Abstract
This study investigated the nexus between good governance and an enabling environment for effective local economic development. Maintaining good governance in South Africa is still a challenge. Several regions within the Sedibeng District Municipality (SDM) (Gauteng province) are not economically developed because of inadequate or non-existent governing practices. The area boasts a wealth of resources and growth potential, but the economy has not grown at the predicted rate and the standard of living for many residents has remained the same. Criminal activities have increased in the SDM because of the increased level of unemployment. Due to an inadequate housing supply, slums and informal settlements have expanded. There are not enough social services because of the large population.
The aim of the research is to find the connection that exists between good governance and an enabling environment for effective LED (local economic development) within a selected municipality. The primary goal of the study is to acquire insight into how governance practices can turn out to be the very building blocks to either move forward or not, thus making LED a success or a failure. The research thus aims to answer the key question, "What is the effect of good governance practice in the creation of an enabling environment for effective LED?"
The difficulties affecting the connection between good governance and an enabling environment for effective LED were analysed considering a few key good governance principles and their function in empowering local governments to establish conducive conditions to promote long-term LED. An investigation of this issue was conducted using a qualitative research method. To obtain all the relevant details about this topic, a comprehensive literature review and documentary analysis were conducted. The methodology involved conceptualising and contextualising the subject of research through a desktop analysis of pertinent literature and official documents. Aspects of the non-intrusive research strategy, like conceptual and document analyses, were included in the methodological approach. The information generated was thoroughly evaluated through conceptual analysis, integration, classification, reflection and synthesis to give the data significance.
The findings of the study are that the SDM can distribute advantages and economic opportunities to different social and economic groups more fairly by implementing
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good governance practises. The research found that there is inadequate transparency, limited access to information, Additional barriers include a shortage of resources, skills, and capacity for successful LED implementation, as well as issues such as corruption, ineffective bureaucracy, and a lack of collaboration between government departments. To address these challenges, local government must focus on strengthening policies against corruption, mismanagement, and abuse of public resources, while also prioritizing skills development and capacity-building to promote good governance and enable effective LED. By addressing such challenges, the study offers insights into how governance improvements can lead to more equitable economic opportunities, reduce unemployment, and enhance social services. The study recommends strengthening governance practices by addressing corruption and improving transparency, while investing in skills development and capacity-building to enhance LED.
KEY TERMS: good governance; local economic development