Local economic development: Difference between revisions

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In terms of what an 'Integrated Development Plan' (IDP) should include, the Municipal Systems Act clearly brings out the pro-poor dimensions of government thinking. The Act states that an integrated development plan must reflect:<ref>RSA, 2000a: Local Government Municipal Systems Bill, Government Gazette No. 21071 of 13 April 2000.</ref>
 
* The municipal council's vision for the long-term development of the municipality. Special emphasis is to be placed on the municipality’smunicipality's most critical development needs
* An assessment of the existing level of development in the municipality. This should include the identification of any communities which do not have access to adequate basic services
* The council's long-term development vision and should consider the need for social and economic advancement of disadvantaged sections of the community
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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’sJohannesburg'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>