic growth. This issue received prominence wilt1 thc publicatior~of ~illiamson's"
well-known article in 1965 on relationship between economic growth and regional
income disparity. He views the proble~il ol' rcgiorial irico~riedisparity in relation to
economic development at national level. His argument is that increase in regional
inequality occurs during the early stages of development, while mature growth produces
regional convergence or a reduction in differentials. He visualises three distinct trends in
the process by which a region comes back to convergent phase. To begin with, regional
disparity widen with an initial rise in the per capita income. It remains stable and in
subsequent phase, it declines paving way for regional convergence from initial phase of
regional divergence. His cross-section and time series analysis indicates a syslerriatic
relationship between national development levels and regional inequality. He adds that
"regional dualism or inequality is much more extensive within agricultural than within
the industrial sector, and that labour participation rates in part contribute to regional
income per capita differentials"'.

~ m r n a n u e has
l ~ made a study of growing economic inequality between developed
and less developed nations in terms of 'the theory of unequal exchange'. l'he theory,
which is based on a modified version of 'Marxian analysis of price formulation' holds
that because of the existence of considerable wage dil'l'eretices, over-priced goods liom
the advanced countries are exchanged with under-priced goods from the third world
countries in the world market, l'here is exploitatiori of tile under-developed ccono~nicsby
the developed ones with widening gap between the two.

Similar conditions prevail at the national level as well, with unequal exchange
taking place between the growing and stagnant regions. There are marked inequalities in
terms of trade between urban and rural areas, between core and periphery regarding trade
surplus and per capita income.

The Stage theory of ~riedman"visualiscs tlie process whereby a national economy

moves through its spatial organisation from its primitive agriculture to an advanced
industrial stage. According to him dualistic tendencies are very high in the first and the
second stages because there exist functionally isolated towns and cities and they possess
strong centre with a weak periphery. However, regional dualism becomes less glaring
with the emergence of small but numerous sub-centres in the third stage, which will be
successful in establishing greater inter-connections and inter-dependence with the already
developed centres. This would result in more economic integration across a macro space
with stronger spread effects and reduction of inequalities.

Some of the Latin American studies try to explain inter-regional dualism in terms
of internal colonisation or in the context of a 'metropolis-satellite syndrome"". Above all,
the location and growth pole theories have also contributed a lot to the study of regional
dualism but they are more relevant for an analysis of growth concentration and dispersion
and thus, they have been taken up in the next scction.

It is clear from all these theories tIi:~t there is an element of inequality and
unevenness in the process of development in a given region, 1)evelopmental activities
start only in a few centres, gains momentum, expands to a great extent and reaches the
saturation level, depriving their counterpart many positive advantages due to them. It is
essential to analyse why growth concentrates in such centres? How do they develop7
What is the impact of such a growth on the rest of the regions'? Answers to these
questions are sought in the light of relevant theories in the following section.

Growth concentration

It is a well-known fact that econoniic growth tends to concentrate in certain nodal

points leading to industrial agglomerations and urbanization. As observed by Lampard,
"the process of economic development inevitably accompanies by a process of
concentration; that nowhere amongst the advanced nations of the world has concentration
failed to appearw". It is true in the case of other countries as well, which are still on the
path of higher development.

Before the advent of regional growth theones, the general theories analysed the
problem of location of economic activities. Least cost principle, market advantage
principle and profit maximisation principle have persuaded the entrepreneurs to cluster
around certain nodal points. The general economic theories have constantly emphasised
the 'optimum location' for a particular kind of manufacturing so that the cost-benefit
ratio remains low.

The general theories listed certain basic factors that detennine such an 'optilnum
location'. Factors like availability of raw materials, transport and proximity to the market,
manpower, availability and cost of factors of production are extremely important for an
entrepreneur to undertake any venture.

Regional economists like ~olander" emphasise the importance of linking

economic development theory with the locat~ontheory. 'I'his helps us to cornprcllend the
dynamic process influencing the choice of the initial site and its comparative advantages.
The first insight into the understanding of such a process was giver) by ttie Location
Theory and its various interpretations. These various approaches can be classilied into
those, which emphasise (a) cost factor (b) demand factor and (c) locational
interdependence.

Starting with the theories of location of agricultural activities, a number of relined

theories about the location of towns, cities and centres of commerce and also the location
of industries and functional linkages have been put forth. Of late, many studies have
come up adopting 'behavioural approach' which states that location is the result ol'the
interaction with the techno-economic environment including the hehaviour of the
Government and that of rival firms.

One of the earliest efforts in formulating a theory of location related to

agricultural activities, stressing cost factor has been made by Von '~'hunen'~.
1 le collsidcrs

the problem pertaining to various Sonns of agricultural production in relation lo niatkets.

Based on certain assumptions related to the area of his study, he has constructed a model
of land utilisation having a number of concentric belts around each town. Cultivation
would be arranged in a series of concentric circles round the town, according to the cost
of transportation of the commodity and the ratio in which its value stood to its bulk and
weight. A series of concentric rings will cmerge around the city and there will be
domination of specific pattern of land use within the area of' these rings.

Subsequently, weber'sI4 theory of tile location of industries based on least cost

approach diverted the path of thinking from agricultural to industrial locational activities.
According to him there are three general regional factors of location, namely, the relative
price range of deposits of materials, cost of labour and cost of transportation. 'I hrse
factors determine the conditions that enable the producers to achieve comparative
advantage in cost.

The two models mentioned above were relevant to the extent of analysing the
location of agricultural and industrial activities in an organised space centered around a
single city. However, when applied to multi-town economy, they do not provide proper
analytical structure. This is because there are certain complexities such as functional
diversities, size variations and interdepndetlce between the town and its hinterland.
 Here lies the significance of Central Place theory advocated by ~hristaller", who
was interested more in finding out the general principles which determined the nur~~ber,
size and distribution of human settlement- rural or urban. These general principles relate
to the principle of marketing, transportation (traffic) and administration.

The hierarchy and nesting pattern, according to the first principle, results in the
maximum number of central places. 'I'his, according to Christaller, is a necessary
condition if the supply of goods from the central places is to be as near as possible to the
consumers. According to the second principle, the distribution of central places is at an
optimum when as many important places as possible lie on the traffic route between
larger towns, There will be sub-centres along the routes between the main centres. 'I'he
third principle stipulates that every centre should have full control of six surrounding
areas with no divided allegiance.

Improving upon Christaller's theory, August ~osch'''prescnts his own concept of

economic landscape and puts forward a comprehensive scheme to explain the structure of
regions and spacing of settlernonts bascd upon the hexagonal services arcas. lie
introduces greater realism and flexibility into Christaller's rigid hierarchical system.

Losch has developed a hierarchy of central places starting from lowest order
including non-service activities. In his analysis, there is one superior centre where all
goods are produced. There exists specialisation and division of labour, facilitating trade
between different centres. This enables the srnaller centres to supply those goods in
which they are specialised to the larger centres.
 The theoretical contribution of Christaller and Losch has led to the development
of two streams of thought. While Christaller's approach has led to a more refined Central
Place Theory by many writers who put forward their own ideas related to spatial
development process, Loschian Central Place-cum-Location theory provides an analytical
background for the study of clustering of hulnari activities, emergence of economies of
scales and inter-industry linkages culminating with a fresh thinking of growth poles

'I'he followers of Cenlral Place 'I'heory considered agglomeration tendencies as a

spatial reflection of socio-economic changes in society. 'I'hey regarded the hunian
settlements as the by-product of social and economic interaction process. According to
Pye, "Urbanization is a critical process in the development of the modern nation State.
Historically, all complex and advanced civilizations have sprung from the city and in the
contemporary world urban life is a dynamic basis for most of the activities and processes
we associate with modernity and economic progress. Therefore, any systematic effort to
transform traditional societies into modern nations must envisage the dcvclopment of
cities and modern urban societies"". Thus, it is very much essential to study the
evaluation of cities and their optimum size to comprehend overall developmental process
across a region.

