Forging and Consolidating Developmental Local Government Through Area-Based Management Governance

Author(s):  
Ndwakhulu Stephen Tshishonga

This chapter deliberates on the role and importance of area-based management governance in forging and consolidating the developmental local government at eThekwini Municipality in South Africa. Considering the challenges faced by developmental local government to fulfill its constitutional mandate, the chapter argues that the grounding and consolidation of area-based management governance could be instrumental in economic growth, job creation, poverty alleviation, and meeting basic needs. However, for area-based governance to succeed in addressing these challenges, appropriate structures of democratic accountability and coordination coupled with competent staff could be entrenched. This could also be done by sticking to key developmental goals as outlined in the eThekwini Municipality's integrated development plan. The chapter made use of secondary data in the form of books, journal articles, and governmental policies and documents as well as selected interviews with key participants in five area-based areas.

Author(s):  
Malefetsane A. Mofolo ◽  
Vuyo Adonis

Background: After 26 years into democracy and 20 years of the new local government operations, the state of the majority of municipalities in South Africa still leaves much to be desired, as they are plagued with maleficence. What is concerning is that these negative tendencies that are troubling local government occur even under the watchful eye of the municipal public accounts committees (MPACs).Aim: The aim of this study was to evaluate the composition and the role of MPACs, which have experienced a number of challenges since they were introduced in response to the widely held perception of the culture of lack of accountability in South African municipalities.Methods: This article is theoretical in nature, and it draws its arguments from secondary data in order to understand the composition and the role of MPACs, including its challenges.Results: This study regards the composition of the MPAC as lacking the necessary vigour to be efficient and effective in executing its duties, particularly when considering the challenges and political influences that it tends to face in its operations.Conclusion: The study concludes that there is a need for re-engineering of the composition and the role of the MPAC in order to ensure that it executes its functions efficiently and effectively. Consequently, the study recommends three cardinal pillars that must be given attention in re-engineering the MPAC: policy, authority and power.


2015 ◽  
Vol 4 (4) ◽  
pp. 412-418 ◽  
Author(s):  
Lawrence Mpele Lekhanya

In spite of the key role played by the Small and Medium enterprises in economic development, there has been little effort to look at what needs to be done to improve survival and growth of SMEs. There is still a general lack of in-depth understanding from policy makers and other relevant stakeholders of how SMEs can be used as a strategic tool for economic growth and job creation in South Africa. These misperceptions and misunderstand leads to continuous failure to SMEs survival and growth. This study seeks to address this research gap. The study investigates the public views on what needs to be done to grow South African economy through the development of SMEs. Quantitative research approach was used to collect and analyse data for the study. Primary data was collected from four (4) provinces of South Africa. 230 people participated in the study. Questionnaires were emailed to each respondent and follow-ups were made via telephone. It was found that many SMEs fail within five years of their existence due to the various reasons. The most critical of these were related to lack of access to finance, lack of management experience as well as human capital. Study further revealed that most the SMEs owners/managers do not have business management related skills but rather they are just ordinary entrepreneurs.


2012 ◽  
Vol 17 (04) ◽  
pp. 1250020 ◽  
Author(s):  
DARMA MAHADEA

Entrepreneurship is critical to job creation and economic growth. Unemployment in South Africa is presently at about 25 percent. The formal sector is unable to provide adequate employment opportunities for labor although the country registered positive economic growth rates over the past 17 years since the demise of apartheid. Some people manage to obtain employment in the informal sector. However, this sector also has been shedding labor recently. Although the government has responded with many initiatives to deal with employment creation, unemployment rates, especially among the youth, remain a formidable challenge. Entrepreneurship, through the creation of new ventures and expansion of business firms, can make a difference to absorb more people in the labor market. However, this depends on the level of entrepreneurial capacity and environment of the South African economy. This paper examines the problem of low employment economic growth performance over the post-apartheid period. By drawing on the Harrod-Domar model as a heuristic guide, and using regression analysis, the paper highlights the probable links between changes in economic growth and in employment. The results indicate the marginal employment growth effect is positive, the growth elasticity of employment is low over the 1994–2010 period and investment in relation to the country's desired growth in GDP is also found to be low. The paper identifies some constraints to employment creation against the entrepreneurial environmental conditions in South Africa and then examines how entrepreneurship can make a difference to employment creation.


