scholarly journals THE CHALLENGE OF SUSTAINABLE LAND-BASED LOCAL ECONOMIC DEVELOPMENT IN POOR COMMUNITIES OF SOUTH AFRICA: THE CASE OF GROBLERSHOOP, NORTHERN CAPE

2021 ◽  
Author(s):  
Gail Denise Parker

Since the advent of South Africa’s democracy, there have been many pressing questions; one of which has been: ‘to what extent has the newly found political and civil freedoms, which is guaranteed for all South Africans, translated into an a more economically-viable life?’ This research investigates whether local economic development (LED) interventions necessarily improve the livelihoods of poor communities. More specifically, the goal of this thesis is to explore some of the reasons why land-based economic development interventions often struggle to meet their main objective of improving the livelihoods of local poor people. It is hoped that the findings of this research will assist policymakers and local economic development planners in making more informed decisions.Using a qualitative research methodology, a three- pronged approach is adopted to address the key goal of this thesis. First, a review of the literature on LED was conducted: a comparative study into its origins in wealthy, developed countries; and the experiences on the successes and failures of LED as a developmental tool. Secondly, a review was made of the experiences of the application on LED approaches in a South African context, with special reference to the policy and support of LED strategy. Thirdly, a case study of Groblershoop, which is in the Northern Cape, is presented. It focuses on LED that is based on land, and the role that it plays in the livelihood approaches of poor people. In conclusion, it is posited that while the potential of land-based LED is not disputed, the implementation of such strategies are often inconsistent with the overall objective of poverty alleviation and economic development. For this reason, local municipalities will not be able to do this without clear policy guidance; institutional capacity-building; inter-sectoral collaboration of political ‘champions’ to drive the process; and real empowerment of the beneficiaries whom the projects are supposed to assist.

2021 ◽  
Author(s):  
Gail Denise Parker ◽  
King Costa

Local economic development (LED) within municipalities in South Africa has been viewed as a failing project by many commentators, practitioners and scholars. One of the areas attributed as a causal factor for distrust on efforts related to local economic development is lack of clarity on foundational dynamics and drivers of LED. This study used interpretivist approaches to analyze key theoretical frameworks that provide explanations for challenges related to articulation of drivers for LED. As a theoretical paper authors established rigor through mapping theories to building blocks of a theoretical argument being the what, when, how and why. The central argument of this paper is that while the potential of LED strategies is not disputed and the economic value of land is , the implementation of such strategies does not assist in achieving the intended objectives of poverty alleviation and economic development. The study concluded that while local municipalities are mandated by the Constitution to “promote social and economic development”, they will not be able to do this without clear policy guidance; institutional capacity-building; inter-sectoral collaboration; political ‘champions’ to drive the process; and real empowerment of the beneficiaries whom the projects is supposed to assist.Key Words : Local economic development. Theoretical framework, Commonage, Business development, Black economic empowerment,


2021 ◽  
Vol 8 (4) ◽  
pp. 405-422
Author(s):  
Richard D. Kamara

This article reports on a study based on cooperative governance and Local Economic Development (LED) in selected small towns in the Western Cape Province. The dearth of an integrative institutional framework to promote collaborative participation negatively influences local municipalities ability to successfully manage LED cooperatively with relevant stakeholders. Promoting such inclusive representation and participation of all relevant stakeholders provides a viable and complementary alternative to the traditional bureaucratic governance mechanism. The study investigated the specific factors involved in designing and implementing cooperative governance for LED in selected, comparable municipalities in the Western Cape. Specifically, the study aims to determine the push and pull factors for the successful functioning of cooperative governance aimed at promoting LED in those municipalities. Data were collected through three data collection instruments, namely, document review, interviews, and focus group discussions. The document review is complemented by data from interviews and focus groups discussion. The study contributes to the body of knowledge on cooperative governance by identifying the specific cooperative governance factors, enabling the efficacy and governance of LED in small towns, aimed at positively influencing municipalities ability to successfully manage LED cooperatively with relevant stakeholders. An in-depth understanding of the relationship and dynamics of these variables helps to offer recommendations as to how to improve the management and responsiveness to socio-economic concerns within the municipalities through improved LED governance.


2020 ◽  
Vol 8 (2) ◽  
pp. 18-30
Author(s):  
Dušan Aničić ◽  
Jasmina Gligorijević ◽  
Miloje Jelić ◽  
Milosav Stojanović

The practice in developed countries has shown a necessity for local government's stronger inclusion in local economic development issues. The economic system in Serbia has features of high unemployment rate and low living standard among the population, and therefore local government taking a larger part in local economic development issues is seen as a real possibility for reducing these problems. Although most of the economic policy instruments lie within the central government jurisdiction, which largely restricts local government possibilities, there is still an important area for local government influence on economic development. There are numerous obstacles for a successful application of the local economic development concept in Serbia, which causes the municipality and regional potentials to be used much less than the possibilities allow, and it has a negative reflection, especially in rural and undeveloped areas.


