The role of economic sectoral structure as a policy mechanism towards more resilient peripheral regions: the case of South Africa

The role of economic sectoral structure in regional growth and development is widely acknowledged. However, there has been scarce reflection on its role as a policy instrument, particularly for peripheral regions. In reaction, this paper investigates the role of economic sectoral structure as a policy instrument towards more resilient peripheral regions. Through a multiple country policy analysis, the paper determines to what degree economic sectoral structure is reflected in regional development policies of 18 countries with predominantly rural characteristics and lagging regions. Moreover, the role of economic sectoral structure towards more resilient regions is quantified and measured for a specific peripheral region case in South Africa as developing country exhibiting poor economic resilience. The paper highlights related variety as a key ingredient for a region to reach a state of dynamic stability between adaptation and adaptability towards enhanced long-term resilience capacity of the peripheral region. The research concludes that policy focus should support the maintenance of the sectors and industries of comparative advantage on the regional scale, but strongly focus on sectoral comparative advantage within the national scale (if present) to establish a more robust region. This will establish and strengthen the identified peripheral growth centres as centres of national competitiveness and specialisation. Primary policy actions as emanated from the literature and the multiple country policy analysis will promote more efficient sectoral composition as key towards more resilient peripheral regions. It is acknowledged that these policy actions must be informed by a detailed regional economic analysis for different peripheral regions to determine inherent and latent economic potential and link with interdependent industries. This paper will highlight that regional policy should become more explicit by exploiting the role of economic and natural resources as growth engines for the peripheral regional economy in a more effective way through a multi-centred territorial structure.