Promote Gender Equality And Empower Women

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Proposed Framework for Local Economic Development
(LED)
Presentation by Ms Lindiwe Msengana-Ndlela, Direct
or-General, Department of Provincial and Local
Government
14 August 2006
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Vision 2014

• Reduce unemployment by half
• Reduce poverty by half
• Provide the skills required by the economy
• Ensure that all South Africans are able to fully
  exercise their constitutional rights and enjoy
  the full dignity of freedom
• Provide a compassionate government service to the
  people
• Improve services to achieve a better national
  health profile and reduction of preventable
  causes of death, including violent crime and road
  accidents
• Significantly reduce the number of serious and
  priority crimes and cases awaiting trial
• Position South Africa strategically as an
  effective force in global relations

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Background

• Nature of LED in a developmental state and in
  Africa
• Historical legacy and SA context, duality,
  emerging market and noting globalization vs.
  localization

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Background

• SA From Establishment to Consolidation
• The dplgs policy contributions on LED over the
  years informed by
• The Constitution (1996)
• White Paper on Local Government (1998)
• Local Government Municipal Systems Act (2000)
• A policy paper on Integrated Development Planning
  (2000)
• LED Strategies and Instruments (2000)
• LED Guidelines to Institutional Arrangements
  (2000)
• Draft LED Policy (2002)
• Policy Guidelines for implementing LED in SA
  (2005)

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Background

• Addressing government limitations, structural
  obstacles, implementation impediments and
  constraints
• Addressing market limitations

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Towards 2014 Initiatives Strategies

• Good governance, service delivery, public and
  market confidence (quality and quantity of
  services, regulatory environment)

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Environment Pre-LG Elections
Towards 2014 Initiatives Strategies

• Some dominant issues
• Project Consolidate Izimbizo
• Service Delivery Protests
• Corruption
• Salaries of Municipal Managers
• Cross-boundary Municipalities
• Power Cuts in the Western Cape
• Pessimistic approach Anticipation of lower
  voter turnout

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Environment Post- LG Elections
Towards 2014 Initiatives Strategies

• Challenge
• Implementation improving public and market
  confidence in the LG System

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Towards 2014 Initiatives Strategies

• 2. Spatial (locality) development planning and
  comparative advantage of 46 districts and 6
  metros (co-ordination in all spheres, planning
  frameworks, re-distributional choices, ASGISA,
  Industrial Policy, RIDS, IGR)
• 3. Enterprise support and business
  infrastructure development, targeted clusters and
  sectors (local economic analysis, information and
  packaging thereof, research, disaggregated data
  and institutional arrangements, networks, growth
  coalitions)

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Enterprise Support and Business Infrastructure
3.1 TARGETING SECTORS AND LED Did you know? One
of South Africas municipalities recorded
interesting growth trends with regard to Growth
Sectors (GVA)
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Enterprise Support and Business Infrastructure
3.2 ENTERPRISE DEVELOPMENT AT LOCAL LEVEL Did
you know?

• There are more than 1 million street traders in
  South Africa
• 55 percent of operators who are sub-contracted in
  clothing and textiles are informal
• There are approximately 500 000 people earning
  their living from crafts
• Spending patterns As at 2005, marked increase in
  purchases of items such as cars, furniture,
  electrical goods, clothing, cell phones but NONE
  produced in marginalised areas of the 2nd Economy
  Stellenbosch

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Towards 2014 Initiatives Strategies

• 4. Community investment programming
  (empowerment, participation, micro-enterprises,
  labour intensive programmes, skills development
  training subsidies, access to finance, use of
  safety nets, credit and preferential procurement,
  Broad-Based BEE, SMMEs, resident capacity,
  community trusts and sustainable development)

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Nature of Available and Refined Policy
Instruments and Approaches

• Framework / perspective / strategy / conducive
  and enabling environment / regulatory
  environment, noting typology of municipalities
  from the what to the how
• Phases of South Africas development, evolution,
  continuum, trajectory, generational
• Capacity (especially skills) and capability
  acquisition, hands-on support

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Capacity Sources of Support
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Nature of Available and Refined Policy
Instruments and Approaches

• Local leadership accountability, political and
  administrative will
• Resourcing (resources) of LED initiatives and
  fiscal relations

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Resourcing of LED Initiatives
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Nature of Available and Refined Policy
Instruments and Approaches

• Local innovation milieu, creativity,
  experimentation (small scale), self discovery,
  group learning
• Monitoring and evaluation, realism scale and
  focus

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ME Through Stages of LED
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Nature of Available and Refined Policy
Instruments and Approaches

• Structure of local economies, knowledge
  management, unique successes and opportunities
  through to and beyond 2010

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Clarification of Roles

• Noting nature of LED and limits of government,
  the need for coherence and what should be the
  specific role (specifics of catalytic elements)
  of
• Communities and civil society
• Private sector
• Organized Labour
• Local Government
• Provincial Government
• National Government, State-Owned Enterprises and
  Development Finance Institutions, eg. DBSA, IDC

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Thank you!