Author(s):  
Ayanda C Makhaye ◽  
Mogie Subban ◽  
Cecile N Gerwel Proches

Municipalities are faced with poverty, unemployment and inequality, to the detriment of growth and development. As specified in the South African Constitution (1996), municipalities are obligated to advance Local Economic Development (LED). Municipalities cannot accomplish this task alone; therefore, participation of all stakeholders is required. The aim of this study is to investigate bridging the urban–rural gap in facilitating LED within uMgungundlovu District Municipality in KwaZulu–Natal in understanding this phenomenon. The district is made up of seven urban and rural local municipalities. Using a qualitative research method through an interpretive paradigm, data were collected from purposely selected participants through in-depth open-ended interviews. Collected data were analysed through induction using thematic and content analysis. Results revealed gaps in understanding LED planning, facilitation and implementation, including gaps in resource planning and provision. The study revealed numerous stakeholders were relevant in facilitating LED within the District. It is recommended that the District improves rural service delivery and infrastructure provision enabling access of opportunities and creating platforms for stakeholder engagement, with inclusion of traditional leaders driving LED facilitation. Priority areas for enhancing LED initiatives are suggested, with LED viewed as a good initiative in achieving sustainable development in district municipalities.


2021 ◽  
Author(s):  
Gail Denise Parker ◽  
King Costa

This paper is an explorative discourse on strategies used for local economic development since the dawn of a new democracy in South Africa. In doing so, the study reflected on international experience and current local economic development practices while at the same time focusing on variables that could be characterized as enablers or barriers to successful implementation in poor areas. It is a theoretical paper, hinged upon secondary analysis of publications in relation to local economic development between the period of 1994 and 2004 with a specific intent to understand the strength and weakness of the foundations upon which the current policies are based. The synthesis focused on concepts such as poverty alleviation initiatives linked to land-based local economic development in South Africa. The study concluded that while there are similarities in the emergence of LED across the global spectrum, less developed countries such as South Africa continue to face a myriad of challenges related to policy development, execution, monitoring and evaluation. It was further recommended that strategic intents for LED should be aligned to community aspirations to have a sustainable impact. It was further recommended that while donor agencies remain crucial, proper allocation and reporting mechanisms may help sustain relationships between LED practitioners and funders. Lastly, it was recommended that a strong and legitimized political will and leadership are vital in encouraging popular participation and sustained community based response.


2020 ◽  
Vol 35 (3) ◽  
pp. 257-268
Author(s):  
Thanyani S Madzivhandila ◽  
Mazanai Musara

Local economic development policies around the world increasingly emphasise entrepreneurship as a tool to mobilise local and indigenous economic potential. This paper explores the role of local municipalities in entrepreneurship development in South Africa. In particular, it provides a critical review of local economic development strategies and their effect on entrepreneurial development. Special attention is placed on deeply rural municipalities, primarily because of their marginalisation from national development efforts and the acute need for entrepreneurial development to tackle the triple challenges, which are unemployment, poverty and inequality. The paper argues that local municipalities should play a pivotal role in enhancing the development and upliftment of entrepreneurs in their areas of jurisdiction. The paper uses an integrative literature review method in which sources such as academic journal articles, reports and books are analysed, critiqued and synthesised. Lessons are drawn from other developed and developing nations, combined with the observations and thorough review of literature, to develop a framework that can inform South African Local Municipalities in mobilising entrepreneurship development in their communities. The paper concludes that for entrepreneurship development to be strengthened and for local economic development to be accomplished, local municipalities should invest in the development of entrepreneurship within their municipalities.


2021 ◽  
Author(s):  
Gail Denise Parker ◽  
King Costa

Since the advent of South Africa’s democracy, there have been many pressing questions; one of which has been: ‘to what extent has the newly found political and civil freedoms, which is guaranteed for all South Africans, translated into an a more economically-viable life?’ This research investigated whether local economic development (LED) interventions necessarily improve the livelihoods of poor communities. The methods used were hinged upon the interpretivist paradigm, using literature as a basis of enquiry. Furthermore, semi-structured interviews with target groups (eg. project beneficiaries, government officials, municipal manager, town mayor, etc) were conducted, followed by focus group-style interviews with key stakeholders. The study found that sound economic development vision may thrive if linked to the following: clear policy guidance, institutional capacity building, intersectoral collaboration, political will and real empowerment.


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.


2021 ◽  
Vol 14(63) (2) ◽  
pp. 57-66
Author(s):  
Shpresa Alija ◽  
◽  
Sadri Alija ◽  
Memet Memeti ◽  
◽  
...  

Assessing the effects of compensation for construction permits for residential and economic buildings in the urban part of Tetovo, the establishment of professional teams for the legalization of illegal buildings and the development of electronic services, on local economic development (LED) of the municipality of Tetovo. For analysing the data generated by the questionnaires, SPSS was used, as a method for testing the hypotheses of the study. The reduction ofthe compensation for construction, the creation of professional teams for the legalization of illegal buildings, the development of electronic services contribute to the increase in the satisfaction of the residents of the municipality of Tetovo, stimulate economic activity and increase fiscal revenues.


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