The Journal of African & Asian Local Government Studies

Local Government Capacity Development, Local Economic Development (LED) and Inclusiveness: A Critique of the South African Experience P S Reddy, University of KwaZulu Natal, Durban, South Africa Abstract On a global level, local government generally has been undergoing a process of fundamental restructuring, transformation, reform and renewal to meet global development priorities and the international development agenda. More specifically, countries are required to inter alia, respond to the Millennium Development Goals (MDGs). It has been acknowledged and recognized that development initiatives and activities to achieve the MDGs are most marked and effective at the local government sphere where basic needs of the local citizenry is met and service delivery is most visible and has the desired impact. It would appear that the results have been more marked and visible in those countries where policies designed to improve local governance is also complemented by efforts to enhance public governance through effectiveness and efficiency nationally and at the subnational levels (UNDP 2010:23). Developing the capacity of the municipal service in the African context is critical to not only inclusive MDG achievement, but also in terms of ensuring national ownership of local development interventions and programs (UNDP 2010:23). Local Economic Development (LED) has continentally been viewed as an integral part of local governance or community development and there has been a tendency to focus on poverty alleviation strategies as social goals rather than sustainable development longitudinally (Reddy and Wallis 2012:70). This paper will critique capacity development and LED in South Africa in the broad context of inclusiveness and attainment of the MDGs. More specifically, it will also highlight some of the key challenges/obstacles currently being faced relative to enhancing capacity development, LED and the attainment of the MDGs. Recommendations will be made at the end of the paper in responding to some of the key thematic issues highlighted earlier. Keywords: Capacity – development; inclusiveness; local economic development; Millennium Development Goals; South Africa Introduction A local government restructuring and transformational model was introduced in South Africa comprising three phases that had as its basis local democracy in the broader context of redistribution, efficiency and effectiveness. The Local Government Transition Act, 1993 (Act 209 of 1993) facilitated the initial phase followed by local elections (1995/6) which constituted the second phase. Three key legislative enactments, namely Local Government: Municipal Demarcation Act, 1998 (Act 27 of 1998); Local Government Municipal Structures Act, 1998 (Act 117 of 1998) and the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) 1

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finalized the process, ending the transitional period and culminating in elections in December 2000. The later process reduced the number of municipalities from 843 eventually to 278. Given that South Africa became a democratic state on 27 April 1994, it is imperative that the local governance system be critiqued in the broader context of capacity development, local economic development and inclusiveness and the international development agenda as defined by the Millennium Development Goals (MDGs). This paper will critically review capacity development and LED in the wider context of inclusiveness and attainment of the MDGs. It will highlight some of the key challenges/obstacles/constraints currently being faced at the local sphere of government relative to capacity development, implementation of LED and the attainment of the MDGs. Recommendations will be proposed at the end of this paper in response to some of the key thematic issues highlighted. Theoretical Overview and Defining Terms: Capacity – development The UNDP (2010 : 3) views capacity development as the “how” of development, ... “it is about strengthening the capabilities of people and their institutions so that they are able to effectively and efficiently meet their objectives; adapt to change and stay resilient when confronted by external shocks; making institutions work for human development; capacity development is about processes that drive progress, whether towards the MDGs recovery from disaster or longer term peace, equity or sustainable development”. Developing local state capacity is critical to enhancing the delivery of municipal services which, in the final analysis, is an integral part of good local governance. The UN Millennium Declaration, signed in 2000 by Heads of Government and States internationally, committed themselves to: - fostering democracy and good governance and upholding human values; - ensuring peace, security and disarmament; - ensuring poverty eradication and development; - protecting the environment; - providing a safety net for the vulnerable; and - addressing the special needs of Africa (Republic of South Africa 2010:13). Bertucci and Rosenbeam (2007:1) point out that quite often, organisations and countries set high ideals but do not take the necessary steps for implementation. They add that the capacity of governments to implement the required policy changes and programmes is key to the process. In this context, effective governance and public administration is the simple unifying element that binds the target objectives of the Millennium Development Goals (MDGs) (Bertucci and Rosenbeam 2007:4 ). It would appear that the current terminology in this regard relates to government capacity as well as to effective and efficient Public Administration. This argument has been developed further by Bresser – Pereira (2007:36) who point out that organisational reform should only take place if it makes a substantial contribution to enhancing state capacity and if it does, the probability is overwhelming that it will increase the prestige and influence of public functionaries who are responsible for managing it. He adds that historically, economic development only became a reality 2

