In this study, Local Economic Development (LED) is defined as an outcome of processes aimed at building the capacity of local areas for sustainable economic development. The study intended to investigate the challenges faced by Eastern Cape municipalities in implementing the LED programme. A sample of ten participants was drawn from two LED projects. The sample was distributed evenly with five beneficiaries per LED project. Data was collected using qualitative research methods through questionnaires. The sampling technique used was purposive to enable the researcher to select specific beneficiaries from each project and to allow the LED official responsible for each project to participate in the study. Budgetary constraints and staff shortages were identified as the main challenges facing the Great Kei Local Municipality. These two challenges have made it difficult for the municipality to implement proficiently LED programmes that are meant to effectively eradicate poverty and create employment. It is therefore recommended that the municipality should form partnerships with the private sector to boost the local economy by way of cooperative delivery of services, funding of projects and the supplementing of the municipal budget. The private enterprise/sector in an economy includes all large, medium, small and micro-enterprises (SMMEs). For example, large mining companies and factories as well the smallest spaza shop or stall at a taxi rank are part of private enterprise in a local economy. Whilst regulating such companies by way of licenses and taxes to raise national revenue, the government has limited control in the determination of how these enterprises are run. The result of such partnerships between the municipality and private sector will hopefully be the realisation of “a better life for all” as local people will be employed through investment promotion.

The commercialisation of natural resources such as medicinal plants is a strategy that is increasingly being employed by poor people in developing countries such as South Africa, as a means of generating an income. Increasing economic hardship and a lack of employment opportunities in the formal sector of the economy has led to many urban dwellers seeking alternative means of meeting their everyday livelihood needs. Although the contribution of natural resources to subsistence economies is widely recognised, there are few studies that have examined the significance of the trade in medicinal plants to the livelihoods of poor and marginalised people. Thirty informal street traders were interviewed to investigate the role of the medicinal plant trade in sustaining the livelihoods of the traders who operate in the informal sector of the Nelson Mandela Bay Municipality, South Africa. The findings of the research indicate that the sale and collection of medicinal plants is an activity which is exploited by people with limited resources, few skills, little or no education and often without any other source of household income. Middle-aged women from impoverished, single income households dominated the trade. Although income from the trade is modest, it contributed substantially to the total household cash income of the traders. Other benefits of the trade included independence and having a sense of purpose in life, as the traders felt that they were not only helping their families but also the wider community. However, without the income from the trade, many of the traders and their families would be destitute and thus the medicinal plant trade is vital to the wellbeing of these people.

The Society for Conservation Biology held their 21st annual conference in Port Elizabeth during July 2007. This was the first SCB conference hosted on the African continent. Over 1500 conservation professionals and students from throughout the world were brought together by the SCB annual meeting. The local organizing committee was interested in the economic impacts associated with the conference and approached the NMMU Economics Department to conduct an economic impact assessment of the conference. The Economics Department invited the researcher to undertake this study towards obtaining an MCom degree in Economics. The economic impact of conferences stems from two sources, namely: expenditure by delegates (the demand-side) and the expenditure by conference organizers (the supply-side). The study focused on the economic impacts of the conference for the Eastern Cape. The conference expenditure produced an increase in demand in the Eastern Cape. Only new expenditure originating from outside the Eastern Cape were considered. An increase in the demand for one industry’s output will create additional demand for the outputs of its supplying industries, because industries are connected through forward and backward linkages. These inter-industry linkages produce a multiplier effect. The initial direct conference expenditure created secondary impacts. The latter were indirect and induced expenditures. In addition to secondary impacts, the SCB conference produced spill-over impacts. The spill-over impacts of the conference were noted (but not quantified). The expenditure by delegates was determined by means of a delegate expenditure questionnaire conducted during the conference. The expenditure by the conference organizers was determined in consultation with the organizers, using their financial statements. The multiplier impacts were estimated by means of an input-output (IO) analysis, using a Social Accounting Matrix (SAM) of the Eastern Cape as the underlying database. These multipliers (Type 1 and 2 multipliers) were estimated using open and closed multiplier models. It was deduced that the 2007 SCB conference created a significant and positive net economic impact in the Eastern Cape. The total direct cash injection of the conference was R12.141 million. Using a Type 1 multiplier this direct stimulus is estimated to have caused an extra R16.502 million increase in gross output. Using a Type 2 multiplier this direct stimulus was estimated to have caused a R19.884 million increase in gross output. The total cash injection of the conference contributed R6.093 million to GVA in terms of a Type 1 multiplier and a R7.344 million increase in GVA in terms of a Type 2 multiplier. Household incomes in the Eastern Cape were increased by R3.384 million. These results confirm that the hosting of major events and conferences is indeed a tool for promoting regional economic development.

