UNIVERSITY OF THE FREE STATE Pro-poor local economic development (LED): The case of Umzinyathi District Municipality, KwaZulu-Natal by [Christopher Ndlovu] [2019819222] In fulfilment of the requirements for Mini-dissertation in the subject MASTER OF DEVELOPMENT STUDIES at the UNIVERSITY OF THE FREE STATE SUPERVISOR: [Dr Deidre Van Rooyen] 1 DECLARATION I, Christopher Thembisani Ndlovu (student number 2019819222) declare that, except as acknowledged in the references, the outcomes and findings of this mini-dissertation submitted to fulfil Masters in Development Studies at the University of the Free State are my original work and have never been used or submitted at another institution of learning. The data and information generated throughout the study remain the property of the University of the Free State. Information and data must be used only with their consent. Therefore, this document remains the property of the Free State University and should not under any circumstances be used without acknowledging them as the source. _______________ Christopher Ndlovu 2 ACKNOWLEDGEMENTS The research journey has been a challenging yet exciting learning experience for me personally as well as those close to me – my family. The research would not have been accomplished without the participation of various stakeholders, especially from uMzinyathi District Municipality, who opened their heart, minds and gave everything to ensure that this study succeeds. The municipal leadership for giving their blessings regarding the entire process. My profound appreciation is also extended to Dr Deidre Van Rooyen for her calm, patience and guidance in the entire process as my supervisor. Thanks also goes to my study mate, Thandekile Ntetha, for pushing me hard and thanks for those calls and meetings that encouraged me to work even harder. Last, but not least, my overriding debt to all the participants for their time and openness during the research. My sincere appreciation goes to everyone who helped me in one way or the other for the successful completion of the study. DEDICATION The research is dedicated to my family; my two daughters Bulelwa (6), Bongeka (15) and in particular my wife, Zinhle Ndlovu, for their understanding and support during this difficult journey. I relied on your flexibility and caution. 3 Table of contents DECLARATION .............................................................................................................. 2 ACKNOWLEDGEMENTS ............................................................................................... 3 DEDICATION .................................................................................................................. 3 List of abbreviations ..................................................................................................... 8 Abstract .......................................................................................................................... 9 Chapter 1: Introduction ............................................................................................... 10 1.1. Introduction ....................................................................................................... 10 1.2. Problem statement ........................................................................................... 11 1.3. Study aims ....................................................................................................... 13 1.4. Study objectives ............................................................................................... 13 1.5. Research questions ......................................................................................... 14 1.6. Research methodology .................................................................................... 14 1.6.1 Research approach..............................................................................................14 1.6.2 Research design ..................................................................................................15 1.6.3 Target population .................................................................................................15 1.6.4 Sampling strategy ................................................................................................16 1.6.5 Data collection strategy ........................................................................................19 1.7. Research ethics ............................................................................................... 19 1.7.1 Voluntary participation .........................................................................................19 1.7.2 Informed consent .................................................................................................20 1.7.3 Confidentiality ......................................................................................................20 1.7.4 Trustworthy study ................................................................................................21 1.8. Data analysis .................................................................................................... 21 1.9. Definition of key terminology ............................................................................ 22 1.10. Organisation of the dissertation........................................................................ 23 1.10.1. Chapter 1: Introduction of the study .....................................................................23 1.10.2. Chapter 2: Pro-poor LED .....................................................................................23 1.10.3. Chapter 3: Findings and discussion .....................................................................23 1.10.4. Chapter 4:Conclusion and recommendations.......................................................23 1.11. Conclusion ....................................................................................................... 24 Chapter 2: Local economic development ................................................................. 25 2.1. Introduction ...................................................................................................... 25 4 2.2. LED within an international context .................................................................. 25 2.3. Defining LED .................................................................................................... 26 2.4. Key elements of LED and policy actions .......................................................... 27 2.5. The historical perspective of LED ..................................................................... 28 2.6. Pro-poor LED ................................................................................................... 29 2.7. The development of LED in South Africa ......................................................... 30 2.9. The legal framework for LED in South Africa ................................................... 34 2.9.1. The Constitution, Act 108 of the Republic of South Africa ....................................35 2.9.2. National framework for LED in South Africa: 2006-2011 ......................................36 2.9.3. The National Development Plan (NDP) ................................................................36 2.9.4. National Framework for Local Economic Development 2013 ...............................37 2.10. Conclusion ....................................................................................................... 37 Chapter 3: Findings and discussion .......................................................................... 38 3.1. Introduction .................................................................................................... 38 3.2. The case study ............................................................................................... 38 3.2.1. The geographic location of uMzinyathi ............................................................38 3.2.3. Education ...........................................................................................................43 3.2.5. Sanitation and water ..........................................................................................44 3.2.6. Study participants’ demographics ...................................................................44 3.3. LED .............................................................................................................. 4546 3.3.1. Understanding and role .....................................................................................46 3.3.2. Coordination and planning ...............................................................................47 3.3.2.1. Legislation documents ......................................................................................48 3.3.2.2. LED drivers ........................................................................................................49 3.3.2.3. LED prioritisation ...............................................................................................49 3.3.2.4. Vulnerable groups’ involvement .......................................................................50 3.3.2.5. LED promotion and implementation .................................................................51 3.3.2.6. LED initiatives and achievements ....................................................................52 3.3.2.7. Stakeholders engagement ................................................................................53 3.4. LED challenges and constraints .......................................................................55 3.4.1. Capacity ..............................................................................................................55 3.4.2. Infrastructure ..........................................................................................................56 3.4.3. Funding .......................................................................................................... 5756 3.5. Job creation and unemployment .................................................................. 57 5 3.6. Poverty ........................................................................................................ 5958 Chapter 4: Conclusion and recommendations ......................................................... 61 4.1. Introduction .......................................................................................................... 61 4.2. Objectives’ summary and discussion ................................................................ 61 4.2.1 Understanding pro-poor LED .................................................................................62 4.2.2. District officials understanding of LED ........................................................... 62 4.2.4. Community inclusiveness and alignment to provincial economic growth ........63 4.2.5. Resources gaps to implement pro-poor ...............................................................64 4.3. Recommended strategies .................................................................................... 64 4.3.1. Consensus on the knowledge and understanding of LED among district officials 65 4.3.2. LED coordination and planning ....................................................................... 65 4.3.3. Resource gaps to implement LED ........................................................................65 4.3.4. LED networks, partnership, coalitions and vulnerable groups’ representation 66 4.3.5. LED policies and other LED frameworks ..............................................................67 4.4. Limitations of the study ....................................................................................... 68 4.5. Future research .............................................................................................. 68 4.6. Concluding remarks ...................................................................................... 69 References: .................................................................................................................. 69 APENDICES ................................................................................................................. 77 APPENDIX A: Ethical clearance approval ..................................................................... 78 APPENDIX B: Request for permission: uMzinyathi District Municipality ....................... 79 APPENDIX C: Study information leaflet and consent form ............................................ 83 APPENDIX D: Local economic development interview schedule for municipal and government officials ...................................................................................................... 88 APPENDIX E: Language editor confirmation letter ....................................................... 92 APPENDIX F: Turn it in report ....................................................................................... 94 6 List of tables Table 1: Study participants 17 Table 2: Distribution of population according to LMs 41 Table 3: Gender population distribution 41 Table 4: Education levels 42 Table 5: Participants demographics 43 List of figures Figure 1: Geographic location of UMzinyathi District Municipality 15 Figure 2: Umzinyathi District location 38 Figure 3: Umzinyathi LMs distribution 40 7 List of abbreviations ASGISA Accelerated Shared Growth Initiative for South Africa BBBEE Broad-based black economic empowerment BEE Black economic empowerment CBOs Community-based organisation CDWs Community development workers COGTA Corporate Governance and Traditional Affairs CRDP Comprehensive Rural Development Programme DBSA Development Bank of South Africa DPLG Department of Provincial and Local Government EDTEA Economic Development, Tourism and Environmental Affairs EPWP Extended Public Workers Programme GEAR Growth, Employment and Redistribution IDP Integrated development plan IGA Income generation activities ILO International Labour Organisation LED Local economic development NDP National Development Plan NGOs Non-government organisations NSDP National Spatial Development Framework NYDA National Youth Development Agency SEFA Small Enterprise Finance Agency OECD Organisation for Economic Cooperation and Development OSS Operation Sukuma Sakhe PGDs Provincial growth and development strategies RDP Reconstruction and development programme RID Regional industrial development 8 Abstract From South Africa’s National Framework for implementing local economic development (LED), LED is defined as “Local Economic Development (LED) is the process by which public, business, and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation to build up an economic capacity of a local area to improve its economic future and the quality of life for all” (DeCoG, 2013:5). The historical perspective for South African LED is unique and painful because of the apartheid and segregation policies, which meant that LED is implemented through central government and benefits few. Post-apartheid, the government introduced pro-poor LED policies to alleviate poverty, grow the local economy, and create job opportunities for marginalised communities. This study aims to assess how pro-poor LED strategies improve the lives of poor people in uMzinyathi District Municipality, KwaZulu- Natal. The study is designed and executed following a qualitative methodology, and semi- structured interviews were used as a qualitative data collection method for this study. The study has revealed that LED in uMzinyathi has not lived up to its expectations to reduce poverty and create job opportunities for the poor and marginalised groups. The study found several constraints within the municipality that contribute to the poor implementation of LED, such as lack of infrastructure, gaps in human capacity, LED funding, and lack of shared understanding of LED and its role. 9 Chapter 1: Introduction 1.1. Introduction Poverty is recognised as an economic issue in third-world countries, particularly Africa (OECD, 2013:11). The causes of poverty are complex and multidimensional in nature (Khan, 2001). Inadequate education is also one of the causes of poverty, and illiteracy is quite common among poor people and their children as they often live far from educational facilities. Some of the reasons for poverty include unemployment and the lack of job opportunities: impoverished people cannot find jobs or are exploited for lesser compensation (OECD, 2013). OECD further defines poverty using absolute poverty and relative poverty measurement within the context of that county. The absolute poverty line is a threshold below which the minimum requirements for a good life are not met (OECD, 2013). For example, in South Africa in 2019, someone living with less than R810 per month, which is $47, was considered as poor (StatsSA, 2019). Relative poverty is socially defined, compared, and varies according to societal standards. Increasingly, local economic development (LED) is widely recognised and viewed by development experts as an essential component in decreasing poverty, inequities and enhancing the quality of life on a global scale (UN-Habitat, 2005). There is also an overwhelming consensus among LED scholars that without integrating poverty reduction actions, LED is ineffective (Singh & Chudasama, 2020). Therefore, the challenge for local government and all actors involved in LED implementation is to ensure an inclusive economic programme that promotes active participation of those traditionally left out to have access and benefits from the opportunities brought about by LED initiatives (UN- Habitat, 2005). In general, global agreement on the concept of LED does not exist, even on the precise meaning of LED. It may be simple in one environment, such as periphery towns, but it may be difficult in another. LED in the global North arose, together with a diminished role for the central state, as a direct response to the liberalisation and privatisation accompanied by a diminished role for the central process (Simons, 2003). The goal of LED is to develop wealth, provide jobs, increase incomes and, ultimately, eliminate 10 poverty and enhance impoverished people’s living conditions (Federation of Canadian Municipalities, 2014). The definition of LED within the African context is almost similar in all aspects. However, the difference is that the Western perspective of LED is market-driven (Rogerson & Rogerson, 2010). At the same time, the African, or the South view is pro-poor, meaning the LED efforts demonstrate explicit actions towards poverty reduction and improving the quality of life of marginalised and vulnerable groups (Rogerson & Rogerson, 2010). South Africa remains one of the few countries in Africa that has prioritised the poor in developing LED and practice (Nel & Rogerson, 2005). Arguably, “the South African government has offered a comprehensive vision and strategic direction for how it aims to drive the economy and development trajectory as well as intervene in favor of the poor and the marginalized segment of the population” (Koma, 2012:125). This study seeks to assess how pro-poor LED strategies and instruments contribute to improving the lives of poor people in uMzinyathi. Chapter 1 outlines in detail the research topic and the questions the study is responding to. This chapter further outlines the study’s aims and objectives and later breaks down the research methodology, design and the overall approach used for this study. 