The Journal of African & Asian Local Government Studies

after the first so called “industrial states” experienced their “economic revolution in terms of building a capable state. Consequently, “historical experience shows that only a nation state formed out of a strong and a capable state administration is able to devise and follow a national strategy of economic growth” (Bresser – Pereira 2007:36). He adds (2007:40) that the UN Millennium Project's main document (2005) points out clearly that it is “the responsibility of countries themselves to strengthen their own government systems”. Former South African Minister of Public Services and Administration, Geraldine Moleketi Fraser firmly believes that in Africa, developing a strong state with the necessary capacity is imperative for implementing policies and programmes to meet the MDGs (Fraser – Moleketi 2007). Local Economic Development (LED) LED is a locally facilitated activity that seeks to stimulate the local economy and creates jobs through identifying, harnessing and utilising resources in a locality. It denotes broad based contributions of the local community, i.e. the nongovernmental organisations, municipality, business, labour and local communities who believe that by combining their skills, resources and ideas, they will uplift their communities economically (International Republican Institute and National Business Initiative in Reddy and Wallis 2011:2). Morgenrood (2007:16) has proposed a definition which is appropriate and relevant, i.e. it is “an approach towards economic development which allows and encourages local people to work together to achieve sustainable economic growth and development, thereby bringing economic benefits and an improved quality of life for all residents in a local municipal area”. A key issue is developing local economic capacity to secure its future in terms of an enhanced quality of life for local communities. In this context, Breitenbach (2006:9) is of the view that it is an all-inclusive process where all the key role-players and stakeholders work as a collective to promote economic growth and facilitate job creation. The buzzword is local development and all the key role players and stakeholders should be ambitious, enthusiastic and passionate in terms of promoting local economic development. The process is seen to be all encompassing and inclusive as the main stakeholders and role players are involved and, more importantly, they are addressing a diversity of socio-economic development needs through diverse initiatives. Consequently, the notion of collaboration and co-responsibility for the economic development of a municipal area between the public, private and non-governmental sector is fostered (www.led.co.za/node/1011). Inclusiveness An inclusive city/town tends to promote equity and growth. It signifies a locality where people, irrespective of their race, gender, religion and ethnicity or financial means, are at liberty to participate fully: politically, socially, and economically in local governance. In this context, decision-making and participatory planning can be viewed as key elements of an inclusive city/town. Promoting the notion of inclusiveness not only ensures socially just local governance, but it is also important for facilitating growth and more importantly sustainable development. Local governance which is inclusive reduces social tension and inequality; 3

Local Government Capacity Development

incorporates the physical and social capital of the indigent and marginalised communities. Local ownership ensures ownership of development processes and programmes. Consequently, it can be seen that “social inclusion refers to the extent of outreach to citizens and in particular to more weaker or marginalised groups in society” (Mikhelsen 2008:12). Mikhelsen (2008:44) in developing this notion, further points out that outreach signifies the right to access benefits; concern over equity in the distribution of benefits; and ensuring sustainability of project benefits

