Nevertheless, the real goals of the agency are yet to be realized as many of the projects are in development stages. With regard to the Public-Private Partnership between the three interest groups of government, business and the community, there appears to be a consensus on what the broader role of the agency should be.
Introduction and Background
Much of the rise in popularity of LEDAs is due to the growing awareness that for local economic development (LED) to be effective, it must be a process driven by multi-stakeholder partnerships between the public sector, private sector and communities with the aim of improving socio-economic conditions and creating better employment opportunities (World Bank, 2006). To achieve this, the local government itself should take the lead in promoting economic development (DEDT, 2012).
Problem Statement
This study aims to investigate the Umhlosinga Development Agency located in northern KwaZulu-Natal and presents the perspectives of the agency's stakeholders, with a particular focus on how the agency engages with its stakeholders as a development mechanism for successful LED. The Umhlosinga Development Agency (UMDA) was established to address the current socio-economic status of the district but it was not an easy process as the agency itself faces various challenges which will be discussed later in this study. (UMDA report.
Aim and Objectives
Significance of Study
The business sector could also benefit greatly from this study, as it would act as a framework for the relationship between the development agency and local businesses. Local municipalities also stand a greater chance of benefiting from this study as it will look at various ways in which LED capacity can be improved by the relationship between the development agency and local municipalities.
Limitations of the Study
Structure of Dissertation
Conclusion
Introduction
Local Economic Development
Definition
The characteristics of LED derived from the above definitions are intertwined and related in that the process is driven and shaped by local actors and because it requires the participation of all actors. Finally, the mentioned definition and characteristics of LED are the potential and consequence of promoting partnership and social dialogue.
Brief History of LED
This section has presented a brief background on where the LED is located and as a result provides an understanding of the sections to follow which will look more specifically at the operation of the LED, its mechanisms. This was important so that while addressing the objectives of the study one could understand what LED is today.
Actors of Local Economic Development
The constitutional mandate of local government to facilitate LED is rather a point of confusion because the constitution plan does not list LED as one of the functions of municipalities and thus leaves LED as an unfunded mandate (Triegaardt, 2007 ). This section was important in addressing the objective of whether the business community in Umkhanyakude District Municipality is aware of the agency.
The Local Development Agency
Defining the Local Economic Development Agency
The development strategy of a LEDA is necessary to streamline the realization of the goals, strategies and plans shared by local actors, thereby enabling their transformation into concrete and business proposals or orientation (Canzanelli, 2001; Clark, Huxley & Mountford, 2010 ). Designed with the logic of "mission", the agency acts to support the definition of strategies and policies implemented by others.
Characteristics and Roles
- Introduction
- The South African context
Regardless of the nature of their establishment (i.e., government-run or established), economic development agencies do not function under government control. The most complex objective of development agencies is the economic development of a predetermined area.
International practice of Local Economic Development
- The Experience of LEDA for Croatia and some neighbouring countries
- The LEDA Experience for Turkey
In the establishment and operation of LED in all these regions, there have been demands and challenges that have brought an unfavorable environment for LED. This questioned the awareness of the actors and the business community of LED.
Local Economic Development Agencies in South Africa
Structure and operation of Local Economic Development Agency is South Africa
- Introduction
The general assembly consists of the mayor (of the central province in each region, who rotates annually), who represents the LDA. Therefore, the responsibilities of the agency are divided in such a way that the municipality is responsible for LED and the agency is responsible for implementation.
Public- Private Partnerships in LED and LEDAs
Partnerships
Consolidating partnerships between the public and private sectors is especially important today for successful local economic development. The notion of partnership is seen as a means of expanding the involvement and role of the private sector in LED.
Communication and PPP
However, the literature on diverse teams and alliances (Akintoye, 2003; Ruuska & Teigland, 2009) suggests that public–private partnerships face significant challenges in achieving shared understanding and collective competence. PPP projects are generally distributed in nature as the partners are located in different organizations and different geographical locations.
Conclusion
Moreover, partners face specific challenges, such as variability in team composition and multiple relationships between the partners, further increasing the number of challenges to project effectiveness (Ruuska & Teigland, 2009). This is evident in the way that knowledge of the agency's work and mere understanding of what a DA is can influence the way agency communications are received and perceived, further impacting the relationship between stakeholders .
Introduction
Research Design and Methods
Qualitative research serves the function of describing, interpreting, verifying and evaluating and often does not focus on causality, but here we will focus on descriptive because there is a need to reveal the multidimensional nature and community of the development agency and key players (Leedy & Ormord, 2014; Terrre Blanche, et al., 2006). However, in response to the research question for this study, the appropriate design is considered to be a case study, defined as intensive investigations of specific individuals, ideographic research methods (Leedy & Ormord, 2014; Terrre et al., 2006; Patton, 2002; Cresswell, 2014 ).
