The contested trajectory of applied local economic development in South Africa

Local economic development is one of the key development strategies pursued by localities in South Africa. Local economic development is a core local government mandate and one which is notionally conceptualised as allowing for the pursuit of both socio-economic redress and economic development. Despite the significant support put into applied local economic development for nearly 20 years, results have been modest and concerns about a potential over-focus on pro-poor local economic development, at the expense of simultaneously working with the private sector on pro-market interventions, have been identified as a stumbling block to the potential success of this developmental approach. This paper charts the development of local economic development policy and practise in the country before focussing on the findings of a detailed analysis of the local economic development strategies adopted by all of the country’s 278 local authorities. Findings show that most local governments are choosing a narrow band of pro-poor interventions to focus their attention on, with little support, except in the larger centres, being given to more market-focussed interventions.