Local Democracy and Governance The South African democratic state which was ushered in April 1994 was committed to addressing poverty and inequality, given the apartheid history. New policies were introduced systemically to enhance the quality of life of the citizenry and at the same time create a more just state. The resultant effect of this 'continuity of change' has been that each successive administration was building on the development successes achieved. In addition, ongoing challenges were taken cognizance of and strategic responses developed to address the limitations to growth and development. South Africa is a constitutional democracy and a unitary state with three spheres that is national, provincial and local. Three distinct categories of municipalities were constitutionalized in chapter 7, that is Metropolitan (A) (full local government powers); local (B) (powers and functions shared) and constituting a district (C). There are 273 municipalities in the nine provinces divided into 8 metropolitan, 44 districts and 226 local municipalities. The objectives of local government are clearly articulated in section 152, i.e. provide democratic and accountable government; provision of sustainable services; socio–economic development; safe and healthy environment and involvement of communities. Municipalities are required to, as observed in section 53 of the Act, “structure and manage its administration, budgeting and planning processes to give priority to the basic needs and promote the social and economic development of the community and participate in national and provincial development programs”. According to the State of Local Government in South Africa Overview Report (Republic of South Africa 2009:7): “if a municipality can achieve the above objectives consistently, within its financial and administrative capacity, it could be described as a functional well capacitated municipality”. A Critique Capacity Development, Local Government, Local Economic Development and Inclusiveness at the Local Level Capacity Development Section 154 (1) of the Constitution of the Republic of South Africa Act, 1996 (Act 108 of 1996), clearly stipulates that the national and provincial government is required to develop capacity at the local government level. The national department of Co-operative Governance responsible for local government does have capacity relative to supervision, support and oversight of municipalities, with the newly created Municipal Infrastructure Support Agency tasked to develop additional 4

The Journal of African & Asian Local Government Studies

capacity if need be. The Government has spent a considerable amount of money on capacity development over the past eighteen years. However, it would appear that very little of this has translated to increased capacity in local government. The municipal human resources sector is characterized by recruitment practices which are weak; key vacancies and political involvement in appointments and dismissals; limited capacity to attract and retain technical skills and ineffective performance management systems (Ajam 2012:6). The lack of formal government evaluation in this regard has made it extremely difficult to assess the situation (Financial and Fiscal Commission 2012: 2). On the other hand, Government has introduced ad hoc different approaches to capacity building which, in turn, adds to the local government capacity challenge (Peters and Van Nieuwenhuyzen 2012:271). The spending on Project Consolidate and Siyenza has raised concern as to whether it has impacted positively on municipal institutional capacity development. It is generally accepted that municipalities have major economic, spatial, social and demographic disparities which has an impact on them financially. Additional concerns raised were whether funds were being directed to those municipalities that need them the most (Peters and Van Nieuwenhuyzen 2012:271). In this context, Ajam (2012:8) points out that monitoring of municipal capacity development initiatives is not very effective and seldom evaluated. Furthermore, there is a lack of detailed information on training expenditure, nature of training and staff benefitting from them, and whether desired outcomes have been achieved relative to applied competence, transfer of skills and return on investment. The following conditions were proposed by the Financial and Fiscal Commission when capacity-related conditional grants are allocated: -

commitment to capacity and performance improvements, which are verifiable; redesigned to focus on the quality as opposed to the quantity of capacity building interventions; subjected to an external, objective evaluation in terms of their impact (Financial and Fiscal Commission 2012).

There have been other strategies to develop the institutional capacity of municipalities; however, the success was very limited despite significant resources having been invested over the years. Of late, the Local Government Turnaround Strategy (LGTS) was introduced by Government, which provided a broader perspective of the basic problems in local government in a political, intergovernmental, socio-economic, planning, service delivery and budgetary context. However, progress has been slow and Deloitte and Touche have highlighted implementation challenges as follows: - municipalities are expected to turn themselves around through adequate capacity, “the patient is not only required to diagnose, but also cure himself”; - funding for the required interventions was limited; - the 2011 local elections resulted in political instability which proved to be a distraction; - the focus on “quick solutions” and achieving compliance with minimum 5

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requirements, as opposed to long-term, sustainable solutions executed with a scientific plan and change management; the location, history, economic base, demographics and access to skills and resources implies that many municipalities even with the best management could never be financially viable, and the success of any turnaround is limited by indefinite grant dependency; and “transformation fatigue” and cynicism about yet another intervention, and (Deloitte and Touche 2011).

The Financial and Fiscal Commission (2012:296 - 297) has made the following recommendations in response to the challenges: -

capacity-development initiatives should be comprehensive and sustainable rather than quick fix short term solutions; all action by the national and provincial spheres and other role-players should be stipulated and measureable objectives clearly defined; environmental constraints, in relation to the allocation of functions and powers and the formula for conditional grants need to be simultaneously reviewed; capacity-development interventions should be holistic and co-ordinate individual, organizational and institutional dimensions; medium and senior management should be stabilized and not subject to political interference; minor competences entrenched in the MFMA should be enforced.

