Local economic development based on sound economic and business principles can contribute to economic growth, job creation and poverty reduction. This study reviews the literature on local economic development and analyzes primarily secondary data in a case study of the uMshwathi Local Municipality (uMgungundlovu District Municipality, KwaZulu-Natal). The potential role of agriculture in promoting local economic development in uMshwatha is confirmed.
DBSA Development Bank of Southern Africa DED Department of Economic Development DFA Development Acceleration Act. LMRF Learning Monitoring and Research Facility LRAD Land Redistribution and Development LRED Local and Regional Economic Development.
CHAPTER ONE
INTRODUCTION TO THE RESEARCH
- Background and Context
- Problem Statement
- Purpose for the Study
- Research Questions
- Limitations of the Study
- Overview of the Study
- Chapter Summary
Local economic development is critical to the overall growth of the South African economy” (Mabuyakhulu, 2012:7). The literature review in Chapter Three focuses on Trends in Local Economic Development in South Africa, particularly the developmental and institutional role of government. The seven metaphors of Bingham and Mier (1993) are used as evidence of the application of a contemporary theory of local economic development in the field of LED.
In this context, local economic development and agriculture have taken on huge proportions as a result of the South African government giving priority status to agriculture. Within the stated limitations of the study, it is asked whether a focus on agriculture can provide an effective strategy for Local Economic Development (LED) in uMshwathi Local Municipality.
CHAPTER TWO
LITERATURE REVIEW ON LOCAL ECONOMIC DEVELOPMENT
A GLOBAL PERSPECTIVE
Introduction
Defining Local Economic Development
The participants are clearly defined, as is the cooperative nature of the effort, while the focus is on the pro-poor aspect of LED, a market-critical version of LED (Rogerson, 2006). It includes the tendency of the place to generate higher income and raise the standard of living of local residents. Their efforts led to an organization of the complex economic, social, physical and political dimensions of LED and a description of the strategic actors, processes, institutions and outcomes of LED initiatives.
In analyzing the definitions of LED, one should not forget the objective that development contains both an economic component and a factor of human growth, and that the options available for improving people's lives are affected by the quality of economic growth. However, the question must be asked whether LED and LED practice matches the essence of the definition of local economic development as discussed or whether the definition is merely an ideal and there is simply an attempt to harmonize reality with theory.
A Brief History of Economic Development
Essentials for economic growth: savings/investment, physical/human capital and changes in the country's economic structure/functions (transformation of production, changes in consumer demands, international trade, use of resources, socio-economic changes). According to Swinburn and Yatta (2006) the "first wave" of LED in Western countries in the 1960s to 1980s tended to be a very ad hoc process, normally driven by projects and crises. Blakely and Leigh (2010) advocate that LED practice should include sustainable local economic development in the fourth stage.
This observation will be explored in the global and African contexts in the following sections, and in South Africa in Chapter 3. Hindson (2005) admits that although rapid progress has been made in the local economic development process, there is less support for the effects of LED, such as economic growth and poverty reduction, partly due to the difficulty of measuring these factors. .
Local Economic Development is a Global Phenomenon
There is an awareness that business support services must represent an inclusive part of the economic development of a certain area (Ackron, 2004). The growing importance of the competitiveness of knowledge has contributed to the convergence of the various roles of business support and economic development. Research and anecdotal reading confirm that Table 2.5 is an appropriate reflection of the implementation instruments used in South Africa to promote LED.
Numerous case studies confirm the fact that local economic development is being implemented in all corners of the world, and case studies are used as a tool for disseminating information and sharing best practices. Many of the aforementioned organizations were present (eg ACFID, Italian Cooperation, EU) or are still present in South Africa (eg USAID, GTZ, DIFD).
Local Economic Development: An African Perspective
South Africa is a G20 economy and joined the BRICS Bloc (Brazil, Russia, India, China and South Africa) “as the jeweler of the world and as a gatekeeper to Africa” (Kahn, 2011). These authors are of the opinion that South Africa's ranking is largely a function of its large size and "first economy" sector and that in other respects, South Africa is comparable to other SADC member states. . Sub-Saharan Africa is targeted because of perceptions that it has an abundance of available land, a favorable climate, cost-effective local labor and reasonably priced land.
The table of indicators of the Millennium Development Goals for 2010 reveals a very low achievement of the performance ratio in relation to the goals (Figure 2.1). Further research into the field of LED and tourism is an important African challenge for urban and rural tourism researchers.
Conclusion
Rogerson and Rogerson (2010) recommend expanding African LED research beyond South Africa in clearly defined areas. An analysis of the specific role played by international development agencies in African LED as actors influencing LED practice and the political and institutional environment. As the OVOP (One Village, One Product) movement expands to other African countries, this innovative approach warrants further study to inform alternative LED practices in sub-Saharan Africa and rural South Africa.
Key African LED developments in this area include UCLA and LEDNA, and the role played by agriculture and overseas development assistance. LED processes in developed countries were observed to adopt pro-growth (market-led) strategies, while pro-poor (market-critical) strategies were more evident in the African context.
CHAPTER THREE
LITERATURE REVIEW ON LOCAL ECONOMIC DEVELOPMENT TRENDS IN SOUTH AFRICA
Introduction
The Developmental State
- AsgiSA and JIPSA
- National Development Planning
- Institutional Framework
The Reconstruction and Development Program (RDP) formed part of the electoral platform of the African National Congress in the 1994 elections. The South African Constitution (Act 108 of 1996) is based on the developmental character of the state (Olivier et al. as evidenced by the many references in the Constitution for development, including: It thus appears from Table 3.2 that the fifth MSTF priority for improving the health profile of South African society will not be achieved within the prescribed time frame.
