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From labour reserve to investment opportunity: economic development planning in the Mbashe Local Municipal area in the Eastern Cape

Planning for economic development at the local level has become increasingly important in many countries of the world. South Africa is no exception and has had the local focus entrenched through constitutional provisions for developmental local government. This developmental approach has been intimately linked to, and influenced by, the broader legislative, policy and planning context within which the development challenges of post-Apartheid South Africa have been addressed. It has also been implemented in a context of far-reaching transformation of public institutions aimed, in the final analysis, at the effective functioning of three spheres of government. In this thesis, the Mbashe Local Municipal area is used as a case study for an examination of the linkages between economic development planning at the local, provincial and national levels. It is not a case study in the sense that an in-depth analysis of practice is undertaken; it is used rather as a lens through which the economic development planning activities of the three spheres of government are viewed. Its value as a lens lies in its location in the former Transkei, which is characterised by high levels of unemployment and poverty and low levels of service infrastructure, and in its status as one of the newly demarcated local municipalities in South Africa. Mbashe is a pilot site of the Promotion of Rural Livelihoods Programme, which has been linked to the Eastern Cape Province's Integrated Sustainable Rural Development Programme. It also includes one of the nodes of the Wild Coast Spatial Development Initiative, which has, since 1998, been promoted as a vehicle for economic development in the former Transkei. Research comprised extensive documentary research, individual interviews with key role players in the Mbashe Local Municipality, the Promotion of Rural Livelihoods Programme and the Wild Coast Spatial Development Initiative, and a group interview with members of the Local Economic Development Sub-Committee of the Mbashe Local Municipal Council. An attempt was made to understand the complex layers of policy and planning frameworks that guide planning at the national and provincial levels and within which local level economic development is situated, and to explore the responses that have been forged by agents within the Mbashe area. Key in this endeavour has been the initiatives developed under the guidance of the Mbashe Local Economic Development Sub-Committee. It is argued that the severe resource constraints faced within Mbashe, combined with limited knowledge of and participation in larger planning and resource mobilisation frameworks, lock Local Economic Development within the top-down and investmentled approaches, rather than the more integrated approach that is promoted in terms of legislation and that is required if poverty is to be addressed successfully. The limitations on state fiscal expenditure and the market-led approach to service provision and economic development, implemented in terms of South Africa's macroeconomic framework, combined with limited synchronisation of planning cycles in which integrated development planning at the local level is privileged, leave little scope for endogenous economic development at local level. There is scope for creative engagement with the interlocking local, provincial, national and continental economies by actively shifting resources in support of integrated, endogenous approaches. Such approaches could serve as counter-narratives to the dominance of neoliberalism and allow for the establishment of local economic development practice that addresses the needs of the poor and that builds integrated local economies under the control of democratic institutions. It is only with such a shifting of approach that economic development within Mbashe will shift the structural conditions that lock it into economic dependence and poverty.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:rhodes/vital:3353
Date January 2003
CreatorsReynolds, John Hunter
PublisherRhodes University, Faculty of Humanities, Sociology
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MSocSc
Format151 leaves, pdf
RightsReynolds, John Hunter

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