Both public and private organizations in the area have developed many social improvement initiatives in response to high poverty and unemployment in the area. Local Economic Development (LED) initiatives, a pro-poor response to community upliftment, have been firmly placed in the local municipality's LED strategy, and the area is now benefiting significantly from this.
ACRONYMS
CHAPTER ONE: INTRODUCTION
Furthermore, the research aims to determine why Richards Bay has emerged as a dominant role player in the local economy and to assess the role of local competitive advantages and initiatives in that process. Attention is also paid to an examination of the policy and practice of local economic development in South Africa.
CHAPTER TWO: LITERATURE REVIEW
From Global to Local
The passing of the Special Areas Act 1934 marked the beginning of regional development in the United Kingdom. Government thinking in terms of industrial policy was therefore assessed in the roles of the Department of Trade and Industry (DTI) and the Industrial Development Corporation (IDC).
CHAPTER THREE: METHODOLOGY
Early History of the Area
- Empangeni
- Richards Bay
Other missions were opened in later years, but as a result of the Anglo·Zulu War of 1879, all missions were destroyed. Nineteen hundred and three saw the development of the first railway station in Empangeni which was a crucial element in the growth of the town. Two decisive periods of growth can be distinguished in the development of the town, the first a period of industrial expansion after the Second World War.
This included residential development as well as commercial and retail support of the residential component. Richards Bay has evolved from a small fishing village in northern KwaZulu Natal to one of the province's most important economic hubs. Sugar cane plantations along the coastal strip of the Indian Ocean are the mainstay of the agricultural sector.
An Overview of the Economic Development in the Area
The government's recognition of the need to exploit the coal resources of the south-east coast of Africa and develop a viable British port north of the Thugela prompted investigations to develop the Umhlathuze Lagoon. In more recent years, the decision to finally develop a deepwater port in Richards Bay transformed the area into a modern and dynamic port centre, and it became one of the country's few urban centers to continue to grow despite periods of national recession, political uncertainty and international economic pressure (CS-Ht. & VUKA, 2002). With the early history of the area already known, the development of the area from the 1970s onwards will be told over three periods and the era after significant government support.
Richards Bay was chosen after inspections at Kosi Bay, St Lucia and Sodwana Bay for its availability of land around the bay that had the potential to be developed for industrial use; the ease of dredging operations; the size of the bay; as well as to facilitate the integration of the area into the existing railway network (Aniruth & '!3arnes, 1998; ·:5arker, 2001;t>et)t> Seneque Smith & Maughan-Brown, 1993; Walker, 2001). A town council was established in Richards Bay to coordinate this development, which was agreed between the then Administrator-in-Executive Committee of 'Natal and the Minister for' planning (Seneque Smith & Maughan Brown, 1993; DCDP, 1983). In terms of the decentralization policy that was in place, further industrial and economic development in the country was to take place in decentralized growth points to achieve a more balanced distribution of population and economic growth in c;S',untJ;Y.
July 1976 the then Minister of Planning and the Environment spelt out what the implications of developing a port at Richards Bay would be in terms of
- Development from 1980 - 1989
- Development after the Curtailing of Significant Government Support in the 19908
- The Port
- Population
In particular, the area experienced a boom with the construction of the Alusaf Hillside smelter in the early 1990s. This international company is one of the largest in the Richards Bay/Empangeni area in terms of its contribution to the local economy. Richards Bay had a population of 0.3 percent of the total area population living in the city in 1970, rising to 2 percent in 1980.
This reveals that 13 percent of the area's population now lives in Empangeni and 37 percent in Richards Bay. The age distribution in this area shows that 43 percent of the population is under the age of 19 and is therefore still relatively young. The high share of the working population corresponds to the high percentage of working people at this time.
CHAPTER FIVE: KEY INDUSTRIES AND THEIR CORPORATE SOClALINVESTMENTS
The Zululand Centre for Sustainable Development
The Zululand Center for Sustainable Development is a joint venture between the local Spatial Development Initiative (SDI) and the private organization Ecosystems. The overall aims of the center are to ensure the transfer of skills to the local community through intensive and ongoing education, training and a membership approach. The process of sustainable agriculture is practically demonstrated through the network of sustainable infrastructure in the Center.