Cities provide geographic space to carry out those economic activities, which are,
interdependent by nature and promote further development within the given space. 1heir
location is conducive for development of external economies. l'hey possess favourable
conditions for innovations, which are vital for their sustenance. They promote

geographical integration of social, economic and cultural systems of a nation.

 Highlighting the role of cities, a number of theories have been developed
explaining different aspects of urbanization and its influence on overall development.
~ o w a r d " emphasizes the social and cultural aspects in addition to economic ones.
schindmanI9 views cities as parts of larger functionally inter-related systems based on
economic optimality criterion. The theories of clark2". laa ass en^' and lsard2' also
provide valuable insight to analyse the forces promoting growth concentration in urban
agglomerations.

Thus, it is clear that various theories explaining the process of urbanization are
unanimous in stressing the significance of urban centres as 'foci' ol'change. tloficver, il
should be remembered that these theories do not provide us with adequate explanation of
the forces and factors that make the urban centres as points of concentrated growth.

Another major break-through in the theoretical structure has been the idea of'
growth poles. It is based on three important assumptions, namely, (a) clustering o f l ~ u ~ n a n
activities is essential for generating economies of scale; (b) if such clustering tendencius
are not regulated, it may result In heavy social cost; and (c) such a process can be
directed to generate growth foci through certain policy interventions.

Perroux, who introduced the concept of 'growth pole', defines it as "economic

space consists of centres from which centrifugal forces emanate and to which centripetal
forces are attracted. Each centre being a centre of attraction and repulsion, Ilas its proper
field, which is set in the field of other centres." *'

Based on Schumpeter~anconcept of innovative lirtns, Perroux assumes Illat only

the large economic units are capablc of innov;~tionsand act as dyrlarnic ptopulsivc firms
These firms belong to highly expanding sector and generate growth impulses in their area
of influence in the economy through inter-industrial linkages. If a number of leading and
propulsive industries come together to form a complex, the resulting cluster will become
'growth pole'.

Though the Perrouxian theory has attracted great deal of attention, it sull'ers lion1
certain conceptual and operational problems. '1'0 overcome this drawback, ~oudeville'"
has attempted to strengthen the geographical content of the Perrouxian hypothesis by
emphasising the regional character. He considers the region as a continuous area
localized in geographical space.

Boudeville treats the poles as geographical agglomerations of activities rather

than a complex system of sectors. In his view, growth poles will be in the form of towns
having complex of propulsive industries. He visualises regional growth poles as a set of
expanding industries located in an urban area and inducing further development of
economic activities throughout its zone of influence.

~ i r s c h m a nextends
~~ the growth pole hypothesis to the process of economic
development, with the idea of 'development poles', which is the outcome of the stronger
centripetal forces. According to him, diffusion of development impulses occur through
social interaction process rather than inter-industry linkages. These developmenl poles
provide for competitive advantages and hettcr rralisport facilities alol~gwith good reward
for skilled labour and entrepreneurs. All these positive factors draw the productive
activities to such poles leaving the rest of the region in a comparatively backward state.
 Myrdal visualizes similar process with the operation of 'backwash efrect'. In his
words, "if things were left to market forces unhampered by any p l i c y interference,
industrial production, commerce, banking, Insurance, shipping and indeed almost all
those economic activities which in a developing economy tend to give a bigger than
average return, and in addition, science, art, literature, education and higher culture
generally will cluster in certain localities and regions, leaving the rest of the country more
or less in b a ~ k w a t e r " . ~ ~

According to Myrdal, growth gets started in a particular region due to certain

natural, historical and man-made factors. Its initial success would lead to a concentration
of econolnic and non-economic activities. '1 Iic growth process is further strengtlietled by
both internal and external economies.

An integration of growth pole and central place theories has been attempted by
~ . ~ . ~ i s with
r a " his idea of 'growth foci' leading to dynamic growth pole theory. In his
view, the growth pole hypothesis exhibits Ibur main weaknesses. First of all, it is not
applicable to varied regional problems. Sccondly, the hypothesis retains functional
rigidities and relevant to those countries whose economy has already reached the social
transformation threshold needed for accelerated industrialisation. 'l'hirdly, lack of
spillover mechanism makes this hypothesis rather inadequate in those regions where
social and institutional constraints to development are considerable. Finally, the
hypothesis inherits urban and industrial bias and disregard for environmental quality and
the future design of human society. According to him, a basic objective of growth fbci

concept is to provide for such a design by humanizing industry and techtlology.

 Proceeding on the idea that spatial development will ultimately lead to the
decentralised concentration of human activit~cs.R.P.Misra visuolises a system of growth
foci. This idea is based on the central place of Christaller and assigned it a dual role. In
the first place, it should generate economic growth and secondly, it should provide
services to the population dependent on tlie~n.These services pertain to education,
medicine, marketing, information, administration and so on.

These theories with their own points of emphasis try to narrate the process by
which growth tends to concentri~tein certaiti places. When this process reaches the
culmination stage certain factors act towards spreading economic development across a
wider area. This pattern of widening of growth process over a given geographical space
has been highlighted by some theories discussed in the following section.

Growth dispersion

As stated earlier, Perroux describes economic space as ccntres, fronl which

centrifugal forces emanate and lo which centripetal forces are attracted 'I'hus, each centre
acts as a centre of both attraction and repulsion and has its own field of influence. He
adds that growth starts in certain development poles and then spreads out to the whole of
the economy.

Hirschrnan's classical work, "The Strategy of Economic Development' was one of

the pioneering attempts to synthesize a t11eor.y ol' geograpllical incidence of' growth and
mechanism of development impulses. Ile lkels that the investors spend long time
mopping all the opportunities around soliir 'growth pole' and pay little attention to
similar opportunities that may have arisen ill other parts. There is generally an over-
estimation of external economies by econolnic operators, as they tend to believe that
'nothing succeeds like success'. 'I'he poles ilppear Inore impressive than they are and
make one feel that the condition in the rest of the region is rather dull and hopeless.
Industry will become congested and its progress slowed down by the insufficient size of
local markets resulting from the depressed income level in the backward area.

As the polarisation effects become stronger there will be an increase in migratory

flow towards such poles. After a point of' Ilme, there emerge problems related to
accommodation of such migratory populatloll atid crcation of social inrrastructure for the
same. The population boom, whlch i'ollo\vs, causes access problems and shortages begin
to appear in terms of factors of production and employment opportunities

Richardson asserting the same observcs that in some cases the develol)cd corcs, in
course of time, may develop 'senescent characteristics' and will have to put up with dis-
economies of agglomeration. There could be technical obsolescence of industrial plants.
decline in entrepreneurial calibre and environmental pollution.

Thus, the economic activities which tcrid to concentrate on certain points referred
to as 'growth poles', 'developed cores', 'growth centres', reach a stage of growth
saturation for various reasons. Kichardsori states that when the process of industrialisation
sets in, there will be economic expansion in certain regions and the rest of the region
tends to remain backward. Subsequently, thcrc will be dispersion of expansionary Iblces,
which will integrate and unify the national economy. This process has been explained in
terms of 'centre-periphery relationship"H. 'hinterland-heartland relationship'", and
'core-fringe relationship' 30.

Friedman and Prebisch iniproving upon I'errouxian idea of 'growth pole' put
forward an analysis of interaction between such an economic pole ter~nedas "centre" and
geographical pole as "periphery." 'Centre' in their analysis means metrop)litan areas.
growth poles and growth centres; and 'periphery' means hinterland. In their view, core is
a dynamic place and the periphery depends upon it for its sustenance.

