View/Open - University of Zululand Institutional Repository
View/Open - University of Zululand Institutional Repository View/Open - University of Zululand Institutional Repository
• Strengthening the LED enabling environment; • Promoting learning and knowledge exchange; and • Establishing effective and innovative LED management functions. The programme comprises a number of LED funding and technical assistance instruments, which fundamentally include: • The Business Enabling Fund (BEF), an application-based fund aimed at assisting provincial and local government creates an enabling envimnrnent for LED. • The Local Competitiveness Fund (LCF) which encourages partnerships which facilitate private sector investment in sustainable LED projects; • Networking and Cooperation Funding (NCF) aimed at generating, learning and the exchange ofknowledge; and • Technical Assistance provided by the Programme Coordinating Unit to support the roll out of the programme as a whole fwww.selda.org.za/directory.igad.htm. (2007)]. This research embraces the KwaZulu-Natal Provincial Development Plan as a significant contribution to rural and urban growth and development, and necessary for the diversification ofthe economy ofthe study area, Ulundi. The South African government in pursuance of rural development and urban renewal, as key strategies to counter the legacy of uneven development in the country, aims to suppon all municipalities in South Africa This is to be achieved by focusing on the participation of big business and SMMEs with a view of addressing the needs of the poor and marginalised people and local communities (Local Economic Development, 200 I). Among the key principles underlying the LED process are that: • Strategies must prioritise job creation and poveny alleviation. • They must target the previously disadvantaged people, marginalised communities and geographical regions, black empowerment enterprises and SMMEs to allow them to participate in the economic life ofthe country. Each locality may develop an approach that is best suited to its local context. • They promote local ownership, community involvement, local leadership and joint decision making, in collaboration with outside investors. 55
• They involve local, national and international partnerships with communities, businesses and government to solve problems, create joint business ventures and build up local areas. • They use local resources and skills and maximises opportunities for development. • They involve the integration of diverse economic initiatives in a comprehensive approach to local development. • They rely on flexible approaches to respond to changing circumstances at local, national and international levels. In the context of this study these principles underlying the LED process offer a logical mechanism for addressing the research problem of this investigation; the situational and spatial analysis of development in Ulundi, KwaZulu-Natal. The study however, acknowledges that promoting business ventures and local leadership are challenging principles to marry in this regard. The likelihood ofdeveloping an interventionist perspective is important to combine the 'supply and demand' sides to minimise possible extreme impacts. 3.2.2.1 Key strategies for Local Economic Development The following LED strategies have been identified to assist municipalities to play a useful role in developmental initiatives (Local Economic Development, 200 I): • Retaining and expanding existing businesses. • Facilitating community economic development. • Linking profitable growth to redistributive development and financing. • Linking 'living wages', human capital development and productivity. • Developing and maintaining infrastructure and services. • Preventing a drain ofresources from the local economy. This research acknowledges the inequalities between the rural and urban areas of Ulundi and embraces equitable development and maintenance ofinfrastructure and services in these areas so as to link profitable growth to redistributive financing and development. 3.2.2.2 Planning for LED within the IDP The Municipal Systems Act (MSA, 2000) provides municipalities with a legal framework in which to plan for integrated development. It requires every council to prepare its own lOP. 56
- Page 23 and 24: The Ulundi Local Municipality seems
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• They involve local, national and international partnerships with communities,<br />
businesses and government to solve problems, create joint business ventures and<br />
build up local areas.<br />
• They use local resources and skills and maximises opportunities for development.<br />
• They involve the integration <strong>of</strong> diverse economic initiatives in a comprehensive<br />
approach to local development.<br />
• They rely on flexible approaches to respond to changing circumstances at local,<br />
national and international levels.<br />
In the context <strong>of</strong> this study these principles underlying the LED process <strong>of</strong>fer a logical<br />
mechanism for addressing the research problem <strong>of</strong> this investigation; the situational and<br />
spatial analysis <strong>of</strong> development in Ulundi, KwaZulu-Natal. The study however,<br />
acknowledges that promoting business ventures and local leadership are challenging<br />
principles to marry in this regard. The likelihood <strong>of</strong>developing an interventionist perspective<br />
is important to combine the 'supply and demand' sides to minimise possible extreme impacts.<br />
3.2.2.1 Key strategies for Local Economic Development<br />
The following LED strategies have been identified to assist municipalities to play a useful<br />
role in developmental initiatives (Local Economic Development, 200 I):<br />
• Retaining and expanding existing businesses.<br />
• Facilitating community economic development.<br />
• Linking pr<strong>of</strong>itable growth to redistributive development and financing.<br />
• Linking 'living wages', human capital development and productivity.<br />
• Developing and maintaining infrastructure and services.<br />
• Preventing a drain <strong>of</strong>resources from the local economy.<br />
This research acknowledges the inequalities between the rural and urban areas <strong>of</strong> Ulundi and<br />
embraces equitable development and maintenance <strong>of</strong>infrastructure and services in these areas<br />
so as to link pr<strong>of</strong>itable growth to redistributive financing and development.<br />
3.2.2.2 Planning for LED within the IDP<br />
The Municipal Systems Act (MSA, 2000) provides municipalities with a legal framework in<br />
which to plan for integrated development. It requires every council to prepare its own lOP.<br />
56