Regional Imbalance/Regional Disparities

• Balanced growth means growth equilibrium in different sectors of the economy. It means all sectors of economy will expand in same proportion so that consumption, investment, & income will in same rate. It means the growth rate of consumption, investment & income should be equal.
• Balance growth is a dynamic process which include sustainable growth where the supply & demand are in equilibrium and growth in every kind of capital stock.
• According to R. F. Harrod, balance growth is a condition where wweight of income, output & natural resources are equal. It is express as:   G_y = G_w = G_n or G_y = G_o = G_r . If the 3 variables are balanced, the country or nation has balance growth pattern.
• Regional Disparity is a spatial analysis of the growth pattern or the economic development. Certain areal units have higher growth propensity because of geographical advantages & inertia, while certain regions lacks such advantages. Thus ,they remain economically depressed & growth impulse are emancipated.
• Regional Imbalance is the effect of variations in growth impulses over the space. It is an important geographical search, as to why certain regions have higher growth rate while others have not? Regional imbalance the differential economic force existing in a region. Certain regions have polarisation of economic factors while some regions have economic deprivation.

Factors Behind Regional Imbalance

1. Physical Factors
   • Natural resource endowment
   • climate
   • Soil & the soil fertility
   • Hydrology
   • Accessibility
   • Location
   • Altitude
2. The non-physical
   • Historical Factors
   • social factors
   • political factors
   • Dynamic factors
   • Technological factors
   • demographic factors
   • Economic factors

Theories of Regional Imbalance

1. Core-periphery model(Boundaries & Frontiers)
   • According to John R. Friedman, the core is always develops at the cost of periphery region due to centripetal force & the tendency of economic factors to centralise.
   • Core has the highest magnitude & intensity of phenomena while peripheral parts have more centrifugal tendency. Over landscape, initially, there are nucleus of growth which develop into the core and deprives the surrounding. Thus, regional disparity are bound to come.
   • It is a naturalistic theory of economic growth & regional disparity.
2. Cumulative-Causation theory(by Gunnar Myrdal)
   • According to theory, regional disparity or imbalance is merely a stage in the process of equilibrium growth. 
   • In this theory, it was argued that contrary to the classical theory, economic market forces increases regional difeerences rather than decreasing them.
   • Stage I(Cumulative-Causation Stage)
   • • Economic development takes place in a region initially because of natural advantages that it offers. Then, once such region moves ahead of others, a process of cumulative causation takes place as acquired advantages are developed to reinforce the status of the region.
     • Myrdal identified two associated processes which caused unequal growth:
     • 1. Cumulative Causation
       2. Backwash effect
   • Stage II(The Backwash Effect)
   • • A process of spatial interaction takes place as labour, capital & commodities move into growing region.
     • Such growth produces a backwash effect in that other regions and they lose skilled labour and capital to grow region and their markets are flooded with goods, preventing local development.
   • Stage III(The Spread-Out Effect)
   • • The benefits percolate or trickle down, especially the capital investment, diffusion of investment, the dissimulation of ideas & the reverse spatial interaction.
     • Thus, the regional disparity are temporary and ultimately leads to the balanced regional growth.

Regional Disparities across the world

1. North-South Divide
   • North: Former colonial powers, imperialist countries, technologically equipped, commercial economies, exporter of the final products, they control 3/4th of the world trade.
   • South: formal colonies, exporter of the raw materials, technologically deficient.