The initiative to create a new industrial center is gaining ground recently. Given the strategic aspect of the policy, the government brings about a strategy to move the business center from a dense industrial area to a new underdeveloped region. Having said that, this policy creates more serious problems rather than advantages that people can take of.
Introducing a new economic region is a new trend in government policy, thereby creating economic benefits for local people. The unevenness of development between areas has fostered a strategic scheme instigated by the state to develop new economic centres in certain areas. From the economic vantage point, the policy is considered the alternative in accelerating economic growth and also ultimately as the far-reaching strategy to create more and more job opportunities for locals. It is a common sight nowadays that if a new industrial area is built, then the economic upsides will stay at the point of the production.
However, the development of business centers in new regions is also likely to cause some thorny problems. Some firmly argue that, at least, there are two associated impacts of the presence of new economic initiatives in a region. First, ecologically, the introduction of new business activity in certain places often causes lasting environmental damage due to high demands of industry in using up local resources. In the end, it potentially devastates the local ecosystem. Second, the existence of a business center can structurally transform the existing mode of production, which means that the locals’ livelihood will change dramatically and this leads to the potential loss of their established way of production.
In conclusion, it is an undeniable truth that economic growth and job opportunities can strongly be stimulated by introducing business development in new regions, however, this can lead to the other way around, which the new development creates some problems with respect to the ecological and livelihood aspect.