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• A national policy relevance: Piloting national decentralization policy changes (of
political, fiscal and administrative nature), demonstrating their feasibility and
promoting the 'scaling-up' oftheir adoption country-wide.
UNCDF has continuously developed the local development programme (LDP) approach since
the early 1990s, testing decentralized/local planning systems and funding mechanisms. The
approach has received widespread recognition in a series of independent evaluations. Its
success forms the basis ofa growing record ofachievement in promoting decentralisation and
pro-poor policy change in less developed countries (LDCs), and in an increasing number of
partnerships and co-financing arrangements (with UNDP, the World Bank, other bilateral
donors as well as national governments) (UNCDF, 2000).
3.2.2 The South African perspective
The structure, organization and purpose of local government in South Africa have been
completely reformed during the last ten years. The 1993 Local Government Transition Act
(Perret, 2007) forms the background for the transitional period that has taken place between
1994 (first democratic elections), 1995 (first local elections) and 2000 (second local elections,
re-demarcation process). This Act is one of the first official texts that mention explicitly
lntegrated Development Planning as a tool for local municipalities to become the key service
providers and promoters of local development, yet with no details regarding implementation.
This research seeks to examine the socio-economic impacts of increased responsibilities that
characterised the newly formed Ulundi local municipality after transition from the old order
ofTransitional Local Council (TLC).
At the inception of the new democratic South Africa in 1994, the government defined and
started implementing the Reconstruction and Development Programme (RDP) (ANC, 1994)
as the policy framework to promote economic and social development, especially targeting
the backlogs and inequalities left by the apartheid era. The Constitution of 1996 establishes
the three co-operative spheres of government. It confirms the pivotal role of local
government in social and economic development, enhancing democracy. the sustainable
provision of services and the promotion of participation. Yet the lack of practical guidelines,
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