Additional matters that require urgent attention includes avoiding political interference in recruitment and selection of senior management staff and allocation of functions and powers at the local level (Financial and Fiscal Commission 2012:3). The capacity development proposals put forward by the National Planning Commission has placed particular emphasis on the enhancement of management and technical skills and organizational systems in local government. It has proposed the following: -

a public sector-based formal graduate recruitment scheme based on, inter alia, merit- based selection assessments; a career path for local government: employment by municipalities from formal graduate and peer review schemes and secondments for senior management; ensuring that senior management have adequate experience; enhancing the system for skills development. The national Department of Co-operative Government, in addition to its existing regulatory and oversight role has to be actively involved in skills development and at the same time promote professionalism (Republic of South Africa 2012: 372 - 373). 6

The Journal of African & Asian Local Government Studies

According to Ajam (2012:9), the National Planning Commission has placed emphasis on the “stabilization of the politico – administrative interface and limiting the politicization of senior management within local government”. She adds (2012:9) that “formal merit and representivity- based recruitment processes are not likely to attract the most competent candidates if political affiliation or connectedness rather than capability pre-determines employment outcomes”. The Municipal Finance Management Act has prescribed minimum competence requirements which came into effect on 1 January 2008. High-ranking municipal officials, notably Accounting Officers; Chief Financial Officers; Heads of Budgets and Treasury Officers and Supply Chain Managers involved with financial management have to comply with the requirements by 1 January 2013. Each category of employee has a general competency skills requirement; capacity and experience to assume and discharge the functions, powers and responsibilities assigned to them in terms of the Act. In addition, there are minimum competency requirements relative to advanced qualifications, occupational and managerial competences and work experience regarded as core and prescribed unit standards for financial management and supply chain officials. Municipal managers are required to, as stipulated in regulation 14 of the Act, monitor compliance with the prescribed minimum competency levels and to take action to ensure compliance by 1 January 2013 (Ntliziywana 2012: 6). However, according to Ajam (2012:10), there was little possibility of meeting this deadline and the FFC expressed concern in this regard. In addition, the consequences of non-compliance have never been spelt out. Local Economic Development A formal legislative and policy framework has constituted the basis of LED over the past eighteen years. More specifically, the Constitution of the Republic of South Africa Act, 1996 (Act 108 of 1996) has stipulated that “a municipality must structure and manage its administration, budgeting and planning process to give priority to the basic needs of the community, and to promote the social and economic development of the community”. Local government defined as “developmental” has been constitutionalized and socio-economic development is expected to be a key output. Public participation is critical to local governance and more importantly in terms of facilitating socio-economic development which has been prioritized at the local level. Local Government as espoused by the White Paper should be working with local communities and community groups to find sustainable ways to address their economic, social and material needs in terms of improving their lives (Republic of South Africa, 1998:17). The White Paper and related legislation highlights basic principles, processes and instruments that are critical to enhancing development of the locality. LED is a key component of integrated development planning which is a legislative requirement at the local government level (Reddy and Wallis, 2011: 16). The Reconstruction and Development Program (RDP) introduced as the ANC policy manifesto in 1994 initiated the notion of LED through local initiatives and community support (Patterson 2008:7). An enabling policy framework for strategic LED interventions was provided for in the White Paper on Municipal Service Partnerships (2000:7). Considerable emphasis was placed on an enabling environment, capacity development and a monitoring framework relative to 7

