KwaZulu-Natal Local Economic Development Conference

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KwaZulu
-
Natal Local Economic
Development Conference






2006











TOGETHER, ACCELERATING LOCAL ECONOMIC DEVELOPMENT!


















Stimulating &
Developing Sustainable
Local Economies

National Framework for Local
Economic Development in South
Africa


Alistair Fray



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Introduction


Local Government Strategic Agenda


Basis of the document


Guiding Principles


Focus of the framework


Outcome


Policy Thrust


Strategy

Outline of the Presentation

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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 (18
th
. 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, Phumzile Mlambo
-
Ngcuka, NEDLAC, August 27
th
.
2005


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Strategic Priority 1


Mainstreaming hands on support to Local
government


KPA 1


Municipal transformation and Institutional Development
(IDPs, Performance management Systems, competancy
framework etc)


KPA 2


Improve basic service delivery and infrastructure
investment (access to clean water, electricity, free basic services,
bucket system etc


KPA 3


Local Economic Development


KPA 4
-

Financial viability & Financial Management (improve
capacity to account)


KPA 5


Good Governance & Public Participation

Local Governments Strategic Agenda

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Strategic Priority 2


Addressing the structure and governance
aragements of the state in order to strengthen, support and
monitor Local Government (IGR, Structure & role of Prov
Government in support of LG)


Stategic Priority 3


Refining and strengthening the policy,
regulatory and fiscal environment for Local Government
(Planning for growth & development, powers & functions etc)

Local Governments Strategic Agenda

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The Framework for Local Economic Development in South
Africa

KPA 3


Local Economic development

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Basis of the Document


The White Paper on Local Government provides the
context and the direction for the role of municipalities in
economic development
. The White Paper says
:

“Local Government is not
directly

responsible
for creating jobs.

Rather, it is responsible for taking active
steps to ensure that the overall economic
and social conditions of the locality are
conducive to the creation of employment
opportunities”


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Through a developmental approach, Government has a decisive and
unapologetic role to play in shaping the economic destiny of our
country.


Creating an environment in which the
overall economic and social
conditions of the locality are conducive to the creation of
employment opportunities is the responsibility of Local Government


Local Economic Development is an outcome of actions and
interventions resulting from local good governance and the constant
improvement and integration of national priorities and programs in
local spaces.


Inward investment from the state or private sector will only be
effective where the potential and competitive advantages of each
area are known and exploited.


Promoting robust and inclusive local economies requires the
concerted, coordinated action of all spheres and sectors of
government



Guiding Principles for Developing Local
Economies

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South Africa competes in a global and increasingly integrated world
economy whose threats must be minimised and whose opportunities
must be exploited.


Locally owned appropriate solutions and strategies must emerge to
support national frameworks in both rural and urban local spaces and
should promote sustainable development and sustainable human
settlements.


Private companies and their labour
-
force form the heart of the economy
and have a crucial role to play as partners with public and community
role players.



People are the single greatest resource and including all citizens in
development and increasing their skills leads to increased opportunities
for stimulating local economies.


Local initiative, energy, creativity, assertive leadership and skills will
ultimately unlock the latent potential in local economies.

Guiding Principles for LED

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Analysis of the 52 district and metro municipal economies
undertaken and shared understanding across government of
the challenges and potentials of these areas developed.



The comparative advantage and competitiveness of all District
and Metro municipalities are identified, incorporated into its
LED strategy and exploited.


All District and Metro municipalities have credible LED
programs, which are being effectively implemented by a
dedicated local economic development unit or similar entity



All Municipalities have LED strategically placed in the
organisational structure in order to effectively coordinate
inputs that impact and strengthen the local economy.



Outcome of the Framework

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All municipalities have at least one public
-
private partnership
through which a major investment is being implemented.



All municipalities have innovative spatial development
strategies, land
-
use polices, by
-
laws and implementation
capacity to facilitate fast and effective business establishment
and functioning, especially for informal/street traders, and
SMEs.


The implementation of the IGRF Act and the effective
utilisation of IGR structures occur to encourage and facilitate
discussion and joint economic planning among municipalities
and with Provincial and National Government.


A national excellence centre for monitoring, learning and research in
local and regional economies is established



Outcome of the Framework

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Policy Thrust


Introduction
-

The private sector including its labour
-
force, consisting of
private enterprises, cooperatives, and community businesses, that operates
in municipal regions are the engines of economic growth. Their existence and
ability to produce competitively and generate greater levels of income and
employment, is dependent on an active State role in generating the
appropriate and necessary conditions, stimulus and governance efficiencies.


Public Sector Leadership & Governance
-
This includes a focus
on local governance, effective intergovernmental coordination,
infrastructure investment capability, enterprise support, and
identification and promotion of competitive advantage of the 52
regions around customized sectors and clusters.


Investing in Communities
-

The State should partner with
communities in order to boost circulation of local income and
community organization in 52 economic impact regions (46
Districts & 6 Metros)


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Strategy


Improve good governance, service delivery, public and market
confidence in municipalities through an alignment of national
provincial and local programmes

-

is a critical first step in attracting
investment and building loyalty to local areas.


Spatial development planning and exploiting the comparative
advantage and competitiveness of the 52 municipal regions

-

A better
understanding of the opportunities and constraints in local economies should
inform a more balanced development path of these regions


Intensify Enterprise support and business infrastructure development



The Small Enterprise Development Agency (SEDA) should be the key
vehicle for localised enterprise support.


Sustainable Developmental Community Investment Programme

-

suggests
building community, and thus using a powerful cultural dynamic, as the main
vehicle and partner for LED together with the resourcing of organised
communities to carry out key local functions, provide services and become
important productive units




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Contact Details


Alistair Fray

Department of Provincial

and Local Government

Private Bag X804

Pretoria, 0001

SOUTH AFRICA


Tel: +27 12 301 1058

Fax: +27 12 323 3550

Eml: alistairf@dplg.gov.za