A similar process has been explairied by Harvey Perloff and Lowdori Wingo, .lrU.,
with emphasis on natural resource endownlent. According to them, tile ernergcnce ol'thc
industrial heartland sets the basic conditiorls for the regional growth throughout the
nation. This heartland serves as a lever ti)!. the successive develop~nentof the ricw
peripheral regions. With the expansion of' its itiput requirement, it reaches out to those
peripheral regions that do possess the r e q u ~ ~ cresources
d to sustain such an expanding
process. This stimulates their growth accorditrg to their factor endowments. Because of
this endowment, there would be comparative advaritage arid intensive specialisation in
resource rich sub-sectors. Thus, their econo~t~ic
upliftrnent is intimately connected with
their resources endowments. "In stiorl, tile economic expansion of the hinterland is
closely associated with their resource endowment and the manner in which their
endowments contribute to the evaluation or favourable patterns of specialisation or
substantial levels of cumulative advantage" :111d"the process of industrialisation not only
defines the resources role of the hinterlands but also sons out the kinds of manufacturing
activities between heartland and the hinterlandV'l.
 The works of Myrdal and, t4irschnra1i lriltlated great deal ol'discussiorr on spatial
dispersion of the growth process from 'tlc\t-lol~lnent poles' to the hnckwritd tcpio~rs.
They have described certain favourable efl'ccls that originate from the poles and prolilote
the development of backward regions. l'hese effects consist of investment activities
flowing from the poles to the periphery. Such iriveslrnerit activities cover supply of raw
materials for industries in the poles and purclisse of products or raw materials from the
backward regions. This would give rise to now poles, further spreading the same efr'ects
to their own peripheral regions. 'These favourable erects thus stimulate the region's
overall development, as there would be the greater economic integration betwcen the
developed and the backward regions. The henc,lils occurring from such favourable ef'li.cb
are more, if the degree to which the pole hris to depend on the output of the periphery is
greater for its further development.

In addition, such poles might also iIlrract labour from the backward rcgiorls,

relieving the population pressure, \vhicli tilay prevail there reducing disguised
unemployment. Further, existence of complc~r~cntarity
will strengthcn the trickling down
effects. As a result of these favourable ellkcts, inter-regional trade would increase and
there would be transfer of capital to backward regions. This would also help the pole to
reduce its own congestion, overcome supply difficulties and expand home market, in

course of time.

Myrdal uses the term 'spread effect' lo describe similar process. According to
him, the centrifugal forces that ernanate from the progressive regiorls will carry with it
the expansionary momentum towards the bi~chwardregions. Develop~ncntin progressive
regions will lead to an increase in demand li)r ;igricultural products and raw rnalerials in
the backward regions. In addition, the back\v;~rdregions do derive benetits of advar~ced
technology that have been developed it1 1trlB ~~logrcssive
regions. According lo Myrdnl, if
the initial starts are many and strong and il'thc spread efl'ects work cfl'ectively, economic
growth of all regions will be promoted. He notes that the spread effect is stronger when
the level of development attained by progressive regions are high paving way for greater
spatial dispersion of growth.

Thus, both Myrdal and Hirschman o\w the greater dispersion of developmental
activities to the stronger spread and tricklirrg down effects. Afirrnirlg the sarne view,
~ilhorst" feels that the trickling down el'lkct will become stronger and positive than
polarisation effect if the progressive region tlrpends more on the goods produced in the
backward region.

According to Hilhorst, inter-regiorinl trade on the basis of comparative advantage

is an important factor for transmission of' growth from developed to the backward

regions. This advantage would lead to a certain degree of specialisnliorl in the backward
region yielding economies of scale, which \rould rise the productive capacity. I'his, in
turn, would rise income per capita, savirrg and investment, all coritributing to the
development process there.

Viewing similar process liorn a slipl~llydifi'ercnt angle, rid ern an'^ put lbrth his
own theory. He views the macro growth proccss as a sequence 01' fbur stages, whcrein
there is movement towards a greater cco~iornic integration of' space economy in

successive stages. In the first stage, the spacc economy is composed of a number of
independent local centres that haw little or no inter-connection with each other. With the
onset of industrialisation in the second stage, there develops an elenlerlt of dictlototny
between a strong centre and a weak periplicry. However, in course of time, political
pressures and deliberate policy measures lrduce this dichotomy, giving way la a
tlansitional stage in which the central region rc~nainsdominnnt but some cc~untcr-weight
is provided by the emergence of sub-centres \\l~ichare less dependent. 'l'he linal stage is
featured by functionally independent systern of cities or regions based on natiorlal urban
hierarchy.

Friedman attributes the forces of integration to 'the matrix ol' urban regions',
which, in turn, is the consequence of the forces of agglomeration and urbanization
economies in regional development. 'I'his is the stage of post-industrial lnaturity wherein
the national economy is fillly integrated i111d a systcrn of cl'licic~~tinter-rogionul
commodity and the factor markets prevail.

Proceeding on similar pattern 01' long-term transition, liichardson I5 cites the

scarcity of investment resources, which nlukcs it impossible to exploit all prolitable

investment opportunities found across many regions simultaneously in the initial phase of

development. Hence, developmental activities tend to polarize in few regions, which

possess specific and cumulative advatltages \vlicreby the growth process reinlbrccs itself.
In course of time, certain economic furces conw into existence, which offer the periplleral
regions some opportunities for growth. 'l'he~rrelatively limited advantages begin to be
reinforced by certain factors like political plcssurcs and protected local markets. Wlle~l
population and per capita income rises ovcr a period of time, sufficient economies of

scale can be developed there. Though their co~npetitiveadvantages are few and weak,
they do possess some advantage on local prod~~cts,
which can be exploited.
 With these features, Hagerstrand tries to present what appears to be a co~nplexbut
realistic picture of spatial dispersion of growth process 1-le observes that " . . a closer
analysis shows that the spread along the initial 'frontier' is led through the urban
hierarchy, and also the leading cities within a country should give impulses first of all lo
towns next in rank. The further spread is tlicn heavily regulated by distance friction;
strong ties of the major towns with the capital over a rather long distance occur: the local
influence is exerted on lower order centres closer by "".

Perroux has also discussed about the forces of diffusion from the growth pole. In
fact, for him growth cannot be separated fro111 tlie diffusion process. Growth manifests at
certain poles and diffuses through the economy in definite channels.

Expanding on the original notion of' I'erroux, Brain J.L.Herry argues that "the
developmental role of growth centres involves the simultaneous filtering of the
innovations that bring growth down the urban hierarchy and the spreading of the benefits
occurring from the resulting growth both natiorially from core lo hinterland regions and
within these regions from their metropolitan centres outward to the inter-metropolitan
periphery". Since there is a limitation in the Ivnn of a minimum area beyond which the
forces of diffusion cannot expand, the lowest levels of welfare are found in areas

peripheral to small urban centres. In his view, both entrepreneurial and household

innovations are indispensable for overall regional development as it depends upon

diffusion of the growth opportunities, on the one hand, and the utilisation of' the
opportunity by potential beneficiaries, on the other.
 Braln J L Berry has llsted the follow~ngreasons for h~erarch~caltilter~ngof
d~ffus~on

(a) There will be 'market search~ng'process ~n wh~chan evpii~id~rigridu us try

explo~tsmarket opportunltles In a larger to smaller sequence5

(b) Rlslng wage rates In larger cltv compels the productwe actlvltles to r ~ ~ o v e
towards smaller cltles In search of cheaper labour

