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Appropriate municipal institutional structures and arrangements are important for successful local economic development (LED), policy development and implementation. The purpose of this article is to analyse the status quo of the municipal institutional arrangements in the local government sphere. While community involvement is critical, changes are required at the institutional level to ensure effective LED. Successful implementation of development strategies and interventions requires appropriate institutional arrangements in the local sphere. Since 1994, local government in South Africa has been tasked to fulfil a developmental role, which places significant pressure on institutional capacities. Due to a lack of capacity, skills, funding and appropriate policies, local government has achieved limited success with its developmental mandate. The Northern Free State region (also known as Fezile Dabi District Municipality) has been selected as the case study region to test the institutional arrangements for LED at the five municipalities (one district municipality and four local municipalities) within the region. The analysis highlights the effect of the lack of institutional arrangements for LED at the municipal level, and that LED is as yet not well embedded in municipal practice. Furthermore, this article seeks to identify possible solutions for LED with specific reference to municipal institutional arrangements. Although this article does not claim to give definitive solutions to the problem which could cause municipalities to fail in delivering on their developmental mandate, it nevertheless serves as a starting point for seeking sustainable solutions for LED institutional arrangements. It should be noted that the physical and socio-economic conditions of a specific locality have an impact on the preferred LED institutional arrangements. This article also provides solutions to foster local development optimally, such as dynamic local leadership, effective partnership formation, skills training and an integrated approach to LED ; http://www.assadpam.za.net/Portals/5/DocumentsAP/8042%20Administratio%20Publica%2021%20No%204%20for%20web%20copy.pdf

The facilitation and creation of an enabling environment by local government for business to prosper is one of the key factors in local economic development (LED). In this creation of an enabling environment, effective service delivery by local government is important. Local government can create this environment through good governance and transparent management. Globally however, many local governments are struggling to provide an acceptable level of management and service delivery to their communities. The study has the aim to test the hypothesis of the creation of an enabling environment leads to economic development. The geographical focus of this study is on the Vaal-Triangle region in Southern Gauteng, South Africa. The study will focus on two local municipalities namely Midvaal Local Municipality and Emfuleni Local Municipality, situated in Gauteng. The perceptions of business owners regarding the creation of an enabling environment and service delivery within this area will be analysed. A total of 150 business owners were interviewed using a quantitative questionnaire. Data were statistically analysed through descriptive analysis. The results revealed that effective municipal management relates to the creation of an enabling environment for local businesses to prosper and in turn translate to economic development. In contrast poor municipal management leads to poor service delivery and a lack of economic development.

The notion that Local Economic Development (LED) is a mechanism for poverty alleviation has led to heated debates over the last few decades. The two concepts have been intertwined and in some cases, confused with each other. LED strategies usually form part of a comprehensive poverty alleviation plan, a total onslaught on poverty, which are meant to address the socio-economic needs of a specifi c community, within a defi ned geographical area. In similar vein, the pillars of any poverty alleviation strategy should, at least, contain strategies such as provision in the basic needs of local people, creation of sustainable economic development, job creation opportunities, development of human resources and skills, ensuring safety and security and a well-managed quality environment. The current weaknesses in government interventions regarding poverty alleviation and LED could be overcome with explicitly "pro-poor" strategies. Such strategies place the formulation of strategies for job creation, sustainable rural and urban development and the central place of poor as the focus of all interventions. Poverty alleviation must be the top priority in a LED strategy and it must be accepted that the poor needs a "safety net" due to their high levels of vulnerability. LED has in some instances being misunderstood as being limited to community projects only. This article explores the theoretical interface of LED strategic planning at the local government sphere in South Africa. The purpose of the article is to highlight the premium of LED as a strategy for poverty alleviation, and to help clear ambiguities on the nature of LED. The article involves a theoretical exposition and practical realities as methodology.

Local economic development (LED) has been identified as a prominent tool in the facilitation of the development of local regions. The so-called "LED-triangle" of partners has been identified on the local level as business, government and communities. Business chambers represent business and need to play a leading role in the coordination of, in many cases, stagnating local economies. The objective of this study was to analyse the roles of business chambers in the development of local regions. The Vaal Triangle in South Africa was selected as the study region with its three functional business chambers: the Vanderbijlpark Business Chamber (VBC), the Sasolburg Business Chamber (SBC) and the National African Federated Chamber of Commerce (NAFCOC), Sedibeng branch. The management committees of the three business chambers were interviewed by means of semi-structured interviews and questionnaires which included both quantitative and qualitative assessments. Some of the results indicated that the role of a business chamber should be to allow flow of information, promote network opportunities, assist with the creation of an enabling environment and facilitate entrepreneurship training. Business chambers, together with other role players such as government, play a major role in the facilitation of economic development.

South Africa is facing the reality of extremely high youth unemployment rates. The problem poses a threat to the country's economic development and future labour force projections. In response, the South African government has promulgated the Employment Tax Incentive Act (Act 26 of 2013), a targeted employer-side supply wage subsidy which requires a significant degree of public-private sector co-operation. The purpose of this study is to determine perceptions of local businesses regarding youth unemployment and the aforementioned act to determine its feasibility as an appropriate tool to address this problem. A qualitative research approach was used to collect data. A total of 13 in-depth interviews were conducted with business representatives in the Vaal Triangle region, Gauteng Results of the study indicated that 92 percent of the interviewed business representatives support the act. However, its effectiveness in contributing to the employment of the youth is impeded by supply side issues of the said crisis that make businesses reluctant to hire young people. Strict labour polices and laws also induce difficulties restricting its implementation.