South African Property Review April-May 2020

Page 44

rethinking LED

What the cities say about LED Rethinking LED: “Local Policy aspects LED is an ambiguous concept South Africa’s history of colonialism and apartheid necessitates a specific approach Economic Development” to economic development. The national government emphasises the need for inclusive in Intermediate Cities is economic growth, to broaden participation in the mainstream economy, which the latest volume in a series requires strategic responses from local governments. However, research conducted of exploratory studies on the in South Africa’s metros found that “inclusive economic development is often not “differentiated approach to clearly articulated” (SACN and SALGA, 2016: 7), which is also the case in intermediate governance” focusing on Three cities, Mangaung, Sol Plaatje and Rustenburg, participated theeasy workshop. The“economic fourth cities. Defining inclusive economic growth isinnot because development intermediate cities, by thecity,South Matjhabeng, was unable to participate, but some comparison to this city is included in the is a complex concept” (ibid: 47) and because of the division between pro-growth and Rustenburg profile. African Cities Network (SACN)

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Three Municipal LED Case Studies

pro-poor economic development approaches in South Africa. For most municipalities, the LED focus appears to be almost exclusively on the pro-poor, not private-sectororiented, nature of economic development (Hofisi et al., 2013).

We extend our thanks to the South African Cities Network for the following extracts. SACN 2019. Rethinking LED: “Local Economic Development” in Intermediate Cities. Johannesburg: South African Cities Network. Available online at sacities.net. ISBN: 978-0-6399215-6-3 © 2019 by South African Cities Network. Rethinking LED: “Local Economic Development” in Intermediate Cities is made available under a Creative Commons AttributionNonCommercial-ShareAlike 4.0 International Licence.

Mangaung, is a Category A or metropolitan municipality, and its main urban centre is Bloemfontein. It has a population of 800 000 and an average population growth of 1.5% per year (1996–2016).

1848

Bloemfontein is established as a trading post.

1910

Bloemfontein becomes capital of the Orange Free State Province (from 1994, the Free State Province).

1948– 1994

Bloemfontein is the judicial capital of South Africa and seat of the Supreme Court of Appeal. 1968: black people moved to Thaba Nchu. 1978: all Sesotho-speaking people moved to Botshabelo, and all Setswana people moved to Thaba Nchu.

2001

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Bloemfontein, Botshabelo and Thaba Nchu amalgamated to form Mangaung Local Municipality.

Participants recognised the danger of focusing only on pro-poor LED: “Our understanding is that LED must make sure that there are some backyard gardens … not realising that we are dealing with the mainstream economy.” There is also uncertainty around the extent to which the LED unit should “facilitate” or “run multiple projects in different categories at the same time”. However, most participants agreed that LED should focus on redistribution and ensuring that local

MANGAUNG

MANGAUNG

Main economic function

International economic links are limited, Today, Mangaung continues to focus but national economic links include the on trade and government. As the main Supreme Court of Appeal, numerous urbaneconomic centre in thefunction Free State and central sports teams that represent the city, Main SouthMangaung Africa, the city has expanded quality sports infrastructure and a small Today, continues to focus on tradeits and government. As the main urban centreservices in the Freefunction State and central the city has expanded regional acrossSouth theAfrica, manufacturing industry. its regional services function across the province, into neighbouring province, into neighbouring provinces Between 1993 and 2008, Mangaung’s provinces and even into Lesotho. It is home to higher-order trading spaces, and even into Lesotho. economy grew by an average of 3.4% an airport, two universities and a Further Education and Training college, numerous boarding schools, some private and public hospitals, and the between 2008 and It is home to higher-order trading per year. However, regional offices of financial institutions. International economic links are spaces, an airport, two universities and 2015, the growth rate dropped to an limited, but national economic links include the Supreme Court of Appeal, a Furthersports Education average 1.7% per year. During the same numerous teamsand that Training represent college, the city, quality sportsofinfrastructure and a small manufacturing numerous boarding industry. schools, some period, Bloemfontein (the economic core private and public hospitals, and the of the municipality) saw its economy regional offices of financial institutions. grow by 2.3% per year.

SOUTH AFRICAN PROPERTY REVIEW – APRIL 2020 22 RETHINKING LED: “LOCAL ECONOMIC DEVELOPMENT” IN INTERMEDIATE CITIES


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