(c) There wll be an '~mltat~on' process In wh~chentrepreneurs In smaller centres

mlmlc the actlons of tho5e In latger c ~ t ~ eand
s

(d) There wII be a probab~l~ty mechari~smIn whlch the po5slb111tyof adopt~on

depends upon the charice that a potentla1 entrepreneur res~dlngIn a glven
town will learn of ~nnovatlon,a Ilkellhood that decllnes w ~ t hthe size of town

He sums up the entlre th~ngby statlng that " the lnnovatlon poterit~alof a centrc 1s
a product of ~ t posltlon
s In the urban h~erarcliyarid the force everted on ~t by centres that
have already adopted the ~nnovatlons"

Richardson also vlsuallze5 the p r o w s of drflus~o~i

of lnnovatlon In three pklses
In the lirst phase, there would be clustcr~ngof early adopters In the area rmmed~~~tcly
around the Innovatton centre In the second phase, there would be rad~caloutward
dlsseminatlon of adopt~onsw ~ t ha rlse of secondary agglomerat~onsculm~nat~ng
In
'neighborhood effect' The final phase consists of a saturat~onstage, whlch may be
reached near the Innovation centre

It has been commonly observed that the cham of comlnunlcatlon arid adopt~on
process IS stronger at the higher order centres whereas the cham breaks up in d~sorder
down the subsequent lower order centres of the h~erarchy In t h ~ scontext, Pedersen
observes that the household lnnovat~onsby nature are more d~ffus~ng
than entreprerleur~al
lnnovat~onsas the elements of complexrty and r~skare much greater In the latter
 Pedersen made a study on the reciprocal impact of development upon the
geographical pattern and spread of dithlsio~i processes. Ile reveals the f ~ c trllllt the
transport and communication network improves with the increase in tlie level of
development leading to greater speed of information difl'usion. This inlbnnation dilt'usion
benefits the largest town to the maximum extcnt though in the subsequent stages it also
benefits other towns in the hierarchical systern.

~ o t t i e ? ~in, this context, has attempted to integrate the theories of effects of' the
transportation network with the theories of urban hicrarchics and geographical
development poles. He contends that economic progress normally tends to be propagated
along the main transportation routes connecting the centres of economic importance.
There is a tendency towards the concentlation of development activities along the
original national developtnent. 'This is because [lie inter- regional trade will !ticrease the
traffic along the transportation route yielding scale economies in the form of lower unit
transportation costs. This lower cost of transportation increases the volume of trade. The
consequent increase in the traflic will improve the transportation infrastructure and
modes of transport by means of capital investments and the introduction of new
techniques. This is especially true in those situations where two routes cross and create
what he calls it as 'junction effects' in the later stages. Agriculture and related activities,
which are located near such routes, are bcnclited by easier access to larger markets. In
addition, there will be greater contracts facilitating dissemination of information on
technological and cultural innovations. A positive effect of this entire process is that it

stimulates social change by making the area more conducive to development arid growth.

Thus, it is quite clear that growth not only tends to concentrate in few areas of
advantage but also spreads out over a period of time. 'l'he theories discussed in this
section clearly hlghllght certain lactors tll,~tIvolnole the process 01 ptowth dlspcrs~oli A

clear understandlng of these factors 1s of grc,ll Importance for pol~c\formulattoti ns 11 1s

discussed In the next sectlot)

Theoretical inference

The prevlous sectlons brltlg home thc polnt that there IS no dearth of theoretical
l~teraturefor any one who IS Interested ~n understandlng the complex process 01
developrllent across d~fferentreglons At this lun~ture,~t IS necessary to lrller the lelcval~l
polnts depending upon one's own requ~rc~iiut~t
J hlnklng from this angle, we Lan resort
heavily to the previous sectlon on the procesq o l growth d~sperslonA closure look at this
sectlon prov~desthe pol~cy-makerthe followlrig pcllnts, whlch are very cruclal In lranilng

(a) It IS ~nev~table pattern of regional developmenl as perlect

to see the dllill~sll~
panty across all regton9 1s nevt lo ~mpossible Ilowever, over a pcrlod of
tlme, forces of growth concentretlon glve way to forces of growth dlsperslon,
prov~dedthere exlsts some favourtlhle condlt~ons,

(b) Channels through whlch growl11 process spread out from developed to the
backward reglons should be strengthened so as to derlve greater benefit
accrulng from centrllugal forces

(c) The interactton between core-lr~nge, h~nterland-heartland and centre-

per~pheryshould be strengthened,

(d) Comparat~veadvantage and S L O I ~ Cfor speclal~satlon of backward regions

should be exploited to the filllest cvtent in the overall process of econotnlc
expansion,
 (e) Inter-regional trade bct\veen the tleveloped and backward reglons should be
promoted for mutual benefit.

(f) When an economy tins crol;~ctitIick lri~t~alstage of' dt.~clopnir.r~t,

fVrces 01'
decentralisatlon and sub-urban17nllon should be strengthened.
(g) When the economy 11; on the pat11 ol'progress, there ~liouldIje crcntlon of n
mechanism for the smooth d~llus~onof tcchnlcal. social and cultural
innovations from thc hlgtier order to the lower order reglons,

(h) A strong and cost eflectrve tr;lny~ortand communlcatlon network IS a pre-

cond~t~onfor growth propayatlon.

(I) One has to resolve the prohlern of conflrct~nggoals of efficiency \'li,:cu.t

equity and growth vcBr.ctcr soclal Iwtlce,

Q) The endogenous factors, which prc~motegrowth from \ i ~ ~ htllc~ nhackward

regions by way of cuplort~ngt l 1 ~ 1 otvn
1 potential, persorlnel and cconomles of
scale should also be glverl due co~~s~deratlon,

(k) Finally, perhaps tllc ruost V I I I C I1)011it

: ~ ~ 111 IIIC ~ I C \ C I I I C O I I I C Y ~ I S the
development of dynririltc character of an entrepreneur, ullctllcr he IS an
ind~vidualor the Slate

These are the maln polnts that elilergc liom various theor~esof reglontll growth
rev~ewed so far How to glve practical t(luch to these ttieorct~ci~lderrvnt~ves is an
Important question that should be pondered ocer txperts In the field have sorted out the
answer to t h ~ question
s by visual171ngthe li)llo\vrng
(a) Financial assistance fioln thc h~gher ordcr down to the lower ordcr
administrative reglons.

(b) Assigning vital role for the spcclallsed financial ~nsl~tutionsto create
necessary conditions for growl11 in the backward reglons,

(c) Encouragement by wily ol a pnckr~gcol'~ricent~vcs,

(d) Direct Investment In the location of' pro~ects,whlch can st~mulategrowth at

the local level; and

(e) To stress the efficacy of reglol~:llplat~nlnpwhlch ciin go a long way In

reallsing growth ohjectr\e< \ \ I I I I proper co-ordinat~on between resource
uti]isatlon, local part~clpallonalld dcvclopmenl agencic5
 With this theoretical background, a dclrl~ledrevlew of Ilterature on the toplc has
been presented In the followlrl[l \ c c l ~ o 1~I I~I \ I1:1q hrcr~ntlclnplcd nc 1 1 1 ~~ r l ~ c r - ~ ~ a ~ ~ c ~ n n

national and State Level

Review of literature

Whrle there IS a vast rrwrvolr (11 I~turaturedeal~ngw~tlivarlouq aspects ol

reg~onalgrowth, In general, l~teratureeuclus~~clv
related to the devclopment of backward
reglons 1s rather llmlted and part~al It 1s partl'll In tile scrise that they riialnly cover ccrtalri
aspects of backward reglon develop~nentand do not glve us an overall p~cture

