Good afternoon learners.
You must work through activity 25.1& 25.2 – 369 – case studies on IDZs.
Lets conclude this section on industries by looking at of 368
Issues associated with centralisation and decentralisation.
Centralisation- the clustering of industrial zones within a core area.
Decentralisation – the movement of industries and businesses away from a core area to the outskirts.
The 4 core areas in which centralisation has occurred is
Port Elizabeth Uitenhage.
3. Durban Pinetown.
4. SW Cape.
We have looked at 2 of these core areas in detail.
Advantages of centralisation :
1. Multiplier effect- clustering of industries where one benefits from the other.
2. Good transport and infrastructure.
3. Availability of markets for the distribution of products.
4. Availability of Labour supply.
5. Availability of basic services like water and electricity in the core areas.
6. The core areas are greatly developed.
Disadvantages of centralisation :
1. The surrounding rural areas are left neglected and underdeveloped.
2. Congestion of people and traffic in core areas.
3. Pressure on natural resources 4. Labour related issues – strikes, violence, absenteeism.
5. Housing shortages.
6. Increase in rural depopulation and associated problems.
7. Lack of infrastructure in surrounding rural areas.
Refer to page 368- table.
The process of decentralization tries to alleviate many of the disadvantages of centralisation and tries to allow for equity in terms of development throughout the country.