Local government transformation in South Africa: Challenges for local economic development in a globalising economy

2004 ◽  
Vol 33 (3) ◽  
Author(s):  
WA Naudé
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.


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.


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.


2021 ◽  
Vol 4 (1) ◽  
pp. 90-105
Author(s):  
Audrey Smock Amoah ◽  
Imoro Braimah ◽  
Theresa Yaba Baah-Ennumh

For the past three decades Ghana’s democratic decentralisation policy has sought in vein to establish a local government system capable of pursuing Local Economic Development (LED). One of the major impediments has been the insincere implementation of fiscal decentralisation for the local government to provide the enabling environment for LED. This paper employed primary and secondary data from the Wassa East District Assembly (WEDA) to assess the progress so far in Ghana’s fiscal decentralisation and its effect on LED. The paper highlights the potential benefits of LED and the incapacitation of the District Assembly by the Central government for LED financing. The paper again reveals the effects of the constraints of fiscal decentralisation on LED at the local government level and makes policy recommendations towards effective fiscal decentralisation for improvement in LED.


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