Problem Statement and Purpose
The community of Phuthaditjhaba faces local economic underdevelopment. Research shows that the apartheid government injected investment to support industrialization, with 293 operational factories under the municipality that employed close to 30 000 workers (Marais,2023). However, the new democracy led Phuthaditjhaba to its downfall economically as most of those industries shut down completely, leaving thousands poor, unemployed, and marginalized lacking access to basic services. This collapse was due to poor financial management, corruption allegations, and incompetence that prevented the area from economic progress (Payne, 2017). In Phuthaditjhaba, approximately 82% of the population still lives on less than $2 per day and being employed does not guarantee being able to leave poverty. Underconsumption, insufficient investments, and a persistent lack of decent job opportunities undermine the basic social compact, which mandates that all people must contribute to progress and is the cornerstone of democratic countries (ILO, n.d). it is predicted that by 2030, approximately 2 billion young people globally will be unprepared for the workforce if there is not an immediate investment made in education and skill development (UNICEF Data, 2023). Phuthaditjhaba is not an exception as youth unemployment (18- 35) stands at 53%(StatisticSA,2011). The study aims to explore the effectiveness of community development and pro-poor LED initiatives in reducing poverty, economic growth, and social inclusion. Employing a policy analysis to systematically examine existing policies relevant to Phuthaditjhaba. This is to understand the existing policy landscape, assessing the alignment of policies with community needs, identifying potential gaps and shortcomings in the policy framework.
Methodology
The study employed exploratory qualitative research methods to determine LED practices and policies that enable/hinder economic progress. This approach was suitable for its flexibility for an open-ended exploration of economic challenges, existing initiatives, and complex interactions within the community (Ward, et al, 2018). The goal was to generate a rich and comprehensive understanding of the subject matter, laying the foundation for informed policy recommendations and practical strategies. The study conducted structured interviews with municipal officials, non-profit organizations, institutions, and community members. This approach allowed for the collection of in-depth, rich data and insights from participants with shared characteristics or experiences. Structured interviews guided participants through a set of predefined questions (Segal. et al, 2006). Additionally, document analysis of relevant materials, such as policy reports and local government records, supplemented the interview data, providing valuable contextual information. Sustainable Development Goal (SDG) 8 encourages full and productive employment, equitable sustainable growth, and decent work for everyone will also be used as a major to address issues stated in the study (Goal8: Decent Work and Economic Growth, 2024).
Findings
Results: Community members lack knowledge about LED projects, face unequal access to resources, and struggle with poor service delivery, hindering small business growth and development. The community does not participate in LED decision-making processes. Furthermore, the municipality is in a financial crisis due to a lack of revenue, high debt, mismanagement of funds, and corruption allegations. The municipality involves the community through the Integrated Development Plan. Also, non-profit organizations initiate and advocate for communities to lead LED initiatives. Finally, these organizations facilitate collaboration among stakeholders to manage and implement LED opportunities for community members,
Proposals
The research proposes actionable recommendations to LED practitioners, policymakers, and funding institutions to conduct workshops and awareness campaigns to educate the community on the opportunities and benefits of LED projects. Provide access to funding, mentorship, and capacity-building programs that will economically empower the community. Establish centres where community members can access information, guidance, and networking opportunities to support entrepreneurship and small businesses. Empower marginalised populations through skill development training, resource access, and education. Drive poverty reduction strategies and promote community ownership, social cohesion, and collective action with grass-roots organisations to foster community development and economic empowerment.
References
Goal 8: Decent work and economic growth - The Global Goals. (2024). The Global Goals. https://www.globalgoals.org/goals/8-decent-work-and-economic-growth Accessed 19 February 2024
International Labour Organization., Goal #8: Decent work and economic growth (The 2030 development agenda). (n.d). https://www.ilo.org/global/topics/sdg-2030/goal-8/lang--en/index.htm accessed 1 December 2023
Marais, L. (2023). Phuthaditjhaba: The Rise and Fall of a Homeland Capital. In: Membretti, A., Taylor, S.J., Delves, J.L. (eds) Sustainable Futures in Southern Africa’s Mountains. Sustainable Development Goals Series. Springer, Cham. https://doi.org/10.1007/978-3-031-15773-8_2 accessed 21 March 2024
Payne, S. R. (2017). Lots of factories, no jobs. The Mail & Guardian. https://mg.co.za/article/2011-08-15-lots-of-factories-no-jobs/accessed 12 August 2023
SDG Goal 8: Decent work and Economic Growth - UNICEF DATA. (2023, September 19). UNICEF DATA. https://data.unicef.org/sdgs/goal-8-decent-work-economic-growth/#:~:text=Promote%20sustained%2C%20inclusive%20and%20sustainable,and%20decent%20work%20for%20all&text=Goal%208%20aims%20to%20promote,and%20decent%20work%20for%20all. accessed 29 October 2023
Segal, D.L., Coolidge, F.L., O'Riley, A. and Heinz, B.A., (2006). Structured and semistructured interviews. In Clinician's handbook of adult behavioral assessment (pp. 121-144). Academic Press.https://doi.org/10.1016/B978-012343013-7/50007-0 accessed 11 March 2023
Ward, J.K., Comer, U. & Stone, S., (2018) On Qualifying Qualitative Research: Emerging Perspectives and the “Deer” (Descriptive, Exploratory, Evolutionary, Repeat) Paradigm. Interchange 49, 133–146 (2018). https://doi.org/10.1007/s10780-018-9313-x accessed 08 May 2023