The Center specializes in certain areas required for sustainable development in South Africa. The Zululand Center for Sustainable Development (ZCSD) has turned the unused land and buildings into a training center where students can learn alternative farming techniques with a strong emphasis on waste management and specializing in the use of local resources. Directors of the ZCSD (a section 21 company) are Gavin Eichler of Ecosystems and Syd Kelly of the SDI.
Discussion
Although the ZCBF initially facilitated small job creation projects in the early years of its establishment, in order for these jobs to be sustainable, it was soon realized that a more holistic approach was needed which led to the establishment of the ZCBF Community Park which in turn again was due to the construction of Hillside Aluminum. The problems associated with the high incidence of HIV/AIDS victims and a lack of skills development in local communities have prompted the big industries to invest in many social upliftment initiatives through the ZCBF with the intention that job creation will result from the skills development and capacity training that those local community members will receive through the implementation of the social investment initiatives. The primary objective is therefore not job creation, but rather education and skill development that provides entrepreneurial skills that will eventually lead to job creation. However, the sum of jobs created due to the presence of KMI initiatives and especially the ZCBF is uncertain, since the number of jobs created was only documented as a direct result of the implementation of certain projects, and not as a result of the skills acquired by the local community.
Recent interviews by the researcher of ZCBF trainees revealed a successful example of the skills development provided by the ZCBF leading to employment. A local rural subsistence farmer, Joseph Mabika, was one of the first candidates trained by the ZCBF Hydroponic Farming project. However, this is only one example of the skills development received that has led to job creation for the hundreds of local people who are training.
CHAPTER SIX: LOCAL ECONOMIC DEVELOPMENT IN uMHLATHUZE
In the current IDP, the objective of economic development is seen as promoting a vibrant local economy, creating employment opportunities and attracting investment. There is a large pool of undeveloped potential workforce that IS seen as an opportunity in the area. To promote socio-economic development in the area, uMWathuze municipality aims to create jobs and economic opportunities through an action program for the development of the local economy.
Furthermore, the investment strategy and incentives used in the LED strategy should increase competitive advantage. According to the task team, SME development is crucial for creating employment in the area. Richards Bay competes in the global market at the expense of the surrounding areas, but the economic contribution this makes to both the local and South American economies is crucial.
CHAPTER SEVEN: DISCUSSION
There are many raw materials in the area such as ilmenite, rutile, zircon sand, sugar and wood. Health problems such as HIV/AIDS, cholera and malaria affect a large part of the local population; however, health services are good in the area. Therefore, the natural resources or 'inherited' resources still play a more important role in the development of the local economy than those created by local action and investment.
Bell Equipment is one of the major companies that have established themselves in the area due to the availability of local resources (comparative advantage). Therefore, a large percentage of direct employment is created by the presence of these industries in the area. This goal must be criticized in light of the previous LED efforts in the area.
CHAPTER EIGHT: CONCLUSION
Internationally, propulsion industries have been developed based on the availability of natural resources; they are capital intensive, and they require skilled labour. The fact that the big corporate companies compete in the global markets has had significant implications on the growth of the economy. The strong export orientation of the firms as well as the position that the hold in the global market offers, offers a strong global presence in the local economy of uMhlathuze.
Richards Bay Minerals alone supplies most of South Africa's demand for the heavy minerals ilmenite, rutile and zircon, as well as around a quarter of global demand for these products. Due to the nature of the LED process, documenting key outcomes is an ongoing process and was considered in the research design of the proposed study. The participation of the researcher in this process allowed for the continuous documentation of the progress in the design of the LED strategy.
The New Geography of Foreign Direct Investment, in Woods, N., (ed.), The Political Economy of Globalization, Macmillan Press, London. Globalization and National Autonomy, in Woods, N., (ed) The Political Economy of Globalization, MacMillan Press, London. Regional and local economic development in South Africa: the Eastern Cape experience, Ashgate, England.
Local Economic Development: An Overview and Assessment of Its Current Status in South Mrica, Urban Studies. World's Largest Coal Export Terminal: Richards Bay Coal Terminal, South Africa, Unpublished Paper. Unpacking New Investment Projects: The Impact of BJiliton Hillside Aluminum on the Richards Bay Area, Unpublished MA Dissertation, University of the Witwatersrand, Johannesburg.
APPENDIX A
APPENDIXB
APPENDIXC
Village
PORTER ~
Our economic SWOT
The business model of the IDZ revolves around a number of playelS
