Regionalisation of the World economy and centric development

Abstract

Subject of the thesis: The concept of 'Centric Development' which alludes to the spatial dimension of the growth process. In particular, it implies that the development process of the world economy leads to: • The creation of large, supra-local conurbations (or areas of industrial concentration); • As such, it determines the structure of international trade; and • Consequently it exerts a positive influence on centric growth processes. Reasons for selection: Whereas traditionally the Growth Theory, as well as the Foreign Trade Theory, has ignored the spatial aspect, the Regional Theory (Economic Geography) had to take into account the spatial aspect of growth processes as an empirical fact at an early stage. As a result, since in the past development policy strategies had been developed exclusively against the background of concepts of growth policies and foreign trade policies, in the investigation of possibilities for integrating the developing countries into the world economy, the spatial aspect did not play any particularly significant role. However as a result of transposing the Theory of Regional Integration to the developing countries, the spatial aspect became part of the equation albeit in an impetuous and indirect manner such that although this development produced practical consequences, it was scarcely capable of leading to significant successes in terms of development policy. Purpose to be served: This thesis investigates the question of how far the 'Regionalisation of the World Economy' is dependent on the effectiveness of centric development as a structural feature, and what prospects would ensue from this with regard to the 'Globalisation of the World Economy' i.e. the integration of the developing countries into the world economy. Working Hypothesis to be verified: To illustrated the integration of the developing countries into the world economy on the basis of centric development, this thesis examines the implications of such a phenomenon with regard to: • The International division of labour; • Direct foreign investment, and • Regional Integration. The advantages of centric integration compared to the usual integration strategies are also considered together with the possible opportunities for implementing Centric Development processes in various developing regions of the World.