An evaluation of local economic development initiatives towards addressing socioeconomic challenges in the eThekwini Metropolitan Municipality
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Date
2024
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University of Zululand
Abstract
The 1996 Constitution of the Republic of South Africa grants local governments the authority to facilitate social and economic development. Municipalities are mandated to provide services to communities sustainably, promote social and economic growth, and encourage the involvement of the community and private sector in local government affairs. Local economic development, considered within an interdisciplinary context, aims to establish the economic capacity of a local area to enhance its economic future and improve the life quality for all residents. Local economic development has been prioritised as a global socio-economic strategy to direct challenges, such as development, poverty, and unemployment, and to mitigate market failures.
This study focused on an evaluation of local economic development initiatives towards addressing socioeconomic challenges in the eThekwini Metropolitan Municipality. Local economic development is introduced as an enabling strategy for local social and economic development. Implementing local economic development in South Africa is grounded on legislation as crucial policy documents. Local economic development processes should aim to achieve social and economic equality, ensuring that strategies align with the national local economic development framework. The South African local government encounters significant challenges in achieving development and progress for local communities. These challenges emphasise the current issues confronting the country’s local government system. Local government encounters numerous challenges and constraints resulting from extreme poverty and unemployment rates, a shortage of skills required to propel local economic development, an absence of proper administrative capacity, and unsuccessful policy implementation.
This study employed a qualitative approach to collect and analyse data. The data collection method involved semi-structured interviews with officials from the eThekwini Metropolitan Municipality, the Durban Chamber of Commerce and Industry, local economic development champions from the University of KwaZulu-Natal, and community members from the Umlazi Township. The participants were chosen because they are responsible for implementing local economic development policies and facilitating the economic development programmes in the Durban region. The data obtained from the participants were analysed using thematic analysis, with the primary aim of collecting relevant information regarding local economic development policies and the facilitation of local economic development programmes.
The findings indicate that while local economic development policies and programmes are well-designed in theory, they encounter numerous challenges preventing them from reaching their full potential. Corruption and budget constraints are primary obstacles to these programmes’ successful implementation and facilitation. Institutional challenges, a lack of capacity, insufficient training, and inadequate understanding of local economic development further hinder progress. The study offers several recommendations to direct the issues encountered by current local economic development programmes.
Description
A dissertation submitted to the Faculty of Commerce, Administration and Law in fulfilment of the requirements for the Degree of Doctor of Public Administration in the Department of Political Science and Public Administration at the University of Zululand, South Africa [2024].