Local Economic Development: Linking Theory and Practice in South Africa’s Local Municipalities

Author(s):  
Caswell M. Maloka ◽  
Kgalema A. Mashamaite ◽  
Matshidisho D. Ledwaba
2021 ◽  
Vol 46 (3) ◽  
pp. 185-196
Author(s):  
Jintong Tang ◽  
Zhi Tang

This research extends bribery research toward entrepreneurial theory and practice by examining how bribery impacts new venture disbanding in China. Existing research suggests that bribery may enhance firms’ competitive advantage; however, building off of resource-based view and taking into consideration the institutional context in China, the current study proposes that firm bribery activity hurts new ventures by increasing the hazard of venture disbanding. Further, guided by resource dependence theory, this study examines how local economic development and organizing activity moderate the relation between bribery and disbanding. In particular, it is proposed that when local economic development is suffering, or when firms are not engaging in appropriate organizing activities, bribery will lead to higher chance of new venture disbanding. Data from Chinese entrepreneurs support these hypotheses.


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.


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 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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