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implementation. Several Government policies and programs introduced over the years had a direct bearing on LED. Three crucial roles were identified for local government, i.e. provide leadership and direction in policymaking; manage policy, program and projects and initiate it through public spending and regulatory powers for the promotion of industrial, small business development, social enterprises and cooperatives (National Guidelines on LED 2006). Economic development agencies have heralded a new era in the field of LED in South Africa. It should be noted that at least twenty of the thirty economic development agencies in existence have been financed by the Industrial Development Corporation. An economic development agency is a local entity that employs private sector tools and strategies despite having a public interest and having to render accountability in a public context. It is in municipal ownership and seeks to manage 5 and co-ordinate public resources and facilitate regional investment opportunities in terms of defined development objectives (Patterson,2008:29).The main objectives are, inter alia, to enhance economic potential regionally and locally; promote entrepreneurial innovation and thinking and leveraging public and private resources for development (SALGA 2010:5). A key overarching governance principle is the utilization of private sector approaches to ensure that public sector goals are reached. Despite the success, some challenges have been identified: shortage of skills; unwillingness to adopt this approach by municipalities; resources allocation and capacity to develop public – private partnerships (SALGA 2010:5). Critical success factors in terms of LED are local participation; an entrepreneurial approach in a public context; local strategic vision for the area; resources mobilization, leveraging and support (Patterson, 2008:33). As part of the then ASGISA process, the Departments of Co-operative Governance and Traditional Affairs and Trade and Industry were assigned the responsibility of reducing unemployment and poverty by half by 2014 (www.pmg.org.za/bills/060206malmbo-ngcuka.htm in Reddy and Wallis,2011:16). Part of this mandate was developing the required capacity in local government. In addition, it was envisaged then that the regulatory environment for small businesses would be improved; Expanded Public Works Program would be extended and the skills challenges addressed through Project Consolidate where 150 local government experts were deployed (Mlambo-Ngcuka,6/2/06:7-10 in Reddy and Wallis, 2011:16). A challenge arising out of the fact that two national departments were managing LED is that there are conflicting paradigms relating to global engagement and poverty alleviation or, more specifically, market orientated and people-centered development. Consequently, there has not been any firm direction provided in terms of shared growth and competitiveness (Patterson 2008:4 and SACN in Reddy and Wallis, 2011:16). The failure of LED, particularly in the most impoverished areas, has also impacted indirectly on local governance. The public protests against poor municipal service delivery is the resultant effect of limited or no LED in the different localities in question. Challenges highlighted relative to LED implementation are, inter alia, high levels of unemployment and poverty; limited understanding of LED; lack of business support services and poor entrepreneurial skills; limited private investment in the job 8

The Journal of African & Asian Local Government Studies

rich sectors, despite significant opportunities; lack of public sector participation in sustainable development projects; an increasing urban-rural divide in LED processes and practices; a non-conducive business environment to promote LED; ineffective working relationship between provinces, districts and local authorities and weak capacities to perform a new developmental role; a lack of effective LED networks in main areas and limited interaction between the emerging and formal business sector; inability of many local authorities to clearly define a LED strategy within the broader IDP process (SALGA and Phutiagae in Reddy and Wallis, 2012:139). Local economic development has to take place in an environment where there is good governance, political stability and progressive thinking. Inclusiveness: Gender, Indigent and Xenophobia Issues Gender Representation Gender representation in South Africa can be secured through a quota in the proportional representation system (DPLG,1998:89). More specifically, the first and possibly every second candidate can be reserved for woman on the lists of parties. Political parties are encouraged to reserve at least 50% of the candidates on the party list for women and ensure that both male and female candidates are evenly distributed1 (Fessha and Jordan in Reddy and Naidu 2012 : 97). Legislative and policy enactments have been introduced over the years to empower women and enhance the quality of their lives through, inter alia, ensuring access to basic services and providing opportunities (political, economic and social). (www.anc.org.za/elections/2009/manifesto/policy_framework.html) According to Mettler (2004:7) gender responsive budgets which “is an analysis of the municipality's main budget that specifically disaggregates certain information that is pertinent to gender, such as expenditure earmarked for gender based programs and projects including safe facilities for women and local economic development strategies that target women entrepreneurs” has also been considered as a possible strategy. In addition, female representation can also be enhanced through community participation initiatives and ward committees. However, while there has been some progress made in mainstreaming gender equality in local governance, the goal of gender equality at the local level is far from being achieved as this sphere seems to be lagging behind in terms of national guidelines (Todes, Sithole and Williamson in Reddy and Naidu (2012:98). Support for the Indigent Of late, the gap between those in highly paid jobs and those holding menial jobs or are unemployed is rising. Local communities who are having difficulties accessing opportunities have tended to settle in the declining inner city or the urban periphery (SACN, 2006: 4.28/29). Consequently, accessing even menial jobs, basic housing and transport does prove to be a daily challenge. Inner city decay and crime on the other hand has resulted in a major shift to gated communities and “privatized governance” arrangements. This has in turn resulted in a decline in human solidarity as it brings to the forefront concerns about social identity and citizenship. It is quite apparent that municipalities have a critical role in relation to the alleviation of poverty and social exclusion through appropriate policies, programs and partnerships. 9

