45 involves people management; bureaucratic leaders as policy driven, relying on policy to drive strategy, objectives and outcomes; and lastly democratic leadership where decision making is decentralized and shared (Ojokuku et al., 2012). Malefane (2009) states that, LED implementation within municipalities is bureaucratic and authoritative and as such limits LED implementation in municipalities. Whereby the decisions taken by management and leadership are of key importance as they directly affect overall organizational effectiveness of municipalities (Pretorius &
Schurink, 2007). As such, it needs to be recognized that leadership is a complex shared process that is not found solely in the leader, but can be found in dyadic, groups, individuals and organisations (Van Seters & Field, 1990).
However, in complex environments where change often happens unexpectedly, the role of a complex leader is put to question. Olmedo (2012) states that the roles of complex leaders should not be to create organizational systems that are able to adapt and survive in changing environments, but rather to continuously manage the balance between developing new ideas and concepts through inspiring a culture of innovation. This implies that the development of adaptive leadership is needed when operating in environments filled with uncertainty. Apenko and Chernobaeva (2016), argue that leaders need to be capable of self-organization and of adapting in complex situations, to improve business effectiveness. Numerous studies linking leadership to organizational performance have been done in different contexts, disciplines and organizations (Bass & Avolio, 1994; Ogbonna & Harris, 2000;
Olmedo, 2012; Ojokuku et al., 2012). Erkutlu (2008) in studying the impact of transformational leadership on organizational and leadership effectiveness in the hospitality industry found that effective leadership behaviour has a significant impact on both the effectiveness of the leader and the organization. Consequently, LED facilitation within municipalities requires strong leadership and complex adaptive leaders to drive its success.
46 Jamaica, Swaziland and South Africa, demonstrating ways in which local government can facilitate LED.
2.5.1 Lessons from Jamaica
Schoburgh (2014) conducted a study in Jamaica, evaluating organizational behaviour and capability in local government to determine its readiness for a developmental role. While noted that LED is not about projects, the study argues that the implementation of the six-year Caribbean Local Economic Development Project (CARILED), which started in 2012, brought about sustainable economic growth support to the Caribbean region. This project has brought about the notion of local government‟s role as facilitator of LED. Using a capacity audit done in 2010 and an organizational analysis commissioned by the Ministry of Local Government in 2010 targeting a sample of local authorities in Jamaica, the study found four distinct objects that relate to local government‟s LED role, including: research and information provision; marketing and coordination; leadership; and learning and innovation. Examples of the findings with regard to the criteria included that:
Local leaders had an understanding of the organizational mandate but efforts to its effect seemed “undeveloped, sporadic and uni-directional” (Schoburgh, 2014:11). Whilst evidence of the use of participatory strategies to gain information from communities was there, it was however noted that research methodologies on data recording and storage were lacking and were not adequately focused on transforming the operations of the local authority.
There was overall inadequate use of environmental inputs by local governments in their business processes, thus highlighting that local government within Jamaica tended to operate without information on the accurate demand of existing services or even “an understanding of the changes in uptake levels, service needs and expectations” (Schoburgh, 2014:14).
Potential existed for growth in administrative leadership for a developmental local government. However, this potential was vulnerable to the shortages in the modern functional areas strategic to the organization‟s success as a facilitator of LED including; the aligning of community engagements with LED
47 priorities; distribution of information technology in organisational processes;
and the use of policy analysis and development (Schoburgh, 2014).
The study on local government‟s capacity for development in Jamaica found that, the country was unevenly distributed when assessed against the requirements of a LED organisation. However, the author notes that no organization has all the necessary capacity to perform its functions always, emphasising that LED is a complex process requiring all sorts of capacities that may not essentially be available within one organization. The author then argues that, regardless of what strategy an organization pursues to facilitate development whether it is fixated on service delivery or on enabling LED, careful measures should be taken to bridge capacity gaps and ensure long-term viability of the organisation (Schoburgh, 2014).
The study argues that for effective LED facilitation, LED must move away from the outdated deep-rooted values, such as:
Pyramid structures within organisations.
Authoritarian and administrative leadership.
The attitude of being impassive and a negligent of the needs of their customers.
The practices of management that tend to limit participation and teamwork.
Reluctance of using technology in administrative processes and policy (Schoburgh, 2014).
The study further highlights four critical values that local government needs to move towards promoting, that are believed to be vital for LED, including:
Local policy and management programs focused around the full return on investment with regards to economic, social, and environmental investments.
Local leadership and management talent and culture as economic assets.