Data Sources
Secondary Sources
This type of data is not used to answer the research question directly, but can be used to highlight general issues in the field when discussing theoretical frameworks (Kumar, 2005). This helped the researcher to locate the study in the relevant context, and therefore all information from this has been incorporated into the background and theory chapter.
Primary Data Sources
As a result of analysis of theory, the researcher was able to understand the work of economic development agencies both locally and internationally and further identify the need of the study.
Primary Data Collection Techniques
Unit of analysis and Sampling
In this case for example the experiences of the relationship between the development agency, the district municipality and the business community (including local municipalities and Mjindi Farming). To purposefully select cases or individuals that are critical to testing the study's theories.
Data Collection Tools
Data Analysis
This discussion is particularly important in qualitative research, where the subjectivity of the researcher in data analysis is often called into question (Brink, 1993). The researcher attempted to do this by placing the interview schedule in Appendix A and cross-checking the information provided by study participants against information provided by other participants and related documents.
Ethical Considerations
This study ensured that it was ethical in that written informed consent was obtained from all participants, further the interview recordings and transcriptions were kept secure and all participants were asked for permission to be recorded and in fact two refused to register. their choice was recorded and respected. Regarding the disagreement, first of all because the consent will inform the participants will not deceive any part of the study does not require any kind of deception and keeping the interviews secure and not easily accessible.
Conclusion
The interviews will remain with the researcher and/or those involved in supervision, and the interviewee's name must be kept confidential, as pseudonyms will be used where necessary. This should reduce most, if not all, factors that could cause harm to the participants (Terre Blanche, et al., 2006).
Introduction
Overview of Umhlosinga Development Agency
It is essential to provide a structural description of the agency to understand its functionality within Umkhanyakude District Municipality. So below is the organogram of the agency, which represents the structure of the agency.
The function and structure of the Development Agency
The Role of Umhlosinga Development Agency and its projects
- Tourism Industry
The agency is owned by the district municipality and plays a supporting role for the municipality. In summary, this section provided the context of the agricultural district and that of the agribusiness sector within the agency.
Extent of Awareness of the role of the developmental agency
Awareness of the agency as a result of this project and territory limitation, this study will focus on Mjindi agriculture. The agency's business community is aware of the socio-economic development role only to the extent that the agency's activities exist in close proximity to that community.
The Communication Chains
Communication between the agency and the district’s municipality
The interaction with the district and the agency is mainly on matters of economic development, performance reporting and IDP (integrated development planning). As much as sound policies and regulations are in place to guide communication between the agency and the district municipality, there are many factors that negatively affect the communication chain.
Communication between the agency, the local municipality and community of
In conclusion, the communication chains between the agency and the local municipalities are weak and unstructured. The agency also acknowledges that there is currently poor communication and the reasons can be attributed to the ineffective implementation of the performance management system.
Relationships between its community of stakeholders and Umhlosinga Development
Relationship of the Agency with Amakhosi
The agency communicates with the Amakhosi mostly for buy-in from the general community and to gain access to land for projects. The relationship that should exist between Amakhosi, as one of the community of stakeholders, is the ability of the agency to acquire land from the trust.
Mjindi Relations
A very promising relationship has been established between the agency and the Mjindi farming community. In short, the relationship between the agency and its business community, including the local municipality, is a work in progress.
Public Private Partnerships with Umhlosinga Development Agency
The agency's annual report (Umhlosinga Development Agency also mentions the creation of partnerships as one of the main objectives to encourage investment in the district, thereby emphasizing the importance of PPPs in Umkhanyakude District. Furthermore, the PPP that currently exists on itself problematic and really challenging the work of the agency.
Conclusion
The third objective of the study is to explore the relationship between the agency and the community of Umkhanyakude; this relationship is in an early stage of development. The PPP between the business community and the agency is in better shape than that between the agency and local municipalities.
Introduction
Summary
Factors also included the maturity of the relationship between the agency and the specific stakeholder community. Further, the results suggest that the lack of synergy in the agency role is the result of poor communication.
Contribution of the Research
The data show that the communication chains are relatively weak, especially the chains between the agency and the local municipality. The chain of communication between the agency and its parent body seemed clear in terms of policy and guidelines set by legislation.
Recommendations and Final Remarks
The evolution of local economic development in South Africa: A case study of Stutterheim and social capital. In search of public-private partnerships for local economic development in South Africa.