As rev~ewedIn the prevlous seclrons, many stalwarts In tlie lield of regional

economics have put forth ttle~ro n n Ideas about the reglonal development One of the
earllest attempts at theorlz~ngreglorial gro\clli was a sene? of wrltlngs on locat~ontheory
Well-known among them are Ctir~qtallerand I osch who developed a set of rtlter-related
theor~eson locatlonal aspects of develop~ne~i~
Other wrlters l ~ k cBeckman and Ijerry
have further ~mprovedthe Central Place Ilicor~of spallal organlsatlon developed by these
ploneers However, the central place thcorlcs wrth the~r~deallzedassurnpt~onsare far
setting on which Ihcy are bnscd
from reallty They merely retlect tllc agr~culttlr~~l

An Important aspect of theory of' reglorial development IS the analvs~qof the role
of clttes In 11s developlnent I tic role, ol~t111111111
w e arid spat~al~nlluence~
of a c ~ t yand
the process of urbanization are crucial 111 rcgrorial developrnc~it One of tlie lirsl
theoreticians who made a c o n ~ l ~ r c l l e ~ ~i111;llysi~
s ~ v l ~ of this nsprct wns I .arnpnrd
Subsequently, many theories ha\e becrl ilcl\a~lced relaling to the size of tlle cilics.
Howard stresses the importance of social i111dcultural aspects in addition to economic
considerations in his theory, while Scll~ii~l~nan
views the cities as part of larger
functionally inter-related systems wit11 cconornic optimality criterion. Significant
theoretical contributions have also come fro111C'lark, Klaassen and Isard.

It is generally observed that dcvclol~nientoccur unequally. over geographical

space and there is an interaction betweeti tllc Inore developed and less developed points.
Hence, geographical incidence and trans~niss~on
of economic develop~nentf o ~ ma crucial
area in the study of regional developn~c~it
1)1occss.These issues have been discussed at
great length by Hirschman and Myrdal. 'l'lic trickling down and polarization ell'ccts
narrated by Hirschman and spread and h:~ck\vash eflects by Myrdal are crucial in
explaining growth concentration arid dispers~o~~.

Geographical diffusion of inno\,ations is vital for greater dispersion of

developmental forces. A valuable theoretical I);l~eto understand this process of'difl't~sion
was given by Hagerstrand with his social thcor! of dii'fusion.

Growth pole theories form a suhsl;r~i~~al

portion of theoretical output relatcd to
regional developmenl. It was I'crrouu, n.lio 11111oduced
thc concept ol' growl11 pole it1 his
classical article of 1955. It stimulated gre:lt Jcal of thinking among regional econolnists
and there followed number of' inlcrpretations. ~rnprovisationand great deal of' literature
on the idea. Proceeding from t h ~ spoint, a ~iuinberof authors put I'orth their ideas of'
growth centres and growth points ~ ~ l ~ ~ l l l l iin~ ~the
l t i hypothesis
g of growth foci by
R.P.Misra.

The stage theory and sector theor 01' ~cpionalgrowth, the regional convergcnce
hypothesis and the theory of uneclual escllnll!:c Iiiive all enhanced our understanding of
the various aspects of regional growth.

At the national level, there are nunlcrous published works on backward region
development by several scholars. Most ol' llicln are empirical in nature and arc in the
form of various reports and research articlcs I lowever, purely theoretical arid arlalytical
works are very few.

I'he empirical works mainly relntc lo ccrtaln aspects of rcgio~ialdcvclop~ne~~t

in
India. 'They include identification of backward areas, factors of ecoriomic backwardness
of some regions, nature of back\vardncss. ~cgionaldisparities and strategies that are
needed for the development of backward arcris in tlie country. Idt,n/~/ic'ir/rori
of I!trc,k\ctrrtl

liegions und the 7iends in I<cpror~crlI)r.\l]cr~,rlc,.c rri Iritlru by tlcnilata Kao, I.ovc~l.cog
Regional Developmenr In Indri~by Ashok Mllr;~,Huckwurd Hegrot1 1)rveloprncnl In ltid~u
-Problems and i'rospecrs by T K I.akshmiui, I ~c'tlclopnienruf'f'HuckwrrrdArctr.v- I'rohlent.~
and Prospecls by Mahesh T Palnaik, 711(,I~i~rrl~rtr/rorz
c!J Incomu /)r.\lrlh~lltrl? 01
/:f/i'c/,~
lnvestn~ent rn The Less I)evelo~poriI~c'grorr\ 01 IIIU'IU by M N Murthy, Nocd fir
Appropriate l ' e c h n o l o ~for Huc,kn,m.ll .It~!tr\I~c~velopnteritby R V Sinha, Buckward
Area Uevelopmenl: (,'on,vtra,,lls uric/ Necll,s ( I / /rr.\/~/u/~o~zai
I<~/i)rni.sby S P Sinha could

be cited as some of the importarit works discucsing difrerent aspects of backward region
development in the country.
 In addition, some studies llave I ~ I ~ I ~ I I ~ Isectoral
I I c ~ develop~nentfi~rprornotitig
the causc of backward rcgions .411 ~ ~ I /~l l ~ ( ~ k , ~ , ItJ, I~. t, Il ~ I ~ , Irrtlri.\/,r~rl
I I ~ I ~ * ~ ~ .\ ,I II /, I( ~I II ~/ for I\

Development by ANKC Shah and V ( i l'i1t11.I)c:c.rgrr Hirc.kwart1 .~rc'trs/)i~i~c~Ir~~~irrc~n/:

Role qf Infrastructure by Chakradhar S~lrlia arid Hcgror~ol I)rtp:rc~rr~rt~.r
l?olia (!/
lnstirutronal Finance by S P C 1)col Iravc I I I I ( ~ L >lr~icd
I the dei'elol.rrirc~rto f n sl~ccilicscctor
to stimulate regional growth.

In addition to the abovc mcntloncd studics, therc have been a n u r n t ~ rof concrete
attempts to identify backward regions in I~ldiil One of the pioneering eflbrts to identify
backward regions was made by the Corn~iiitl~e
on 1)ispersal of lrrdustries appoi~ltedby
Small Scale Industries Board in 1960, wlrich suggested several criteria ti)r identilying
111ralareas (See Anncxure I ). 'I'llis wiis very
such areas for the purpose of indu~triali7,i11p
helpful in initiating the prograrnlries ol I<u~alIndustries I'roiect in lYt12-63 (See
Annexure 2). However, these el'lijrts lackt~ticlear perspective ahout the problcms of
backward region development.

On the eve of'the Fourtl~I;rve-yea1 I'~:III,

tllc I'larining Cornrnission appointed a
study group to suggest criteria fhr idenlil)~rigbackward regions. This group listed I5
different indicators related to population. social and economic overheads, agriculture and
industry (See Annexure 3).

Further, to facilitate smooth transfiv 01' resources from Centre to the States, the
National Development Council decided to gr\ c some weightage to backward regiorrs at
Its meeting held on 13'" Septc111ht.r196X I t tl~acidudto give 10 pet cent of resources to
those States having per capita inrolne helo\\ the national average. '1'0 do so, it selected
the index of per capita income, to overcome tlic paucity of requisite data.
 Perhaps the most significartt slep to idcrrl~lr'backward regiot~sin various Stalcs of
India on the basis of their nature arid fina~ic~;~l
requirements was taker1 by the t'lanning
Commission in November 1968. I t sel u p I\\() working groups hcedcd hy l'nnde"" nrid
Wanchoo4'.

'The Pande committee has heen assip~tcdthe task of recomtr~cr~dirig

thc objective
criteria that could be adopted in identif).~~rgthe backward regions 'l'he Wanchoo
committee has been entrusted with the reslx~nsibilityof considering three rnajor aspects
for development of the backward regions, first, consideration of the nature of cot~cessions
to be given, second, examination of procedural. firlancial and fiscal incentives and third,
the role of State Government and financial iristitulions in the develop~nentof industriec in
backward regions.