1.2. Problem statement Globally, LED is accepted as an appropriate and necessary strategy to support and complement the national government’s efforts (The Federation of Canadian municipalities, 2014). The Federation of Canadian Municipalities (2014) further indicates that national governments are responsible for mobilising the fiscus, global trade contracts, and infrastructural investments. Local governments are best situated to enable stakeholders and LED partners to participate actively in the development and confront challenges of local economies. There has been much focus on social and poverty alleviation policies and strategies, particularly in the South (Reddy, 2014). The key objectives of local government, as outlined in Chapter 7, section 152 of the Constitution of South Africa, No. 108 of 1996 are 11 “to ensure the provision of services to communities sustainably, promote social and economic development and, encourage the involvement of communities and community organizations in the matters of local government” (RSA, 1996:74). The Government of South Africa has demonstrated a political will to support economic development through progressive economic policies developed over the years (Mosala et al., 2017). These policies include the growth employment and redistribution (GEAR), black economic empowerment (BEE), growth path, and, recently, broad-based black economic empowerment (BBBEE). Further to this, the government embraced an inclusive local economic development approach, which showed the government’s commitment to eradicate the past imbalances in empowering previously disadvantaged groups to benefit economically and otherwise (Mosala et al., 2017). The South African National Development Plan (NDP) outlines goals and a vision for the country by 2030. These goals include, among others, addressing the triple challenges, which are poverty, unemployment and inequality (National Planning Commission, 2012). The current national economic landscape indicates that there is still a big gap between the NDP goals and the actual situation; the gap is too broad (Bhorat et al., 2018). In the national framework for local economic development, the sixth and most important theme is the social inclusion of policies and practices (DPGL, 2006). The question of who benefits from all local economic development activities remains a critical question in South Africa, and particularly in uMzinyathi District in KwaZulu-Natal. There are also seven strategic objectives in the KwaZulu-Natal provincial growth and development strategy (PGDS). Inclusive economic growth is one of the significant goals and a provincial government’s commitment to an inclusive approach (KwaZulu Natal Planning Commission, 2012). The PGDS is used to align planning and LED efforts in the District across the province. The uMzinyathi District’s total unemployment rate is 37% of the total population; 68.9% of the total unemployed people are younger than 35 years (Umzinyathi Municipality, 2018). Although business is thriving, particularly in Umvoti and Ndumeni Local Municipalities, it has not been to the advantage of the local people. There has been a lack of linkages with the business community and the public sector at large. There is also a 12 need to bridge the gap between the business community while honing in on skills and addressing the skills gap. Many income generation activities (IGAs), such as sewing groups, cooperatives, and other small enterprises have been encouraged by the district (Umzinyathi Municipality, 2018). Profound challenges of poverty and inequalities confront the uMmzinyathi District, like many other municipalities; this could be exacerbated by the exclusive ways of implementing LED within the district and other factors such as poor infrastructure in general. The study intends to learn whether the LED activities and approaches benefit all groups, particularly the poor people within the district, and how all stakeholders participate in the LED processes. To ascertain whether the LED programmes and interventions in the municipality contribute to poverty alleviation, the research seeks to assess the extent to which pro- poor LED strategies and programmes contribute to the improvement of the lives of poor people in uMzinyathi. 1.3. Study aims The research assesses how pro-poor LED strategies improve the lives of poor people in uMzinyathi District Municipality, KwaZulu-Natal. 1.4. Study objectives To reach the aim the study will use the following objectives: • To understand international literature on pro-poor local economic development. • To evaluate the district officials’ level of understanding of pro-poor LED. • To appraise relevant stakeholders’ perception of pro-poor LED and district approach, understanding their roles and expectations. • To analyse the capacity and resource gaps in the uMzinyathi District Municipality to implement pro-poor/inclusive LED. • To recommend strategies and approaches that could stimulate pro-poor LED activities in the district. 13 1.5. Research questions ✓ What is your understanding of pro-poor LED and give examples in uMzinyathi Municipalities? ✓ What are the main objectives of LED interventions in uMzinyathi? ✓ What initiatives and approaches are used to support pro-poor LED in uMzinyathi? ✓ Which other stakeholders are involved in implementing and promoting pro-poor LED that you work with? What is their role? ✓ Who are the target beneficiaries of the LED? What criteria are used to ensure correct target groups are reached? ✓ What are the significant social challenges that hinder service delivery to the poor? 1.6. Research methodology This section unpack the reseach methodology and study approach, the study design in terms of how the study was executed, target population covered by the study, sampling strategy adopted, and the data gathering strategy and tools. 1.6.1 Research approach The study is designed from a qualitative research approach since the study intended to analyse the district’s problems in adopting pro-poor LED policies and propose potential improvement (Smith & Bless, 2000). The qualitative research explores and affords participants a chance to share real experiences and situations, such as LED beneficiaries, authorities and LED stakeholders being studied or interviewed from the participant (Creswell, 2009). This approach allowed the researcher to ask and get responses to various types of questions. As opposed to quantitative research, which uses more statistics, qualitative research is more interactive. The qualitative approach suited the kind of questions the study wanted to answer, as well as the study’s objectives. 14 Dworkin (2012) further argues that qualitative research approaches focus on understanding the meaning that should answer how and why. Based on this fact, this research was designed on a qualitative approach. The rationale for using qualitative research was that qualitative data provides detailed participant experiences and captures participants’ views and feelings (Denzin, 1989). Qualitative research offered an opportunity to engage and probe further to get a better understanding from the respondents. The qualitative approach was also utilised to reach the depth of the issues (Chalhoub-Deville & Deville, 2008). 1.6.2 Research design Bryman (2012) outlines three critical aspects to be considered when choosing a design; in this case, a case study design. He listed reliability, replicability and validity. One of the most significant challenges or limitations for the case study is replicability; in most cases, it may be difficult to generalise the results for other regions, but validity and reliability are guaranteed because they share their own valid and reliable result experiences. According to Bryman (2012), a case study is a qualitative or ethnographic method of analysing a single case, such as life, organisation, family or community. The study adopts this research design because the uMzinyathi District is the only case studied. The other types of design, such as correlational research design and experimental research design, are not relevant and will not assist in reaching the study’s objective at an affordable rate. 1.6.3 Target population According to Dworkin (2012), the sample size for a qualitative study is often smaller than the sample size used in quantitative studies. Although the results of this research are likely to benefit uMzinyathi predominantly, the lessons learned and recommendations can be taken and generalised to other similar districts in rural areas in KwaZulu-Natal. The study covers four municipalities within the Umzinyathi District, namely Umvoti Local Municipality, Nquthu Local Municipality, Umsinga Local Municipality, and Ndumeni Local Municipality. 15 Figure 1: Geographic location of UMzinyathi District Municipality Source: Google Maps (2021) The study population consisted of several different groups, including municipal managers, LED officers, members/stakeholders of municipal LED forums, local NGOs, uMzinyathi District, Economic Development and Tourism Affairs (EDTA), and Corporate Governance and Traditional Affairs (COGTA) community development workers (CDWs). 1.6.4 Sampling strategy The study took a qualitative approach and employed a purposive sampling strategy. According to Bryman (2012), the concept of purposeful sampling is central to qualitative research. He further highlights that the primary aim of purposive sampling is to sample participants carefully and strategically so that the sampled participants are relevant and appropriate to answer the research questions. Bryman (2012) further points out that this sampling type is centred on the selection of units. The units could be a set of people, in this case, LED participants, local organisations (LED focus CBOs or partners), 16 government departments, in this case, LED officers, municipal managers, and District Department of Economic Development representatives, documents such as District LED strategies, IDPs and other economic, strategic documents. The qualitative study does not prescribe a specific sample size that a researcher must align to, and has no recommended sample size that the researcher fairly selects to give a clear picture and address the purpose of the study (Bryman, 2012). Therefore, “it is imperative to select a sample that accurately reflects the population so that the inferences drawn from the sample can be generalized back to the population of interest” (Bhattacherjee, 2012:65). Bowen (2008) also argues that if the study fails to reach data saturation, the study loses credibility and its content validity is affected. Data saturation is reached when “the ability to obtain additional new information has been attained and further coding is no longer possible” (Bowen, 2008:1409). The research included and interviewed key LED role-players and other stakeholders and the information collected was enough to make a conclusive argument about uMzinyathi LED. The table 1 below summarises the study participants. 17 Table 1: Study participants Category Code Sample target CBO/NGOs, LED NGO 01 1 NGO Municipal officials Municipal official ▪ 1 LED Senior managmentmanager 02 ▪ 1 Senier municipal officialmanager Municipal official ▪ 1 LED officialer 01 Municipal official 03 COGTA Government ▪ 1 CDWs official 02 Government officials Government ▪ 1 Senier LED Government officialKZN official 01 Department of Economic Development and Tourism affairs Government ▪ 1 EPWP official official 03 Dialogue groups Dialogue groups ▪ Business sectorChamber of business 01 Dialogue groups ▪ Operation Sukuma Sakhe: Local task team 02 Prominent community Community ▪ 1 ministers fraternal/ ward committee/pastor member member 01 ▪ 1 traditional council representative Community member 02 Total 11 participants The study included three purposively selected senier municipal officials within the uMzinyathi District responsible for resource and planning for LED integration, one purposively chosen LED CBO/NGO involved and supporting LED initiatives, CDW from COGTA responsible for mobilising the community to participate in economic development initiatives waswill also be selected, district and local LED forum chairpersons and GovernemtEDTEA LED uunit werewill also be targeted. Lastly, traditional council representatives and ministers’ fraternal chairpersons were also interviewed from a 18 community leadership perspective. A total of 11 key informant interviews were administered by the researcher. 1.6.5 Data collection strategy The research was based on the assumption that interviews tend to be semi-structured or less structured within qualitative research (Bryman, 2012). Semi-structured interviews with key informants were administered to gather qualitative data. The study chose this approach because it is flexible and helped capture participants’ experiences and feelings. The interview schedule was developed to guide the interviews. As a consequence of the current, potentially ongoing circumstances regarding COVID-19, the interviews were alternatively conducted both virtually using available and suitable online platforms, and face to face. 1.7. Research ethics Ethical issues emerge in various stages of social research (Bryman, 2012). As part of adhering to ethical considerations, the study proposal was submitted and approved for ethical clearance by the Faculty of Economic and Management Sciences ethics committee, with clearance number UFS-HSD2021/0380/21. The data collected will be utilised only for the aims and purpose of the study and not for other intentions other than the research. Key informants were not obligated to answer to all questions if they were not comfortable doing so. In addition to this, the study acknowledged that the LED implementation is very much politicised at the district level, and certain politicians may misunderstand the study; therefore, participation was not compulsory and straightforward questions were developed with sensitivity. 1.7.1 Voluntary participation As highlighted, no participant was obliged to be part of the research. Participation remained voluntary, but the researcher provided as much information as possible to the sampled participants to decide to participate (Babbie, 2007). 19 1.7.2 Informed consent Informed consent assumes that, in spite of the fact that participants are aware that they are about to be part of a study, they must give information about how the study may affect them (Bryman, 2012). All respondents were informed of the study process, outcome and intended use, including the methodology. 1.7.3 Confidentiality It is true that when people give consent to be part of the study, they will rightfully object to answer to some of the questions as they deem justified (Bryman, 2012). The study assured anonymity to all participants and that the information is kept confidential – no name is attached to the responses. • All study participants were informed in writing after permission to participate had been agreed upon verbally. All respondents were asked to consent verbally for the virtual interviews, and others were asked to sign the consent form. • 2021 is a year of elections; therefore, permission was sourced from the participating municipalities and NGOs’ leadership and officials to participate without any fear. In addition to this, CDWs, LED officers, and other participants have supervisors and structures that they report to, bringing fear among selected respondents. The study sought the necessary approvals from senior managers well before the study began. • The participants were not identified based on their participation and response to the questions, and they were made aware of this. • The study data, report, findings and results are utilised for the single aim of the study and kept confidential. The study results and information are made available to all participants and upon request from other stakeholders. 20 1.7.4 Trustworthy study This study is built upon three critical criteria for evaluating social study: reliability, replication and validity (Bryman, 2012). (i) Reliability Reliability is concerned with whether the results of a study are repeatable (Bryman, 2012). Reliability speaks to how credible the research findings are. This study adapts and sticks to the appropriate sampling strategy and size to make sure that results and conclusions can be generalised to other districts of similar contexts. Furthermore, “the dependability criterion relates to the consistency of findings” (Guba, 1981). The study findings are consistent with the data that has been collected. (ii) Replication Bryman (2012:47) indicates that a “study must be capable of replication.” To ensure replicability, the study has clearly outlined the approach and the design in the research methodology, and all procedures have been spelled. The study strictly followed the guidelines as outlined in the methodology to ensure effective replication. In addition to this, Bitch (2005) argues that qualitative findings and results should be easily transferable and generalised to other regions or contexts with different respondents. The study used a purposeful sampling approach to ensure that relevant participants were interviewed. (iii) Validity “Validity is concerned with the integrity of the conclusions generated from research” (Bryman, 2012:47). The validity, in this case, looks at how dependable the research and findings are. For this study, validity ensured is by effectively using tape records and keeping the data collected and analysed to ensure a proper audit trail and accountability. 1.8. Data analysis Semi-structured qualitative interviews were administered with key informants. Interviews were recorded using a voice recorder for transcription during analysis (Creswell et al., 2016). Data generated from the interviews was thematically analysed. Thematic analysis is a “method for identifying, analysing, and reporting patterns (themes) within data. It 21 minimally organizes and describes your data in (rich) details. However, frequently it goes further than this and interprets various aspects of the research” (Braun & Clark, 2008:79). The study used an interpretative approach towards the thematic analysis to determine what was meant by the data, and data was classified and summarised into tables (Kuckartz, 2013). After the completion of data transcription, coding was utilised to analyse themes and interrelate themes, which were succeeded by interpreting the meaning from themes (Creswell, 2009). Thematic analysis is focused and centred on inductive interaction with data using codes (Lester et al., 2020). Information was consolidated and produced inductively through coding and mapping of concepts and themes, and patterns came out as the outcome of the process. 