Overview of LED in South Africa and the Findings of the World Bank/DBSA Study World Bank Etienne Nel and Ian Goldman Rhode...
Introduction <ul><li>LED & ‘developmentally local government’ has become well established in SA </li></ul><ul><li>Applied ...
Overview of the Presentation <ul><li>The LED Context </li></ul><ul><li>The World Bank / DBSA study </li></ul><ul><ul><li>O...
The LED Context <ul><li>LED is one of the key post-apartheid development interventions </li></ul><ul><li>Has a long histor...
<ul><li>From 1990s - Significant policy development and debate at national and local levels: SANCO / CDE / RDP / DCD / DPL...
Previous research identified: <ul><li>Limited resource allocation to LED </li></ul><ul><li>LED often marginalised in munic...
The World Bank / DBSA Pro-Poor LED Study <ul><li>2003 – World Bank  interest in SA and Brazil policy development / seek to...
Methodology <ul><li>1) Overview of policy and research </li></ul><ul><li>2) Survey of the 30 largest urban centres & rando...
Background <ul><li>Local govt. recognised as a key development role-player – Constitution, LG White Paper etc. </li></ul><...
Results of surveys indicate <ul><li>Wide diversity of perceptions of what LED is, range from ‘global competition’ to ‘pove...
Urban results <ul><li>Wide range of strategies e.g.  </li></ul><ul><ul><li>global city, job creation, skills dev., area ba...
<ul><li>business support (18/20 responses) </li></ul><ul><li>infrastructural investment (18) </li></ul><ul><li>sector supp...
Specific poverty responses: 17 cities <ul><li>provision of free/subsidized services (8 cases) </li></ul><ul><li>social dev...
Rural survey findings <ul><li>Less has been attained / often more ‘project’ based in focus </li></ul><ul><li>most LMs (92%...
Rural survey results indicate <ul><li>Growth is taken place / reporting is patchy </li></ul><ul><li>M&E poorly established...
Case Studies  <ul><li>Metros, Secondary cities, Small centres </li></ul><ul><li>7 urban </li></ul><ul><li>7 rural </li></u...
Focus of case studies <ul><li>Metros: </li></ul><ul><li>Johannesburg – growth strategies / Fashion District </li></ul><ul>...
<ul><li>Rural / Small Town municipalities </li></ul><ul><li>Ndlambe – was good example of LED Fund - but now failed </li><...
Lessons <ul><li>1) Key differences between largest and smallest in terms of policy / staff / interventions </li></ul><ul><...
Lessons cont. <ul><li>6)  LED often is not seen as cross-cutting. </li></ul><ul><li>7)  Partnerships – often just consulta...
Successful LED requires <ul><li>identifying / responding to market niches </li></ul><ul><li>effective collaboration betwee...
Pro-poor growth interventions <ul><li>Key aspects: </li></ul><ul><ul><li>Strategy </li></ul></ul><ul><ul><li>Local busines...
<ul><li>Provision of incubators </li></ul><ul><li>Provision of market stands for informal traders </li></ul><ul><li>Creati...
Conclusions <ul><li>LED has clearly come a long way over the last 16 years in SA </li></ul><ul><li>Policy has matured but ...