The Pande committee recom~nendcdS I X criteria fbr the purpose of' idet1tif)ing
industrially backward States and lltiion 'l'err~to~
les. 'I'hese are,

a) Total per capita incolne.

b) Per capita income frotri iridusrp and mining;

c) Number of workers in registcrud liccories;

d) Per capita annual consumption ot'electricity;

e) Length of Surfaced roads in rclat~o~r

to populalion arrd the areas ol'the State
and

f) Railway mileage in relation to tlrc ~~opulation

and the areas of the State.

The Wanchoo committee suggested the following i~celltives to encourage

entrepreneurial ventures in the backward rcpio~ls.

 a) Grant of higher development rebate to industries located in backward areas;
b) Grant of exemption from income tax, including corporate tax, for five years
after providing for the development rebate;

c) Exemption from payment of import duties on plant and machinery

components, etc., imported by units set up in backward areas;

d) Exemption from excise duties for a period of five years;

e) Exemption from sales tax both on raw materials and finished products to
units set up in specified backward areas for a period of five years from the
date of their going into production and

f) Transport subsidy: Up to 400 miles the distance should be considered as

normal and beyond that the transport cost for finished products should be
subsidised for such backward areas as may be selected in the States of
Assam, Nagaland, Manipur, Tripura, NEFA and Andamans. The transport
subsidy should be equivalent to 50 per cent of the cost of the transportatiocl in
case of the backward areas specified in Jammu and Kashmir.

Subsequently, the following criteria were evolved for identification of industrially

backward districts to qualify for concessional finance aRer consulting the financial
institutions:

a) Per capita food grainslcommercial crops production depending on whether

the district is predominantly a producer of food grainsicash crops;
b) Ratio of population to agricultural workers;
c) Per capita industrial output (cross);

d) Number of factory employees per lakh of population or alternatively number

of persons engaged in secondary and tertiary activities per lakh of
population;

e) Per capita consumption of electricity and

f) Length of surfaced roads in relation to population or railway mileage in

relation to population.
 Chakraverty ~ommittee" carried out another major exercise for the identification
of backward regions. The Committee made an attempt to study the distribution pnttern of
backward areas across different regions in India. Its objective was to provide an
appropriate approach towards the formulation of plans for each of the backward orcas for
their overall development. It viewed the problem of backwardness as multi-dimensional
and suggested multiple criteria approach for their identification. Taking the district as
area unit, it tried to map the distribution pattern of backward areas, with the help of the
following 14 variables:

a) Density of population per Sq.Kms of area;

b) Percentage of agricultural workers to total working force;

c) Gross value of output of foodgrains per head of rural population;

d) Gross value of output of non-foodgrain per head of rural population;

e) Gross value of output of all crops per head of rural population;

f) Percentage of total establishments using electricity to total number of

establishments (manufacturing and repair);

g) Percentage of household establishments using electricity to total household

establishments;

h) Percentage of non-household establishments using electricity to totnl non-

household establishments;

i) Number of workers in registered factories per lakh of population;

j) Length of surfaced roads per 100 Sq.Kms of area;

k) Length of surfaced roads per 1,akh of population;

I) Percentage of male literates to male population;

m) Percentage of female literates to female population and

n) Percentage of total literates to total ppulation.
 By using simple ranking method, index method and principal component analysis,
the Chakravarty Committee combined the variables into a single index of regional
disparities. With the help of this index, 179 districts were identified as backward, and
they were grouped as Central Belt, I-limalayan Foot hill Belt, Rajasthan-Gujarat Belt,
North-Eastern region and Isolated Backward pockets.

Further, the Planning Commission, at the time of formulation of Sixth Five-year

plan, decided to constitute National Committee on the Development of Backward Areas.
The committee was asked to review the various policies nnd progrnlntncs for the
development of backward regions and to suggest measures for their rapid development.
The terms of reference of the committee were

a. To examine the validity of the various concepts of backwardness underlying

the definitions in use for present policy purposes and recommend the criteria
by which backward areas should be identified;

b. To review the working of (i) the existing plans for dealing with the general
developmental problems of backward areas like tribal sub-plans, plans for hill
areas, etc., and (ii) the existing schemes for stimulating industrial
development in backward areas such as schemes for concessional finance,
investment subsidy, transport subsidy, sales tax concessio~is,elc., Similar
schemes in the agricultural and allied field like DPAP and general measures
for tackling the problems of poverty and unemployment with a view to
finding out their efficacy in the removal of backwardness and

c. To recommend an appropriate strategy or strategies for eft'ectively tackling

the problem of backward areas, classified, if necessary, according to area,
causes or prescribed remedies.43

The committee appointed four Working Groups to examine issues related to

a) Organisational structures for Development of Backward Areas ;
b) Rural Development ;
c) Tribal Development and
d) Industrial Development.
 The committee presented its findings in the form of eleven reports in 198 1 giving
valuable insight into various types of problem areas and suggestions to overcome these
problems. The committee was of the opinion that there was no clear concept of
backwardness and its relevance for the process of planned development. Therefore to
have a clear picture as to what exactly constitutes a backward region, the corn~nittee
listed three characteristics, which might help to identify a backward region.

First of all, they must have potential for development. Secondly, there must be
some inhibiting factor, which prevents this potential from being realised. Finally, there
must be a need for special programme to remove or mitigate the inhibiting factor and
realise the full potential for development.

On the basis of these characteristics, the committee attempted to identify

backward region with 'Problem Area Approach'. Some regions have problems which are
of an order that require special measures not only in terms of finance but major changes
in policies, programmes, technologies and institutional arrangements. 'l'he committee
viewed this approach as quite useful in not only avoiding generalization ol' backward
regions but also in finding out the problems faced by a particular buckwnrd rcgion.

Adopting this approach, the committee has identified six typcs of backward
regions in India, such as chronically drought-prone areas, desert arcas, Iribnl areas, hill
areas, chronically flood-affected areas and coastal areas affected by salinity. '1hese are six

types of fundamental backwardness and a single region may experience any one or
combination of different types.
 Another major attempt at developing an objective criterion to identify
differentially developed regions is by tletiilata ~ a o ' ' ~She
. followed tlte nlc~ltod of
Principal Component Analysis on the lines developed by ~ a g o o d " and
' partially adopted

by In the first stage, she selected 24 indicators, which were classified into 4 sectors,
namely, Agriculture, Industrial, Education and Banking. Secondly, she constructed
sectoral indices and the same was pooled together alter assigning weights in terms of
factor loadings. In the last stage, a composite index of development at State-level was
constructed. It is one of the pioneering research attempts at the national level to identify
backward regions and to trace tlie rcgional disparities in India.

As far as Kamataka State is concerned, there are very Sew studies dealitig will1 the
problem of backward region development. Even here, comprehensive analysis on the
overall developmental issues is limited. Most of the studies are concerned with particular
aspects such as industrial development, command area development, education and
agriculture. In the following section, a brief' review of some of the important studies has
been presented in the light of research issues raised.

tlemlata Rao, applying the salrle ~ticlliodologyas discussed above. Ibcuscs on

issues pertaining to regional disparities in Karnataka at the micro-levcl ill hcr study,
Regional llisparr~iesand l)cvelopncr~rrn India. As the iiutllor herself has mentioned, it is
an attempt to bridge the gap which prevailed not only in the field of block level planning
but also in the formulation of various strategies of backward region development. 'I'he
study, conducted with the main objectives of identification of backward talukas and to
present the typology of backwardnessldevelopment and to delineate homogenous talukas,
is very much relevant to some of the issues raised in the present study. It is one of the
most comprehensive works covering all the 19 districts and 175 talukas in Krirnataka
State dealing with all important socio-economic aspects and sectors. However. as the
author herself points out, the study is a static analysis and does riot analyse the variations
over a period of time. The study could not make time series analysis due to non-
availability of data at the taluka Icvel. It could not cover scctors likc mincs and minc.rnls,
forest wealth, trade and services due to the same constraints. Ilowever, the studv is of
great theoretical and practical significance and serves as a very good guide Sor ntiy
subsequent comparative analysis that could be undertaken in the satne field, l'he prcserit
study has drawn significantly from the methodology developed by her.

