Growth triangle

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The term growth triangle describes an economic area in which economic factors are used jointly and for mutual benefit, regardless of state borders.

General

In many areas of the world the production factors “ raw materials ”, “ know-how ”, “ workers ” and “ production facilities ” are in close proximity to one another, but belong to different countries . In some cases, the neighbors agree on economic cooperations in order to complement each other and thus create integrated production processes: each participating state contributes something that the others lack or of which the others do not have enough. The goal is jointly realized success and thus economic growth for all involved.

In principle, the corresponding political will is essential for the formation of a growth triangle, because the principle only works if all those involved are prepared not only to take advantage of but also to grant advantages to the partners. A trading partner that has become stronger as a result must not be perceived as a threat.

Origin of the term

The main "father of the idea" was the then Vice Prime Minister (and later Prime Minister ) of Singapore, Goh Chok Tong . His proposal, made in December 1989, that Singapore could form a growth triangle with the Malaysian state of Johor and the Indonesian island of Batam (Riau Islands), met with interest from Malaysian and Indonesian politicians and was implemented in the following years.

The Singapore-Johor-Riau Growth Triangle (SJR)

In the case of this first so-called “growth triangle”, trade barriers had to be dismantled and competitive advantages, especially between Johor and Batam, had to be dismantled. After the “trilateral memorandum” was signed in 1995, the resulting economic region was expanded.

The participants had / have different motives for cooperation: While Singapore is technically the most advanced, but has only a few workers available due to the small area and the relatively small population, the Indonesian region "Riau Islands" is technically the least developed and the population suffers from high unemployment . It makes sense to create a balance here through exchange. Johor is technically more advanced than the Riau region, but it also has a sufficient workforce - this is primarily about expanding the export volume and intentional increasing industrialization .

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