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were described as community based economic development programmes as a supplement to the
existing foci on business or enterprise development [www.siteresources.worldbank.org/
INTLED/resources, (2008)].
The current South African understanding of 'what is LED' is linked to the overarching concept
of developmental local government (South Africa, 1998) and of the national government's
interpretation ofLED as an outcome based on local initiative and driven by local stakeholders 'to
stimulate economic growth and development' (DPLG, 2000a: I). More specifically, the process
whereby local initiative combines skills, resources and ideas aims 'to create employment
opportunities for local residents, alleviate poverty, and redistribute resources and opportunities to
the benefit of all local residents' (DPLG, 2000a: I). In the draft LED policy paper issued in
2000 a series of interlocking challenges that confront localities were defined as constituting the
base for LED, inter alia,
• to balance local economIC strategies so they achieve both increased
competitiveness - sometimes through economic transformation - and poverty
alleviation and job creation;
• to address enormous pent-up demand for service delivery, particularly where
services have not reached vulnerable members of society, as well as severe
affordability constraints;
• to engage in more open, transparent and mutually respectful state-society
relations; and
• to forge new and reformed inter-governmental relationships (DPLG, 2000b: I).
From the above statements, it is clear that the official conception of LED in South Africa
accommodates elements of what in the international literature has referred to as market-led
and market-critical approaches towards LED. Although the existing LED planning has been
dominated by LED activities geared to achieving high growth rates, the current draft for a
national policy framework stresses that the South African priority for LED is to be founded
on a pro-poor basis. Indeed. it is stated in the latest (draft) South African policy document
(South Africa, 2002) that LED activities should be rooted most firmly upon the
developmental and pro-poor responsibilities that have been given to municipalities (Bond,
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