Transcript National LED Policy and Strategy Framework

Effective LED
Implementation
Presentation to the Mayoral Conference
Cape Town International Convention
Centre
25 May 2006
Outline of the Presentation

Introduction

What is Local Economic Development?

Policy context for Local Economic Development in South Africa

KPA 3 – Local Economic Development (Interventions)
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Introduction

"The public interest requires doing today those things men of
intelligence and goodwill would wish, five or ten years hence, had
been done.“
Edmund Burke (18th. Century)

"We are faced with the stubborn reality of unacceptable levels of
unemployment and poverty… due attention needs to be given to the
second economy…. All South Africans are invited to ‘think outside the
box’ if we are to tackle unemployment.”
Deputy President, Ms Mlambo-Ngcuka, NEDLAC, August 27th. 2005

“The Government’s Framework for Stimulating Local Economies
clearly indicates the need for sustainable community investment
programmes, and municipalities have a large responsibility for seeing
that available opportunities, particularly from the myriad of
government financed programmes are fully utilised at a local level.”
Deputy Minister for Provincial & Local Government, Ms Hangana, Budget Vote
Speech, May 24th 2006
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What is Local Economic
Development?
According to a very useful guideline prepared by the World
Bank:
“Local Economic Development (LED) is the process by
which public, business and nongovernmental sector
partners work collectively to create better conditions for
economic growth and employment generation. The aim is
to improve the quality of life for all.
LED is therefore an OUTCOME and not an Input
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Policy context for Local Economic
Development in South Africa

South African Constitution (1996) states that:
 “A municipality must 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.”

The White Paper on Local Government (March 1998)
introduces the concept of “developmental local government”,
which is defined as:
 “Local government committed to working with citizens and
groups within the community to find sustainable ways to meet
their social, economic and material needs, and improve the
quality of their lives.”
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KPA 3 – Local Economic
Development (Interventions)

National and provincial government must provide differentiated support
to district and metropolitan municipalities to prepare implementable LED
Strategies that are aligned with the revised IDPs.

Provinces must support all district and metropolitan municipalities by
prioritizing LED interventions in the Provincial Growth and Development
Strategy.

The LED Framework will be implemented through mobilization of key
sets of LED- related capacity: SMME development (eg. business
infrastructure, access to finance etc)

Deployment of experienced economists, development economists and
planners in selected municipalities. Identification of high-level
international skills and a dedicated strategic leadership programme for
municipal managers and senior municipal staff.

Conduct national level economic analysis of District and Metro areas.
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KPA 3 – Local Economic
Development (Interventions)

A National Framework for LED, including policy guidelines and
strategies, has been developed by dplg. This must be implemented
rigorously in alignment with ASGI-SA in rural and urban municipalities.

The need to strengthen national coordination for long-term
economic development planning that will, inter alia, support LED
across the state.
Urban based municipalities need special attention and must be
supported to understand their unique LED role in contributing to the
national economy. Specific interventions must include:




Focusing on making urban land markets work for the poor.
Promoting more competitive city business environment and facilitating
the movement of information, people and products within and between
cities
Promoting appropriate economic integration zones, the global city
region concept and facilitating the global role of cities through the
national trade investment strategy.
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