Decentralisation or deconcentration: The case of regional and local economic development in South Africa

Author(s):  
Isaac Khambule

The widespread globalisation, democratisation and decentralisation process that took place in developing nations in the early 1990s created unique opportunities for subnational governments to play an important role in delivering developmental outcomes. Revitalising regional and local economies is one important mandate that emerged with the decentralisation process as a key function for local governments. However, the local government sphere in South Africa faces failures in driving regional and local economic development due to various institutional and market-related challenges. Against the failure of decentralised entities to drive regional and local economic development in South Africa, this article considers the utilisation of deconcentration through dedicating national administrative powers and resources to the regional level to revitalise the prospects of local economies. The article argues that there are better prospects for regional and local economic development through deconcentration due to the expertise, resources and capacities found within the national and provincial governments, as they receive a significant share of the national division of revenues. The article further demonstrates how deconcentration can be implemented through the state deconcentrating and managing its economic development functions at the regional level to municipal-owned district economic development entities tasked with stimulating regional economic development.

Author(s):  
Sue Rhodes

In the current economic climate, creating the right environment for local enterprise, inward investment, and business and skills development, is an important factor in ensuring the prosperity and wellbeing of local communities. The impact of the global financial crisis has not been uniform across the Commonwealth and countries are using different strategies to overcome their financial difficulties. Local government increasingly plays an important part in this. More and more local governments in countries across the Commonwealth have responsibilities and powers for local economic development: in some countries local authorities can already show how their policies and actions are helping energise their local economies, while in other countries local councils are just beginning to get to grips with these responsibilities.


2019 ◽  
Vol 12 (2) ◽  
pp. 377-401 ◽  
Author(s):  
T. K. Pooe

Abstract The ascension of the African National Congress into formal politics through its electoral victory in 1994 resulted in South Africa adopting one of the world’s most heralded social justice and human rights-based documents, the 1996 Constitution. Yet, two-decades of ANC governance this paper argues has not led to the types of economic development needed to advance the formerly oppressed African majority, Colored and Indian populations. This lackluster economic development is even more troubling when one considers the giant economic development steps Asian developmental states have made, without a human rights and social justice approach. It is the contention of this paper that the newly presented General Theory of Law and Development allows for a new type of analysis exploring the reasons why South Africa’s economic development trajectory has been so lackluster, when so many authorities praise the South African legal framework. In making this argument using the General Theory South Africa’s local governments sphere and local economic development will be the subject of analysis.


2014 ◽  
Vol 26 (26) ◽  
pp. 93-106 ◽  
Author(s):  
Christian M. Rogerson ◽  
Jayne M. Rogerson

Abstract The role of tourism for local economic development (LED) is a topic of critical importance for geographers. In the case of South Africa tourism is a priority sector for national economic development. The significance of research issues around tourism and LED is underlined by the ‘developmental’ mandate of local governments. Although tourism has received attention in a growing body of LED writings on South Africa issues around agritourism so far have been overlooked. Agritourism represents an evolving form of rural tourism which is targeted at mainly urban consumers. Against the background of a review of international scholarship on agritourism this article explores its potential implications for LED planning in South Africa. A national audit of agritourism is presented which shows its uneven geographical distribution. Agritourism is of special significance for small town economic development in South Africa’s intermediate tourism spaces. Policy suggestions are offered for strengthening agritourism as a driver for LED in South Africa.


2018 ◽  
Vol 33 (8) ◽  
pp. 877-888 ◽  
Author(s):  
Themba Lukhele ◽  
Thanyani Madzivhandila

Since the advent of the democratic government in 1994, there has been a serious contestation over the meaning and implications of local economic development in South Africa. Central to the debates has been on whether local economic development initiatives should take pro-market or pro-poor approach in the local government. To this end, the critical divide has been between those who believe that the local government should provide a direct solution by supporting projects for job creation and those who advocate for an indirect solution in terms of creating an enabling environment for local economic development. The article therefore argues that the pro-market local economic development approach often limit the local control of economic activities and resources, instead it is seen to perpetuate an exclusive economy. Against this background, the article applies the Economic Base and the Location Theories to explain, from a theoretical perspective, why the pro-market approach for local economic development planning in the democratic South Africa is preferable in the expense of the pro-poor approach. The article concludes that the pro-market local economic development approach is incapable of creating the inclusive local economies and lacks the determination for the realisation of real potential and competitive advantages for addressing local needs of the poor people.


2020 ◽  
Vol 48 (48) ◽  
pp. 47-63 ◽  
Author(s):  
Christian M. Rogerson

AbstractTourism development can be a vital component of place-based development initiatives in the global South. The nexus of tourism and place-based development thinking in the global South and of the role of local governments is only beginning to be investigated by tourism scholars. This article explores the record of using tourism assets in one South African local municipality for leveraging local economic development. Evidence is drawn from the experience of the King Sabata Dalindyebo Local Municipality in South Africa's Eastern Cape province. The research results point to an unimpressive record on the part of local government in directing the use of local assets for assisting tourism development. Several challenges are revealed to explain the underperformance of potentially valuable local assets in this municipality. Institutional and governance shortcomings, including widespread corruption, underpin the observed weaknesses both in the everyday workings of local government in relation to service delivery and infrastructure support as well as its inability to implement plans for local economic development. Well-meaning policies proposed for tourism development are not implemented variously for reasons of funding, lack of local support, lack of entrepreneurialism by the municipality and lack of ability to implement because of capacity issues. Potential state assets which could bolster tourism and local development outcomes are not being realized and in many cases the assets themselves are in a state of deterioration because of neglect.


2021 ◽  
Vol 10(1) (10(1)) ◽  
pp. 145-164
Author(s):  
Thobeka Dlomo ◽  
Christian Rogerson

Over the past two decades a major burst of scholarship has occurred around tourism and local economic development futures in South Africa. This study addressed the question of key stakeholder perceptions of local economic development through tourism as the economic driver. In addition, it examines the challenges for enhancing the local development role of the tourism sector. Arguably, stakeholders at the coalface of tourism and local development issues, such as tourism business owners and local government officials, can offer useful insights into the everyday problems of maximizing the impact of tourism in local municipalities. The focus is on the King Sabata Dalindyebo Local Municipality (KSDM) in Eastern Cape province. The results are presented and dissected from 33 interviews conducted with private sector stakeholders as well as 20 government stakeholders. Stakeholder perceptions were investigated concerning three major themes: (1) the role and prospects for tourism and local economic development, (2) the use of municipal assets for tourism development; and, (3) the challenges facing tourism businesses for local economic development The research findings underscore several factors that explain the decline of the tourism economy of KSDM since 2006 and reduced its contribution to local economic development. Central issues surround crime and safety, infrastructural deficiencies, and shortcomings of the local government itself, including its failure to maintain critical municipal assets essential for tourism development.


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