The ‘Small Town Paradox’ and towns of the Eastern Cape Karoo, South Africa

Abstract

Some small towns regress whilst others grow, i.e. a 'Small Town Paradox' (STP). Differential accumulation of productive knowledge could possibly be its cause. Suggestions that small towns in the Eastern Cape (EC) Karoo, South Africa survive only as a result of a state welfare system suggest that the STP does not occur in this semi-arid region. Productive knowledge (measured as enterprise richness) and demographic shifts between 1946 and 2015 in EC Karoo towns were analysed. Whilst all populations increased, the productive knowledge of three small towns increased but that of five small towns regressed. The STP is present in the EC Karoo. The contrarian success of the three towns is apparently due to strength in two business sectors: agricultural products and services, and tourism and hospitality services. These sectors are important in generating monetary inflows into the local economies of EC Karoo towns. The successful small towns are innovatively using tourism resources available to them, including tourists on national routes, the attractions of wilderness areas and a national park, gay tourism, game farms and hunting. Productive knowledge seems to play a part but aridity not. Development plans of towns in arid and semi-arid environments could benefit from these findings.