Geography and Development
Theories of regional development and growth have hitherto focused for the most part on situations in the more developed countries of the world. There is no reason in principle, however, why these theories should not also apply—with suitable adjustments— to cases in less developed countries. Certainly, economic theorists of late have increasingly sought to deny that we need radically different approaches for dealing with less as opposed to more advanced economies (cf. Bloom and Sachs 1998; Sachs and Warner 1997). In recent years, indeed, a growing body of empirical work has demonstrated that very similar kinds of regional development and growth processes to those found in North America, Western Europe, and Japan are observable in much of the rest of the world. These processes are manifest in localized industrial systems that range from the purely incipient to largescale productive regions with global reach. In the present chapter, I attempt to systematize some of the main theoretical issues that are encountered in any attempt to understand the logic and dynamics of regional production complexes in less developed countries. In addition, I offer a brief review of some of the empirical work that has been undertaken on this question in Asia, Latin America, and Africa, together with some comments on the dilemmas that policy-makers in these areas must face up to in any attempt to promote development. I proceed at the outset by drawing both explicitly and implicitly on three major strands of thought. The first of these is what Krugman (1996) has called High Development Theory, with its central focus on virtuous circles of cumulative causation and balanced growth. The second is the so-called new growth theory, which emphasizes the pervasiveness of dynamic increasing returns effects in the modern economy (Lucas 1988; Romer 1986). The third is contemporary economic geography, where a long tradition of research has underscored the important role of regional clusters of production and work as motors of economic expansion and social progress (cf. Scott and Storper 2003).