1.9. Definition of key terminology LED: Concerned about “collaboration between the public sector, businesses, and civil society in creating conditions for economic growth and employment” (The Federation of Canadian Municipalities, 2014:10). Pro-poor LED: Developing local economies with a bias towards reducing poverty and serving the poor. LED promotes participation and emancipation of the marginalised, especially the poor. Qualitative research: “Research usually emphasises words rather than quantification in the collection and analysis of data” (Bryman, 2012:714). The study captures the participants’ feelings and experiences in a more detailed manner than statistics. Key informant: A person who gives the researcher perceptive information on the social setting, important events, and people, usually when conducting an ethnography (Bryman, 2012:712). A key informant is usually directly affected or involved in the situation and understands it in detail. Semi-structured interview: An interview includes a broad range of questions. It usually refers to an interviewer having a series of general questions (Bryman. 2012:716). 22 1.10. Organisation of the dissertation The dissertation is built upon four chapters, namely: 1.10.1. Chapter 1: Introduction of the study This chapter introduces the entire research study. South African and global local economic development, including definitions, legislations, and poverty background, is also introduced. This chapter further unpacks the study question, the methodology and procedures adopted to conduct the study, and how the research is conducted. The chapter describes the problem statement regarding what should be good if LED is implemented and introduces the study’s aims and objectives. 1.10.2. Chapter 2: Pro-poor LED This chapter considers local economic development from an international and global perspective and South African context, focusing on pro-poor LED. The chapter summarises different views, principles and definitions of LED from various literature and later includes other aspects such as poverty alleviation and inclusiveness. The chapter further details the historical perspective of LED concept in South Africa and it’s challenges. 1.10.3. Chapter 3: Findings and discussion This chapter discusses in detail the major findings from the data that was collected. The various tables with the themes and subthemes that emerged from the qualitative data collected and analysed are also discussed in this chapter. 1.10.4. Chapter 4:Conclusion and recommendations Chapter 4 is the final chapter of the study, where the study results, conclusions and recommendations are discussed in detail. The chapter also includes a proper conclusion on the research topic based on the study results. All preceding chapters are summarised in this chapter, and research objectives are also reflected upon. 23 1.11. Conclusion Chapter 1 is an essential chapter for the dissertation as it provides a clear outline of what the study intends to achieve and procedures to be followed to respond to the study question. It further introduces and breaks down the concept of LED for the subsequent chapters. The problem statement is also summarised and outlined in Chapter 1, as well as the methodology and approach adopted for the research. Chapter 2 of the dissertation is focused on the literature review. LED in South Africa, internationally as well as within the African context is outlined and discussed. 24 Chapter 2: Local economic development 2.1. Introduction Chapter 2 gives an extensive analysis and understanding of LED in general, with a particular emphasis on a pro-poor LED. The chapter outlines the historical perspective and journey of LED, looking at both the international and South African LED landscape. The chapter also highlights various LED definitions within a different context, and later crucial elements, pre-conditions, and LED principles are briefly discussed. More importantly, chapter 2 describes the emergence of LED in South Africa with a special focus on the development and implementation challenges of LED before democracy and the post-apartheid era extensively. Pro-poor LED is also discussed in detail, focusing on inclusiveness and participation of stakeholders and the most vulnerable. The chapter discusses the constitutional LED mandate and other legislation, LED frameworks, and policies developed over the years to guide LED implementation in South Africa. Lastly, the literature review will also focus on an LED conceptual framework and theory from previous studies on an LED concept that distinguishes pro-market/growth and pro-poor. 2.2. LED within an international context Globally, LED approaches have enjoyed popularity as an alternative over the past 20 years, fundamentally because of what has been viewed as the failure and shortcomings from the traditional top-down approaches and strategies to deliver development (Rodriguez-Pose & Pallvicini-Corona, 2013). The standard and prominent features among all LED strategies and approaches are characterised by the appreciation and acknowledgment of a distinct locality, focus on local assets, broad and active participation of all in LED process, local ownership, and promotion of dialogue among local actors and both public and private (Christensen et al., 2008). LED has emerged as an international phenomenon and has been embraced as a popular concept of global development planning, especially within the context and trajectory towards a decentralised environment that aims to transfer economic power and resources from the central government to the local government (Rodrigues-Pose & Tijmstra, 2007). Furthermore, LED should be viewed as an international instrument 25 for emerging countries if local chances are seized to fulfil local demands and contribute to national prosperity and poverty reduction goals (Gaule & Sinkiene, 2012). The International Labour Organization (ILO) claims that LED provides an excellent opportunity to fully benefit from globalisation by unlocking and maximising local strengths, capital, and other local potentials (Rogerson & Rogerson, 2010). Furthermore, LED strategies, commonly referred to as local and regional development programmes, have been praised by many development practitioners, planners and NGOs as a complete alternative to traditional central and top-down strategies to development (Rodriguez-Pose & Pallvicini-Corona, 2013). Internationally, LED strives for different actors and contributors such as the national government, public sector, local governments, civil society organisations, and private sector institutions. These stakeholders all participate and make various contributions, inputs, and support to the promotion and success of LED (Christensen et al., 2008). 2.3. Defining LED There is no single definition of local economic development internationally. However, it is often defined as an ongoing phenomenon where different and various stakeholders come together and collaboratively contribute to growing the economy of the locality and create opportunities for employment for the people in that region (Goga & Murphy, 2006). According to the World Bank definition, LEDs are not a one-time event, but a long-term process involving and benefitting many stakeholders in the local setting (Goga & Murphy, 2006). Gomez and Helmsing (2008) defined LED as regional development focused on stakeholders, systems, and processes of local growth within a particular locality or territory. These systems and approaches aim to minimise falling behind and how local economic growth can be realised by promoting local entrepreneurship, unlocking local people capabilities, and promoting inclusive economic organisation (Gomez & Hemsing, 2008). According to Rodriguez-Pose (2008), LED is fundamentally a philosophy about how development challenges can be better approached and addressed, the stakeholders to be involved, as well as how to design and roll out development strategies in a more participatory and bottom-up manner in a particular territory. He further states that there is no development fashion for LED, as it does not claim to provide any magic formula that will unlock development for every space at 26 once (Rodriguez-Pose, 2008:23). Despite differences and many views about LED, it can centrally be classified into two types, pro-growth and pro-poor. Pro-growth focuses on the market, attracting new investments, and retaining business. The latter primarily focuses on poverty alleviation and inclusiveness (Mensai et al., 2019). Considering all the definitions above, LED has been explained in different ways. However, inclusivity, territory and involvement of local people remain common in all the definitions. 2.4. Key elements of LED and policy actions The following are the critical elements of LED that should be considered for LED to be successful and have a lasting impact on the poor. Rodriguez-Pose and Pallvicini- Corona (2013) outline seven critical aspects and elements of LED. Firstly, LED requires development planning – the plan should be an integrated one that includes economic, social, and environmental goals. If the local government does not diagnose local economic potential and plan following the local capacity, this affects its success. Secondly, LED should be sustainable; local governments that intentionally incorporate sustainability drivers in their planning are expected to have a meaningful and long-lasting LED. Thirdly, local leadership and entrepreneurial spirit are another crucial element for the success of LED; the presence of sound leadership supports LED. Fourthly, LED discourages a top-down approach. Therefore, various actors such as NGOs,Government and business are key for a successful LED strategy. The strategy should encompass a different participation mechanism and efforts. In the fifth element, different LED forums and coalitions, consisting of the government, local stakeholders, international agencies, and NGOs should be established to foster effective partnerships and cooperation for the effective implementation of LED. These partners should be involved in all levels of LED planning and execution. LED involves a various players collaboration. Those affected by and those who can affect economic growth within a locality (e.g. governments, businesses, non-government organisations, and local communities) have a stake and can act in LED (The Federation of Canadian Municipalities, 2014:3). The sixth element is capacity building. Local government, investing in capacity building and empowerment under the LED framework, led to successful and sustainable LED (Rodriguez-Pose & Pallvicini-Corona, 2013). 27 2.5. The historical perspective of LED LED has evolved through many phases or waves, each with its own meaning. The World Bank (2004) described leadership as a top-down approach to growth, with the government offering large grants and tax cuts to investors during the first wave, i.e. the 1960s to early 1980s (Davis & Rylance, 2005). As history indicates, LED was first introduced in cities of the global North during the late 1960s and early 1970s, focusing on advancing decentralisation (Rogerson & Rogerson, 2010). In developing countries, the concept of LED policy is focused and centred on poverty alleviation efforts compared to LED in Western Europe, North America, and Australasia (Rogerson, 2006). According to Davis and Rylance (2005), in the second wave, i.e. 1960s to the mid- 1990s, LED was characterised as dependent on attracting investors, but this time on geographical areas or sectors. The central government supported this stage by providing cash payments to individual enterprises, counsel, and training infrastructure, among other items (Davis & Rylance, 2005). The third wave, during the late 1990s, was an emerging development centred on partnerships between governments, communities and businesses. Historically, governments across the world have been responsible for all regional development initiatives. The emergence of LED policies meant that economic development initiatives must be territorially based and locally administered (Barberia & Biderman, 2010). Furthermore, all LED initiatives were previously planned and managed by a single agency, but over the past two decades, more and more various actors have participated and contributed to the LED agenda (Barberia & Biderman, 2010). Several studies have noted differences between LED in the North’s development economies and the global South’s developing countries (Nel, 2001). The focus in affluent countries has been on pro-growth, but in developing countries, the focus has been on pro-poor and poverty reduction (Barberia & Biderman, 2010). 28 2.6. Pro-poor LED According to Meyer (2014), LED is recognised by various players, such as development practitioners, academics, and other stakeholders, across the globe; they have recognised the significant role LED can play in ensuring that jobs are created. Meyer (2014) further argues that an integrated and holistic approach is required to achieve cultural progress by considering local communities’ economy, social issues, welfare, and environmental concerns. According to UN-Habitat (2005), LED helps create and improve jobs, especially for the vulnerable, the underprivileged, and the excluded. When poverty reduction strategies are included in the design and execution of LED, UN-Habitat believes that LED can be a vital pillar in the fight against poverty (UN-Habitat, 2005). Snowball and Courtney (2010) argue that most LED strategies and approaches have been ineffective in South Africa. Additionally, they contend that while South Africa developed the best LED policies and designs globally, it has not yet translated into improvements in the lives of all residents; it has not yet led to the projected improvements (Rogerson, 2004). To achieve its goal of putting the poor at the heart of its internal discussions and strategy, the South African government presented some LED implementation guidelines in 2005 (DPLG, 2005). The policy also argues that LED should be rolled out as part of an integrated development plan (IDP) of each municipality that focuses on creating jobs and improving urban and rural development in poverty areas (DPLG, 2005). “It is also an effort to address the deficiencies identified by the government” (DPLG, 2005:9). The policy is a response and effort to correct the failures and the wrongs of the past, which saw LED focusing mainly on economic growth and neglected poverty (Hindson & Vicente, 2005). The noticeable commitment, efforts and attempts to push and promote effective pro- poor policies and strategies in Africa are evident and found in South African cities due to enormous support and resourcing by the national government on LED (Nel & Rogerson, 2005). LED planning in South Africa, particularly in some big cities, focuses on pro-growth (Rogerson, 2004). However, the government has demonstrated commitment and is very clear that LED should assist the country in addressing the needs and challenges of the people, unemployment and poverty (Rogerson, 2004). 29 There is evidence of bias towards pro-poor at national planning level, indicating that poverty reduction needs more than just macro-economic growth (Rogerson, 2006). According to Nel and Goldman (2005), despite all efforts and investment in various economic and transformational initiatives, growth oriented techniques and strategies of LED included and benefitted mostly the private sector to the detriment of the marginalised and poor local people. These low-oriented strategies did not have a long and lasting impact and lacked the soft and sustainability elements. This conclusion and finding re-emphasise the need for a community-based inclusive approach to LED to ensure that poor and voiceless people are involved and benefit from all LED initiatives (Snowbal & Courtney, 2010). Almost“ half of South Africa’s population is chronically poor at the upper-bound national poverty line of ZAR1 335 per person per month” (StatsSA, 2021, p. 11). The South African government, boosted by economic gains since 1994, has made some inroads in reducing poverty, improving access to essential services such as education, health, and social protection, which contributes to addressing the adverse effects of a system of segregation under apartheid. However, these development gains are set back by the low economic growth leading to high-rate of poverty and an unemployment rate of 34.4.% in the third quarter of 2021(STATsSA, 2021). Social grants are a vital intervention as part of the South African government’s efforts to eradicate poverty and assist the most disadvantaged households. According to the United Nations World Food Programme, around 17 million low-income individuals get social handouts, which are thought to have reduced poverty by 8% and the poverty gap by 30% (World Bank, 2018). 2.7. The development of LED in South Africa In terms of conceptual design, LED was based on a concept referred to by international researchers as market-led approaches. LED planning was designed to increase economic growth, especially in the developing world over the past decade. The focus of LED has since shifted in recent years, especially in Africa, to poverty alleviation and pro-poor policies (Rogerson, 2006). LED is frequently referred to as community or local development in Africa. The methods are pro-poor and primarily concerned with social upliftment rather than economic growth. According to Rodriguez-Pose and 30 Tijmstra (2005), these solutions address significant difficulties, but prioritise short-term survival and social issues while ignoring economic matters. In identifying LED as a priority for Africa, it is acknowledged that national-level macroeconomic strategies are no longer sufficient for achieving long-term broad- based economic growth. Furthermore, conventional sectoral supply-side development methods are not yielding the desired outcomes, since globalisation lowers the capabilities of the African nation-state and, as a result, emphasises the importance of localities and larger city regions as drivers of national progress (Swinburn & Yatta, 2006). To understand how LED can reduce poverty in South Africa, it is critical to discuss the landscape. South African history is heart-breaking as it excluded most people of South Africa, and all economic development initiatives were not pro-poor and excluded marginalised groups. Before democracy, South African LED had a very distinct and painful history where a Keynesian style policy was applied to make national government control all aspects of society; this resulted in suspension and suppression of all local-led initiatives and a sense of local independency (Rogers, 1999). Rogerson (2010) provides a concise historical review of local economic development policy since 1994. He examines the state of LED in South Africa from 1994 to 2009, identifying flaws in policy papers and frameworks. LED efforts did develop just before the democratic transition in 1994, but they were centred mainly on major cities and pro-growth. In South Africa, before LED became popular in the early 1990s, it was already tested and implemented in different forms in several developed countries (Patterson, 2008). For South Africa, the phenomenon of LED after apartheid was replaced with many black South Africans living in marginalised towns with limited access to resources (Patterson, 2008). Strong national government control and central policies suppressed the evolution of LED initiatives and programmes in towns and cities of South Africa, resulting in the loss of local autonomy. However, after 1994, there were a new vision and attitude towards development, and the concept of LED began to attract the serious attention of the government and policymakers (Patterson, 2008). In post-apartheid South Africa, LED planning emerged as one of the critical elements of development planning. It is also true that impoverished people in post-apartheid South Africa are still disadvantaged and excluded from economic activity (Rogerson, 2004). 