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The justification for Local Economic Development (LED) in South Africa
Local municipalities around the world face, to varying degrees, the same problems of inequality, unemployment and growing poverty levels and limited provisioning of basic services to local communities (Horn & Lloyd, 2001:59). These realities are aggravated by international trends and new realities such as urbanisation, the technological revolution and globalisation, and the increasingly competitive environment globally. The impact of these factors on the economies of cities and towns, in general, and South African towns and cities, in particular, are not an exception. A combination of these factors constitutes the new external framework within which local municipalities must address their economic status. In South Africa and other less developed countries, economies are characterised by market failures, market imperfections, inefficiency, risk and a lack of an entrepreneurial culture. This places a huge responsibility on the governments in as far as job creation, poverty alleviation and economic growth are concerned. Therefore, innovative and viable policy strategies are necessary for the propulsion of local economies with a view to addressing pressing societal problems manifested through high unemployment and poverty levels and lack of access to basic services.
Municipalities are increasingly being required to mediate between the local and global; to balance a local economic development policy aimed at urban competitiveness and poverty alleviation; to engage in more open and transparent state-society relations; and to reform intergovernmental relations (Development Bank of Southern Africa, 2000b:26).
Municipalities have a key role in coordinating and promoting local economic development (LED). Municipalities can neither simply focus on providing local services and developing infrastructure, nor limit their involvement with the privatesector to regulation through imposing planning restrictions and environmental management rules. Thus, municipalities have become critical role players in the investment decisions of private sector organisations. Many of the important variables that determine whether a private company decides to invest in a particular area are the responsibility of municipalities. These include access to development land, the local transport and communications infrastructure, serviced sites, specialised waste disposal facilities, access to trained staff, educational facilities, and housing and recreational amenities to attract and retain skilled staff. In the highly competitive developed economies, LED has become a core activity with a significant impact on the local economy and employment. LED policy should balance the need for attracting investment with the needs of local communities.
The private sector requires a competitive advantage through reduced production costs and enhanced social and physical infrastructure. The municipality should promote this while protecting the environment, stimulating employment and implementing poverty alleviation strategies (Development Bank of Southern Africa (DBSA), 2000b:29-30).
Chapter 1: Historical overview
1.1 Introduction
1.2 Justification of LED in South Africa
1.3 Historical background to IDP and LED in South Africa
1.3.1 National Policy Context for LED in SouthAfrica
1.3.2 Provincial Policy Context for LED
1.3.3 Local Policy Context for LED
1.4 Historical background of South African Local Government
1.5 Legal framework
1.6 South African emergence of the modern economy
1.7 Outline of the study
1.8 Conclusion
Chapter 2: Research methodology
2.1 Introduction
2.2 Research approach
2.3 Background to the problem
2.4 Statement of the problem
2.5 Research question
2.6 Importance of the study
2.7 The objectives of the study
2.8 Sampling
2.9 Conclusion
Chapter 3: Overview of Public Administration and Public Policy
PART I
3.1 Introduction
3.2 The nature, origins and scope of Public Administration
3.3 Public Policy
3.4 Policy implementation
3.5 The evolution of developmental local government in South Africa
3.6 Developmental outcomes of local government
3.7 Local economic development
3.8 Important dimensions of LED strategies
3.9 Role of local government in promoting local economic development
3.9.1 Facilitating role of local government
3.9.2 Coordinating role of local government
3.9.3 Stimulating role of local government
3.9.4 Developing role of local government
3.9.5 Enabling, training, integration and democratising role
3.10 Partnerships
PART II
3.11 World Bank Local Economic Development Model
3.12 Overview of LED policy development
3.13 Local economic development (LED) implementation
3.14 Conclusion
Chapter 4: The trajectory of economic development policies in South Africa
4.1 Introduction
4.2 Economic development policies (1994-2005)
4.3 Economic development policies (2006 to date)
4.4 The salient characteristics of local economies
4.5 Strategies for building local economies
4.5.1 Integrated development and service delivery planning
4.5.2 Public investment and enterprise development
4.5.3 Local Economic Development Agencies
4.6 Conclusion
Chapter 5: Analysis of case study and findings
5.1 Introduction
5.2 Background to the Case
5.3 Discussion of results
5.4 Conclusion
Chapter 6: Conclusions, Recommendations and Limitations
6.1 Introduction
6.2 Limitations of the study
6.3 Suggestions for further research
6.4 Summary
References
