The contributions of local economic development projects towards income poverty reduction : a case study of Ba-Phalaborwa Local Municipality

Abstract

The literature revealed that focusing on local economic development (LED) is among many effective and efficient methods that can be used to reduce income poverty, joblessness and improve technical and business skills. The South African Local Government is tasked with the obligation of managing and coordinating LED initiatives that will assist with the reduction of joblessness and poverty in general. The aim of this research study is to investigate the contribution of LED projects towards income poverty reduction in business process lifecycle management (BPLM). Though the notion of LED has been researched and greatly debated by various authors globally and in South Africa (SA), this study intends to determine the degree to which LED projects contribute towards income poverty reduction. The research adopted a hybrid approach, which is composed of both quantitative and qualitative research designs. The study’s rationale is to gain more in-depth knowledge and insight into the dynamics and complexities of translating LED policy into practice. Skype interviews were used to collect data from municipal officials, project managers and traditional leaders, and semi-structured questionnaires were used to collect data from the project participants. A main conclusion from the study is that middle-aged single women with low educational skills and qualifications are the majority of the participants in LED projects. A high number of these participants are unemployed and a majority of project participants depend on social grants and remittance for survival. The study will make recommendations based on its findings.