Using creative entrepreneurship and long-term vision to define LED process.
Equity and sustainability being characteristic to effective implementation of LED initiatives (Schoburgh, 2014).
48 2.5.2 Lessons from Swaziland
Parker (2015) examined the progress made by Swaziland since the enactment of the Commonwealth Local Government Forum programme (CLGF). This programme aimed at improving governance and service delivery at local level. The study project within the country was designed through a collaborative and participatory process that involved the Swaziland Ministry of Housing and Urban Development (MHUD), Ministry of Tinkhundla Administration and Development (MTAD), Swaziland Local Government Association (SWALGA), Local Authority Managers Association of Swaziland (LAMAS), the Municipal Councils of Mbabane, Manzini and Matsapha, and CLGF” (Parker, 2015:6). Parker (2015:6) states that, the projects strategic thrust for LED was built around:
“Governance and an enabling policy environment for LED – including improved recognition of local government in national development, effective inter-governmental relationships and national policy and clear local authority mandates.
Institutionalising LED at the local level – encompassing capacity to plan and embed the LED approach into service delivery, managing stakeholder engagement and empowerment, advocacy and communication, knowledge management and issues around financing LED projects.
Capacity building – strengthening individual capacities of elected leaders, ministry and municipal officials and key community stakeholders particularly in facilitation of the LED approach to service delivery.
Programmatic LED interventions – including developing local authority LED strategies, design of LED undertakings and building on past and existing initiatives” (Parker, 2015:6-7).
The study found that activities with a social component to them were implemented more effectively, including the Mbabane environmental sustainability, Manzini market and the Matsapha solid waste activities (Parker, 2015). Emphasised within the study was the multi-faceted nature and complexity of development and poverty within the country, with the implications that successful poverty-related interventions would require targeting social, economic and capacity development collectively (Parker,
49 2015). Other successful implementations of the study project included activities that focused more on administrative/management level as opposed to the ones that focused on a political level (with major issues of decentralisation). The study further found that local participation, partnerships and relationships are key to the successful implementation of LED (Parker, 2015).
2.5.3 Lessons from South Africa
In the case of South Africa, Zulu and Mubangizi (2014) conducted a study in Mthonjaneni Local Municipality, a small rural municipality of KwaZulu-Natal. The study examined limits of LED with focus on a rural municipality within the current policy and legislative framework of the country. The study municipality was found to have been implementing LED strategies since the country‟s democratization, with major focus of projects mainly agricultural in nature. It began by conceptualising LED within the municipality and found that the understanding and execution of LED within the municipality was varied. Project beneficiaries were found to be not clear about LED and its relevance to mitigating both poverty and unemployment whilst the municipal representatives displayed solid understanding (Zulu & Mubangizi, 2014).
In understanding the municipality‟s role in LED, the study found that LED execution within the municipality was complicated, with three prominent roles identified, including as co-ordinator, as facilitator, and as developer (Zulu & Mubangizi, 2014).
This was broken down as follows:
As a co-ordinator the municipality utilised the IDP as an important instrument to co-ordinate LED within the local area. This was used so as to ensure that rural LED initiatives were co-ordinated with other programmes and properly linked to provincial, district and business initiatives.
As facilitator, the municipality worked to improve the local area investment such as, restructuring the development process and improving planning procedures to promote the active participation of all stakeholders in the development of rural LED strategy and its implementation in the interest of job creation for rural women and youth.
As a developer, the municipality took on the complete operational responsibilities of a developer with instances of the municipality entering into joint-venture partnerships with business or NGOs (Zulu & Mubangizi, 2014).
50 Though these roles play a big part in promoting LED within the municipality, numerous challenges have been identified within the study as major hindrances to LED (Zulu & Mubangizi, 2014). Aside from resource availability the study found that:
Deep-rooted issues with the fundamental institutional arrangements in the development and promotion of LED were prominent (including institutional arrangements with the LED Forum, the community and the LED unit).
Issues of high unemployment and low skill levels of municipal staff are main barriers to rural LED execution (Zulu & Mubangizi, 2014).
Thus, Zulu and Mubangizi (2014) propose that the conceptualisation, planning and management of LED needs to be re-focused to ensure that its process links local government, community and civic groups and business to jointly manage existing resources to stimulate employment creation and economic growth of the locality.
Accompanying this should be the harmonization of planning within the municipality with other municipal divisions including the planning for water services development, disaster management, waste management, and other programmes for infrastructural service delivery, as this directly impacts on the success of LED implementation (Zulu
& Mubangizi, 2014).