Province of KwaZulu-Natal, and the study undertakes an analysis of uMshwathi Local Municipality in Chapter 5. In undertaking a close examination of laws and policies to place local economic development (LED) in perspective as purely non-local, it must be be a clear understanding of the natives.
Map 3.1 Municipal boundaries of the 234 Local Municipalities (shaded areas show municipal boundary changes 2001-2011)
- National Spatial Development Framework
- The KwaZulu-Natal Provincial Growth and Development Strategy
- National Industrial Policy Framework
- Local Economic Development
- Local Economic Development Policy
- Local Economic Development Environment and Challenges
- The Professionalization of Local Economic Development
- Contemporary Models of Local Economic Development
- The concept of Systemic Competitiveness
- Metaphors for Local Economic Development
- Conclusion
- Introduction
- Research Process
- Aim and Objectives of the Study
- Research Design
- The Literature Review
- Secondary Data Analysis
- The Case Study
- Conclusion
- Introduction
- Review of the uMshwathi Local Municipality
- uMshwathi Local Municipality: Overview and Situational Analysis
A range of key policies and policy documents have played a role in the development of the LED debate in South Africa. Analytical tools and workshop formats to support the LRED process with the analysis of the local/regional economy. Conversely, the need for a greater number of qualified individuals in the field has led to the professionalization of the LED profession.
He is of the opinion that the LED field in South Africa is ready for the transition of LED "practitioners" to LED. Within the framework of the KZN Provincial Growth and Development Strategy (PGDS, 2011), in order to provide a more professional LED capacity building competence in the province, DEDT has targeted programs at existing LED practitioners within institutions LED in KZN in Govt. , business and civil society (Mkhize, 2013). Thus, the link between LED theory and professional practice lies in interpreting the relevance of theory in the specific context.
Key to this metaphor is a distrust of the scientific approach to the concept and practice of local development. Strategic planning for local economic development is, in terms of the Constitution and South African law, entrusted to the local government level, as we will see in Chapter 5 in the form of the Integrated Development Plan (IDP). According to Silverman (1993), cited by Bryman and Bell (2007), this indicates a growing maturity of the qualitative research strategy.
The research method of the case study is therefore the appropriate strategy to study local economic development in the uMshwathi Municipality. The aim of the study is to drive local economic development in uMshwathi by exploiting local underutilized resources of land and labour, the prioritization of agriculture and the coming. The case study that follows in Chapter 5 is built on a theoretical framework and will encourage reflection, while the background literature provides for the recognition of the imperatives of regional economic development in general and in South Africa.
The result of a process of territorial change will be a change in the structure of the "local economy" system, suppliers of goods and services. The subject of the study was uMshwathi Local Municipality (KZN221) in uMgungundlovu District (DC22), about 120 km northwest of Durban.
Locality Map of the Municipality of uMshwathi, uMgungundlovu District Source: Urban-Econ Development Economists, 2007
- Political Milieu, Traditional Authority and Related Land Issues
- Demographics, Social Assistance and Basic Service Delivery
- Provincial Economic Outlook and Rural Development
- uMshwathi Local Municipality: Integrated Development Planning, Local Economic Development and the Strategic Prioritization of Agriculture
- Introduction
- Integrated Development Planning
- Local Economic Development, The LED Plan and the Strategic Prioritization of Agriculture
- Environmental Management Framework for the Proposed uMshwathi City Development Node
- Introduction
- The uMshwathi City Development Node
The aforementioned towns of German origin are part of "The Amble" and Albert Falls, with its water sports, is the traditional heart of "Route 33", while arts, crafts, curiosities and Zulu culture seem to be represented. Much of the existing commercial agricultural land in the province of KwaZulu-Natal is subject to land claims (uMgungundlovu District Municipality, 2006b). One of the goals of the Integrated Strategy for Sustainable Rural Development (ISRDS) is that rural areas will achieve the internal capacity for integrated and sustainable development by the year 2010 (ISRDS, 2000).
Helmsing states that: “the only justified form of industrial (trade) policy is in fact regional industrial development policy”. According to Mkhize and Hamadziripi (2010), under the 2006 Provincial Spatial Economic Development Strategy (PSEDS), the KZN government invested in numerous infrastructure projects, including the Dube TradePort (DTP), the construction of the Moses Mabida Stadium, the modernization of stadiums in the province and road renovations. KwaZulu-Natal's agricultural potential, diverse topography, climate and soils make this province virtually a 'world-in-one', but its potential remains underutilized.
The Municipal Systems Act (Act 32 of 2000) requires each municipality to adopt an Integrated Development Plan (IDP), a single, comprehensive, strategic 5-year plan for the development of the municipality that is reviewed annually. Thus, the articulated strategic objectives as planned in the uMshwathi IDP align with the four research objectives of this study (Section 5.1). Section D of the IDP is a review of the uMshwathi Municipality's Spatial Development Framework (SDF) and Land Use Management System (LUMS).
The participatory democratic process required by law in the preparation of the EDP is alluded to (section 5.3.2). Does the quality of the Local Economic Development Plan meet the minimum and required standard. The Dube TradePort Corporation embodies the ―big push‖, a concerted economy-wide effort driven by public policy to accelerate economic development (McCarthy, 2004).
These initiatives will complement urbanization trends in New Hanover, Dalton and Wartburg and new initiatives in rural areas of the borough. It should be taken advantage of the "Amble" road, which should be promoted and developed dynamically in the regional context.
