Local economic development (LED): Building blocks, strategy and implementation for local government in South Africa

Abstract

The notion that Local Economic Development (LED) is a mechanism for poverty alleviation has led to heated debates over the last few decades. The two concepts have been intertwined and in some cases, confused with each other. LED strategies usually form part of a comprehensive poverty alleviation plan, a total onslaught on poverty, which are meant to address the socio-economic needs of a specifi c community, within a defi ned geographical area. In similar vein, the pillars of any poverty alleviation strategy should, at least, contain strategies such as provision in the basic needs of local people, creation of sustainable economic development, job creation opportunities, development of human resources and skills, ensuring safety and security and a well-managed quality environment. The current weaknesses in government interventions regarding poverty alleviation and LED could be overcome with explicitly "pro-poor" strategies. Such strategies place the formulation of strategies for job creation, sustainable rural and urban development and the central place of poor as the focus of all interventions. Poverty alleviation must be the top priority in a LED strategy and it must be accepted that the poor needs a "safety net" due to their high levels of vulnerability. LED has in some instances being misunderstood as being limited to community projects only. This article explores the theoretical interface of LED strategic planning at the local government sphere in South Africa. The purpose of the article is to highlight the premium of LED as a strategy for poverty alleviation, and to help clear ambiguities on the nature of LED. The article involves a theoretical exposition and practical realities as methodology.