Local economic development: Difference between revisions

Revision as of 22:55, 18 February 2014

Revision as of 19:41, 5 September 2014

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====Conclusions====

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; 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>

====Land-use planning for LED====

Land-use planning and development control serve as measurable tools for LED. The assignment of property rights in land and third party enforcement are essential for the efficient operation of markets. Public intervention ensures the separation of incompatible land-uses, integrated planning and development of synergistic land uses, and the 'public goods' aspect of necessary public facilities, open space and infrastructure investment (Lai, 1994, 78-80).<ref>LAI WAI CHUNG, L. (1994), 'The eco- nomics of zoning: a literature review and analysis of the work of Coase', Town Planning Review, 65, 77-98.</ref> Land use planning and development control are essential for the existence and operation of land and property markets (Alexander, 48).<ref>A Transaction-Cost Theory of Land Use Planning and Development Control: Towards the Institutional Analysis of Public Planning E. R. Alexander The Town Planning Review , Vol. 72, No. 1 (Jan., 2001), pp. 45-75</ref> For instance, the assignment of and control over land uses will generally reduce transaction costs and can create or enlarge markets (Lai, 1994, 91).<ref>LAI WAI CHUNG, L. (1994), 'The eco- nomics of zoning: a literature review and analysis of the work of Coase', Town Planning Review, 65, 77-98.</ref>

The following are a list of public land use and development controls that the Ontario Ministry of Municipal Affairs and Housing lists as useful methods in promoting economic development.<ref>Ontario Municipal Affairs and Housing. "Municipal and Financial Tools for Economic Development Handbook".</ref>