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Overview Of Led In South Africa And The Findings Of The World Bank Dbsa Study

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Overview Of Led In South Africa And The Findings Of The World Bank Dbsa Study

  1. 1. Overview of LED in South Africa and the Findings of the World Bank/DBSA Study World Bank Etienne Nel and Ian Goldman Rhodes University. & Khanya-aicdd Rhodes University
  2. 2. Introduction <ul><li>LED & ‘developmentally local government’ has become well established in SA </li></ul><ul><li>Applied practice is maturing however results are mixed and many limitations exist </li></ul><ul><li>Appropriate to reflect on what has been achieved to improve applied practice </li></ul><ul><li>Primary focus: findings of the World Bank / DBSA study of pro-poor LED in SA </li></ul>
  3. 3. Overview of the Presentation <ul><li>The LED Context </li></ul><ul><li>The World Bank / DBSA study </li></ul><ul><ul><li>Overview of the project </li></ul></ul><ul><ul><li>Background to LED / LED Research Findings </li></ul></ul><ul><ul><li>Application of LED </li></ul></ul><ul><ul><li>Case Studies </li></ul></ul><ul><ul><li>Lessons / Implications / Possible Interventions </li></ul></ul><ul><ul><li>Conclusions for pro-poor growth </li></ul></ul>
  4. 4. The LED Context <ul><li>LED is one of the key post-apartheid development interventions </li></ul><ul><li>Has a long history: significant evidence of LED in cities and towns 1870-1950 </li></ul><ul><li>Suppressed after 1950 / Keynesian era </li></ul><ul><li>Re-established 1990 – Stutterheim </li></ul><ul><li>Gradual re-emergence from mid-1990s –mainly in cities </li></ul>
  5. 5. <ul><li>From 1990s - Significant policy development and debate at national and local levels: SANCO / CDE / RDP / DCD / DPLG </li></ul><ul><li>By 2000 accepted facet of local government </li></ul><ul><li>Widespread acceptance / links to IDP process </li></ul><ul><li>Results on the ground mixed but policy, esp. pro-poor policy well established – prompt the research investigation – seek to establish what has been achieved / assess </li></ul>
  6. 6. Previous research identified: <ul><li>Limited resource allocation to LED </li></ul><ul><li>LED often marginalised in municipal budgets and actions </li></ul><ul><li>Limited success on the ground </li></ul><ul><li>Limited private sector involvement </li></ul><ul><li>Devolution of power not resources </li></ul><ul><li>Policy ‘pro-poor’, practice isn’t always </li></ul>
  7. 7. The World Bank / DBSA Pro-Poor LED Study <ul><li>2003 – World Bank interest in SA and Brazil policy development / seek to assess policy & practice for possible lessons. City focus </li></ul><ul><li>Research partners: Rhodes, Khanya-aicdd, Wits, UKZN, UCT </li></ul><ul><li>Reference Group: SACN, LGSETA, NT, DBSA, Mangaung LM, World Bank, SALGA </li></ul><ul><li>2005 – DBSA extend study to cover rural areas </li></ul><ul><li>Key findings: provide a status quo overview of LED </li></ul>
  8. 8. Methodology <ul><li>1) Overview of policy and research </li></ul><ul><li>2) Survey of the 30 largest urban centres & random sample of 20% (50) of the remaining LMs (rural) and DMs (urban / rural cutoff – municipal pop. of 200 000) </li></ul><ul><li>3) Case studies of key interventions: </li></ul><ul><ul><li>7 urban and 7 rural </li></ul></ul><ul><li>4) Stakeholder workshops </li></ul>
  9. 9. Background <ul><li>Local govt. recognised as a key development role-player – Constitution, LG White Paper etc. </li></ul><ul><li>Policy: strongly pro-poor </li></ul><ul><li>On the ground: significant action by the cities – tends to be pro-growth </li></ul><ul><li>Smaller centres – less significant results / resource and capacity constraints </li></ul><ul><li>Limited success of the LED Fund </li></ul>
  10. 10. Results of surveys indicate <ul><li>Wide diversity of perceptions of what LED is, range from ‘global competition’ to ‘poverty alleviation’ </li></ul><ul><li>Most see LED as multi-faceted (poverty and growth responses) 92% rural / 66% urban </li></ul><ul><li>Strong growth focus but links to poverty relief often not explicit </li></ul><ul><li>56% of municipalities have LED Units, 82% of rural LMs have at least an LED officer </li></ul><ul><li>Most cities have an LED policy but only 48% of rural LMs </li></ul>
