Local economic development as a strategy to enhance community development projects: A case of Thulamela Local Municipality

Abstract

The purpose of this study was to examine local economic development (LED) as a strategy to enhance community development projects in the Thulamela Local Municipality as well as the effects of effective LED. The LED was introduced in the municipalities to create jobs and alleviate poverty. The LED strategy uses local resources with local communities, public institutions, and the private sector to create employment and eradicate poverty. This is due to the lack of job opportunities and high levels of unemployment in rural areas. Therefore, this study addressed that with the realisation of the importance of local economic development as a strategy in local government, rural areas in TLM can be developed through community development projects. The study used the pragmatic approach paradigm and the mixed-method approach, in which both qualitative and quantitative methods were used to collect and analyse the data. This was done to take both the advantage of quantitative and qualitative methods, whereby, when the other method could not provide valuable information, the other was used. In-depth information from the respondents was extracted, whereby participants expressed their feelings, and opinions during data collection. The research design used was the convergent parallel design, which allowed the collection of data in both methods to gain an in-depth understanding of the phenomena. The study area was the Thulamela Local Municipality. The study used the purposive sampling procedure to select the respondents to obtain more knowledge from skilled respondents. Two instruments of data collection were used, namely: structured questionnaire and open-ended interview schedule. Data was analysed through inferential statistics and the narrative method. Respondents were informed and made aware of the challenges of taking part and that they can withdraw from the study at any time. The findings of the research study were:  The major findings of the study are that 55 (55%) of the respondents agreed that LED is a strategy that enhances community development projects.  The study revealed that 45 (45%) of the respondents strongly agreed that skills and administrative capacity is vital as a way to strengthen LED strategy.  The majority of respondents at 48% agreed that Location Theory is vital in promoting local economic development.  The study found that community participation and funding are major problem as a key to LED projects.  The study also revealed that there is a shortage of land as most land is owned by traditional leaders, and land ownership is through Permission to Occupy (PTO) arrangements. The study further affirmed that the policies of LED in the Municipality are outdated. Recommendations of the study are:  The findings suggested that TLM should create a conducive environment for LED projects to exist in order to create jobs and alleviate poverty. fund existing and new community projects for them to flourish.  It was indicated that the Municipality should train project coordinators regularly as well as to employ officials that have the capacity and administrative skills to implement LED projects.  It is recommended that the Municipality should view LED in a locality-based approach to stimulate local economy whereby, local resources are used and skills to benefit citizens to ensure.  It is recommended that the Municipality should influence effective participation as well as fund existing and new LED projects.  The study recommends that the Municipality must work with traditional leaders as the custodian of the land. The study further recommends that the LED policies must be updated to meet the current socio-economic needs.