The Nelson Mandela Bay area will be used to investigate the ethical and moral considerations faced by the informal sector. It is generally believed that informal sector businesses are characterised by high levels of unethical behaviour. The informal economy in many developing and under developed countries is large in terms of contribution to GDP and number of participants. The informal economy is largely composed of very small businesses that are not registered. They are not operating from suitable premises but run from homes, street pavements and other informal arrangements. In developing countries, self-employment has a greater share of informal employment than wage employment. It represents 70 percent of informal employment in Sub-Saharan Africa (if South Africa is excluded, the share is 81 percent), 62 percent in North Africa, 60 percent in Latin America and 59 percent in Asia. Consequently, informal wage employment in the developing world constitutes 40 percent of the informal employment outside of agriculture (Becker, 2004). The informal economy is as high as 56 percent of GDP in countries such as Georgia, Zimbabwe and Bolivia, where as it represents about 8 to 12 percent of economic activity in advanced or developed economies (Becker, 2004). In South Africa, informal businesses provide a viable alternative for many who are unable to find jobs in the formal sector of the economy.

This study examines Local Economic Development intervention strategies in relation to promoting infrastructural development with specific reference to roads as one of the vital interventions for alleviating poverty in the KSD Municipality. The study sought to evaluate the impact of the deteriorated condition of roads on the growth of economic activity and community development, the understanding of LED by both the Council and the officials, and also to evaluate LED approach on infrastructural development for poverty alleviation. The study reveals that the municipality does not understand the concept of LED as a result this has caused blockages and impediments in terms of implementing the program in the municipality. Though there are some successes achieved through the construction of the 2010 FIFA World Cup Stadium, there are key constraints related to shortages of funds, staff, skills and resources. The study has established that LED is not living up to expectations in the area, there seems to be confusion regarding its definition and application. Furthermore, there is a confusion regarding the purpose of LED whether it is purely about poverty alleviation or whether LED it is about encouraging economic growth. Ideally it should be about the combination of the two. LED clearly has a critical role to play in terms of considerations of poverty alleviation in terms of addressing development backlogs and promoting sustainable economic growth. In order to achieve this, there is a need to establish a permanent LED facilitation and support unit. The need to identify key intervention strategies, for example, the Expanded xii Public Works Program which aims at identifying labor-intensive and community construction methods. In order to achieve this the study details a number of key recommendations which are mentioned below: The need to properly define LED and its goals, also to align LED with business and market realities. There should be adequate and appropriate training of officials, adequate funding and ensuring accountability. Active encouragement of local leaders, local level forums and partnerships and close co-operation with beneficiaries should be encouraged. It is also vital to establish LED units and development agencies at local level to drive LED process. It is also important for the municipality to encourage economically viable projects which meet poverty and growth requirements and which can also encourage SMME development

Unemployment is one of the greatest and most complex challenges facing South Africa. Just like most developing countries, South Africa has been using the fiscal policy framework as a tool to alleviate the high rates of unemployment. This study examined the impact of fiscal policy on unemployment in South Africa. The study used annual time series data for the period 1980 to 2010. A vector error correction model was used to determine the effects of fiscal policy aggregates on unemployment in South Africa. The fiscal policy aggregates considered in this study were government investment expenditure, government consumption expenditure and tax. Results from this study revealed that government consumption expenditure and tax have a positive impact on unemployment while government investment expenditure negatively affects unemployment in South Africa. Policy recommendations were made using these results.