  11. 11. Urban results <ul><li>Wide range of strategies e.g. </li></ul><ul><ul><li>global city, job creation, skills dev., area based dev., infrastructure, investment attraction, poverty relief, research, marketing, SMME support </li></ul></ul><ul><li>Cities:   common themes in the defin i tion of LED (20 max) : </li></ul><ul><ul><li>Economic growth and facilitation – 7 cases </li></ul></ul><ul><ul><li>Economic growth and poverty relief – 4 </li></ul></ul><ul><ul><li>Job creation – 4 </li></ul></ul><ul><ul><li>SMME support – 2 </li></ul></ul><ul><ul><li>Global links / export – 2 </li></ul></ul>
  12. 12. <ul><li>business support (18/20 responses) </li></ul><ul><li>infrastructural investment (18) </li></ul><ul><li>sector support (16) </li></ul><ul><li>area marketing (16) </li></ul><ul><li>research and information (14) </li></ul><ul><li>special development zones (13) </li></ul><ul><li>inward investment attraction (12) </li></ul><ul><li>business expansion and retention (11) </li></ul><ul><li>privatisation (7) </li></ul><ul><li>SMME support (13) overlap with poverty response? </li></ul>Growth orientated interventions in urban centres (max. 20)
  13. 13. Specific poverty responses: 17 cities <ul><li>provision of free/subsidized services (8 cases) </li></ul><ul><li>social development (6) </li></ul><ul><li>procurement policies (4) </li></ul><ul><li>infrastructure provision (2) </li></ul><ul><li>business development (2) </li></ul><ul><li>job creation / training/public works (5) </li></ul><ul><li>food packages/nutrition (2) </li></ul><ul><li>housing policies (1) </li></ul><ul><li>rural planning (1) </li></ul>
  14. 14. Rural survey findings <ul><li>Less has been attained / often more ‘project’ based in focus </li></ul><ul><li>most LMs (92%) appreciate the role LED can play in economic growth and poverty relief </li></ul><ul><li>LED features prominently in most IDPs </li></ul><ul><li>Small budget allocations </li></ul><ul><li>LED is more embedded in DMs than LMs </li></ul><ul><li>52% no LED policy </li></ul><ul><li>weak political and institutional links </li></ul><ul><li>Support mechanism are modest/low levels of collaboration with the private and other sectors </li></ul><ul><li>  </li></ul>
  15. 15. Rural survey results indicate <ul><li>Growth is taken place / reporting is patchy </li></ul><ul><li>M&E poorly established </li></ul><ul><li>Few cities able to supply tangible results </li></ul><ul><li>Rural LMs encouraging - 50% report est. +100 jobs each </li></ul><ul><li>Few have poverty reduction targets </li></ul><ul><li>LED impacts generally poorly understood </li></ul>
  16. 16. Case Studies <ul><li>Metros, Secondary cities, Small centres </li></ul><ul><li>7 urban </li></ul><ul><li>7 rural </li></ul><ul><li>Selective to focus on particular issues (especially in metros which are complex) and a snapshot in time </li></ul>
  17. 17. Focus of case studies <ul><li>Metros: </li></ul><ul><li>Johannesburg – growth strategies / Fashion District </li></ul><ul><li>Ekurhuleni – pro-poor focus </li></ul><ul><li>eThekwini – multi-faceted approach / area-based development </li></ul><ul><li>Cape Town – global city and public works – example of community-based approach </li></ul><ul><li>Secondary Cities: </li></ul><ul><li>Mangaung: informal sector, also interesting to note CBP </li></ul><ul><li>Umhlatuze: CSR / poverty and growth interventions / collaboration </li></ul>
  18. 18. <ul><li>Rural / Small Town municipalities </li></ul><ul><li>Ndlambe – was good example of LED Fund - but now failed </li></ul><ul><li>Motheo/Senqu – importance of linkages/ challenges of rural economies </li></ul><ul><li>Ingwe – pro-poor tourism, building on rail tourism </li></ul><ul><li>Wuppertal – NGO / focus on rooibos </li></ul><ul><li>Alicedale – PPP/private sector dev. </li></ul><ul><li>Sodwana/Magaliesburg – niche tourism </li></ul>