31 The introduction of LED resulted in several important legislation and publications that substantially influenced the LED discussion in South Africa. The South African government used a pro-poor approach to LED to overcome prior inequities, and pro- poor national policies are in place to advise municipalities across the country as one of the criteria for implementing LED (Mashamaite & Lethoko, 2018). Local government, through LED, has been mandated with a developmental task to deliver essential services to local communities within a particular locality to reduce poverty, stimulate economic growth to create employment opportunities, thereby contributing to the improvement of qualities of life for all (Mashamaite & Lethoko, 2018). While the participation of private and public organisations in LED is present at all local government levels in South Africa through LED forums, issues of capacity and resourcing are pretty obvious (Meyer, 2014). Local communities continue to suffer in many municipalities, particularly rural municipalities that struggle to implement the policies effectively; the efforts to alleviate poverty, address unemployment and grow a sustainable, inclusive economy have occupied and shaped South African governments’ development focus for many years (Koma, 2012). Local governments in South Africa frequently do not involve key business stakeholders in developing pro-poor LED projects. These programmes consist of craft production, sewing groups, and other initiatives known too often as LED programmes (Rogriguez- Pose & Tijmstra, 2005). South Africa in the past years initially witnessed the emergence of LED initiatives in the cities and later in the townships and deep rural areas. Snowball and Courtney (2010) argue that LED strategies generated regional economic growth, which potentially led to jobs creation and and poverty alleviation. Hindson and Vicente (2005) argue that there are four variants of LED that apply in South Africa. Firstly, a local government-led LED where the elected local authority becomes the active change agent. Secondly, NGO- or community-led LED where other logical economic leaders are absent. Thirdly, the NGO or community takes over the responsibility of LED. Lastly, a development corporation or section 21 initiatives, where development agencies have been specifically established, often by local governments, to pursue LED-type activities. Hindson and Vicente (2005) further add that more actors such as business associations, CBOs and NGOs, and specialist 32 service providers argue that these are vital factors for LEDs’ success in South Africa, and they take leading roles in their spheres. Before dwelling much on what LED can contribute towards reducing poverty, it is imperative to discuss the poverty landscape and facts both internationally and in South Africa in particular. Today, South African LED is more pro-poor focused, and the national government supports local action and planning. LED authority in South Africa has been transferred and mandated to the local level government and occurs because of the private sector or community (Nothnagel, 2011). In addition, it is also crucial to analyse and understand South African LED not only by looking at the country’s political, economic and social transformation, but also at the international and global levels with all the global changes and how it affects LED in South Africa (Simons, 2003). 2.8. Pro-poor LED and inclusiveness The United Nations Development Programme (UNDP) defines inclusive growth as equity with growth or widely shared wealth due to economic success (UNDP, 2015). In addition, the plan (NDP) envisions an economy that is inclusive, dynamic, and where the benefits of growth are equitably distributed (National Planning Commission, 2012). According to Meyer (2014), LED is all about inclusion, both locally and globally. LED has also become a worldwide trend due to its accessibility locally and internationally (UNDP, 2015). On inclusive growth, data and information are scarce. However, it may be simply described as a measure to give all individuals, particularly the underprivileged, equivalent and equal opportunities to flourish (Meyer, 2014). In addition, Meyer (2014) believes that inclusive growth has been a popular idea in recent years and is seen as a suitable method to combat inequality rather than focusing just on economic growth. South Africa’s National Development Plan (NDP) intends to eliminate poverty and reduce inequality by 2030; this will be accomplished through building an inclusive economy that benefits everyone, especially the most vulnerable (National Planning Commission, 2012). According to Pillay (2013), local economic development integrates local government and LED. Among the pillars of local development is the devolution of authority to local entities, and LED emphasises citizenship to involve local citizens and encourages 33 them to work with local authorities. For any LED effort to be sustainable, it must include the concept of involvement, community participation, and inclusion (Pillay, 2013). It was also claimed that a framework for city development plans had been developed and that essential aspects such as feasibility, resource availability, capacity, holistic transparency, and cultural concerns should all be included in such strategies (Pillay, 2013). For a successful and long-term local government LED strategy and actions, these are non-negotiable. Furthermore, a diverse city provides an opportunity for growth and equity (Reddy, 2014). Reddy (2014) defines an inclusive city as a place where all individuals and communities have the opportunity to actively participate on a political, social, and economic level. As part of an inclusive city/town, participatory decision-making and planning are essential, as is promoting the concept of inclusivity to ensure socially just local governance and facilitate growth and long-term development (Reddy, 2014). To achieve lasting and impactful LED activities for any local government, the concept of a community-based inclusive approach and LED becomes essential (Reddy, 2014). Within this context, inclusive district LEDs must include decision-making and participatory planning (Reddy, 2014). “Promoting inclusion is vital not only for ensuring socially just local governance but also for facilitating growth and, more significantly, long-term development. Inclusionary local government and LED decrease social tensions and inequality” (Reddy, 2014:3). Unfortunately, in many rural municipalities, community representatives are somehow left out to plan and implement the LED activities, leading to the collapse of major LED initiatives across the country (Hofisi & Mbeba, 2014). 2.9. The legal framework for LED in South Africa During the post-apartheid era, the legislative and policy context for elevating LED to an obligatory mandate for all South African local authorities is recognised by the 1996 Constitution No, 108 of 1996 (RSA, 1996) and subsequently established in the 1998 White Paper on Local Government, which launched the notion of developmental local government. The 2006 framework provides the most precise picture of the roles and responsibilities of local government in LED (Rogerson, 2011). These historical events shaped LED concepts in South Africa and transferred and decentralised LED to the local government (Rogerson, 2011). 34 2.9.1. The Constitution, Act 108 of the Republic of South Africa The Constitution entrusted local governments to lead, facilitate, and promote LED (RSA, 1996). The Constitution mandates local governments to execute and encourage economic growth and take the lead in organising, planning, structuring, and guaranteeing enough resources to prioritise the community’s fundamental social requirements (RSA, 1996). To meet the community’s basic needs and to promote economic and social development, the municipality needs to organise and manage its administration, budgeting, and planning processes (RSA, 1996). Subsequently, the Green Paper on Local Government of 1997 was developed to provide guidance and transfer authority to local government so that they are flexible enough to guide and promote LED initiatives (Simons, 2003). The LED policy in South Africa went through a difficult process. During the first decade of democracy, the focus of the local government was on community income generation projects, many of which did not last and were not sustainable as there were less cooperation and partnerships among civil society organisations and government (Hindson & Vicente, 2005). Hindson and Vicente (2005) further indicate that consensus was absent among stakeholders as to the goals of LED – whether the goals should be pro-growth or pro-poor geared toward poverty reduction. These events led to the development of the White Paper on Local Government. The White Paper on Local Government (1998) mandates local government to work with different groups and stakeholders in that locality and devise strategies to meet their social and economic needs and improve the lives of the citizens. Local governments are responsible for providing strategic derection for the effective planning and roll-out of LED programmes and interventions working in partnerships with private and public institutions (The Federation of Canadian municipalities, 2014). Helmsing (2001) argues that the primary role of local governments is to provide essential services and infrastructure and coordinate contributions of other actors to the LED process. While the implementation of LED and LED strategy development is led and coordinated at the local government level, policy development and guidance and other legislative designs are coordinated and managed by the central government shared with the provincial government (COGTA, 2013). The confusion around roles and 35 understanding of LED led to the development of the national framework for LED in South Africa (2006-2011). 2.9.2. National framework for LED in South Africa: 2006-2011 The National Framework for Local Economic Development in South Africa aimed to develop a common and shared understanding of LED and good practices to support the effective roll-out and implementation of LED. The framework’s main goals from 2006 to 2011 were to increase access to economic opportunites by the community, information, and emphasise the relevance and centrality of well-functioning local economies in national economic growth. The framework provided clear guidelines and a framework for implementing LED. 2.9.3. The National Development Plan (NDP) The NDP outlines the goals and a vision for South Africa to “ eliminate poverty and reduce inequality by 2030” (National Planning Commission, 2012, p. 46). These objectives include lowering economic disparity and alleviating poverty. There is a significant disconnect between these objectives and South Africa’s present economic situation. The NDP describes actions to be undertaken to realise these goals, and the measures include developing a social contract to reduce poverty and inequality and raise employment and investment, and develop a strategy to alleviate poverty and its effects by broadening access to work, strengthening the social wage, improving public transport, and raising rural incomes (National Planning Commission, 2012). LED contributes significantly towards attaining the NDP vision and goals through “sector diversification of the economy for local economic development, small business development that anchor local economies and inclusive rural economies” (National Planning Commission, 2012:38). 36 2.9.4. National Framework for Local Economic Development 2013 South Africa saw the rise of LED planning and implementation during the post- apartheid era, as the national LED framework empowered local governments to lead and implement LED. Since South Africa’s first national framework for LED in 2006, the government’s vision for local economies has gone through several stages. The ambition for the 2006-2011 framework was for strong and inclusive local economies that capitalised on local possibilities, genuine potential, and competitive advantages while also meeting local needs and contributing to national development goals. According to the new vision 2013-2028 for South Africa, “local economies are inclusive, world-class, and dynamic places and brands in which to invest, and that is widely shared and benefit the majority of their local people” (COGTA, 2013:29). 2.10. Conclusion This chapter discussed broadly and in detail the concept of LED, pro-poor LED, and how it relates to poverty alleviation. Various definitions of LED within different contexts of the North and South were also discussed in detail; however, what emerged from the literature is that LED is a complex that needs an extensive planning and resources, both human and financial resources. In this chapter, principles and pre-conditions of local economic development were discussed, and that at the centre of any LED, there must be partnerships and involvement of all actors. This chapter highlighted very clearly that South Africa as a country has graduated from the traditional LED approaches, which were led by the central government, to a more decentralised, localised, and pro-poor approach. South Africa has developed and designed good progressive legislation and policies that are biased towards poverty alleviation. The concept of inclusiveness was also introduced in this chapter. The NDP is very particular about the idea of an inclusive economy – an economy that creates jobs, ownership for all, and addresses poverty. Chapter 3 of the dissertation summarises the key findings and discussions emanating from the field data collection exercise. 37 Chapter 3: Findings and discussion 3.1. Introduction The preceding two chapters of this dissertation included a literature review describing the concept of local economic development, looking at both international descriptions and components of LED and the South African perspective of LED. In the preceding chapters, various legislative documents supporting the implementation of LED were also discussed, including the historical backround of LED in South Africa. The study methodology and design were also unpacked in detail in Chapter 1. Chapter 3 discusses the significance of the findings and results from data gathered through a semi-structured qualitative face-face and virtual interviews with 11 participants who were purposely identified as key informants for the study based on their LED role within the Umzinyathi District Municipality. The collected data was thematically organised, coded, analysed, and various themes and sub-themes emerged. The findings are elaborated upon in this section, in alignment with the key identified thematic areas interpreted from the study’s aims and objectives mentioned in Chapter 1. 3.2. The case study Umzinyathi District Municipality is the case that is being studied. The district is the third poorest district in South Africa, with 89.2% earning less than R1 600.00 per month (Writer, 2016). Various LED initiatives geared towards creating wealth and job opportunities for the poor majority have been prioritised by the KwaZulu-Natal Provincial Government to support the district in the previous years. 3.2.1. The geographic location of uMzinyathi District Municipality The District is one of the poorest districts in KwaZulu-Natal. The municipality is located and “bordered in the north by the Majuba Municipality, in the west by the uThukela Municipality, in the southwest by the uMgungundlovu Municipality, in the southeast by the iLembe Municipality, and in the east by Uthungulu District Municipality” (uMzinyathi, 2020:10). Figure 2 below shows uMzinyathi’s location. Figure 2: Umzinyathi District Municipality 38 Source: Google Maps (2021) The district’s municipal area is vast (8 079km²) with massive grassland in the northern part boosting the agriculture sector such as cattle ranching. The southern part is dominated by forestry plantations, sugar cane, and small-scale fruit farming. There are also mining deposits, including coal and metal ores, but coal is mined at a larger scale. Dundee has the main economic activities within the district, varying from tourism, farming, and retail (uMzinyathi, 2018). uMzinyathi district comprises four (4) local municipalities, namely: • Umvoti Local Municipality “This Local Municipality comprises urban areas, commercial agricultural areas, and tribal authority areas exhibit typical characteristics of these settlement types. Service levels in urban areas are high except for informal areas; in commercial agricultural areas, they are relatively high as farmers provide their services, and in tribal authority areas, they are low to moderate” (uMzinyathi, 2020:14). • Msinga Local Municipality 39 “Owing to its rugged terrain, Msinga's population is relatively dispersed, and where services exist, they are concentrated along with road infrastructure and water sources such as the Tugela River. The main towns are Pomorey and Tugela Ferry; it’s the rural region with subsistence farming” (uMzinyathi, 2022:14). • Nquthu Municipality “This Municipality is the typically rural and largely tribal authority where the population is largely previously disadvantaged and relatively dispersed and where services are scarce and often at rudimentary levels. The main town is Nquthu, and subsistence agriculture is the main activity in the area” (uMzinyathi, 2020:14). • Endumeni Municipality “This Municipality is unique, its population is predominantly urbanized or based on commercial farms, and unlike the other local municipalities, there is no tribal authority land. The main town is the Commercial centre, Dundee; it has the most diversified economy, commercial cattle farming, and dairy production and is the centre of the Battlefields tourist region" (uMzinyathi, 2020:14). The district has only two towns or nodes, i.e. Greytown and Dundee. The rest of the area is rural and falls under Ingonyama Trust, and traditional leadership with vast land used to produce agricultural products. The district was once declared as socio- economic quantal one, the poorest of the poor district in South Africa. The figure below shows how local municipalities are distributed within the uMzinyathi District. 