Development strategies in postapartheid south africa. Initiative for south africa asgisa, national spatial development framework nsdp provincial growth and development strategies pgds and others have since been initiated. Socio economic development plan 4 over and above providing the local community with a substantial amount of capital, sagit is also committed to ensuring sustainable development of the proposed langhoogte wind farm project. Stimulating and developing sustainable local economies in the final analysis, all economic development takes place at the local level and local government must influence the shape and direction of local economies if the national economy is to attain the goals set for it and if it is to grow and create a better life for all its residents. Sustainable development is defined as development that improves human wellbeing and the.
The major objective of national government promotion of local economic development led in south africa is to forge robust and sustainable local economies. While the political transformation at the national. In terms of achieving successful tourismled local development 10 principles for success and lessons for local government have been identified. Local economic development successes and failures at municipal level, and specifically in secondary cities in south africa, is deeply influenced by the constitutional imperatives for establishing developmental local government. The south african government has acknowledged the importance of local economic development led. Are residual antipoor strategies still being pursued.
This article analyses the establishment, existing state and challenges that confront ledas in south africa. South africa is a developmental state and despite the efforts by government, local economic development led has not progressed at the desired rate to uplift the quality of life of all citizens. This paper analyses 15 years experience of led planning, and identifies strategic challenges that face led planning in south africa. Audit of local government economic development strategies greater geelong economic development strategy 20052010 2005 in 2015 geelong will be a vibrant municipality with a robust economy driven by smart and innovative industries that are supported by worldclass infrastructure and highly skilled workers, and will be a region known for its.
Improved local governance performance regarding led requires cooperation and partnerships. Instead, the department of provincial and local government promotes six developmental led. Local economic development is a core local government mandate and one which is. The mooc started by defining local economic development as local actors using local resources to enhance wellbeing in a territory. Local economic development led, challenges and solutions. Welcome to this mooc on local economic development led. Apr 17, 20 local economic development agencies ledas have been initiated to support the goals of local economic development led in several developed and developing countries. Led is an approach toward economic transformation and poverty eradication. The role of local economic development agencies in south. The international record shows that tourism can be a critical driver for local economic development for some but not all localities.
Making local economic development work in south africa dbsa. Assessing local economic development and social welfare. Lid strategies or interventions can take a combination of many forms, which range from marketled or progrowth to thore that are propoor. It was widely expected that these projects would create jobs and promote tourism. Good local economic development strategies need constant reevaluation. In addition, the problems encountered with led and the financing mechanisms available in south africa are also discussed. Since 1994, from the rdp, through the growth employment and redistribution gear strategy to the accelerated shared growth initiative of south africa asgi. Key powers have been devolved to local governments to lead local economic development led initiatives with the constitution of the republic of south africa, act 108 of 1996 and the local municipal systems act, act no. University of johannesburg, south africa christian m rogerson university of johannesburg, south africa abstract local economic development is one of the key development strategies pursued by localities in south africa. In south africa, ledas have become established as part of the led landscape in the country. The implementation of local economic development policy the case of the emakhazeni local municipality in south africa s b koma school of public management and administration university of pretoria first received 260514 accepted for publication 300914 abstract this article examines the implementation of local economic development. Nsdp, industrial policy, asgisa and the provincial growth and.
Gomez, poses the dilemma between development from below and development from above and covers some alternatives of led strategies. South africas national development plan 2030 ndp our future make it work, notes in the chapter on transforming human settlements and the national space economy that. The led is a component of the municipalitys overall strategic plan as outlined in the integrated development planning process. Pdf local economic development led, challenges and. Pertinent and plausible strategies with a view to address the challenges. Challenges and solutions for local economic development led. Thinking differently about local economic development and. Local economic development refers to the processes by which local governments, businesses, and civil society groups get together to raise income sustainably and improve their lives in a welldefined area. Local economic development strategy draft december 2018. The implementation of local economic development policy. Audit of local government economic development strategies. Local economic development debates in south africa. The policy of local economic development led is currently attracting considerable attention in government and development circles in south africa.
