Abstract:
Local Economic Development is a viable mechanism for economic growth for South Africa. National Government has thus has set in place a number of policies and pieces of legislation that encourage local government to participate in LED strategies. Integrated Development Plans are the most comprehensive of the legislation and force local government to engage with LED policy. The new legislation, has led to a fundamental shift in development strategy for South Africa. In Mpumalanga in particular, the development strategy has shifted from regional development to local development. This strategy has been prompted by the IDP policy yet many municipalities do not have the capacity to effectively draw up an IDP. Municipalities often simply use IDPs as wish lists of what they would like to achieve but can not within their current budgets. The National Government strategy of IDPs is forcing policy on local government that is not necessarily needed but could simply be a strategy to have more control over local
government. This study explores the shift in government development policy and the capacity of local government to fulfill its new role. The Mpumalanga experience of IDPs and LED forms the focus of this empirical study.