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Inclusivity has been prioritized in the integrated development plans of municipalities (SACN, 2006:4.30). There has been progress made in addressing basic developmental backlogs in the past eighteen years. The indigent has been subsidized through national grants and virtually all municipalities are required to, in terms of legislation, provide free basic services as part of an official government package. It includes water, electricity and rates exemption beyond a certain threshold for the indigent and elderly (SACN, 2006:4-30). Tshangana ( in Reddy and Naidu 2012: 98) have pointed out that the townships have an additional challenge as secondary residential property markets are also constrained from functioning effectively. HIV and AIDS AIDS and HIV prevalence has resulted in social instability and exclusion, given that it has impacted negatively on the local economy and governance. The impact of the pandemic at different stages has resulted in different responses from households in terms of prevention and care particularly in relation to municipal services, more specifically housing. Municipal functionaries can arrest the spread of the pandemic through the provision of municipal services (SACN,2006:4-44). Different strategies have been introduced to address the impact of the pandemic including, inter alia, mainstreaming it within municipal departments, a multisectored approach and political and administrative support (SACN, 2006:4-45). Consequently, local initiatives are uneven and some municipalities are tackling the pandemic internally and externally with no or limited resources (SACN, 2006:4-45). Despite the assistance and support of Local and District Aids Councils, a significant number of municipalities cannot discharge their obligations in this regard. A determining factor is the support of senior municipal functionaries who are a critical resource relative to advising, co-ordination, monitoring and evaluation (Versteeg,2008:18-19). A strategic local response to the scourge includes reviewing the current programs; developing a positive linkage to other programs, notably poverty alleviation, mainstreaming it and enhancing policy implementation (SACN, 2004b:7 in Reddy and Naidu 2012:99). To date, more than 480 000 people have enrolled for the Anti-Retroviral Treatment rollout program for HIV/AIDS (www.anc.org.za/elections/2009/manifesto/policy_framework.html). Xenophobia There is been an increase in illegal immigrants entering South Africa from the neighboring countries. It seems that substantive economic and social rights have been prioritized as opposed to formal citizenship. Violent xenophobia has quite often spawned brutality, mayhem and displacement which have in turn further compounded their marginality (SACN,2006:4.30). Extreme density, poverty and poor housing resulting in poor socio-economic conditions have fuelled xenophobia. The linkage to poor municipal service delivery and the increased number of people requiring access to these services has exacerbated the issue. De Visser quoted in Reddy and Naidu (2012: 99 -100) highlights some realities that have to be taken cognizance of at the local level, namely: 10

The Journal of African & Asian Local Government Studies

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The lack of a policy to address service delivery and community development relative to African migration, particularly in relation to migrant workers, entrepreneurs and informal settlements;. the fact that a framework for disaster management has been introduced does not mean that it is necessarily adequate in relation to actual emergencies; and the fact that many local communities did not experience outbreaks of violence has placed a question mark on the quality of local leadership