40 Figure 3: Umzinyathi Local Municipalities Source: Google Maps (2021) Umzinyathi District Municipality prides itself with the unique recreational and tourism nodes and tourist destinations such as: • Isandlwana (Nqutu) • Itshe lika Bambatha (Msinga) • Battlefields, Blood River (Endumeni) • Lilani hot springs (Mvoti) The population of uMzinyathi is increasing. In 2016, the population growth rate was estimated at 1.97%, while in 2010, it stood at 1.34%. These growth rates translate to 502 356 people in 2010, which expanded to 548 754 people in 2016 (uMzinyathi, 2018). 41 Table 2 below indicates that Msinga (34%) and Nquthu (33%) contribute a bigger percentage of the population of uMzinyathi District (Quantec, 2017). Table 2: Distribution of population according to LMs Geography Umzinyathi Endumeni Nquthu Msinga Umvoti Population 100% 12% 33% 34% 21% Source: Quantec (2017) 3.2.2. Distribution of population by age and gender The table below demonstrates how the population is distributed in uMzinyathi according to gender and age group (uMzinyathi, 2018). Table 3: Gender population distribution Gender Category 2016 Total male population 44.% Youth 20.3% Male Working age population22.6% Eldery 1.5% Total female population 55.6% Youth 19.9% Female Working age population31.7% Eldery 4.0% Source: Quantec (2017) The female population contributed 55.6% of the total population, while 44.4% were male in 2016. The age profile of the uMzinyathi indicates a large youthful population with approximately 40.1% of the population in this category (Quantec, 2017). 42 3.2.3. Education Education and skills levels are a vital indicator for economic challenges in general for the country and uMzinyathi in particular. Table 4 illustrates the education levels within the district. Table 4: Education levels Education 2006 2016 No school 25.8% 21.7% Primary school 39.5% 37.6% Secondary school 32.4% 38.1% Higher 2.3% 2.7% Total 100% 100% Source: Quantec (2017) The education landscape and profile for the district have improved significantly from 2006 to 2016. The total number of people without formal education decreased from 105 884 in 2006 to 101 996 in 2016 – a 4.1% decrease. On the flip side, the number of people with secondary education increased from 133 330 in 2006 to 179 190 in 2016, an almost 5.7% increase (Quantec, 2017). 3.2.4. Employment While the district unemployment may have slightly dropped from 38% in 2011 to 37% in 2016, this remains a very high percentage of unemployed people. The primary source of revenue, income and employment in the district is government general jobs, agriculture, wholesale and retail, and trade. In 2016, agriculture and forestry contributed 14% of those employed, followed by the general government at 19%, while the wholesale and retail business contributed a significant proportion of about 23% of the employment (Quantec, 2017). 43 3.2.5. Sanitation and water A considerable number of households (55%) within the district in 2016 were still utilising the unhealthy pit latrine method, while 23% did not have any form of sanitation. (Quantec, 2017). By 2016, 21% of households were still fetching water and using river streams as their primary water source, and only 20% of the residents had piped water less than 200m from their households (Quantec, 2017). 3.2.6. Study participants’ demographics A total of 11 participants were interviewed, of whom eight of those were females and three males. Table 5 shows the demographics of the respondends who participated in the study. 44 Table 5: Participants’ demographics Participant Number of Gender respondents Municipal officials 3 Female Male Female NGO 1 Female Dialogue group 2 Female Male Prominent community 1 Male member Government officials 3 Female Female Female Traditional council official 1 Female Total 11 Three senier municipal officials with specialist knowelege of LED participated, of whom two of those were female and one male. NGOs or civil society sector were represented by one female participant from a prominent NGO in the district contributing to LED. Three district or provincial government officials were interviewed, all females, and two dialogue groups, i.e. male and female. Lastly, one prominent male community leader and one traditional female representative participated. These participants were purposively selected because of their position and involvement in community affairs, specifically LED matters. 3.3. LED The transcribed interviews were subdivided into themes and each of these themes will now be summarised and discussed. 45 3.3.1. Understanding and role The research has found a lack of consensus and agreement on what LED is, particularly based on pro-poor LED. ILO (2006) describes LED as a process that should be participatory, and should promote partnerships among actors such as Government, NGOs and business to effectively use available local resources for jobs oppurtunities and reduce poverty. The participants’ explanation of LED and its role is project-based or project-focused, with little or no mention of the importance of stakeholder involvement and participation or partnership to improve people’s lives. Meyer-Stamer (2003) identifies common challenges facing LED in the local government spheres. Firstly, strategy is led and directed by local officials whose capacity are already overstretched. Secondly, there is a lack of understanding of the difference between community development projects, petty income generation projecrs and LED. LED is mainly about different stakeholders working together in partnerships to create an enabling conditions for local business and remove bottlenecks leading to local market failure and reduce poverty and unemployment. In contrast, community development delivers social services such as health, housing, education, crime, and support for marginalised people (Meyer-Stamer, 2003). In addition, Choga et al. (2013) identified a lack of consensus, common and shared understanding and the contested definition of the LED, its role, and the process as major challenges that emerged post-apartheid. Below, participants explained LED and its role as follows: “As the municipality, we still got a very narrow definition of what is local economic development; we still narrow it to poverty alleviation type of interventions. I think even my awareness, itis not comprehensive. It is because I'm of the view that local economic development in South Africa and is managed in a very fragmented fashion national focuses on their interventions that are aimed at managing economic development in the country without an awareness that there is no country outside of provinces, there is no province outside the district, there are no districts outside of LM, We then don’t get those fundamentals in terms of coordinating in an interconnected fashion and the national policy might be broad” (Municipal officer 01, 2021). 46 “It’s about creating wealth, creating jobs, increasing incomes for local people. That’s by reducing poverty and ensuring that the quality of life of both women and men in that local area is improved. There is a circulation of an economy within that same economy, and we also guide against leakage is in the economy. But the pro-poor LED should focus on improving the areas that are very remote, rural and overwhelmed with poverty to ensure that every economy in a sector plays a meaningful role in improving life in those rural areas. But it starts as a poverty alleviation then grows, and it is inclusive where people participate in the mainstream economy” (Government official 01, 2021). “I’m saying that the LED strategy and the framework should be based on how we enable the businesses to work fluently within the parameters of the Municipality. As for pro-poor LED, I’m not quite sure if I don’t understand that one because it has many different angles. One could say pro-poor; you mean to say that the LED is not adequate. So I don’t know which side are you looking at; maybe you could help me understand what you mean by pro-poor LED” (Dialogue group 02, 2021). From the three participants’ responses, we can deduce that there is no common understanding by different stakeholders on what LED is in general but, importantly, what pro-poor LED is and its role in the community. The research found a variation in the understanding of LED by district level and local municipality level officials, where LED is understood and is focused on poverty alleviation short-term projects and supporting the informal sector and SMMEs. I was also found that high levels of uncertainty and lack of clarity about the role of LED, if it is strictly welfare (pro-poor) focused or whether the focus should be on economic growth (pro-market). 3.3.2. Coordination and planning The key subthemes emanating from the transcribed data will now be discussed in relation to LED coordination and planning. 47 3.3.2.1. Legislation documents The Constitution (RSA, 1996) transfers the responsibilities of planning, leading, directing, promoting, and coordinating LED activities to the local government. Furthermore, the National Framework for the LED implementation in South Africa provides proper guidelines for the municipalities to implement LED. Additionally, it empowers municipalities, especially district municipalities, to develop LED strategies and frameworks following the LED process (DPLG, 2005). Hofisi and Mbeba (2014) identify gaps in the capacity as one of the shortcomings resulting in failures of LED implementation. The capacity varies from human experts to lead planning and coordination and capital resources. Furthermore, poor planning methodologies are a serious problem affecting most local municipalities, and often LED officials are not too sure of what to do. There is usually a complete lack and absence of key LED strategic documents and frameworks to guide LED implementation (Hofisi & Mbeba, 2014). While there is an existing district LED strategy and SMME strategy both adopted in 2018 and an investment promotion strategy, the research found that there were no deliberate efforts to involve all actors, especially private actors and civil society, in the LED strategy development process. It is vital to have a meaningful stakeholder contribution and input during the design and LED strategy process to ensure effective implementation of LED (Local 2030, 2016:23). Below is how some of the participants responded to this discussion. “I think the top to bottom approach is not working for us; you can’t develop a strategy to make me better without me. Even though they are some efforts, but it is still a top to bottom approach. I don’t even know if I have a say as a citizen in the strategy development so that I can also be able to identify priorities for my community, but It can be just a few people deciding” (NGO 01, 2021). “For our LED planning, we need to incorporate plans from ward-based going up to the municipal level plan as well as ensuring that in the ward-based plans, people who are economically active participate” (Government official 01, 2021). 48 For effective LED implementation and planning, ward-based level data profiling local areas is essential (Van der Heijden, 2008). The study has found that while there is cooperation and relationship between provinces, districts and LMs, there are no proper alignment and coordination of LED efforts from all actors interested and rolling out LED initiatives in the district. This has led to a fragmented approach to planning and implementing LED where LMs and other actors try to figure out details in their little corners what they think is best for their particular sphere. “National Youth Development Agency (NYDA) focuses on the youth side, SEFA focuses on the funding of small businesses, we have Lima working in our district although but efforts are not well coordinated” (Municipal official 02, 2021). 3.3.2.2. LED drivers All levels and spheres of government are essential and play a different role in LED. The national level plays a different role of ensuring that policies are developed to guide LED implementation. Similarly, the local government is tasked with driving, leading, promoting, and directing partnerships to support local economic initiatives (DPLG, 2003). Therefore, local government is recognised as the key driver within the LED framework (Van der Heijden, 2008). The research found that most of the respondents believed that the local government (municipality) should be the driver of the LED process, while other participants believed this should be a community process supported by the municipality. “The municipality should take the lead because the municipality is the link that links all of us and links even civil society and traditional leaders” (NGO, 01,2021). “I think the community should be the drivers. And I’ve been arguing that point with the municipalities, and I said you could not write a framework for the community. Going to the community, let them write their own story” (Dialogue group 02, 2021). 3.3.2.3. LED prioritisation Oranje and Voges (2014) argue that the failure of many municipalities to comprehensively conceptualise and integrate LED in the entire plans and units of the 49 local government is a serious challenge. Furthermore, LED is failing because of a lack of current, fresh, and valuable local data informing local officials and then there is no effort to diagnose the real LED challenges and opportunities within the locality (Hofisi & Mbeda, 2014). The research has found that LED is not seen as a central priority compared to other infrastructural initiatives. Below is the response from one of the participants: “Because of competing government priorities in the provision of basic services and the limitation of resources you know interventions such as local economic development they end up being a collateral damage” (Municipal official 02, 2021). 3.3.2.4. Vulnerable groups’ involvement According to Reddy (2014), the vital features of an inclusive district include the adoption of a participatory approach to LED planning where the most vulnerable and marginalised are represented and involved in all critical decision-making relating to planning and implementation of LED irrespective of their gender, religion, race, class, socially and economically status. Additionally, the LED policy (2002) stressed that LED should be led and orientated by the community, and the most vulnerable groups and disadvantaged communities should be prioritised and targeted. The research has found that even though communities are represented in various outreach processes such as the Integrated Development Programme review process and Operation Sukuma Sakhe (OSS), there is a lack of involvement from the most vulnerable groups and previously marginalised in key decision-making of the LED implementation. “The vulnerable groups are not involved, but they are just recipients just waiting because communication has been that way. They are just waiting for jobs, at home the environment and the young democracy has taught them that fold your arms and wait for government intentionally so because If I believe and know what you need you must wait for me” (NGO 01, 2021). 50 “An environment should be created for vulnerable groups to participate in decision- making actively and LED interventions not just receptions of hand out. This will enable vulnerable groups to be innovated and be able to stand by themselves self-sufficient” (Community member 01, 2021). 3.3.2.5. LED promotion and implementation The study found that LED is not coordinated and implemented in a synchronised fashion where national LED policies are translated at the provincial, district and consequently at the local level when LED is coordinated in a very fragmented manner. Local governments are tasked with the responsibilities of promoting and implementing LED. The study found that the district and LMs are promoting LED initiatives, but the concept of pro-poor LED is still not popular or understood by the community. When the participants were asked abou the promotion of LED, they answered: “The Municipality commands all of us, so if the municipality is not involved or absent, LED is not gonna happen in a way that is supposed to happen, which is what we see a lot in our communities where the concept is not even communicated the community is not sensitised they only hear about LED on television, but they haven’t got a clue what it is” (NGO 01, 2021). 51 3.3.2.6. LED initiatives and achievements The research has found many project-based LED initiatives, and SMMEs from different sectors. Many programmes are initiated on the ground, but as previously highlighted, they are still taking place in isolation with no proper coordination. There are agro-processing activities and agriParks, clothing and textile taking place, and paper manufacturers trained and assisted in producing paper. For example, the study found that one of our producers is even producing paper for Unilever and other businesses. There is also youth in cleaning detergents now supplying major chain stores such as Spar and many other retail shops across the district and the province. There is furthermore an income generation project for young people in a bakery who are also producing for the major retail shops in the district. Young people are also involved in farming, growing beans and maize. A total of 40 people have been funded for the various business initiatives within the district by the EDTA department . The agronomy side of the economy focuses mainly on maize and vegetable production for big commercial farmers, even though transport infrastructure is a challenge. The Umvoti Local Municipality is also dominated by forestry plantations and sugar cane, which provide several job opportunities. Although “95% of commercial farmers are sustainable, indicating stability, while only 5% of emerging ones become sustainable” (uMzinyathi, 2018:55). Tourism and many battlefields in the district include Income Battlefield, Isandlwana Blood River, Lillane Springs, and Ngome. These are tourist attractions within the district with massive potential to the growth of the economy of the district. On pro-poor LED initiative, the Department of Agriculture is implementing a massification programme that ensures that every household receives inputs such as seedlings and is supported further to ensure food security. There is also a mandatory allocation of the budget for the pro-poor LED interventions. The budget is broken down into various sectors, such as agriculture, because agriculture is a key economic sector within the district, and funding is set aside to support already-established SMMEs (Municipal official 2, 2021). The Extended Public Works Programme (EPWP) initiative is a significant poverty alleviation programmes implemented in the district. Through the programme, the district assesses the needs of communities and develops programmes focusing on 52 skills development. The EPWP project recruits workers, especially the youth, on a temporary rotational arrangement for 12 months, and the youth are then exposed to various skills during that period. The district, through the EPWP, created 298 jobs opportunities by the end of March 2020 in the areas of grass cutting, craft, mesh wire, land care, car guarding, sewing, disaster management, and early childhood development (uMzinyathi, 2020). Through EPWP, the district trained 75 young people in sewing, producing, and supplying school uniforms to the district schools. “EPWP and CWP play an important role by enrolling youth and other poor people upskill them and allow them to participate in the economy” (NGO 01, 2021). The district has since established uMzinyathi District Development Agency. The development agency is aimed at coordinating development initiatives in all LMs (Rogerson & Lawrence, 2019). The impact of the agency is yet to be felt because its only starting; the district has also initiated district LED forums that bring under one roof all practitioners from LED to have conversation and dialogue on the approaches and what collective interventions there are at the district level. However, the forums are limited to LMs, and government agencies and the private sector are not included (Municipal official 01, 2021). 