Local economic development

[2] In 2007 GTZ (now called GIZ) refined the definition of the World Bank by describing LED as "a process to mobilise stakeholders from the public and the private sectors as well as from civil society, to become partners in a joint effort to improve the economy of a defined subnational territory and thus increase its competitiveness".

[4] The International Labour Organization (ILO) defines LED as "a participatory development process that encourages partnership arrangements between the main private and public stakeholders of a defined territory, enabling the joint design and implementation of a common development strategy, by making use of the local resources and competitive advantage in a global context, with the final objective of creating decent jobs and stimulating economic activity".

[6] According to the ILO, national and local governments, as well as enterprises and other organisations have to rethink development strategies to cope with ongoing events such as globalization.

[8] With the COVID-19 pandemic and associated restrictions impacting the economies of many cities and towns, local economic development responses played a particularly important role.

[10] The South African Forum for Effective Planning and Development in 1995 defined integrated development planning as, ‘A participatory approach to integrate economic, sectoral, spatial, social, institutional, environmental and fiscal strategies in order to support the optimal allocation of scarce resources between sectors and geographical areas and across the population in a manner that provides sustainable growth, equity and the empowerment of the poor and the marginalised’.

[11] In terms of what an 'integrated development plan' (IDP) should include, the Municipal Systems Act clearly brings out the pro-poor dimensions of government thinking.

Given the dual challenges faced by South African society of needing to address both chronic poverty, yet also to achieve economic growth and global competitiveness, from a policy perspective it would seem that the approach adopted by Mangaung, Cape Town and eThekwini is most appropriate.

These municipalities took a middle of the road approach, focusing their LED strategy on addressing both issues of poverty and growth and the fundamental linkages between the two (World Bank, 2005, 75).

[10] The following case studies present pro-growth endeavours that have led to tangible pro-poor driven growth: Johannesburg's Fashion District; eThekwini'sregeneration projects; and Ingwe's rail-based tourism initiatives.

To keep pace with market conditions and to create higher-quality built environments, flexible and context-relevant standards can be implemented to support economic development goals.

Municipalities can require that facilities, services and matters, as set out in an official plan and by-law, be provided in return for an increase in building height and/or density.

This exchange might include streetscape and design elements – for example, protected bicycle parking, outdoor seating, non-slip pedestrian surfaces or public art – in support of municipal placemaking and economic development objectives.

Community resources such as nearby services, public transit, utilities, and existing road and sidewalk networks and greenspaces, can be used more effectively while expanding the number of potential customers for area businesses.