  19. 19. Lessons <ul><li>1) Key differences between largest and smallest in terms of policy / staff / interventions </li></ul><ul><li>2) Differ viz. pro-poor vs. pro-growth def. / wide variants on local understanding of LED </li></ul><ul><li>3) Development responsibilities and need to address poverty is acknowledged </li></ul><ul><li>4) Results are patchy, primary reasons – resource / staff / poor market research / limited partnerships / limited M&E </li></ul><ul><li>5) Support for the informal / community economy has a key role to play. </li></ul>
  20. 20. Lessons cont. <ul><li>6) LED often is not seen as cross-cutting. </li></ul><ul><li>7) Partnerships – often just consultative – generally poorly dev. / seldom fully involve the private, community and NGO sectors. </li></ul><ul><li>8) Budgets are limited relative to needs. </li></ul><ul><li>9) M&E is poorly entrenched. </li></ul><ul><li>10) It cannot be assumed that growth-based interventions will benefit to poor </li></ul>
  21. 21. Successful LED requires <ul><li>identifying / responding to market niches </li></ul><ul><li>effective collaboration between local partners – LED is not just about municipal action </li></ul><ul><li>a focus on economic sustainability </li></ul><ul><li>strong leadership to give direction </li></ul><ul><li>significant resources and capacity to succeed (need to access partnerships) </li></ul><ul><li>defined pro-poor outcomes/community buy-in </li></ul><ul><li>growth paths to achieve both competitiveness and poverty reduction – pro-poor growth </li></ul>
  22. 22. Pro-poor growth interventions <ul><li>Key aspects: </li></ul><ul><ul><li>Strategy </li></ul></ul><ul><ul><li>Local business climate </li></ul></ul><ul><ul><li>Financial / non-financial support / infrastructure </li></ul></ul><ul><ul><li>Skills dev., procurement, SMME & IS support </li></ul></ul><ul><ul><li>Livelihood support </li></ul></ul><ul><ul><li>Sectoral support / employment schemes / development zones / research and information </li></ul></ul><ul><li>See circulated Policy Brief (example attached) </li></ul>
  23. 23. <ul><li>Provision of incubators </li></ul><ul><li>Provision of market stands for informal traders </li></ul><ul><li>Creation of produce markets </li></ul><ul><li>Creation of input supply depots for farmers </li></ul><ul><li>Contracts for community-based or SMME construction and maintenance </li></ul><ul><li>Support for specific infrastructure to support projects, eg the railway station in Creighton </li></ul><ul><li>Planning suitable infrastructure for service delivery in rural areas, eg cellphone payment of electricity bills </li></ul><ul><li>Indigent policy to support access of poor people to services </li></ul>Investment in infrastructure and infrastructure-related services <ul><li>Provision of land, planning rights for investors if employ certain numbers of disadvantaged employees </li></ul><ul><li>Support to investors to use their corporate social investment fund in ways relevant to disadvantaged people/informal economy. </li></ul>Non-financial support for inward investment <ul><li>Subsidised training and skills development of disadvantaged employees of investors </li></ul>Grants/rebates to attract inward investment <ul><li>Creation of zones where combined residential and small business use are permitted </li></ul><ul><li>Review of procurement procedures to permit informal businesses to access municipal contracts </li></ul>Improving the local business climate
  24. 24. Conclusions <ul><li>LED has clearly come a long way over the last 16 years in SA </li></ul><ul><li>Policy has matured but results remain mixed </li></ul><ul><li>Opportunity now exists to ensure more effective pro-poor LED which </li></ul><ul><ul><li>integrates local role players </li></ul></ul><ul><ul><li>makes for more effective ‘developmental local govt.’ </li></ul></ul><ul><ul><li>supports attainment of competitiveness </li></ul></ul><ul><ul><li>But also supports explicit pro-poor growth interventions which promote poverty reduction – not depending on simple welfare transfers to promote livelihoods of the poor </li></ul></ul>
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