3.3.2.7. Stakeholders engagement The research found that there is a lack of involvement, collaboration, and partnership of the government, business (private sector), and NGOs. While there are forums at the district level, this is only limited to government agencies and municipal officials’ participation. Private actors and civil society organisations with an interest in LED are not involved in all LED processes, planning, and implementation. Furthermore, the roles and responsibilities of all stakeholders in LED processes are not clarified. Civil society is not mobilised to participate through LED forums or other platforms. There is an OSS local task team structure, a multi-stakeholder that speaks to LED encouraging collaboration, but the private sector is not included, and the structure is not fully functional in most local municipalities 53 LED forums, networks and coalitions are vital to the successful execution and roll out of LED. These forums and networks ensure that the private sector and civil society are also mobilised and actively participate in the LED planning and execution. (Mahlalela, 2014). LED fails because of poor coalitions and network mobilisation for all key stakeholders and partners to participate and contribute to the LED agenda. These stakeholders could come from business, labour, and civil society organisations (Hofisi & Mbeba, 2014). One of the respondents said: “We need to involve everyone in the decision-making; don't underestimate other structures” (Community member 01, 2021). One of the respondents interviewed said: “roles and responsibilities of all stakeholders are not clarified. Civil society is not mobilised as forums are nonexistence even those existing are limited to government agencies as civil society is not involved” (NGO 01, 2021). Stakeholders involved in the district LED apart from the municipality are the Department of Economic Development (provision of funding, capacity building and support), the Department of Agriculture (providing training of farmers and other extension services), the Department of Mineral and Energy (provides support to coal mining, especially in Dundee area), the Department of Labour (ensures conducive working environment and other workers matters), and the Department of Small Business (encouraging small business revolution particularly for youth). Participants interviewed said the following: “The challenge that we have is that we have not yet been successful in ensuring that we are planning for LED at the level of the district with stakeholders” (Government official 01, 2021). “We have a social structure where we sit with other departments such as Social Development, Agriculture, Transport, Health, Education all the departments in our district. We sit with departments and present our plans for all our local municipalities. 54 Senior managers attend the structure only to make decisions, not even LED managers” (Municipal official, 2021). Establishing effective collaborations and networks that fully involve stakeholders in the LED process will return trust and result in long-term partnerships supporting LED implementation (Local 2030, 2016). 3.4. LED challenges and constraints While there are some notable progress and achievement of LED practice across the district, there are major constraints related to funding, skills and resources, and lack of infrastructure. Challenges of low skills, space, and issues of constrained funding sources are translating to the level of understanding of local economic development (Municipal official 01, 2021). 3.4.1. Capacity The study found a lack of LED human resource capacity across the district, particularly at LM levels, to support LED promotion and implementation. However, the study also found that various LMs were in the process of engaging LED officials. This is what some of the respondents said: “I think there should be an investment in first and foremost the human resources adequately skilled human resources to discharge the problem the municipalities” (Municipal official 01, 2021). “In our municipalities, we have capacity issues both human and fiscal were in some cases there is no LED unit at all existing and you can’t expect people to be assisted where there is nobody nor warm bodies” (Municipal official 02, 2021). Hofisi and Mbeba (2014) outline reasons why LED implementation has failed or did not reach the intended results for South Africa and further outline the fundamental 55 difficulties that impact negatively on the success of LED. LED is very complex and has changed significantly with initiatives and efforts centred on benefiting the poor. This has led to some of the major shortcomings and failures in South Africa, such as “the lack of capacity within local government’s human and capital resources” (Hofisi & Mbeba, 2014:99). These facts exist and are evident in most municipalities where you find that there is not even a single member of personnel or unit responsible for LED, and municipalities are struggling to give necessary guidance. Furthermore, Hofisi and Mbeba (2014) argue that failures and shortcomings of LED is attributed to inadequate resources and capacity gaps that are worsened by the inexperience of municipalities to lead, direct and promote LED in local communities. 3.4.2. Infrastructure The study found that the district’s economic opportunities and potential are constrained by the old and decaying infrastructure and the lack of basic infrastructure, including electricity, road conditions, sanitation, and water in some parts of the district. “Important it is the lack of the bulk infrastructure in our district. We have areas, not have water. We’ve got areas that we've got power, poor road conditions and no electricity. Those are some of the things that hinder speedy delivery of services in those areas; I think I’ve covered so far” (Government official 01, 2021). Corresponding to this, the uMzinyathi District LED strategy (2018) has also identified a lack of bulk infrastructure as one of the major barriers to ensuring an enabling conditios for LED to strive. Among other challenges related to infrastructure are poor road conditions, electricity, water, and a limited budget for strategic economic infrastructure (uMzinyathi, 2018). Upgrading infrastructure for poor and marginalised communities is a vital LED role in eradicating poverty (Rogerson, 2002). Bulk infrastructure development such as roads and public transport is vital for the poor communities to transform their lives and generations (Mahlalela, 2014). 56 3.4.3. Funding The study found that accessing and sourcing funding and proper budgeting often challenge municipalities; LED is not adequately funded. Even the little resources allocated are often deviated to technical programmes. One of the respondents said: “We still find local municipalities saying they have a budget of 1 million rand for LED, and in most cases, they don’t even know how to spend that million rands because the real needs do not inform it of poor people on the ground” (Municipal official 02, 2021). The district has managed to roll out many LED projects included in the district LED strategy in 2008. However, projects with high and lasting impact have not been implemented by the district due to budget and funding limitations. Implementing LED initiatives requires a serious investment of funds for the local government LED officials to facilitate LED independently. However, LED units are the least funded mandate of the municipality and often suffer collateral damage. Funding and access have been identified as major challenges for local authorities (DBSA, 2008). The lack of adequate LED funding has been identified as a serious challenge for many local governments, especially rural municipalities, who often are confronted with competing priorities and LED is under-resourced (Hofisi & Mbeba, 2014). 3.5. Job creation and unemployment The joblessness is excessively high, leading to poverty and marginalised communities struggling to put food on the table. According to uMzinyathi (2018), the unemployment rate for the district is estimated to be at 37%. Of the total unemployed, 35.9% are youths younger than 25 years, and 33% are youths between 25 and 34 years. This indicates that a total of 68.9% of the unemployed are younger than 35 years (uMzinyathi, 2018). The government sector is the leading contributor and source of employment in the district, overtaking agriculture. The primary job source within the district is community services, agriculture, retail, and manufacturing at 10.8% (uMzinyathi, 2018). 57 According to the respondents, the primary objective of LED in Umzinyathi is to enable the environment for the people through unblocking barriers that exist, be it in the agriculture sector, or in the informal economy, SMME, and manufacturing or any other industry that concerns local economic development to create growth and job opportunities. Some people are employed in the short term through projects that are taking place, especially construction. The district’s major income and jobs are community services, agriculture, forestry and manufacturing. The biggest employer is community services – many people are working for government, but a large percentage relies on social grants to put the food on the table (Municipal official 02, 2021). According to uMzinyathi (2018), of the total percentage of employed individuals within the district, 71% are employed in the formal sector, which are 18% skilled, 29% semi- skilled, and 24% low skilled in 2016. A large percentage of citizens belong to the semi- skilled category. LED in Umzinyathi is targeted at creating jobs and creating businesses. There is a job linkage centre designed to link people with economic oppurtunities and provide disadvantaged and vulnerable people in the District access to training and skills development. The municipality ensures that LED projects are maximised to reduce poverty by ensuring that IDP projects create job opportunities for local people (Municipal official 01, 2021). One of the responded said: “One of the things we trying to change is this thing of having government as a main employer. At the moment if you look at statistics, I would say out of 10 people working within the district 6 works for government” (Dialogue group 2, 2021). Furthermore, the informal economy also includes a large proportion of the population within the district job market. The sector contributes to the economic activities and job opportunities immensely. The wholesale and retail trade, and accommodation contributed a large portion of employment at 23% in 2016 (uMzinyathi, 2018). Through the Community Works Programme (CWP), the district identifies the most vulnerable people from poor, marginalised backgrounds and assists them in starting their businesses. The CWP programme is a national programme implemented in almost all government levels to recruit unemployed and low-skilled people, especially the youth, and expose them to productive work that improves their ability to generate income (uMzinyathi, 2021). 58 3.6. Poverty According to uMmzinyathi IDP (2020-2021), the poverty pointers indicate that more people within the district are poor than in the previous reports. Umsinga Local Municipality is rated the highest impoverage Municipality, while Endumeni Local Municipality has the lowest number (uMzinyathi, 2020). According to the uMzinyathi IDP (2020-2021), the unemployment rate was sitting at around 37%. Furthermore, the Global Insight (2017) statistics indicate that 60% of the households live below the poverty line within the district mainly due to lack of employement opportunities, and the majority of the people are dependent on social grants. Those who are working form a smaller number. Of importance is the advocacy of LED, and it has not been conducted in a manner whereby everyone wants to do it. It is only those who are willing to improve their situations. “The challenge is that even people themselves are not yet considering LED to help them improve their situations simply because they are waiting for the government to do things for them. Therefore, there is also an element that still needs to be sharpened from most community members for them to be pro-active and do something to improve the community and their own lives” (Government official 01, 2021). The majority of the participants interviewed believe that poverty exists in the district. This is how some of the respondents felt about poverty: “I am aware of the poverty because I work in this district, I live in this district, you see levels of poverty maybe I won’t be statistical in terms of percentage. But we see daily how our people are suffering. Our programmes are trying to address the poverty, but we can never say we are there” (Municipal official 02, 2021). “Levels of poverty are massive, I can’t give you the actual percentages, but the bottom line in terms of why are these large levels of poverty is job opportunities. There are not too many big companies that operate within the space, so jobs are limited. You find a lot of our youth have moved to other bigger centres seeking employment opportunities as far as Johannesburg and Durban” (Municipal official 01,2021). 59 While the district implements various programmes to address poverty through profiling poor communities and individuals and assisting those to form their businesses, it is worrying that LED projects and initiatives do not seem to be producing the results of poverty alleviation and struggling to decrease the levels of poverty among the marginalised communities within the district. 3.7. Conclusion In Chapter 3, clear attention was given on discussing key findings emanating from the data collection process and various themes that emerge from the data analysis process. For each theme, different perspective from the participants are captured, but also referenced to literature with respect to each of the themes. Chapter 4 summarises the whole dissertation and a brief reflection on the study objectives. The chapter gives recommendation on the possible strategies that could be adopted to address the findings. 60 Chapter 4: Conclusion and recommendations 4.1. Introduction Chapter 1 of this dissertation introduced the overall research focus and the research topic the study is addressing. Study aims and objectives were also outlined and discussed in Chapter 1. The research methodology, approach, and design were also described in detail, including the sampling and data collection strategy. Chapter 2 focused on a literature review looking at the description and definition of LED both internationally and within the African context. A brief historical perspective of LED was also discussed in the chapter, focusing on South African LEDs before and post-democracy. The key South African LED legislations that support the implementation of LED were also discussed. Chapter 2 introduced the concept of pro- poor LED, with particular focus on the effects of pro-poor LED on poverty alleviation. In the preceding Chapter 3, key research findings were presented and discussed in detail with all the themes and subthemes. Various themes such as understanding and role, job creation and unemployment, LED drivers, LED legislative documents, LED capacity as well as stakeholder engagement were discussed in this chapter and for each theme and subtheme, findings were presented. Chapter 4 of the dissertation gives a comprehensive summary of the entire study. The study aims and objectives are revisited and briefly reflected upon and how the study sought to achieve these goals. The last section of this chapter provides recommendations focused on themes that have been found and discussed. 4.2. Objectives’ summary and discussion The main aim of the research was to assesses how pro-poor LED strategies improve the lives of poor people in Umzinyathi District Municipality, KwaZulu-Natal. To reach the aim, the study will use the following objectives: • To understand international literature on pro-poor local economic development. 61 • To evaluate the district officials’ level of understanding of pro-poor LED. • To appraise relevant stakeholders’ perception of pro-poor LED and district approach, understanding their roles and expectations. • To analyse the capacity and resource gaps in the Umzinyathi District Municipality to implement pro-poor/inclusive LED. • To recommend strategies and approaches that could stimulate pro-poor LED activities in the district. The study objectives are discussed and summarised below. 4.2.1 Understanding pro-poor LED The major difficulty that many municipalities struggle with is not to focus LED programmes and initiatives on economic growth, but to make sure that the growth is inclusive because it leads to transformation and upliftment of the poor and vulnerable people(Khanya-mrc, 2001). This is important because, LED in South Africa is focused on programmes and activities initiated at the local level collaboratively working with partners to address the socio-economic challenges. The study shows that LED as a concept has become entrenched in the district’s strategic plans as an ideal and something to work towards. However, several key challenges and blockages are hindering the success of LED at all levels. The study reveals that LED is still poorly understood and confused with other developmental and income generation projects at LM levels. There is also great confusion of LED with SMME and other small income generation projects that the municipality is supporting. Furthermore, the study found that there is uncertainty with respect to the definition and execution of LED. It is about poverty alleviation initiatives implemented within the district or should strictly focus on economic growth. Preferably, it should ideally be about a mixture of both. 4.2.2. District officials understanding of LED The government sphere and LED facilitators are confronted with the challenge of interpreting, understanding, and implementing the different LED legislation, policies, 62 and frameworks of LED (Mahlalela, 2014). The study found that there is no consensus in the officials’ general knowledge and understanding of LED as a concept, its role, and key LED process. Their understanding is limited to project-based or focused LED, and the absence of networks and partnerships also explains that there is no support in LED implementation. 