The dilemma between the pro-market and the pro-poor local economic development approaches in the democratic South Africa: Theoretical perspective

Themba Lukhele and Thanyani Madzivhandila

Local Economy, 2018, vol. 33, issue 8, 877-888

Abstract: Since the advent of the democratic government in 1994, there has been a serious contestation over the meaning and implications of local economic development in South Africa. Central to the debates has been on whether local economic development initiatives should take pro-market or pro-poor approach in the local government. To this end, the critical divide has been between those who believe that the local government should provide a direct solution by supporting projects for job creation and those who advocate for an indirect solution in terms of creating an enabling environment for local economic development. The article therefore argues that the pro-market local economic development approach often limit the local control of economic activities and resources, instead it is seen to perpetuate an exclusive economy. Against this background, the article applies the Economic Base and the Location Theories to explain, from a theoretical perspective, why the pro-market approach for local economic development planning in the democratic South Africa is preferable in the expense of the pro-poor approach. The article concludes that the pro-market local economic development approach is incapable of creating the inclusive local economies and lacks the determination for the realisation of real potential and competitive advantages for addressing local needs of the poor people.

Keywords: local economic development; local government; pro-market approach; pro-poor approach; South Africa (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0269094218799045 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:loceco:v:33:y:2018:i:8:p:877-888

DOI: 10.1177/0269094218799045

Access Statistics for this article

More articles in Local Economy from London South Bank University
Bibliographic data for series maintained by SAGE Publications ().