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View/Open - University of Zululand Institutional Repository

View/Open - University of Zululand Institutional Repository View/Open - University of Zululand Institutional Repository

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evaluative; and for others, scientifically established [www.wordig.comldefinitionloovertv. (2008)]. The principal uses ofthe tenn include: • Descriptions of material need, including deprivation of essential goods and services, multiple deprivation and patterns ofdeprivation over time. • Economic circumstances, describing a lack of wealth, (usually understood as capital, money, material goods, or resources especially natural resources). • Social relationships, including social exclusion, dependency and the ability to live what is understood in a society as a nonnallife: for instance, to be capable ofraising a healthy family, and especially educating children and participating in society. Poverty may be seen as the collective condition ofpoor people, or ofpoor groups, and in this sense entire nation-states are sometimes regarded as poor [www.developmentgoals.com /povertv.htm, (2008)]. In this study, poverty is operationally defined in tenns of monetary value. In this case, bread-winners receiving R3000 and below per month are defined as facing poverty. 1.4.14 State o(the art The state of the art is an adjective used to describe the highest level of development, as a device, technique or scientific field, achieved at a particular time [www.wikipedia.orgl wiki/State_of_the_art, (2008)]. In this research study the phrase applies to the highest level of development reached by certain cultural attributes associated with the study area, utilising modern methods in local economic development. The assumption is that this development will be achieved in a sustainable manner. 1.5 JUSTIFICATION OF THE RESEARCH The literature on issues like spatial structures and land use in human settlements (urban functions, rural dependence and support) is reviewed. Moreover, an overview of the local economic development prerogatives established within the framework ofthe IDP is explored. Central to the theoretical framework is that development project initiatives are a product of communal decision-making tools that promote environmental management and sustainable 15

development as well as community participation and involvement. As part ofthe theoretical framework, the debate on the effectiveness and efficiency of the concepts, 'regionalism' and 'inter-municipal co-operation' as better strategies to municipal challenges are presented. Also reviewed are cases ofmunicipal successes and challenges outside South Africa. Municipalities have a constitutional mandate to promote local economic development (LED). Section 153 of the Constitution states that: A municipality must structure and manage its administration, and budgeting and planning processes to give priority to the basic needs ofthe community, and to promote the social and economic development of the community (Iyer Rothaug Project Team, 2003). The South African government has also prioritised rural development and urban renewal as key strategies to counter the legacy of uneven development in the country. The aim ofthe LED programme within government is to support all municipalities in South Africa in implementing these strategies, and make them attractive places to live in, invest in and visit. This is to be achieved by stimulating business investment and job creation, focusing on addressing the needs of poor and marginalised people and communities (The Government of South Africa, 200I). Local stakeholders, such as government, business, labour and civil society organisations ought to work together in order to enhance local economic development (LED). Local communities and authorities can play an active role in determining their own economic paths. LED involves identifYing and using local resources to create opportunities for economic growth and employment. Successful LED involves local partnerships berween big business and local SMMEs, as well as on national and regional structures to promote and support local initiatives. 1.6 THE LAYOUT OF THE THESIS Chapter one presents an orientation to the study. This entails background and statement ofthe problem as well as operational definition of concepts. Also included in the first Chapter are the justification of the topic in terms of wider research and the layout of the thesis. Chapter rwo reviews the literature related to this research. An in-depth understanding of models and theories of local economic development is considered. The three models of urban structure 16

development as well as community participation and involvement. As part <strong>of</strong>the theoretical<br />

framework, the debate on the effectiveness and efficiency <strong>of</strong> the concepts, 'regionalism' and<br />

'inter-municipal co-operation' as better strategies to municipal challenges are presented. Also<br />

reviewed are cases <strong>of</strong>municipal successes and challenges outside South Africa.<br />

Municipalities have a constitutional mandate to promote local economic development (LED).<br />

Section 153 <strong>of</strong> the Constitution states that: A municipality must structure and manage its<br />

administration, and budgeting and planning processes to give priority to the basic needs <strong>of</strong>the<br />

community, and to promote the social and economic development <strong>of</strong> the community (Iyer<br />

Rothaug Project Team, 2003). The South African government has also prioritised rural<br />

development and urban renewal as key strategies to counter the legacy <strong>of</strong> uneven<br />

development in the country. The aim <strong>of</strong>the LED programme within government is to support<br />

all municipalities in South Africa in implementing these strategies, and make them attractive<br />

places to live in, invest in and visit. This is to be achieved by stimulating business investment<br />

and job creation, focusing on addressing the needs <strong>of</strong> poor and marginalised people and<br />

communities (The Government <strong>of</strong> South Africa, 200I).<br />

Local stakeholders, such as government, business, labour and civil society organisations<br />

ought to work together in order to enhance local economic development (LED). Local<br />

communities and authorities can play an active role in determining their own economic paths.<br />

LED involves identifYing and using local resources to create opportunities for economic<br />

growth and employment. Successful LED involves local partnerships berween big business<br />

and local SMMEs, as well as on national and regional structures to promote and support local<br />

initiatives.<br />

1.6 THE LAYOUT OF THE THESIS<br />

Chapter one presents an orientation to the study. This entails background and statement <strong>of</strong>the<br />

problem as well as operational definition <strong>of</strong> concepts. Also included in the first Chapter are<br />

the justification <strong>of</strong> the topic in terms <strong>of</strong> wider research and the layout <strong>of</strong> the thesis. Chapter<br />

rwo reviews the literature related to this research. An in-depth understanding <strong>of</strong> models and<br />

theories <strong>of</strong> local economic development is considered. The three models <strong>of</strong> urban structure<br />

16

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