Local economic development: Difference between revisions

Revision as of 14:44, 28 January 2024

Revision as of 12:15, 12 October 2024

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* It is undertaken for the purpose of fostering economic well-being

With the rapid changes in global, national and local economies, increasingly definitions of LED are adding aspects of inclusiveness, sustainability and resilience. Many international development organisations see LED as complementary to other support measures, such as improving governance, reducing inward migration and improving urban development. International development projects or national government projects can help to establish or enhance LED locally, but should not replace or displace local effort. As a consequence, the aim of an externally support should be to establish an effective LED process locally, not to solve the problems of the locality with regards to its economy. In our experience,{{Who|date=December 2023}} external development projects implemented locally often results in local stakeholders becoming bystanders to a project in their locality.{{Original research inline|date=December 2023}}

There are more definitions out there. Many countries, development organisations and even locations have created their own definitions.

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There is entrenched policy support for pro-poor development in South Africa – often being the primary focus of municipal vision/mission statements. In many cases it is treated as the partner of pro-growth/economic growth interventions. This situation is to be welcomed and reflects both local imperatives and responsiveness and local adherence to nationally identified objectives.

Given the dual challenges faced by South African society of needing to address both [[chronic poverty]], yet also to achieve economic growth and global competitiveness, from a policy perspective it would seem that the approach adopted by Mangaung, Cape Town and eThekwini is most appropriate. These municipalities took a middle of the road approach, focusing their LED strategy on addressing both issues of poverty and growth and the fundamental linkages between the two (World Bank, 2005, 75).<ref>World Bank-Netherlands Partnership Program (BNPP), 2005. "Investigation of Pro-Poor Local Economic Development in South Africa."</ref> The following case studies present pro-growth endeavours that have led to tangible pro-poor driven growth: Johannesburg's Fashion District; eThekwini's<!--?--> regeneration projects; and Ingwe's rail-based tourism initiatives.<ref>World Bank-Netherlands Partnership Program (BNPP), 2005. "Investigation of Pro-Poor Local Economic Development in South Africa."</ref>

These case studies show that pro-poor, community-based initiatives that are market linked, providing a viable product and operating in an economically effective fashion, can help disadvantaged community members to effectively participate in the market economy. Similarly, community-based service provision and labour-intensive employment is an effective mechanisms to extend services and create employment and business opportunities for the poor (World Bank, 2005, 78).<ref>World Bank-Netherlands Partnership Program (BNPP), 2005. "Investigation of Pro-Poor Local Economic Development in South Africa."</ref>