View/Open - University of Zululand Institutional Repository

Key global changes have obliged citiesllocalities to become more pro-active in their pursuit of
wealth and market opportunities in an era ofsignificantly expanded markets and decreased levels
of state support and intervention. This study acknowledges the relevance of this LED
perspective in this research, as the Ulundi Local Municipality depends almost entirely on
external funding to support its domestic capital expenditure.
For (Purcell, 2000: 86) growth coalitions are important as 'the pursuit of exchange values so
permeates the life oflocalities that cities become organised as enterprises devoted to the increase
of aggregate rent values through the intensification of land use'. As such, in a developing
economy that is in need of enhanced growth, but simultaneously one that is experiencing the
transition from dominance by government to a more socially responsible form of local
governance, as is the case in Ulundi area, the growth coalition concept has a role to play.
Growth Coalitions represent a significant transition from local government to local governance
which is taking place (Savitch and Kantor, 1995; Ogu 2000; Perrons and Skyers, 2003). Though
not easy to initiate, they hold the potential ofoffering significant benefits to role players (Otiso,
2003).
Growth Coalitions are directly related to two broad theoretical constructs, firstly that of 'urban
regime theory' and secondly 'growth machine thesis' which provide the framework for
understanding and conceptualising certain local economic development phenomena.
According to the urban regime theory, the key catalyst driving the emergence of growth
coalitions will be public sector interests, in contrast to the growth machine standpoint that the
private sector is in fact the key driver. Urban regime theory as such 'concerns itselfwith the way
in which urban local authorities used to build bridges with other interests, not least within the
private sector, in order to achieve certain goals, particularly in the field of production' (Harding
et aI., 2000: 984). Urban regime theory starts on the assumption that, 'the effectiveness of local
government depends greatly on the co-operation of non-governmental actors and on the
combination of state capacity with non-governmental resources' (Bassett, 1996: 548). In this
research, the application of urban regune theory unfolds the significant stake of political
21