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• Facilitation ofthe redistribution ofresources in a consultative process.
In a nutshell, the IDP is one of the key tools for local government to cope with its new
developmental role. It is also envisaged in this study of Ulundi that the IDP will not only
inform the municipal management but will guide the activities of any agency from the other
spheres of government, corporate service providers, NGOs and the private sector within the
Ulundi municipal area [www.treasurv.gov.za/documents/provincial%20budgetJ 20071
Annual. ( 2008)].
3.3 MODELS AND THEORIES OF DEVELOPMENT
By the 1950s economists had developed a number of theories and models to account for the
differences between developed and developing countries and began to ask themselves how the
gap between these countries could be made smaller. The development theories and models
seek to explain and predict:
• Why do economies do (or do not) develop over time?
• What barriers to growth exist and how to remove them?
• How governments can assist, sustain and accelerate growth with appropriate
development policies?
Although the models are macro in nature, they have indirect micro-economic effect at local
economic development landscapes. In the view of the aforesaid assertion, an understanding
of the models ofdevelopment would provide more insight into this research in Ulundi. An
understanding of theories and models of development is important for this study on the
situational and local economic development in Ulundi. When the models ofdevelopment are
applied to this study, an insight into the potential causes of developmental growth, leakages
and barriers as well as relevant development stakeholders will be beuer established.
3.3.1 The Modern classical model
According to (Brett et aI., 2005), during the Nineteenth Century. various powerful European
countries, such as Britain. Holland, France, Spain and Portugal, had established colonies in
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