Abstract
This study aims to provide compelling evidence demonstrating the effectiveness of local economic development (LED) in advancing economic and social development. The research undertook a systematic review of existing literature to assess whether LED strategies have effectively addressed the racially and gender-based socio-economic disparities between affluent and impoverished communities. The analysis revealed that municipal LED efforts have predominantly concentrated on community economic development projects, many of which have turned out to be economically unfeasible with minimal enduring impact on poverty alleviation. Moreover, the collaboration among government entities, local businesses, and the voluntary sector was frequently found to be weak or altogether absent. For significant socio-economic transformation in South Africa, LED policies must emphasize not only an increase in the number of job opportunities but also a diversification of economic activities. Local governments are called upon to play a proactive role in this transformative process. Furthermore, the LED strategy should be comprehensive and not reliant on a limited number of projects. This study This research is characterised by originality and great scientific value, as it underscores the necessity for the national government to take on a leadership position and devise LED guidelines that empower local authorities with the capacity to effectively foster LED activities.