The Local Governance Unit of IDASA applied the Local Governance Barometer (LGB) to sixteen municipalities nationally in 2007–2008 to evaluate the state of local governance in these localities. The instrument used for the assessment was the ''Global Model of Good Governance” which included, inter alia, rule of law, accountability, effectiveness; civic engagement; participation and equity. In this context, “equity is the extent to which there is equal access to municipal services and inclusiveness among citizens in municipal development activities” (Hoof et al 2008:3). Hoof summarizes some of the key findings relative to equity below: - it has been a challenge employing adequate women, especially in management positions in relation to employment equity; - the special needs of the disabled; youth; women and elderly people were not being adequately addressed as very few municipalities had a policy in place. The fact that non-governmental organisations work in sectors as opposed to specific municipalities has meant that the situation is better relative to AIDS; however, not a single municipality has a formal consultation structure with these marginalised groups; - lack of transparency in the selection of beneficiaries for the indigent policy. The criteria are not clear, made public or applied in an impartial and fair manner; - equity issues (gender mainstreaming) are not seen as core functions and viewed as additional expenses for overstretched municipal budgets. Very few municipalities have dedicated budgets targeting these vulnerable groups; and - the LED policies in the majority of municipalities are not effective or viable; - economically non sustainable projects are supported and which are favourably disposed towards municipal functionaries (2008:9). Given the fact that South Africa is a young democracy and these policies and initiatives are fairly new, perhaps with time it will evolve and respond to local needs. Local Government and the Millennium Development Goals (MDGs) Decentralisation is where increased responsibilities are devolved to lower levels and sub-national governments or jurisdictions are empowered. It has been a key component of African governance reform over the years. A benefit of decentralisation that has been acknowledged internationally is that it improves efficiency in service delivery and is crucial in promoting and advancing national unity. Consequently, sub11

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national jurisdictions and, more specifically, local government are significant roleplayers in the African Continent's efforts to promote growth and development and ultimately progress towards the MDGs. MDGs are critical to the local sphere of government and they should be viewed as a priority internationally as they have high political returns; are a vehicle for securing more resources; can be measured and used in budgeting and planning; in developing tools for monitoring and evaluating and strengthening democracy and promoting accountable governance (Shetty 2007:10). Shetty proposes eight courses of action that should be focused on for attaining the MDGs at the local level, namely, the local context; develop clear policies; plans and programs; emphasize participatory planning and the use of disaggregated data; allocate adequate resources; increase accountability to the poor; demand more resources; link it to other activities rather than achieving them in isolation (2007:10). South Africa is a select few African countries with adequate data for purposes of critically reviewing the progress on the MDGs. The country does present a mixed bag in terms of the progress made to date. In some cases, it has already reached the MDGs whilst in others, it is lagging behind. In this context, achievements are probable and possible, but assistance is key to that process. Poverty has declined of late, owing to a major income transfer program; significant reallocation of pro-poor expenditure, notably in basic services (water, electricity, housing and sanitation) (Republic of South Africa 2010:3). Intervention by Government is crucial in attaining these goals. Despite the fact that the country has reasonably good infrastructure, a stable macro economy and private sector, accessible and quality education and health is still a challenge (Republic of South Africa 2010: 3). South Africa has been categorized as a middle income country and is not dependent on donor funding; consequently, attainment of the MDGs depends to a large extent on how well the key role-players mobilize resources. The MDG process has also highlighted deficiencies in data quality and the resultant gaps (Republic of South Africa 2010: 3). Service Delivery at the Local Level: Quo Vadis? The 2011 Census Report reveals that, by and large, access to basic services has improved at the local level. There has been significant progress made in access to the number of flush toilets connected to municipal sewage systems; to piped water and electricity and refuse removal services which municipalities are constitutionally responsible for (Ayele 2012:11). More specifically, access to flush toilets has increased by 7% (8.8% have access to ventilated pit toilets while usage of pit toilets with no ventilation has decreased to 19.3.% and households with no toilets have decreased to 5.2%); piped water has increased by 13.4% (less than 8.8% now lack access to piped water); electricity has increased by 26.5% (electricity for cooking increased by 26.45% and heating increased by 12.50%) and refuse removal services by 10% (Ayele 2012 : 11 - 12). The national and provincial spheres have a constitutional obligation to develop capacity at the local level to ensure that municipal service delivery obligations are discharged. There is a firm view that the current service delivery 12

