The Impact of Local Economic Development (LED) on Poverty Alleviation in South Africa: A Theoretical View

Abstract

The purpose of this study was to evaluate the impact of the Local Economic Development (LED) policy on growing South African local economies as well as transforming the lives of previously disadvantaged groups. South Africa has had challenges in its endeavor to strike a balance between developing pro-growth and pro-poor LED strategies resulting in many scholars branding ‘LED strategies in the country as more of pro-growth rather than pro-poor’. This argument has therefore put the role of LED as a tool for poverty alleviation in the spotlight. Thus, to really establish the real picture on the ground this study was carried out using qualitative research approach where reference was also be made to LED campaigns on a global level.  The findings of this study include: Lack of common understanding of the role of LED and LED processes, Ineffective pro-poor LED strategies, Lack of LED that suits the South African context, Inability of LED to spatially transform South African cities, Inadequate planning resources and capacity and The ineffective relationship between provinces, districts and local authorities. The study therefore recommends the following: an obligatory level of accountability and responsibility from all role players affected by the projects, Rigorous monitoring and evaluation of the outcomes of LED projects, striking a balance between pro-poor and pro-growth strategies and heightening investments and resource deployment toward historically disadvantaged communities.

Keywords: Local Economic Development (LED), Poverty Alleviation, Historically Marginalized Communities.

DOI: 10.7176/JPID/55-06

Publication date:August 31^st 2020