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View/Open - University of Zululand Institutional Repository

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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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