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challenges are due to poor implementation of constitutional and legislative provisions rather than to the inadequacy of constitutional provisions and structures (Cloete 2008:100). April (2011:30) believes that poor service delivery can be attributed to corruption; mismanagement; poor communication and dysfunctional councils and ward committees. More specifically, weak and poor quality municipal functionaries; party-political turf battles; frequent regime changes in municipalities are factors impacting negatively on the local governance system (Cloete 2008:101). Government has acknowledged these challenges and highlighted several issues that it was grappling with, namely, capacity constraints; poor integration of planning and budgets and concurrent sector-led programs; and poor co-ordination of government service delivery and co-operative governance (Africa 2011:46). These issues in fact constituted the basis of the main conclusions reached in the “State of Local Government in South Africa” Report (Department of Co-operative Governance and Traditional Affairs 2009) which alludes to the fact that “much of local government is indeed in distress and this state of affairs has become deeply rooted within our system of governance”. Past interventions by the Government to address these issues through, inter alia, allocating additional resources and capacity development was not successful owing to a lack of commitment and poor implementation (Cloete 2008:102). He (2008:12) added that this state of affairs can be attributed to poor implementation rather than the constitutional and legislative system. Africa (2011:46) points out that South African President Jacob Zuma while acknowledging that poor service delivery has impacted negatively on local government discharging its developmental mandate at the same time requested key government structures ”to identify challenges that inhibit public service efficiency and to identify appropriate intervention”. The functionality of local government has been dictated by practical assessments on the ground which has to a large extent provided the impetus for ushering in the “Turnaround Strategy” and the co-signing by both the President and the Minister of Co-operative Government and Traditional Affairs of the Delivery Agreement for Outcome 9 on 29 April 2010. The latter emphasized the need for an effective and efficient local government system which was both accountable and responsive. Several intergovernmental initiatives were identified that will enable it to move in that direction. Africa (2011:46) pointed out that seven key outputs were prioritized, namely, greater access to basic services; a differentiated approach to municipal funding, support and planning; supporting sustainable settlements; promoting job creation; deepening democracy through a refined ward committee model; enhancing financial and administrative management to improve controls and accountability and greater co-ordination and cohesion. The ANC stated that it would “force councilors to go out on regular door-to-door campaigns” and instruct them to “hold public meetings after council meetings”, in response to its reduced majority in the 2011 local government election and service delivery protests. Additional measures to be taken include the need to make senior political functionaries more accountable; introducing monitoring and evaluation and monitoring the performance of councilors. A new local government funding model is in the offing as well as rerouting unspent funds at the national and provincial spheres to local government (Masondo 2011:4). 13

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Conclusion South Africa became a democratic state on 27 April 2013 and local democracy has been entrenched in the governance system for almost nineteen years. There has been progress made in addressing developmental backlogs; however, there are still major challenges to be addressed, particularly in relation to basic services. The large number of service delivery protests bears ample testimony to the fact that this issue needs to be addressed urgently as it impacts negatively on local governance. Capacity has been identified as a major constraint, despite considerable investment in training over the years. Perhaps the focus should be on sustainable long term capacity development to address the needs of the new local government system over the long term as opposed to “short-term quick fix solutions”. In addition, there should be monitoring and evaluation of training and an enabling environment for post training implementation. Despite LED being formalized as a process in terms of policy and legislation at the local government level, there are still implementation challenges. Critical to the process is passion and political will to make the process work in terms of enhancing the socio-economic standing of the local community. The issue of inclusiveness has been on the municipal agenda in South Africa relative to gender; indigent communities; HIV/AIDS and xenophobia over the past few years. A formal legislative and policy framework is in place to ensure inclusiveness relative to development for local communities. However, once again it requires decisiveness; strong political will and monitoring in terms of outcomes and more importantly impact. Considerable progress has been made in South Africa in achieving the majority of MDGs; however, it is still lagging behind in terms of certain basic services like access to quality education and public health. Enhanced local governance in terms of quality human resources; ethical leadership and management and monitoring and evaluation is key to the process. Monitoring and evaluation should move beyond compliance and more into the realm of political and management control.

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The Journal of African & Asian Local Government Studies

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