Local economic development in a globalised world economy : a South African perspective

M.Comm.Cities around the world face, to different degrees, the same problems of inequality, poverty, unemployment and other shortcomings regarding basic human needs. These realities are compounded by international trends and new realities like rapid urbanisation, technological revolution and the rise of a new economic order that is linked to phenomena like globalisation and a changing competitive environment, that directly impact on the economies of cities. A combination of these factors form the new external framework in which cities must address their economic destiny. South African cities face the same problems as cities around the globe, but most of these problems have been worsened for a section of the population by the country's history of racial segregation. However, South Africa's new found political freedom provides the opportunity to rebuild the economy in a way where even the poorest communities are free to play a part in, and be able to share in the advantages. Even though the opportunity is there, a process is necessary that will make it possible to take on economic strategies and projects that alleviate poverty, create employment opportunities, promote growth, mobilise existing resources and make the most of new investment potential for the upliftment of the wider community. This process is not simple, and necessitates a wide range of initiatives on different levels and in different contexts. It is generally accepted that 'top-down' initiatives on their own are not sufficient, and require complementary 'bottom-up' initiatives. In the international arena the notion has already gained acceptance that a community's economic and employment-creating future are increasingly dependant on the initiatives that its own citizens take - or the failure to take on the challenge. In line with this argument, Local Economic Development (LED) is being promoted internationally as a local approach that addresses the problems listed earlier, filling the gaps that national policy directives have left, and putting the responsibility for economic development of the locality in the hands of the new local role players. LED could be just what South Africa needs: a local approach to local problems that compliment national policy initiatives