The purpose of this thesis is to contrast classical theory with the operations of a controlled industry whose foremost raw material is technical knowledge, and to observe whether these operations can approximate the conditions of orthodox theory.

M.Comm. / The primary aim of this research is to indicate that the lack of economic progress in the Northern Province is basically caused by the absence of a strong manufacturing sector, particularly the chemical industry. The chemical industry is a key sector in both the primary and secondary sectors. In agriculture and mining it provides fertilizers and explosives respectively to increase output. Diversified farming will emerge as a direct response to a rise in agricultural output. As the population in the Northern Province is rapidly rising, the demand for agricultural products will also rise. This will have a positive influence on the income of farmers. As the income rises, production in agriculture will increase which will bring about a demand for implements, tractors and other equipment. In the manufacturing sector the chemical industry will stimulate the process of industrialisation in the Northern Province. The industrialisation process will involve the outward-orientation of the economy. This means that the chemical industry will act as a leading sector by showing forward and backward linkages. The economy of the Northern Province is performing poorly in terms of GGP. The role of the government in providing services cannot alone generate a sustainable economic growth. A sustainable economic growth in the Province can take place if the chemical industry plays a crucial role in producing chemicals which can be used in agriculture and manufacturing. Therefore this study will show that economic growth in the Northern Province can be sustained by growth in the chemical industry.