The impact of LED conceptualization on the current implementation: A case study of Ugu district.
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Date
2011
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Abstract
Local economic development (LED) has been in existence for decades. In South Africa the
concept received momentum immediately after the first democratic elections in 1994. It was
soon conceived as a mechanism for addressing social and economic ills such as
unemployment, poverty and declining economic activity, particularly in small towns. In
order to accelerate LED given its urgency, in 1998, the government introduced and
subsequently promulgated the White Paper on Local Government, which mainly sought to
advance the notion of a developmental state, and LED was central to that. Later in 2006 a
proper LED Framework was adopted, which had as its main objective, to guide LED
implementation.
Up until the present time, LED implementation has not been a resounding success. Many
studies have focused on implementation and challenges thereof. However, focusing on
implementation alone may not be adequate. In order to bridge that gap, this particular study
specifically focuses on LED conceptualization in order to assess the correlation between
conceptualization and implementation outcomes. The area of the study was Ugu district in
the lower south coast of the KwaZulu-Natal province of South Africa. Immediately after the
first democratic elections in 1994, local economic development as a concept gained
momentum. LED conceptualization was mainly centred on LED planning, which as
empirical evidence has suggested, did not provide the anticipated success in terms of
implementation results.
Further, LED planning in South Africa focused mainly on a market-led approach, which is
largely premised on pro-growth as opposed to the market-critical approach which draws
much input on the pro-poor thinking in terms of both conceptualization and implementation
of LED-focused initiatives. This study therefore sought to build from that proclamation. The
assertion is that LED planning has become obsolete. The proposed approach was the
adoption and conceiving of the dynamic complexity approach, which is mainly centred on
self-organization of the system of which LED is one such sub-system. The affirmation is
that, LED is neither a static nor a fixed phenomenon. It involves continuous evolution and
co-evolution of agents such as banks, entrepreneurs, government etc., within the system which therefore becomes a never ending process. During such process of evolution and coevolution,
new order emerges, which can be identified as an outcome-based local economic
development. From the study’s findings, indications are that LED conceptualization indeed
plays a significant part in shaping implementation outcomes, and indeed outcome-based
LED. This conclusion is based on five (5) critical areas which were covered in the study,
namely project implementation rationale, comprehension of local economic development,
funding for local economic development, roleplaying by diverse LED stakeholders and
complexity of local economic development. For example, the findings and analysis shows
that many LED-focused interventions were implemented without proper conceptual
assessments having been done, which led to ill-informed implementation and therefore poor
results.
Further, the comprehension of LED as a programme is also a problematic area. Due to
diverse stakeholders whose interests are not necessarily the same, LED is viewed differently,
which also has a direct implication in as far as co-operation and roleplaying by LED
stakeholders is concerned, which further causes challenges in terms of implementation.
Lastly, the final assertion is that LED is a complex phenomenon. However, in terms of the
findings, this assertion is not observed by all stakeholders, which again is a conceptual
matter. Adversely and perhaps as expected, LED facilitation and implementation is a
problematic area within the Ugu region. The direct implication is that LED’s
conceptualization needs to be revised, and in the process all stakeholders must internalize and
advocate for emergence-based local economic development.
Description
Theses (M.Com.)-University of KwaZulu-Natal, 2011.
Keywords
Economic development--KwaZulu-Natal--Ugu District., Community development--KwaZulu-Natal., Theses--Management studies.