4.2.3. Stakeholder perception and roles The most successful LED initiatives are those led collaboratively by private and civil society actors. LED is described and accepted internationally as a locality-based solution implemented collaboratively by local stakeholders, working in partnership to contribute to the growth, addressing poverty and stimulate jobs within the locality (Nel et al., 2003). The World Bank describes LED as “the process by which public, business, and non-governmental 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” (World Bank, 2002:1). The study has found that while there is a district LED forum where all government departments and agencies sit, other stakeholders, especially private actors and civil society organisations, are not included in the LED strategy development process and planning. The study found confusion among private and civil society organisations as roles and responsibilities have not been clarified. The study also reveals an effective collapse in the dialogue between stakeholders, particularly the private and public sectors. 4.2.4. Community inclusiveness and alignment to provincial economic growth For South Africa, various legislative frameworks have been developed to promote and drive inclusiveness concerning local economic development. Pro-poor initiatives and participation of the marginalised groups are at the centre. However, monitoring in terms of long-term impact is lacking (Reddy, 2014). Inclusiveness is focused on growth and equity in a particular locality where all groups of people, especially the most vulnerable, irrespective of their social status, gender, race, and ethnicity, participate in crucial decision-making and planning processes of LED. Furthermore, a municipality 63 that is inclusive addresses inequality and poverty of the marginalised and indigent communities (Reddy, 2014). In addition, Breitenbach (2006:9) proposes that it can only be an inclusive LED if all roleplayers work in partnership to facilitate sustainable economic growth and create job opportunities. One of the national framework pillars is focused on developing inclusive economies, and the key to this is an inclusive rural economy, youth empowerment, and women’s economic emancipation. The national framework further suggests that this can be achieved through strong collaborations with the private sector and EPWP and CWP (Cogta, 2014). Notably, the KwaZulu-Natal Provincial Growth and Development Strategy (PGDS) focused on an “accelerated and shared economic growth through catalytic and developmental interventions, within a coherent, equitable spatial development architecture, putting people first, particularly the poor and vulnerable communities” (KZN Planning Commission, 2012). As highlighted, the study found that marginalised groups were not represented and did not participate in key LED decision-making processes. 4.2.5. Resources gaps to implement pro-poor The major reason for LED failures has been identified in many municipalities as the lack and capacity gaps in human and financial resources (Oranje & Voges, 2014). The study found that there are serious LED resource constraints, especially at the local municipality level. LED is not adequately funded and properly allocated a budget, and there is a shortage of LED personnel with relevant skills. In one LM, they had just appointed an LED manager. The gaps in capacity and constraints can be summarised into funding, infrastructure and capacity in terms of LED personnel. 4.3. Recommended strategies In uMzinyathi, it is clear that LED has a vital role in addressing poverty, ensuring growth that is focused on creating jobs for the most vulnerable and marginalised communities. To achieve this, the research proposes key recommendations for the municipality in alignment with the key findings and the literature review for considerations. 64 4.3.1. Consensus on the knowledge and understanding of LED among district officials The municipality should develop a clear and localised definition of LED, particularly pro-poor LED, to guide LED implementation in all local municipalities. The definition should encompass both elements of poverty and economic strengthning. This must cover training package to improve the knowledge and practices of LED officials and management. Furthermore, a roadshow to the community is recommended so that they become more aware of LED and the importance of their participation. 4.3.2. LED coordination and planning LED projects, whether led by the municipality or other private actors, must be carefully assessed and selected based on viability and potential for sustainability. Coordination among all key roleplayers interested in LED should be strengthened and enhanced. This does not mean the municipality should establish new platforms, but should rather strengthen the existing LED forums, local task team, and business chambers by ensuring that all stakeholders, including the marginalised groups and private sector representatives, are invited and encouraged to participate. This is key because when planning and coordinating together, the implementation is so much easier, and in this way, all stakeholders are aware of the plans and prioritised implementation. One of the respondents recommended that for coordination to improve: “We need a strong political buy-in. We also need communities themselves to stand up advise us as to what will work for them. The one plan one district model that is being implemented will go along mileage in ensuring that people also participate effectively, but we also need civil organizations as well” (Government official, 2021). 4.3.3. Resource gaps to implement LED It is recommended that LED should be prioritised and integrated into all municipal strategic planning. It must be elevated and viewed beyond a line function, but should 65 also be supported by all government agencies and units, which include budgetary priorities. There is a need to carefully select officials with the appropriate skills to facilitate and manage LED interventions; only people with previous practical business experience. The municipality must ensure adequate funding, proper monitoring tools and that officials are constantly trained on new developments. Additionally, funding should be sourced and mobilised from international and non-government donors to support the LED unit’s capacity. LED in municipalities should perhaps be led by someone with business acumen. A municipal official interviewed and recommended that: “We need to centralise the local economic development function and not decentralized to the local municipalities because it narrows the capacity of municipalities. The province must be able to provide municipalities with practitioners of LED in the various specialty's such as policy, execution, investment raising etc. per district so the Umzinyathi team can support all the municipalities as opposed to one person because then they will be overwhelmed by requirements of the municipalities because the function is too broad. So I recommend investing in the skilled human capital that are specialists in each core component of local economic development centralised at district and then all municipalities will benefit from their support.” (Municipal official 01, 2021). “I recommend that let’s have our house in order, by having our LED units beefed up, so that we have someone who will focus on investment promotion, focusing on agriculture and someone focusing on LED in tourism” (Municipal official 02, 2021). There is an immediate need to get LED managers and officers on board and trained for some of the LMs to roll out LED initiatives. 4.3.4. LED networks, partnership, coalitions and vulnerable groups’ representation The municipality has already created smooth relationships, coordination, and collaboration among concerned government stakeholders. However, the municipality needs to consider in its next LED strategy development process or design inclusion of all actors in joint planning, implementing and evaluating of the overall implementation 66 of LED within the municipality. The municipality must reconsider recreating local business chambers and LED forums. Such networks must not be limited to government agencies, but should be extended to all stakeholders with economic development vision and interest. Civil society organisations such as NGOs, including church partnerships or fraternal organisations, have an essential role in LED implementation and planning. The municipality must also encourage effective participation, representation and involvement of the marginalised communities in all LED stages. One of the respondents interviewed also recommended that: “Municipality should partner with business and private sector, and they must be trusted with business because there are there and they are the light bearers and they are running with this light. They have made it, and they have been through many storms, and they have survived if the government can trust them and allow them to account, then we will have a peaceful and prosperous. All in all, we need private sector involvement in LED. LED and tourism is one as the same thing if we can bring these units together maybe we can achieve something” (Dialogue group 01, 2021). This emphasises a strong need to engage with businesses and ensure the buy-in of LED programmes by local leaders, local level forums and partners. These structures must support and co-operate with beneficiaries. 4.3.5. LED policies and other LED frameworks LED policies must make the economic environment conducive to encouraging entrepreneurship, promoting SMME development, and supporting economically viable projects with high growth potential to address poverty. LED officials, including other units and management, should be appropriately oriented on the existing comprehensive LED strategy and other LED frameworks. All stakeholders interested in LED should be mobilised and encouraged to take part in the LED strategy processes and stages. It is also recommended that LED strategy should be implemented in a manner that converts petty LED projects into catalytic projects that matter to the economy and job creation within the district. 67 4.4. Limitations of the study Umzinyathi District is widely spread with four local municipalities. The sample size was a bit small, as is usually the case with qualitative research, but this was also worsened by the Covid 19, limiting and discouraging inter-regional travel. The limitation of sample size is exacerbated because there was no funding for the study to cover the entire district and more LMs. The study adopted virtual interviews because of Covid 19. This limitation takes away face-to-face interaction, which often leads to trust between the interviewer and the participant. I could only speak to a few participants, I feel I could have spoken to more community members and political leaders. As indicated previously, LED is mandated to local municipalities, a much-politicised environment, especially in rural communities such as uMzinyathi. One of the limitations that the study had to struggle with is managing deliberate misinformation by certain respondents. The study was executed during the contested local government election in South Africa; this caused a serious limitation to the study in many ways; for example, availability of participants, misunderstanding, and confusion of the study with other political campaigns that were going on. As a result, the study struggled to get the political perspective of the LED implementation in the district as portfolio leaders were campaigning for their parties. The limited number of LMs that participated in the study is a limitation, primarily because LED is locally based. Also, the newly established uMzinyathi Development Agency was not interviewed and this is also considered as a limitation for the study. 4.5. Future research For future research, I could research more districts and include more local municipalities as respondents. I would also look at studying more community members and other local stakeholders from different LMs interested in LED. For future research, uMzinyathi Development Agency should be considered as one of the participants since they have taken over LED planning and implementation in the district. It would perhaps be interesting to do a follow-up study in other districts in KwaZulu-Natal (and the rest of South Africa) in order to compare the results. It would be good to include a 68 municipality that is successful in LED in the study to be able to provide best practice and lessons learnt. 4.6. Concluding remarks The high unemployment rate, especially among the youth, clearly indicates that LED is struggling to live up to the expectations of promoting economic growth, reducing poverty, and creating job opportunities. Many blockages hinder the effective implementation of LED, and these challenges relate to low skills, funding shortages, and other resources to fulfil the mandate. 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[Online] Available at: http://projects.nri.org/reed/workingpaper3.pdf [Accessed 21 March 2021]. Writer, S. 2016. The richest and poorest municipalities in South Africa. BusinessTech, [online] p.1. Available at: https://businesstech.co.za/news/wealth/127213/the-richest- and-poorest-municipalities-in-south-africa/ [Accessed 8 January 2022]. World Bank, 2002: Defining LED.[Online] Available at www.worldbank.org/urban/led/defining.htm[ Accessed 29 October 2021]. World Bank, 2018. Overcoming poverty and Inequality in South Africa, Washington DC: World Bank Group. APENDICES 77 APPENDIX A: Ethical clearance approval 78 APPENDIX B: Request for permission: uMzinyathi District Municipality Dear Municipal Manager, Umzinyathi Municipality I am Christopher Ndlovu, a student at the University of the Free State. I am doing research on pro- poor local economic development. I would like to request your permission to conduct the research within the district LED division, the council as well as other LED actors within the district. I would like to request permission to interview the following people or role players: 1. Municipal manager 2. LED manager/director 3. LED portfolio councillor 4. EPWP coordinator 5. LED forum chair or secretary 6. District task team/DTT chair or secretary DATE 1 May 2021 to 30 November 2021 PRO-POOR LOCAL ECONOMIC DEVELOPMENT PRINCIPAL INVESTIGATOR/RESEARCHER’S NAME(S) AND CONTACT NUMBER(S): Christopher Ndlovu 2019819222 0842585556 FACULTY AND DEPARTMENT: Faculty of Economics and Management Sciences Centre for Development Support STUDY LEADER NAME AND CONTACT NUMBER: Name of study leader: Dr Deidre Van Rooyen Contact number: 051 401 7059 WHAT IS THE AIM/PURPOSE OF THE STUDY? The study investigates the extent to which pro-poor LED strategies are contributing to the improvement of lives of poor people. The study aims to determine the critical success factors that will support the planning and implementation of LED in local government. 79 WHO IS DOING THE RESEARCH? I, Christopher Ndlovu, master’s student at the University of the Free State. My contact details are as follows: email: chrisndlovu44@gmail.com, cell phone: 084 25 85556. The study is conducted for the purpose of fulfilling the requirements of a master’s degree in Development Studies. It entails research on pro-poor local economic development. HAS THE STUDY RECEIVED ETHICAL APPROVAL? This study has received approval from the Research Ethics Committee of UFS. A copy of the approval letter is also attached. Approval number: WHY ARE YOUR INSTITUTION/ORGANISATION/COMPANY INVITED TO TAKE PART IN THIS RESEARCH PROJECT? In terms of local economic development framework, local governments are mandated to promote planning and implementation of LED in the local governments. The Constitution of the Republic of South Africa provides local governments with the power and authority be democratic and be accountable for government in local communities. The Constitution gives effect to the planning and implementation of LED initiatives in local governments. It encourages them to ensure the provision of quality, sustainable, reliable and affordable services to the local communities. Due to this mandate and key responsibilities the district municipality and the municipality LED beneficiaries were chosen for this study. The study will involve 15-20 participants from the District Municipality, including LED employees, LED Council, LED beneficiaries), NGOs, Community Development Workers and local communities). The following criteria will be used to select the participants for the study. To qualify for the study, a participant must have more than two years of work experience on the implementation LED. In addition, a participant must have knowledge of LED planning and implementation. Moreover, a participant must belong to the categories mentioned above. WHAT IS THE NATURE OF PARTICIPATION IN THIS STUDY? The participant will be requested to respond to the question as per the interview schedule. Interviews will be recorded in order to assist the researcher when doing data analyses. The field work exercise in anticipated to last for a period of the month but the study will be completed by the end November 2021. To achieve the broad aim of the study, participants would be required to explain their own knowledge and understanding on how local economic development is implemented within other international contexts. To determine the legislative frameworks that promote local economic development in District Municipality. To identify critical factors that support planning and implementation of local economic development in the District Municipality. To explain how local economic development contributes to 80 addressing unemployment in the District Municipality, and to explain the role of local economic development in addressing poverty in the District Municipality. WHAT ARE THE POTENTIAL BENEFITS OF TAKING PART IN THIS STUDY? There will be no materialistic or monetary benefits for participating in the study. However, participation may be beneficial to the municipality in terms of findings and recommendation. Findings and recommendation