scholarly journals DRIVERS FOR LOCAL ECONOMIC DEVELOPMENT IN SOUTH AFRICAN MUNICIPALITIES

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 ◽  
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.


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 ◽  
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.


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.


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.


Turyzm ◽  
2021 ◽  
Vol 31 (2) ◽  
pp. 117-131
Author(s):  
Retno Sari Mahanani ◽  
Taufik Hidaya ◽  
Irma Wardati ◽  
Andarula Galushasti ◽  
Luluk Cahyo Wiyono

This study aims to find a local economic development strategy based on agroindustry to increase Java’s agrotourism sustainable and robust local economy. The research methods used are descriptive quantitative and qualitative. Research respondents are the community, academic practitioners and government officials. The data used covers both external and internal factors that affect the local economy in an agrotourism area and which are then analyzed using SWOT. The results show that the main strength of agrotourism in the IFE matrix is its highly strategic geographical location. The weakness is the lack of planning and business development activity which could have potential economic value. In the EFE matrix, opportunities are the prospects for agrotourism development while the main threat is the community's low interest in business development. In the IE matrix, agrotourism development is found in cell V. This can be handled by maintaining strategies such as market penetration, and market and product development. The study concludes that the local economic development of the community in the agrotourism area can be implemented if the community, practitioners and government are integrated to support the strategy.


2004 ◽  
Vol 48 (1) ◽  
Author(s):  
Rolf Sternberg ◽  
Matthias Kiesel ◽  
Ludwig Schätzl

Cluster approaches to local economic development. Theoretical considerations and case studies from Wolfsburg and Hannover. Since the 1990s. cluster approaches have become highly fashionable among scholars in economic geography and regional economics, and policy-makers alike. This paper explores the theoretical foundations of the cluster concept, which eclectically draws on various schools of thought. Clusters can be either conducive or harmful to local economic development. depending on a set of framework conditions and the cluster life cycle. A number of preconditions can be derived that will eventually determine the success or failure of a cluster- based strategy of local economic development. Theoretical propositions are then tested against case studies situated in German city regions where McKinsey & Co. have devised such clusterbased concepts, launched between 1998 and 2002. Despite a uniform approach, local starting conditions and specific constellations of actors have led to distinct interpretations of the cluster approach. Preliminary conclusions suggest that policy can foster the development of local industry clusters if certain building blocks are already in place, but independent in-depth evaluations have yet to be made.


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.


Author(s):  
Mustafa Kan ◽  
İbrahim Yılmaz

This research was conducted to determine the general situation of the producers of Azatli Pepper (Azatlı Biberi), which has a niche production structure, and to determine its value in terms of local economic development and to reveal how this production can be used as a local development tool. In the study, data for the purpose of the study were obtained by filling out questionnaires with 52 of 113 producers in total, according to the data of the 2020 Farmer Registration System, using the Simple Random Sampling Method. In the study, the producers were divided into 2 groups as producers of Azatli Pepper (Azatlı Biberi) on 2 ha or less and more than 2 ha, and the analyzes were made on these 2 groups. As a result, it has been stated that the production of Azatli Pepper (Azatlı Biberi) has been on an increasing trend in the last 10 years and that the producers process 72.81% of the total production as powdered pepper. The cost of 1 kg of fresh Azatli Pepper (Azatlı Biberi) is calculated as 1.02 TL and 8.68 TL for powdered Azatli Pepper (Azatlı Biberi) for 2020 year. The calculations revealed that Azatli Pepper (Azatlı Biberi) has an important place in the income of the producers, has an important reputation in the region, and the name Azatli Pepper (Azatlı Biberi) is perceived as a quality element. It has been determined that cooperation, promotion and geographical indication registration (PDO-Protected Designation of Origin) is important for Azatli Pepper (Azatlı Biberi) production, which constitutes an important economic value in the region, to create an important potential for local economic development.


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