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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 />

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