may be of assistance to the municipality by getting the feedback on LED implementation. They can also assist in future planning and implementation of LED programmes. WHAT IS THE POTENTIAL RISKS TAKING PART IN THIS STUDY? A crucial anticipated risk in the study is the COVID-19 pandemic. However, risk will be mitigated by following the Covid 19 regulation, which include washing of hands, sanitising, wearing of masks and keeping of reasonable social distancing when conducting the study. Telephonic interviews will also be done with those participants who may not be comfortable with the physical contact. WILL THE INFORMATION BE KEPT CONFIDENTIAL? The consent of the participants will be sought prior to the study. The participants’ anonymity will be protected by substituting their personal information with pseudonyms within the dissertation and future publications. In terms of confidentiality, data collected from the participants will be used only for its intended purpose. The transcribed data will be stored on USB and will be kept at a secured place within the university. Participants’ answers will be given a fictitious code number or a pseudonym and they will be referred to in this way in the data. Participant’s answers may be reviewed by people responsible for making sure that research is done properly, including the transcriber, external coder, and members of the Research Ethics Committee. Otherwise, records that identify participants may be available only to people working on the study, unless participants give permission for other people to see the records. A report of the study may be submitted for publication, but individual participants will not be identifiable in such a report: While every effort will be made by the researcher to ensure that participants will not be connected to the information that will sought during interviews especially on the side of the beneficiaries. We cannot guarantee that other participants will not share given information. We shall, however, encourage all participants to keep their responses confidential. We will explain to the participant they can withdraw from the study at any time with no negative consequences. HOW WILL THE INFORMATION BE STORED AND ULTIMATELY DESTROYED? All data, both electronic and hard copy, will be securely stored during the study and archived for 5 years. After this time, all data will be destroyed. Hard copies of your answers will be stored by the researcher for a period of five years in a locked cupboard/filing cabinet for future research or academic 81 purposes; electronic information will be stored on a password protected computer. Future use of the stored data will be subject to further Research Ethics Review and approval if applicable. Indicate how information will be destroyed. WILL THERE BE PAYMENT OR ANY INCENTIVES FOR PARTICPATING IN THIS STUDY? Participation in the study is voluntary and by participating, the participants will be granting the researcher permission to use their responses. Participants may refuse to participate or withdraw from the study at any time with no negative consequence. There will be no monetary gain from participating in the study. Anonymity will be maintained by the researcher and University of Free State and responses will not be used for any other purposes outside of this study. No cost will be incurred from the side of the participants. All Covid 19 associated risk will be curbed by following all Covid 19 regulations when doing the study, that will include sanitising, wearing of masks and social distancing. Include any risk that may come from others identifying the person’s participation in the research. HOW WILL THE INSTITUTION / ORGANISATION / COMPANY BE INFORMED OF THE FINDINGS / RESULTS OF THE STUDY? If you would like to be informed of the final research findings, please contact the researchers: Christopher Ndlovu 084 258 5556 or chrisndlovu44@gmail.com). The findings will be available for the period of five years after the completion of the study. Should you require any further information or want to contact the researcher about any aspect of this study, please contact the researcher on the above stated contacts. Should you have concerns about the way in which the research has been conducted, you may contact my supervisor Dr Deidre Van Rooyen from the University of the Free State at the following contacts: telephone 051 401 7059, email address: griesd@ufs.ac.za. Yours sincerely Christopher Ndlovu 82 APPENDIX C: Study information leaflet and consent form DATE: 31 March 2021 Date of research project: 1 May-30 November 2021 TITLE OF THE RESEARCH PROJECT PRO-POOR LOCAL ECONOMIC DEVELOPMENT PRINCIPAL INVESTIGATOR/RESEARCHER’S NAME AND CONTACT NUMBER: Christopher Ndlovu 2019819222 0842585556 FACULTY AND DEPARTMENT: Faculty of Economics and Management Sciences Centre for Development Support STUDY LEADER(S) NAME AND CONTACT NUMBER: Dr Deidre Van Rooyen 051 401 7059 WHAT IS THE AIM / PURPOSE OF THE STUDY? The study investigates the extent to which pro-poor LED strategies are contributing to the improvement of life of poor people. The study aims to determine the critical success factors that will support the planning and implementation of LED in local government. WHO IS DOING THE RESEARCH? Christopher Ndlovu, master’s students at the University of Free State. Our contact details are email: chrisndlovu44@gmail.com cell phone numbers 084 25 85556. The study is conducted for the purpose of fulfilling the requirements of master’s degree in development studies. It is research on pro-poor local economic development. HAS THE STUDY RECEIVED ETHICAL APPROVAL? This study has received approval from the Research Ethics Committee of UFS. A copy of the approval letter can be obtained from the researcher. Approval number: UFS-HSD2021/0380/21 83 WHY ARE YOU INVITED TO TAKE PART IN THIS RESEARCH PROJECT? In terms of local economic development framework, local governments are mandated to promote planning and implementation of LED in the local governments. The Constitution of the Republic of South Africa provides local governments with the power and authority be democratic and be accountable for government in local communities. The Constitution gives effect to the planning and implementation of LED initiatives in local governments. It encourages them to ensure the provision of quality, sustainable, reliable and affordable services to the local communities. Due to this mandate and key responsibilities the district municipality and the municipality LED beneficiaries were chosen for this study. The study will involve 15-20 participants from the District Municipality, including LED employees (2-4), LED Council (2-4), LED beneficiaries (3), NGOs (3), Community Development Workers (3) and Dialogue groups and local communities (3). The following criteria will be used to select the participants for the study. To qualify for the study, a participant must have more than two years of work experience on the implementation LED. In addition, a participant must have knowledge of LED planning and implementation. Moreover, a participant must belong to the categories mentioned above. WHAT IS THE NATURE OF PARTICIPATION IN THIS STUDY? The participant will be requested to respond to the question as per the interview schedule. This time could be loss of work time or personal time. Each interview should not take longer than an hour (1). Interviews will be recorded in order to assist the researcher when doing data analyses. The field work exercise in anticipated to last for a period of the month but the study will be completed by the end November 2021. To achieve the broad aim of the study participants would be required to explain their knowledge and understanding on how local economic development is implemented in other international contexts. To determine the legislative frameworks that promote local economic development in District Municipality. To identify critical factors that support planning and implementation of local economic development in the District Municipality. To explain how local economic development, contribute to addressing unemployment in the District Municipality, and to explain the role of local economic development in addressing poverty in the District Municipality. CAN THE PARTICIPANT WITHDRAW FROM THE STUDY? There will be no materialistic or monetary benefits for participating in the study. However, participation may be beneficial to the municipality in terms of findings and recommendation. Findings and recommendation may be of assistance to the municipality by getting the feedback on LED implementation. They can also assist in future planning and implementation of LED programmes. 84 WHAT ARE THE POTENTIAL BENEFITS OF TAKING PART IN THIS STUDY? A crucial anticipated risk in the study is the COVID-19 pandemic. However, risk will be mitigated by following the Covid 19 regulation, which include washing of hands, sanitizing, wearing of mask and keeping of reasonable social distancing when conducting the study. Telephonic interviews will also be done with those participants who may not be comfortable with the physical contact. WHAT IS THE ANTICIPATED INCONVENIENCE OF TAKING PART IN THIS STUDY? A crucial anticipated risk in the study is the COVID-19 pandemic. However, risk will be mitigated by following the Covid 19 regulations, which include washing of hands, sanitising, wearing of mask and keeping of reasonable social distancing when conducting the study. Telephonic interviews will also be done with those participants who may not be comfortable with the physical contact. WILL WHAT I SAY BE KEPT CONFIDENTIAL? The consent of the participants will be sought prior to the study. The participants’ anonymity will be protected by substituting their personal information with pseudonyms within the dissertation and future publications. In terms of confidentiality, data collected from the participants will be used only for its intended purpose. The transcribed data will be stored on USB and will be kept at a secured place within the university. Participants’ answers will be given a fictitious code number or a pseudonym and they will be referred to in this way in the data. Participant’s answers may be reviewed by people responsible for making sure that research is done properly, including the transcriber, external coder, and members of the Research Ethics Committee. Otherwise, records that identify participants may be available only to people working on the study, unless participants give permission for other people to see the records. A report of the study may be submitted for publication, but individual participants will not be identifiable in such a report: While every effort will be made by the researcher to ensure that participants will not be connected to the information that will sought during interviews especially on the side of the beneficiaries. We cannot guarantee that other participants will not share given information. We shall, however, encourage all participants to keep their responses confidential. We will explain to the participant they can withdraw from the study at any time with no negative consequences. HOW WILL THE INFORMATION BE STORED AND ULTIMATELY DESTROYED? All data, both electronic and hard copy, will be securely stored during the study and archived for 5 years. After this time, all data will be destroyed. Hard copies of your answers will be stored by the researcher for a period of five years in a locked cupboard/filing cabinet for future research or academic purposes; electronic information will be stored on a password protected computer. Future use of the stored data will be subject to further Research Ethics Review and approval if applicable. 85 WILL I RECEIVE PAYMENT OR ANY INCENTIVES FOR PARTICPATING IN THIS STUDY? Participation in the study is voluntary and by participating, the participants will be granting the researcher permission to use their responses. Participants may refuse to participate or withdraw from the study at any time with no negative consequence. There will be no monetary gain from participating in the study. Anonymity will be maintained by the researcher and the University of the Free State and responses will not be used for any other purposes outside of this study. No cost will be incurred from the side of the participants. All Covid 19 associated risk will be curbed by following all Covid 19 regulations when doing the study, that will include sanitising, wearing of masks and social distancing. Include any risk that may come from others identifying the person’s participation in the research. HOW WILL THE PARTICIPANT BE INFORMED OF THE FINDINGS / RESULTS OF THE STUDY? If you would like to be informed of the final research findings, please contact the researchers: Janet Thandekile Ntetha 076 961 3457 or londwangezwi@gmail.com or Christopher Ndlovu 084 258 5556 or chrisndlovu44@gmail.com. The findings will be available for the period of five years after the completion of the study. Should you require any further information or want to contact the researcher about any aspect of this study, please contact the researcher on the above stated contacts. Should you have concerns about the way in which the research has been conducted, you may contact my supervisor Dr Deidre Van Rooyen from University of Free State at the following contacts: telephone 051 401 7059, email address: griesd@ufs.ac.za. Thank you for taking time to read this information sheet and for participating in this study. 86 CONSENT TO PARTICIPATE IN THIS STUDY I, _____________________________________ (participant name), confirm that the person asking my consent to take part in this research has told me about the nature, procedure, potential benefits and anticipated inconvenience of participation. I have read (or had explained to me) and understood the study as explained in the information sheet. I have had sufficient opportunity to ask questions and am prepared to participate in the study. I understand that my participation is voluntary and that I am free to withdraw at any time without penalty (if applicable). I am aware that the findings of this study will be anonymously processed into a research report, journal publications and/or conference proceedings. I agree to the recording of the insert specific data collection method. I have received a signed copy of the informed consent agreement. Full name of participant: _____________________________________________________________ Signature of participant: ____________________________________ Date: ____________________ Full name(s) of researcher(s): _________________________________________________________ Signature of researcher: ____________________________________ Date: ____________________ 87 APPENDIX D: Local economic development interview schedule for municipal and government officials INTERVIEW GRID Part A: Biographical information This part of the interview deals with the participants’ demographic information concerning gender, age, population group, educational qualification, employment status, tenure, monthly income and organisation belong to. Please tick (√) in the most appropriate box that relates to your biographical information. A.1 Gender Male Female Other A.2 Age 18-25 years 26-30 years 31-40 years 41-50 years 51-60 years 61 year and above A.3 Race African Indian White Coloured Other A4. Level of education Less than matric Matric Higher certificate 88 Diploma Postgraduate diploma Bachelor’s degree BTech/Honours Master’s PhD Other A5. Are you employed? Yes No A.6 What is your employment status? Full-time Part-time Contract Other A.7 How long have you been working 1-2 years 3-5 years 6-8 years 9-11 years 12-15 years 16-19 years > 20 years A.8 What is your income level per month? R51000 A.9 Which of these categories do you belong to? LED employee LED council LED beneficiaries Dialogue groups and local communities Other SECTION C: QUESTIONS TO THE GOVERNMENT AND MUNICIPAL OFFICIALS C.1. Role of LED in addressing youth unemployment C.1.1 What is your understanding of pro-poor LED? ………………………………………………………………………………………………………………………… Are you aware of the factors that affect job creation in the District Municipality? Yes/ No C.1.2 If yes, describe those factors that affect job creation in the District Municipality. ……………………………………………………………………………………………………………………… C.1.3 Based on your LED understanding, can LED help to mitigate rising youth unemployment in District Municipality? Yes/No C.1.4 If yes, describe the manner in which LED planning and implementation can help to mitigate unemployment in District Municipality. ………………………………………………………………………………………………………………………… C.1.5 What are the LED initiatives introduced by the municipality/department to help address youth unemployment in the local community? ………………………………………………………………………………………………………………………… C.1.6. What is considered as the main source of income and jobs within the district? ………………………………………………………………………………………………………………………… C.2. STAKEHOLDER ENGAGEMENTS C.2.1. Are there any other stakeholders involved in planning, implementation and promotion of pro-poor LED? Yes/no C.2.2. If yes, what is their role and how is their participation? ……………………………………………………………………………………………………………………………… C.3. Role of LED in reducing poverty C.3.1 Are you aware of the poverty level in District Municipality? Yes/No C.3.2 If yes, what is identified as the causes of poverty among the youth District Municipality? 90 C.3.3. What are major challenges that hinder service delivery to the poor within the district? ………………………………………………………………………………………………………………………… C.3.4. How have you used lessons learnt from these challenges to improve on LED implementation? ………………………………………………………………………………………………………………………… C.3.5. What pro-poor LED initiatives are implemented within the district in respect of poverty alleviation? ………………………………………………………………………………………………………………………… C.3.6. What is main achievement of pro-poor LED in respect of poverty alleviation within the district. ………………………………………………………………………………………………………… C.3.7. How can LED planning and implementation help to address poverty among the youth in the District Municipality? …………………………………………………………………………………………………………… SECTION G: Further recommendations and suggestions (for all participants) 1.1 Are there any recommendations and suggestions that you would like to add to this study? ………………………………………………………………………………………………………………………………… 91 APPENDIX E: Language editor confirmation letter 92 To whom it may concern Cecile van Zyl Language editing and translation Cell: 072 389 3450 Email: Cecile.vanZyl@nwu.ac.za 13 January 2022 Dear Mr / Ms Re: Language editing of dissertation (Pro-poor local economic development (LED): The case of Umzinyathi District Municipality, KwaZulu-Natal) I hereby declare that I language edited the above-mentioned dissertation by Mr Christopher Ndlovu (student number: 2019819222). Please feel free to contact me should you have any enquiries. Kind regards Cecile van Zyl Language practitioner BA (PU for CHE); BA honours (NWU); MA (NWU) SATI number: 1002391 93 APPENDIX F: Turn it in report 94