This operational guide is the result of a joint effort between researchers and technical experts with a broad field experience in local economic development led around the. Local economic development in subsaharan africa request pdf. Creating enhanced capacity for local economic development led. Local economic development strategy draft december.
Local economic development led is an approach to economic development, of note in the developing world that, as its name implies, places importance on activities in and by cities, districts and regions. Key focus areas of the study which seek to address the main question of the study include regulatory and legislative measures, best. Noteworthy is the led framework stimulating and developing sustainable local economies which was released by the department of provincial and local government in 2006dplg, 2006. Local economic development is a core local government mandate and one which is notionally.
Firstly the share of mining in gdp stood at 11% in 1994, but has steadily declined over an eighteen year period to its current 5% in 2012. Local economic development training module 5 purpose and context the purpose of local economic development led is to build up the economic capacity of a local area to improve its economic future and the quality of life for all. The south african economy has been described by economist ruchir sharma in his recent book breakout nations as a developed market wrapped inside an emerging market. In south africa, since 1994, local governments role has expanded from providers of public goods and basic social services to include led local government support program in armm, 2009. National framework for local economic development led cogta. The local planning, economic development and policy frameworks introduced between 1999. The aim of this paper is to investigate the nature of local economic development strategies in durban, with specific reference to the point redevelopment programme and the international convention centre. Local economic development led is seen as one of the most important ways of decreasing poverty. This article offers a critical analysis both of the current policy status of led in south africa and of 15years.
Local economic development led is a salient public policy issue in south africa. Municipalities decide on led strategies and the process of arriving at a led strategy must be part of the integrated development planning idp process. Local economic development in a globalised context local economic development has been promoted for almost two decades in south africa. This involves added micro economic measures at the local level to complement macro economic measures at the national level.
Local economic development is one of the key development strategies pursued by localities in south africa. Local economic development strategies led strategies coursera. The historical background of local economic development, the importance of local economic development, role players, strategies and their implementation in south africa is discussed in this chapter. Local economic development is one of the key development strategies pursued by localities in. Two decades on from the formal end of the old apartheid regime, the south african economy can. Reversing uneven development and reactivating municipal services for a postwashington economic epoch, unpublished paper presented at the local economic development workshop for eastern and southern africa, 29 october. Local economic development in subsaharan africa article in environment and planning c government and policy 254. South africa is facing the challenge of a high rate of unemployment which leads to poverty amongst many households, particularly in rural areas. Local economic development in south africa, which identifies economic growth and poverty eradication as the key overarching goals of led dplg, 2005. South africa s recent led policy paper has also come to decry strategies including the packaging of subsidies, tax holidays, and free infrastructureservices oriented to attracting outside industry. This means that more businesses and factories should be started in the municipal area. Various key focus areas pertaining to local economic development are explored to develop an effective and integrated led approach for local government in south africa. The thinking that accompanies this approach is that bottomup strategies are to be encouraged rather than a centralised, topdown approach.
Structuring south africa municipalities for effective led. As a rural municipality, molemole local municipality must take advantage of this declaration by. The south african government has prioritized rural development and urban renewal as key strategies to counter the legacy of uneven development in the country. Debates in local economic development policy and practice. This paper examines these questions and explores the still emerging discipline of led in the context of globalization. South africa is presently ruled by an african national congress. Jul 23, 2017 south africas mtsf to 2019 is the first framework drawn up following the adoption of the national development plan in september 2012.
Local economic development must aim to create jobs by making the local economy grow. The local economic development and planning is guided by various legislations in relations to their implications on the functioning of local municipality. Local economic development strategies in an emerging. It therefore aims at facilitating a process of disseminating the collated economic information for strategy implementation purposes. It sets out actions the government and its partners will take to implement the ndp over the first five years of the plan, and provides a framework for the other plans of national, provincial and local government. The landscape has changed since 1994, producing mixed results. The sphere of local government is currently faced with numerous challenges and bottlenecks that stem from high poverty and unemployment rates, shortage of skills required to propel local economic development, lack of. This article seeks to critically examine and assess the key contextual considerations which influence led, its emergence and its chances of success. The service delivery triangle relating to led consists of three partners namely government, private sector and local communities meyer, 20.
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