ABSTRACT
Local governments in South Africa are currently grappling with the concept of local economic development (LED), which is seen as a tool through which to achieve sustainable development. LED has increasingly become an important component of their core function and local governments are faced with the challenge of developing sustainable settlements that will meet the basic needs of local communities and, simultaneously, improve their quality of life and contribute to the growth of the local economy. In order to achieve the goal of developing sustainable settlements, local authorities need to have a comprehensive understanding of the different social and economic dynamics operating within their area, to address developmental backlogs and to plan for future socio-economic requirements. It is for this reason that integrated development planning, of which local economic development is a key component, has become a distinct approach to try and achieve sustainable development within localities in South Africa. Integrated development planning, in principle, allows for a comprehensive understanding of the locality and an opportunity to devise a vision, and strategies to achieve this vision, in an inclusive manner. In South Africa, the Municipal Systems Act (Republic of South Africa, 2000) has made it a legal requirement for municipalities to produce integrated development plans (IDPs). The IDPs were largely a reaction to the outdated and inappropriate planning that was taking place at a local level, but are also an attempt to achieve a more appropriate and integrated system for planning and delivery at the municipal level. IDPs are 132supposed to be seen as part of the mainstream planning process of municipalities where available resources are allocated to particular development priorities and strategies (DPLG, 2000a). Historically, planning at a local level was very technical, focussed strongly on land use and infrastructure plans and was largely unconcerned with the social and economic dimensions of development. The aim of the IDP process is therefore to address these inefficiencies and to transform the municipal planning process to one that pursues sustainability. Integrated development planning is regarded as one of the key tools for local government to cope with its new developmental role (Mufamadi, 2000). The IDP process is meant to arrive at decisions on issues such as local economic development in a more consultative, systematic, and strategic manner.