2017 ◽  
Vol 62 (2) ◽  
pp. 20-41
Author(s):  
Chama Chipeta ◽  
Daniel Francois Meyer ◽  
Paul-Francois Muzindutsi

Abstract Job creation is at the centre of economic development and remains a source of sustenance for social and human relations. The creation of a job-enabling economic environment is imperative in promoting social and economic cohesiveness in the macro and microeconomic environment. Any shocks to the economy, particularly those of exchange rate shocks and changes in economic growth, may negatively affect the labour market and job creation. This study made use of quarterly observations, from the first quarter of 1995 to the fourth quarter of 2015, to investigate the effect of the real exchange rate and economic growth on South Africa’s employment status. South Africa, a developing country, was selected as a case study due to its high unemployment rate that is still increasing. The Vector Autoregressive (VAR) model and multivariate co-integration techniques were used in assessing the impact and responsiveness of employment to the real exchange rate and real economic growth in South Africa. Findings of this study revealed that employment responds positively to economic growth and negatively to the real exchange rate in the long-run. The short-run displays a positive relationship between real economic growth and employment, while the relationship between employment and the real exchange rate is also negative. However, the effect of economic growth in creating jobs is not significant enough in stimulating job creation in South Africa, as indicated by results in variance decomposition. Movements in the exchange rate exerted a significant short and long-run negative effect on employment dynamics; implying that a depreciation of the rand against the U.S. dollar is associated with decrease in overall employment. Exchange rate stability is thus important for economic growth and job creation in South Africa. The study provided further recommendations on promoting job creation in South Africa and other developing countries.


2016 ◽  
Vol 14 (3) ◽  
pp. 608-616
Author(s):  
Michael C. Cant ◽  
Safura Mohamed Kallier ◽  
Johannes A. Wiid

Research over the years has shown that in order for any business to survive, the correct product mix must be offered to the market. If the product does not satisfy the needs of the market, its reason for existence can be questioned. This principle applies to all businesses – big or small. The question arises if SMEs adhere to this fact and, if so, how they go about doing this. SMEs over the world make huge contributions to economic growth and job creation and are seen to be a driving force for economic growth and development in any economy. In the highly competitive environment that SMEs operate in, selecting the right merchandise for the right customer is important and, in most instances, its ability to survive or perish. This study aimed to determine if SMEs in South Africa make decisions regarding the product mix and, if so, if they conform to different profiles regarding the decisions that they make. A questionnaire was used to collect the data and was sent to SMEs around South Africa operating in different industries. The results indicated that SMEs in South Africa consider product characteristics, consumer behavior and strategic aspects when making product mix decisions. Keywords: merchandising, product, SMEs, product mix, business, South Africa. JEL Classification: M00, M300, M310


Author(s):  
Oliver Njuh Fuo

Unlike the situation in the past, when local government’s role was limited to service delivery, local government is now constitutionally mandated to play an expanded developmental role. As a “co-responsible” sphere of government, local government is obliged to contribute towards realising the transformative constitutional mandate aimed at social justice. South African scholars and jurists share the view that social justice is primarily concerned with the eradication of poverty and extreme inequalities in access to basic services, and aims to ensure that poor people command sufficient material resources to facilitate their equal participation in socio-political life. In order to enable municipalities to fulfil their broad constitutional mandate, the system of integrated development planning (IDPs) came into effect in South Africa in 2000. Each municipality is obliged to design, adopt and implement an integrated development plan in order to achieve its expanded constitutional mandate. The IDP is considered to be the chief legally prescribed governance instrument for South African municipalities. The purpose of this article is to explore and critically investigate the relevance and potential of IDPs in contributing towards the achievement of social justice in South Africa. This article argues inter alia that the multitude of sectors that converge in an IDP makes it directly relevant and gives it enormous potential to contribute towards social justice because, depending on the context, municipalities could include and implement strategies that specifically respond to diverse areas of human need. In this regard, the legal and policy frameworks for IDPs provide a structured scheme that could be used by municipalities to prioritise and meet the basic needs of especially the poor. Despite its potential, it is argued that the ability of IDPs to respond to the basic needs of the poor is largely constrained by a series of implementation challenges partly attributed to the underlying legal and policy framework.


