Why Local Economic Development Requires Strategy

Topics: Economic development, Local government, Strategy Pages: 8 (1558 words) Published: May 8, 2013
|TM-------- | |REPORT ON THE NEED TO REVIEW THE LOCAL ECONOMIC DEVELOPMENT STRATEGY FOR NKANGALA DISTRICT MUNICIPALITY | |REPORT OF THE ACTING MUNICIPAL MANAGER | | | | |1 |INTRODUCTION | | |Both the constitution and the White Paper on Local Government (1998), highlight the critical role of local government in facilitating LED in order to contribute | | |towards job creation and economic growth at local level. | | | | | |Chapter seven (7) of the constitution of the Republic of South Africa (1996) establishes and defines the status and objects of local government. Section 152 (1) | | |(c), provides a mandate to local government to promote social and economic development. Section 153 (a) states that the developmental duty of a municipality is | | |to structure and manage its administration, budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and | | |economic development of the community. | | | | | |On the other hand, the White Paper on Local Government (1998) reinforces the constitutional mandate by introducing the concept of developmental local government.| | |To further give impetus to a developmental local government, the Municipal Systems Act of 2000 provides the statutory principles through which the issue of | | |integrated development planning of which LED is regarded as a core aspect, is adopted as a strategic planning document guiding all planning and development in | | |the municipality. | | | | |2 |BACKGROUND | | | | | |The 2004 LED strategy outlined a compelling conceptual framework for Nkangala District Municipality to support its local economic development. The strategy | | |highlighted that through alignment (IDP, existing policies and provincial strategies such as PGDS) and implementation will place the district on higher economic | | |development trajectory. In 2006 a reviewed LED strategy was developed. The reviewed strategy took into account the legislative and sectoral developments that | | |seek to provide guidelines, coordination and...
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