PhD (Financial Management) / Department of Mathematics and Applied Mathematics / See the attached abstract below

M.Tech (Department of Accountancy, Faculty of Management Sciences), Vaal University of Technology. / The provision of infrastructure delivery programmes in Limpopo province is an important agent in the reduction of poverty, unemployment and strengthening of social capital. The infrastructure development programmes create opportunities for job creation through approaches such as maintenance of existing infrastructure in order to retain resources in the local areas. However, the provision of basic infrastructure still faces serious challenges, notwithstanding the fact that the PFMA and Treasury Regulations (issued by the National Treasury in terms of Section 76 of the PFMA) provide for control measures government has put in place for effective and efficient service delivery in general. The objective of this study was to scrutinise management of finances in the planning, implementation and monitoring of infrastructure programmes and further seek to propose measures to strengthen financial management controls in the implementation of infrastructure programmes to bolster service delivery in the Limpopo province. The literature reviewed indicated that successful implementation of infrastructure development in the province depends on skills and knowledge of the players and financial resources. This study used qualitative research methodology in examining the management of finances in the planning, implementation and monitoring of infrastructure programmes in the Limpopo provincial government. An open-ended questionnaire was used to collect data from the participants. The researcher utilised purposive selection method to obtain information from relevant participants who are directly involved in infrastructure management. The study revealed that Limpopo government departments do not utilise capital budgeting models to appropriately plan and fund infrastructure projects. There are challenges, including procurement processes, lack of appropriate skills to monitor and implement infrastructure projects and lack of standard operating procedures to encourage a culture of uniformity, responsibility and accountability in the processing of payments.

Bibliography: leaves 158-162.

Bibliography: pages 94-102. / There is currently much work underway internationally to improve the accuracy and to refine the detail of accounting for health care expenditures. This research was initiated by the increasing activity in the field of national health accounting, as well as by previous research indicating that the Reserve Bank might be underestimating private health care expenditure in the national accounts. The Reserve Bank estimate of health care expenditure is important as it is the only complete and regularly produced estimate of private sector health care expenditure for South Africa. It was posited that an independent estimation of private health care expenditure would show that its magnitude is underestimated in the expenditure estimates published by the Reserve Bank for the national accounts. This thesis was upheld by the results of the research. The thesis estimate of private health care expenditure was R15 billion, 39% higher than the Reserve Bank estimate available at the time. It was also 21% higher than the final Reserve Bank estimate published in December 1995. The methodology used to derive the thesis estimate involved a survey of national income accounting concepts and guidelines embodied in the internationally used publication, the 1993 System of National Accounts. Primary data was collected from a wide range of institutions in the South African health sector. Secondary data sources were also consulted in several instances. In particular, the Registrar of Medical Schemes was consulted for medical scheme expenditure estimates as they constitute the largest portion of private sector health care expenditure in South Africa. The thesis estimate was then calculated for a single year according to the 1993 System of National Accounts guidelines. The year chosen was the government financial year from April 1992 to March 1993. The year was chosen to coincide with the year chosen for a national health expenditure review. In the presentation of the results, the estimate was broken down in separate "sources" and "uses" matrices, which are being used internationally to present national health accounting information. From the comparison of the Reserve Bank and thesis expenditure estimates, one of the most important recommendations that emerged was that the Reserve Bank should consult a wider range of expenditure data sources, more timeously and regularly. In particular, it was suggested that the Reserve Bank should negotiate earlier access to the data held by the Registrar of Medical Schemes, as well as cross-check household survey data with independent estimates of out-of-pocket and statutory scheme health care expenditure. In addition to providing a new benchmark estimate for private sector health care expenditure in the government financial year 1992/93, the breakdown of the estimate into matrices provides a framework that could be used as the basis for the development of more detailed satellite national health accounts, in accordance with 1993 SNA standards.