D. M. Nanjundappa and M. B. Goud, in their work, I)r~~eloprncrtt(!I Huc'kwurd

Areus (with special reference to Karnataka) have selected 22 indicators for meaauring

inter-district variations in levels of development. On the basis of these indicators, a

composite index of development has been developed to get an idea as to how dilf'crent
districts stood in relation to each other during the period between 1960-6 1 and 1976-77.
The study finds that the gap between the most developed and the least developed district
has narrowed down during this period

On the regional policy, the authors are of the opinion that there is no ready-made
approach for tackling the problem of regional imbalances. 'I'hey suggest the adoption of'a
package of policies with a definite area slant. In allocating the plan outlays they opine
that a choice has to be made between areas with very severe problems hut little potential
for growth and those with less severe problctns with greater potential. 'I hey suggest going
beyond the district as a unit, to the block level for dispersed industrial development. l'hey
advocate either a variable incentive scheme or a uniform incentive approach, which also
opens up debate on the appropriateness of either of the approaches in n given situation.
 These suggestions will have to be examined in the light of viability of having big
economic venlures at the block level espcci:illy in the flhscncc of'ncccssary I ~ ~ I I I I C \ Y O I to
~
realise the objective. The authors have stated that thelr study is useful in terms of general
applicability, but it is skeptical that such a general study would be useful to realise the
objective of regional balance in a reasonahlc pcriod ol'tllllc

T. N. Lakshman and D.T. Nanje tiowda in their work, Huckwmd Hoglonu/

Developmenr Programme in k'urnuruku, tries to present a general analysis. They touch
issues such as policies for backward area development, determinants of economic
backwardness, extent of urbanization, policy programmes to develop the backward areas,
their effectiveness and integrated area development. I'hey lay special emphxis on
planning in a hierarchical pattern from grass-root level to taluka or district level

There is another study by R. K. Narayana dealing with the approaches to the

preparation of integrated development plan Ihr the co~nmandarea of (ihatnp~ahhaand
Malaprabha irrigation projects It analyses the impi~ctof such a plan on agriculture and
other sectors of the region and the resultant effects thereof. The study examines the
efficiency of systems, growth centre approaches and calls for comprehensive
development of the region.

The study conducted by B Seshadri on the industrlalisation in Karnataka views

the problems of industrial development horn both regional and structural angles. It dcals
with issues of industrialisation and development, inter-district disparities in
industrialisation, location of large-scale, small-scale industries and policies pertaining to
regional development. These issues have been studied with special ernphasis on spatial
equity. The study is limited only lo a single sector analysis in the overall development
scenario of the State. As the author has himself admitted, the study sulltrs from data
limilations.

R. V. Dadibhavi in his work, Incontr l'rohrclrvrq~ cmd Irlc/l4$lrll~/S/ruc/rrre

examines the income inequalities across all the districts of Kartiataka State using multiple
regression technique. He tries to isolate the extent of contribution I'rotn industrial
structure, productivity and workers' participation rate leading to inter-district income
variation. Making use of the same technique he has investigated thc factors affecting
inter-district agricultural productivity variations for the years 1960-61. 1970-71 and
1975-76. The study has taken district as a region considering the practicability o f regional
framework and data availability. It tries to measure regional disparities in terms of per
capita district domestic product at factor cost. As the author himself has put it, due to data
constraints the study could make only cross-section analysis to examine the extent and
factors of inter-district variations in per capita income and agricultural productivity.

L. S. Bhatt in his work, Regrottcil I'lrrnttn~g117 Inclr[j analyscs the rcgional situntion
o f the Karnataka State from geographical angle. Ilo has surveyed ll~cfi)ur regiorls ol'

Karnataka State and discusses about the structure of admiriistrative units and tlicir
developmental blocks. The author also deals with problems of Western (ihats Region, its
land use pattern, mapping and resource potentiality. tlowever, it is basically a
geographical study and does not go into the questions of value judgement of economic
aspects of regional development.

Works dealing with regional aspects of Karnataka economy reviewed so far and
numerous research articles, seminar papers, project and cotnmittee reports which could
not be discussed here for want of time and space, but mentioned in Bibliography brit~gs
out the fact that there are gaps in their research out-put. A comprehensive and systematic
study of the problems of backward rcgions arid their deceloprnen~;ilproslwcts is still very
much lacking. Most of the studies have also been unable to come out with the appropriate
strategies for greater balanced development thougli it has been the aspiration of marly in
the academic and administrative circles.

The present study, therefore, is an attempt to lill these gaps arid to give a I'ull-
fledged analysis of problems of backward regions and their poterltials for future growth.
It tries to provide some solutions to the chronic problems of intcr-regional atid intra-
regional disparities that exist within the State It is hoped that the study would provide
some valuable insights into the intricacy behind the so-called north-soutli dicllotomy and
point out areas of strength and weakness of Karnataka's regional economy for the
consideration of appropriate authorities. To set a proper stage for such an in-depth and
macro analysis of Karnataka economy, a brief niitural and cconomic prolile of tlic State
has been given in the next chapter.

References ant1 Nates

1
John Friedman and William Alonso (eds.) Htgl~~nl~l I ) ~ v c I o ~ ~ ~ni~t l tl Ift'~I N/ I I ~ I I I ~
A Header, Fifth printing, 'I'he Massachusetts Institute of 'l'echnology, Cambridge,
mass, 1972, p 209.
2
Harry W. Richardson, Regional (irowtk 7heory, The Macmillian Press Ltd.,
London, 1973, p 14-5.
3
Perroux, "A Note on the concept of 'Growth Poles"' in David I,.Mckee,
Robert.D.Dean and Williain H Leachy (eds.), Itc~ionali<conomrcs,'Illcory und
IJractice, The Free Press, Illinous, 1970, p 94.
A. 0. Hirschman, 7he SIr(~lc'g~~
01 I~c~rtrtonrr(~ Yale IJn~~~erslly
I~rvcplop~ncp~~r, Press.
New Haven, Conn , 1958
J.G.,W~lliamson,"Reglonal Inequality and the I'rocess of Nallor~cilI)c\clol~r~~cnt
A Description of the Pattern". Ikonomrr~1)cvclopmenr ci~rd( 'rrl~rrrul( ' I I ~ u I ,Vol
~,,
13, No .4, Part 11, July19h.5

Ibid, p 55.

Emmanuel, Ilnequul I: r~ Iirnrgc: A S ~ r ~ t h llrt.

~ It?rpr~rrolr\rn01 Irrrric~,New I ,eft
Book, 1972.
Friedman, Ragronul L)evclt~jrnicnrl'olrcj , MI'I' Press, Camhr~dge,Mass , 1966

S.C.Patnaik. Economrcs of I<egron(~lI )c\~cl~pt~icrtr

ut~dI'lanrtrng rn 'llrrrd :t'orld
Cbunrrres, Associated Publ~shlngHouse, New Delh~,1981, p 12

E., Lampard, "The History of Cities in the Economically Advanced Areas",

Economic Devel(~metttulrd C 'ulturu/('/range,Vo1.3, No.?, l Y 55.

