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Construction and infrastructure development in local economic development : a Southern Cape perspective

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: During the past decade the government of South Africa has launched various initiatives
to stimulate the economy in general, but more specifically to economically and socially
empower previously disadvantaged communities. Initially these initiatives have been
very broadly defined, but are increasingly fitting in with the concept of Local Economic
Development (LED). The concept of LED is not new; in fact, research has shown that
LED initiatives have been successfully implemented in various countries in the world
with needs and problems very similar to those of South Africa.
This study focuses on the Eden District Municipality in the Western Cape province of
South Africa and more specifically on the relation between LED and the construction
industry. To answer some relevant questions relating to this topic, a questionnaire has
been distributed to the agents of LED in the major municipalities of the district. The
survey was divided into four main sections, which dealt with issues relating to both the
construction industry and local economic development.
The responses in general reflected what could be observed in practice. Due to the
current relatively high economic growth in South Africa the regional economies also
experience good economic growth. Focusing on the issue of Local Economic
Development, it is important to note that the economy of the Eden District is driven by
the tourism and public services sectors. Taking the cue from the survey responses, the
deduction has therefore been made that the construction industry, consisting of the
building and infrastructure subsectors, is driven by the demand for housing and public
services. The construction industry was therefore not a driver of economic
development, but more a 'secondary' industry, that would benefit from sustainable
growth and development in the primary economic sectors.
Therefore it is important that managers and agents of local economic development
should consider the issue of sustainability when deciding on empowerment and
development initiatives. Sustainable development can only be achieved when
development initiatives are focused on sectors of the local economy that are the
'primary' industries in the region, and therefore less susceptible to fluctuations in the
global and South African economy. / AFRIKAANSE OPSOMMING: Gedurende die laaste 12 jaar het die regering van Suid Afrika verskeie inisiatiewe van
stapel gestuur met die doel om die ekonomie te stimuleer, en meer spesifiek om voorheen
benadeelde gemeenskappe en individue op maatskaplike en ekonomiese gebied te
bemagtig. Aanvanklik was hierdie inisiatiewe slegs breedweg gedefinieer, maar algaande
het dit in meer doelgerigte konsepte ontwikkel, waaronder die konsep van Plaaslike
Ekonomiese Ontwikkeling (PEO). Hierdie konsep is egter nie nuut nie, en 'n kort
literatuurstudie het getoon dat PEO-inisiatiewe reeds met sukses geimplementeer is in
verskeie lande met behoeftes en probleme baie soortgelyk aan die van Suid Afrika.
Hierdie studie fokus op die Eden Distriksmunisipaliteit in die Wes-Kaap provinsie van Suid
Afrika en meer spesifiek op die verband tussen PEG en die konstruksie-industrie. Ten
einde sekere relevante vrae te beantwoord, is 'n vraelys aan die verskeie rolspelers in PEG
in die groter Munisipaliteite in die distrik gestuur. Die vraelys het uit vier dele bestaan wat
elk oor kwessies van beide konstruksie en plaaslike ontwikkeling gehandel het.
Die terugvoer van die vraelyste bevestig dat die ekonomiee van die onderskeie provinsies
en streke dieselfde positiewe groei ondervind as die landsekonomie in die algemeen. Indien
meer spesifiek op die konsep van PEG gefokus word, dan word dit gou duidelik dat die
ekonomie van die Eden Distrik hoofsaaklik deur die toerisme- en openbare dienste sektore
gedryf word. Hierdie feit, sowel as die antwoorde op die vraelyste, het gelei tot die
gevolgtrekking dat die konstruksie-industrie, wat uit die bou- en infrastruktuur subsektore
bestaan, hoofsaaklik deur die vraag na behuising en publieke dienste gedryf word. Die
konstruksie-industrie is dus nie self 'n drywer van ekonomiese ontwikkeling nie, maar in
werklikheid 'n 'sekondere' industrie wat baat vind by volhoubare groei en ontwikkeling in die
primere ekonomiese sektore.
Dit is dus noodsaaklik dat bestuurders en agente van PEG die konsep van volhoubaarheid
deeglik oorweeg wanneer daar oor bemagtigings- en ontwikkelings-inisiatiewe besin word.
Volhoubare ontwikkeling kan slegs suksesvol geimplementeer word wanneer ontwikkelingsinisiatiewe
op die primere industriee in 'n streek gefokus word wat in die algemeen minder
blootgestel is aan die sikliese beweging van die Suid-Afrikaanse en globale ekonomiee.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/21998
Date03 1900
CreatorsTerblanche, Johan Christiaan
ContributorsThomas, Wolfgang, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format60 p. : ill.
RightsStellenbosch University

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