n Journal of Public Administration - Good governance as a solution to local economic development challenges in South African Municipalities

Volume 54 Number 4-1
  • ISSN : 0036-0767


Section 152 of the Constitution of the Republic of South Africa, 1996 (hereafter referred to as the 1996 Constitution) makes provision for municipalities to work with other relevant stakeholders within their jurisdiction in matters of local government. Further, the section indicates that municipalities must ensure that they promote social and economic development to create business and employment opportunities for the local populace. One of the strategies used by municipalities to enhance their local economies is Local Economic Development (LED). However, there are many challenges associated with LED in South Africa that prevent these municipalities from achieving their constitutional mandate to promote economic development within their localities. This article, which is theoretical in nature, highlights some of these challenges. It contends that good governance can address LED challenges as a mechanism through which state institutions, including municipalities, seek to manage municipal resources effectively and efficiently, account to the public and consult regularly with relevant stakeholders. It is concluded that inclusive participation, good allocation of scarce financial and material resources, monitoring and evaluation, transparent processes and continuous accountability are some of the good governance mechanisms necessary to address LED challenges in South African municipalities.

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