ABSTRACT

For the last two decades, Local Economic Development (LED) has been one of the key development strategies used by local government in South Africa to achieve pro-poor development. This core mandate is driven by legislation and the requirement that all local governments develop an Integrated Development Plan (IDP) that would spell out the desired LED objectives. Yet, despite the clear policy and legislative process guiding the LED initiatives in local government, there has been relatively little local level growth and development from LED. There is a clear indication that the pro-poor development initiatives have a limited spin-off effect of many LED programmes. A more market driven approach often leads to a clear general increase in economic activity. While in a country as unequal as South Africa, there is a clear mandate for pro-poor development, this development still needs to have a spin-off development that simulates the local economy and contributes to jobs and growth. This chapter will explore the multiple models of LED in Africa with specific focus on LED in South Africa with findings showing that many LED projects in South Africa are pro-poor interventions with limited spin off into a broader geographical area.