Local Economic Development Strategies in an Emerging Democracy: The Case of Durban in South Africa

Abstract

In recent years, especially since 1990, there has been an increased emphasis on LED strategies as South African cities focus on urban reconstruction and development to try to reduce the inequalities associated with apartheid. The aim of this paper is to investigate the nature of local economic development strategies in Durban, with specific reference to the Point Redevelopment Programme and the International Convention Centre. It was widely expected that these projects would create jobs and promote tourism. These projects were initially largely driven by business and local state interests, and there was no public participation. Pressure from community groups led to a fundamental restructuring of the development process. The formation of the Durban Infrastructural Development Trust was a progressive strategy to get the wider community involved in the process. The Trust released a protocol which stipulated that the guiding principles for these projects would be widespread consultation in the planning and development process, as well as policies for job-creation and affirmative action. However, this paper questions whether these objectives will be realised, and whether the disadvantaged communities will benefit from the local economic development projects. An analysis of the financing of the projects and concessions granted to private developers by the local state reveals that most of the funding would come from the tax-payer. Therefore, inequalities would not be addressed and any benefits to the community would only take place by the trickle-down effect.