Abstract
M.Comm.
The study aims to give a better understanding of the relationship between service delivery and local economic development through the examination of local economic development theories and by evaluating their historical development and evolution in the world, Africa and South Africa. The study also determines, through assessment of available information, whether or not some of the areas in Mamelodi are receiving services from the municipality or local government to sustain local economic development.
The theories underpinning LED were examined in this study, and all indicate that there exists a strong relationship between LED and service delivery. From the early stages of LED, areas with inadequate service delivery failed to attract businesses that are instrumental to LED. Central place theory maintains different growth prospects of central and peripheral regions. Attraction theory indicates that communities initiate policies and strategies that will make their areas more attractive. There is a need for the adequate provision of infrastructure to sustain LED, as indicated by the growth and regional theory. Economic base theory maintains that the success of the local economy is determined by the demand of its produced goods, services and products by areas outside its local economic boundaries. Location theory emphasises the importance of minimum cost due to the state of the industrial site in the local area.
LED has been developed in different countries to address various economic problems. After the great depression, there was a high rate of unemployment and LED was used as an instrument to create jobs for the local communities in some countries. The study indicates that in some countries like Latin America where LED was implemented, economic problems such as unemployment in the municipal level were addressed. South Africa also had the objective of addressing unemployment in the municipal areas when LED was introduced. However, municipalities have to draft the integrated development plans to indicate how they can tackle such problems.
Mamelodi has a number of projects implemented as a way of promoting LED. Jobs were created and areas improved economically. The CTMM has also provided some funding to ensure that the infrastructure in Mamelodi is adequate to support LED. However, much still needs to be done as the area has a number of challenges in terms of housing, water supply, and other related infrastructure for LED.
Service delivery has an important role to play in the sustainability of LED. The history of LED has shown that countries that did not provide services in their municipalities failed to succeed in LED as compared to those with adequate service delivery. Financial incentives are other factors that play a major role in the sustainability of LED. Businesses need to be supported financially to create jobs and retain existing jobs.