Polander, in 0. S. Shrivastava, Hcgrcr~rtrl/ ~ ~ ~ ~ O l i O t7lic~orrrrc,ul

ll~~'~, I.v.v~rc.v,Ari~liol
Publications, 1992, p128.

Von Thunen, "The Isolated State" ( 1 826). In Mahesh C'hand V~nayKiilnar

Puri (eds.), Negronul Plattr~rttgrrt Irrtircr, Allled Publ~shers,Bombay, 1983, p 128

Alfred Weber, "Theory of the Location of Industries" (1909), in Mahesh Chand

and Vinay Kumar Puri (eds.),lhiti., p 129.

Walter Christaller, Cen~rulIJlucc.v 111 Soulhern (icm~uny,(Trans C W.Haskin),

Englewood Cliffs, New Jersey, 1966

August Losch, l h e Economrcs of l,ocu/ror?,Yale University Press, New Haven,

1954.
L.W,,Pye, ?he P o / I ~ I ( ' IN~/ I ~ / I ~ O of~ I Ilrhnnc(~tron
OII\ ( J I I ~ rho
~ I)c~~~(~lopnr~~nt
Process, &'r~cral I'roh/en~,\of I k ~ v c l o ~ ~ t t ~lrnil
r ~ ilirhonr:a/ron
i [ IN Conlkrence on
the Application of Science and I'echnology for the Benefit of [lie I.ess Ileveloped
Areas, Washington, DC, Vol V11, 1963, p 81
E., Howard, Garden ( 'r/r~,sof li~rrrot~ro~c~,
[,ondon. 1946

B. Schindman, "An Optirnurn Size fbr C'rties", c ;nltrtf, (;c.ogrrri)hc,r.T, 1955

C., Clark, "The Economic Functions of a City in Relation to Its Size",

Econometrics, April 1945.

L.H., Klaassen, "Regional I'olicv i n tlie Benelux Co~~nlrics"Part 2 in Arcu

13evelopmcnl Policies r t ~Ii~~rltrrrrtrtrti ilrt~( 'i)rin/rrcs~?f'/hc
( 'trrrrnioti Allrr.kr*/,U S
Department of Commerce, Washington. 1)C. 1965.

W.,Isard, Locafion urid Sl~tr~cs II~~otrott~~' : ( ;OIIL,~LII 11~~1t1~111g

711~'or)~ / ( I Itr~irr,c/t~ral

Locarion, Markel Arerrs, I . L I I I ~ (1,vc~. Iktrric~ and Iirhan S/rir~,/ur~,MI'I' Press,

Cambridge, 1956.

Perroux, "Economic Spacc 1hcor~ and Appl~cat~ons",Qutrricr!,! ,lorrrri~~loJ

Lconomrcs, Vol. 64, Feb 1950

J.R., Boudeville, I'roh1eni.v r ~ j Rc'~(rtrtrr~i

' I'art I, t3dinburgh,
IG~trtiontrcl'lrrt~/t//l~,
University Press, Edinburgh, 1966

Albert .O. Hirschman, see note 5.

G.Myrdal, 1,'cononzic 71ic~ot:11 1tcgron.v. Methueri & Co. 1,td..

t ~ t i i i1 b~~l~~t~t/cvclopc~~f
London, 1964, p 26.

K.P,Misra, K,V.Sundaranl ;~nd V.I. S l'rakasa Rao, I~c~,q~otrcr/ /)c2~~c'li~~~ttri~t

l'lunning in Indru- A N ~ M Vilias Publishing I louse Pvt Ild., New L)ellii,
,Vt'r~/eg\~,
'
1974, pp 190-200.

Friedman, (1966) in 0,s.Shrivastava, oll.crl., p 4 10.

Perloff and Wingo, (196 1 ) in 0 . S Shrivastava, op,crl., p 410.

Ullman, (1958) in O.S.Shrivastava, ry).cr/.,p410

Harvey Perloff and Lowdon Wingo, Jr ,"Natural Resource Endowrncnt and

Regional Economic Growth" in John F'r~edman and Wllllam Alonso (eds ),
Regrnnal Developmcn/ mtcl I'l(rmirtr~ I I~ocrtlor,MIT Press, Carnhr~dge,1961, pp
233-4.
33
.I.Hilhorst, Rcgionnl I)c1\~~~lo,vrr~~tlr ~ : Ar/t,rrpr /o S ~ ~ r ~ / l r ~Institutc5
1 1 1 1 ~ 0 1 : ~:111 ~ . v r z ( ~of
,
Social Studies, The 1 iaguc. 1007
Friedman- op.cit., 1966

T. flagerstrand, (19661% "Asl'cc~s of the Spatial Srructurc of' Social

Communication and the Ilill'usio~iof'I~ili)rniation",Rcgiorlal Scicncc Association.
Papers and Proceedings i l l Anlo111lit~hlinski(cd.), (;row,ih I'olr~s(rtrtl (;r.rr\+'~ll
(.'entresin Hegronul ~ ' ~ ( I I I Moulori.
I I I I I ~'l'he
, liague, 1972, p 5 ? .

B y nodes Hagerstrand nic;l~itsou~ccsilnd receivers and litihs and cl~;~n~icls

Ilc
regarded sources and receivers ;iq social nctors with dc finite locntions who
establish contacts with each orlicr Ii,l ;I \ : ~ r ~ col'reasons.
ty
'f. Hagerstrand ( 1966), op.c,rt.,p 5.1. crr note 36
P. Pottier, (1963), in Antorii Kuklinqk~(cd.),(irnurh I'olcs (111tl(irnn'ilt ( '(811ir C:Y 111
Regional Plannrng, Mouton. 'I'he I laguc. 1072, p 44.

Government of India, Planning C'olnln~ssion,Working Group on Itk~~~r~fic~crrror

f!/
Hackwurd Areas, Pande C'oni~nittee.Nc\c I>elhi, 1969.

Government of India, I'latining ('o~i~~nission, Working ( i ~ o u pon I , I . ~ ~ , ( Id!/

Y Huc'kn~t~rdAretr,~, Wa~ichoo
1~'rnuncial Incenlrve , / ; ) I . .Si(a.lrrrg I I I ~ I ~ I , \ I ~ I P ,rn
Committee, New Delhi, 1400
Government of India, l ' l a ~ ~ n ~('or~i~i~~ssion.
ng Idcntilicalion ar~dL'lassification of'
Backward Areas (Fronr tlic 1)rali I(cport of the Chakravarty Cornniillcc o n
Backward Areas), as ptesciilcd ill A~llicxure4.1 of I?c~l~rr./ or1 (;c'~~i'r.r~l
I,Y,\II(~.v
relaling 10 Bucbkwartl ..11'(~tr.c I ) ( ' I - ( / I ~ ~ I National
I I I L J I I ~C'ommillcc
. on the
Development of Backward Areas. Nc\\ Ilelhi, 1981, p 41

Government oflndia, Ihrtl., para I 2. 1, I , 1981

klemlata Rae, "ldentilici~t~onol' Ii;~cl\\vardRegions and '[rends in licgional
Disparities in India", Ar~h~~~~rlrrc~r~tr.
Vol 14, NO 2, 1977
M.J., Hagood, "Statistical blethods for the Purpose of Delineation of 12egions
Applied to Data on Agricl~ltureand I'ol~ulalion", Soc'iul /;)r.c,cl,Vo1.2 1 , 1943, pp
287-97.
M, N, Pal, "Quantitative 'I'c.cl1nicll1t.~
l i ) ~Regional Planning", l~~tlrun
,lorirrtctl of
He~ioiiulScience, Vol. 3. 1 0 7 1