Central Place Theory Approach to Local Economic Development
There is an old joke about the two people confronted by a bear. they both started to run but one stopped to put on his sneakers. The other said "that's not going to help you outrun the bear" He replied, "I don't have to outrun the bear I just have to outrun you."
That, in a nutshell, is the dynamic that the central place theory is designed to indicate. It shows the relative progress of a network of towns in the context of an approaching "bear". In rural regions, of course, the bear is "creeping economic collapse", the signs of which are everywhere. The Westman area has lost 60% of its population in the past 30 years. The agriculture sector is under the same pressure that is hitting all around the continent. The flood conditions in the southwest corner of the region resulted in one million acres not being seeded in 1999, the effects of which are still being felt.
Central place theory places towns in a hierarchy depending on the level of services they provide. The services are pictured as most basic in the small village where there is usually a grocery store, gas station and cafe. the next level up offers those but adds in a restaurant, bank, hardware, and drugstore. The towns goes up in size adding in new features, once a population threshold is reached for that service, until the top is reached with a full line of services.
A key element in the equation is the balance of transportation costs (in both money and time) and economies of scale as reflected in prices. These factors are weighed by the shopper who will trade off one against the other. One complicating factor is that people will double up on trips so that if they have to go to work, hospital, church, school or a grain delivery point at a certain location, they will often shop while they are at that location.
As costs rise for goods and services, and incomes stay relatively the same, cost factors in to a greater and greater degree.
Another factor in the equation is the shifting of "residentiary" jobs, ones that service the local population. These tend to migrate up the hierarchy as costs rise.
When it comes to using the model to boost local economic development, it is essential to map out exactly how the region's urban center functions. That is it important to see who's next to the bear, who is out in front, who is gaining and who is falling behind. Southern Manitoba has only one class one city, Winnipeg, with the bulk of Manitoba's population living in the capital region, in the Red River Valley flood plain. Brandon, Manitoba's only category two city is the hub of the Westman region. As economic development plans are worked out, it can be helpful to have a factual description of the current and future status of the town, in order to select activities that are appropriate for that stage and time.
As towns diversify, and transportation and communication facilities improve, other factors have to be added in to the equation, which the other rural development theories address, but Central Place theory lays a base on which to work with the others.
Links To Further Resources
navigation