Prof. Hirschman’s View – Growth Poles & Uneven Development

👤 Who was Hirschman?

Albert O. Hirschman, a renowned development economist, looked at how economic growth tends to behave unevenly across space — and instead of treating that as a flaw, he examined how this unevenness could be part of the process of development itself.

🌐 Modification of Growth Pole Theory

Hirschman modified the traditional Growth Pole Theory — which originally suggested that growth emerges from specific centers (or poles) and spreads outward.

But here’s the important nuance Hirschman adds:

🧠 “Economic growth doesn’t happen everywhere at once. It starts in specific regions — those with initial advantages — and then spreads (if at all) to other regions.”

This means:

• Growth will be concentrated at first.
• Only later might it spread to other areas.

This concentration of development is not accidental — it is inevitable, because:

• Certain regions have pre-existing advantages like infrastructure, human capital, urban markets, or institutional support.

📍 Growth Poles and Growing Points

Hirschman uses the term “growing points” or “growth poles” to describe these initially advantaged regions that act as magnets for economic activity.

Over time, these poles may become centers of investment, innovation, and economic momentum.

But here’s the key insight:

❗️While these poles grow rapidly, they may or may not help surrounding regions unless specific conditions are met.

⚖️ Polarised Development – Two Faces

Just like Myrdal spoke about spread and backwash effects, Hirschman spoke about two outcomes of polarised development:

✅ (A) Trickle-Down Effects (Favourable Effects)

Also known as “spread effects”, this refers to how the growth in developed regions can indirectly benefit the backward or surrounding regions (also called hinterlands).

For example:

• The developed region buys agricultural goods from nearby areas.
• It hires labour from underdeveloped regions.
• It may invest capital or build infrastructure that also helps surrounding regions.

Hence, even though the initial growth is polarised, there is some transfer of wealth, demand, and employment to the lagging areas.

🟢 This creates a positive feedback loop for interregional development.

❌ (B) Polarisation Effects (Unfavourable Effects)

However, Hirschman also warns about the negative side of this polarised growth:

• Developed regions might create competition barriers, making it hard for backward areas to compete.
• They might erect trade restrictions or dominate supply chains.
• Resources (like labour and capital) may continue to flow into the developed region, hollowing out the others.

🔴 This leads to further concentration of wealth and growth, making disparities even worse.

🔄 Trickle-Down as a Tool for Development

Despite these polarisation effects, Hirschman is not pessimistic.

He believes that the trickle-down effect can still be harnessed — but only if policies ensure:

• Trade linkages between developed and lagging regions are strong.
• Capital transfers are facilitated.
• Governments invest in connectivity, logistics, and human development in the hinterlands.

🗺️ Why is this Important for Regional Planning?

In countries like India, regional disparities are sharp:

• States like Maharashtra, Gujarat, Karnataka are industrial hubs.
• Others like Bihar, Odisha, Chhattisgarh lag behind.

Hirschman’s insight is clear:
📌 Instead of trying to make every region grow at the same pace, planners should support growth poles and ensure that their benefits are shared with surrounding regions.