The local global nexus : a case study of Richards Bay.

Abstract

South Africa's past industrial decentralisation policies have come under intense criticism for being economically inefficient and an inappropriate means of providing employment. The result of state intervention from the 1970s in the locality of Richards Bay/Empangeni, has led to the establishment of many unlinked, globally competing industries in the area, which the local economy has come to rely heavily upon. Public as well as private organisations of the area have in place many social upliftment initiatives developed in response to the high poverty and unemployment in the area. By employing survey research techniques to collect the necessary data, this research study undertakes a social scientific approach to analysing the socio·economic impact that these industries and large firms have had on the area and documents the current social investment initiatives they have in place. Local Economic Development (LED) initiatives, as a pro-poor response to community upliftment, are firmly placed in the local municipality's LED strategy, and from which, the area now receives considerable benefit. Results show that there is a positive public·private partnership approach to local development in the area with all sectors being actively involved in community benefit and poverty alleviation initiatives.