Author(s):  
Ngengelezi W.K. Masuku ◽  
E. O.C. Ijeoma

The article explores the global overview of M&E from the ancient governance perspective that has been ignored by the modern government in the African contest. African M&E approach is required in the local rural municipalities due to its complex and diverse set of problems. These problems are as a result of leadership dichotomy which is witnessed between Amakhosi and municipal authorities. Amakhosi have a role to hold municipal authorities accountable from a Citizen-Based Approach.  The underlying philosophy of the article is not about the discourse of the modernists and traditionalists around the evolution of M&E, but is how and in what ways M&E should be designed and planned for the implementation of a successful relevant M&E approach for local rural municipalities. The article made use of secondary data, gathered from various sources. Case studies of the international countries were also sourced through desktop to ascertain their best practice on M&E. The article concludes that the lack of M&E approach for the local government in the rural municipalities requires the Participatory Monitoring and Evaluation (PM&E) approach to allow stakeholders, including Amakhosi to assess the performance ofthe rural municipalities. The study is significant to the local and internal public scholarship of public administration since it bring approaches in M&E policy in the field of public administration. For example, indigenous African knowledge is critical in knowledge management.


2012 ◽  
Vol 5 (2) ◽  
pp. 591-605 ◽  
Author(s):  
Ewert Kleynhans ◽  
Carike Claassen

This study evaluates the performance of the Platinum Spatial Development Initiative (SDI) development corridor in South Africa, which was initiated during 1996. Next to descriptive data, the study employed shift-share analysis to investigate the economic growth and job creation potential of the manufacturing industries in the SDI region. Analysis of the North West Province was also done to enable comparison with the Platinum SDI. The results revealed that development in the Platinum SDI since 1996 was slightly better than the rest of the province. Sectors with the highest potential were wood and paper products, food and beverages, electronics, furniture and metal products, which merit attention in future development initiatives. Economic growth in the Platinum SDI was, in most cases, better than the rest of the province, and the industrial mix and regional competitive share effects had strong effect on employment and growth in specific sectors.


2021 ◽  
Vol 12 (01) ◽  
Author(s):  
Mabeba SJ ◽  

One of the topical challenges facing South African municipalities recently is corruption. From time-to-time citizens learn about and witness the corrupt practices of public officials in the Local Government sphere. Arguably, the phenomenon of corruption has both direct and indirect impact on service delivery with specific focus to municipalities. Section 152(1) of the Constitution of the Republic of South Africa (1996) states that the Local Government sphere has the mandate to ensure the provision of services to communities in a sustainable manner. Subsequently, some of the communities across the country still wish to have access to basic services namely: water, electricity, community halls and proper tar roads to name a few. As a result, at times it seems impossible for municipalities to smoothly render such services due to corrupt practices emanating in the South African Local Government sphere. This article aimed to explore the impact of corruption on service delivery in the South African municipalities. The article fully relied on secondary data as it collects information from newspapers, books, journal articles, conference proceedings, officials report and academic dissertations. In pursuit of all this, Afrocentricity: a theory of social change has been placed in context with a view that the needs of the society should be placed at the center of the local government sphere. To be specific, these needs are but not limited to water and electricity. Looking at the findings of the study, indeed literature can confirm that corruptions have negative impact on the ability of the municipalities in South Africa to provide basic services. Because the interests of the public are competing with those of the municipal officials. Therefore, at the end of the day service delivery is compromised due unlawful practices.


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