, DVA2603 ASSIGNMENT 2 SEMESTER 2 2026
DUE DATE: 7 SEPTEMBER 2026
PART A
1. Five reasons why local economic development (LED) plans may fail (5 marks)
Local economic development (LED) plans often fail in the South African municipal
context for several interconnected reasons. Municipalities are frequently unclear about
the meaning of LED and how to implement it effectively. Political barriers interfere with
consistent planning and execution. Understaffing and inadequate skills among
municipal staff hinder project management and delivery. Inadequate financial resources
limit the ability to fund and sustain initiatives. There is also a lack of clear national
government policy direction, insufficient baseline socio-economic data for planning, and
poor coordination among stakeholders. These factors collectively undermine the success
of LED plans (Study Guide, p. 87).
2. Why is infrastructure crucial for poor urban communities? (5 marks)
Infrastructure forms the foundation of urban development and prosperity for all
residents, including the poor. When poor urban communities gain access to affordable
energy, transportation, information and communication technologies (ICTs), education,
health services, housing, water and sanitation, and waste removal, they obtain essential
assets that reduce their vulnerability and increase their resilience. These assets help
them escape poverty traps by improving health, productivity, and economic
opportunities. Investments in infrastructure, such as piped water and sewer networks or
roads, generate significant economic benefits that spill over to the wider city and
surrounding areas, while also protecting the environment (Study Guide, p. 93).
DUE DATE: 7 SEPTEMBER 2026
PART A
1. Five reasons why local economic development (LED) plans may fail (5 marks)
Local economic development (LED) plans often fail in the South African municipal
context for several interconnected reasons. Municipalities are frequently unclear about
the meaning of LED and how to implement it effectively. Political barriers interfere with
consistent planning and execution. Understaffing and inadequate skills among
municipal staff hinder project management and delivery. Inadequate financial resources
limit the ability to fund and sustain initiatives. There is also a lack of clear national
government policy direction, insufficient baseline socio-economic data for planning, and
poor coordination among stakeholders. These factors collectively undermine the success
of LED plans (Study Guide, p. 87).
2. Why is infrastructure crucial for poor urban communities? (5 marks)
Infrastructure forms the foundation of urban development and prosperity for all
residents, including the poor. When poor urban communities gain access to affordable
energy, transportation, information and communication technologies (ICTs), education,
health services, housing, water and sanitation, and waste removal, they obtain essential
assets that reduce their vulnerability and increase their resilience. These assets help
them escape poverty traps by improving health, productivity, and economic
opportunities. Investments in infrastructure, such as piped water and sewer networks or
roads, generate significant economic benefits that spill over to the wider city and
surrounding areas, while also protecting the environment (Study Guide, p. 93).
