WHAT KIND OF LOCAL ECONOMIC DEVELOPMENT?
AN ANALYSIS AND COMPARISON OF COMPETING VISIONS OF LOCAL ECONOMIC DEVELOPMENT IN SA’S 2009 PARTY POLITICAL ELECTORAL MANIFESTOS

The term local economic development (LED) does not appear in the electoral manifestos of any of the parties contesting South Africa’s 2009 General Election. While disturbing, this does not mean that the parties’ positions on growth, employment, poverty, sustainable livelihoods, food security, institutional reform and policy innovation, all have implications for LED.

1. THE AFRICAN NATIONAL CONGRESS (ANC)
The ANC manifesto, entitled Working Together We can Do More, targets unemployment and job creation. But the solutions proposed are centralised and interventionist. They present an implicit vision of LED that is largely a (central) government-driven poverty alleviation programme rather than a growth strategy.

The ANC argues that infrastructure investment and a “stepped-up” public works programme should be linked to “meeting social needs” through “home-based care, crèches, school cleaning and renovation, community gardens, removal of alien vegetation, tree planting and school feeding”, all poverty alleviation initiatives. The manifesto makes virtually no mention of local government, SMMEs or the role of the market. It does however promise to open up agricultural commercial value chains and advocates support for small farmers for local food production.

2. THE DEMOCRATIC ALLIANCE (DA)
The DA manifesto, entitled One Nation One Future, demonstrates a primary focus on growth and also a concern to open up areas for initiatives for actors at levels below central government, including municipalities in pursuit of the idea of “an open opportunity-driven society for all”. The DA manifesto is strong on autonomous local government, competition between localities (it specifically discusses competition between airports for custom and investment), growth, small business and an enabling environment for investment. The DA’s explicit advocacy of Export Processing and Job Zones (EPJZs) has direct LED implications.

3. CONGRESS OF THE PEOPLE (COPE)
COPE’s manifesto, entitled A New Agenda for Change and Hope for All, is the strongest among all parties when it comes to advocating partnerships and mutually beneficial interactions. It repeatedly advocates support for SMMEs and an appropriate enabling environment. Although it is a little thin on localism, it clearly regards local government as an autonomous sphere.

COPE’s manifesto comes closest to reflecting the concerns and priorities of the current LED policy, as spelled out by the Department of Provincial and Local Government in 2006.

4. THE INKATHA FREEDOM PARTY (IFP)
The IFP’s manifesto endorses growth-oriented market-driven development. It is the most liberal and market-oriented of all the major party manifestos. The IFP says it “does not advocate unbridled laissez faire capitalism and, like all the other parties analysed here supports “grants to the needy”.

While the IFP recognises the need for a developmental state, “this does not imply an over-interventionist state whose actions unnecessarily limit the growth potential of our economy” (p. 6). It advocates local initiative, support for SMMES and reform of the enabling environment.

5. THE UNITED DEMOCRATIC MOVEMENT (UDM)
The UDM’s manifesto, entitled Now’s the Time for All South Africans, has many aspects that are friendly to growth but only endorses institutional pluralism by implication and is thus somewhat ambiguous in terms of its implications for LED.

The UDM is strong on enabling environment issues (“addressing the obstacles and imbalances that prevent our businesses and economy from growing”). But it also promises a government-funded “Marshall Plan” for South Africa which will invest in “infrastructure … (but will also be) community driven”. The UDM is strong on small business, rural development and agriculture.

6. INDEPENDENT DEMOCRATS (ID)
The ID manifesto, entitled Be a Part of the Solution, is the largest and most detailed of all those analysed. It is strong on small business and autonomous local actions in the housing sphere. But the sheer detail in this manifesto makes the omission of the term LED all the more glaring.

7. CONCLUSIONS
The ANC’s failure to acknowledge a role for local actors in economic development was perhaps the most striking feature of this analysis. As the other five parties all have LED-friendly manifestos, it has to be suggested that post-election political wrangling and policy advocacy may well see an increase in the priority accorded LED.

However it was disturbing that no manifesto mentioned LED by name even though all five opposition parties want to do LED type things. This may well reflect the rather obscure and opaque debate over the concept as well as its somewhat faltering implementation in South Africa. This suggests that it may be time to rethink the entire approach.

A full analysis of the LED implications of the election manifestos of these six parties will be published on the LMRF website next week.