DVA2603
ASSIGNMENT 2
DUE DATE: SEPTEMBER 2026
,DVA2603 ASSIGNMENT 2 2026
DUE SEPTEMBER 2026
QUESTION 1: Mention five reasons why local economic development (LED) plans
may fail.
Local economic development (LED) plans in South African municipalities often fail to
achieve their goals due to a number of problems.
There is a lack of clear understanding about what LED really means and how it
should be done. Many municipalities do not know how to put LED plans into
practice, which leads to confusion and weak strategies (Koma 2012:127; Asha &
Makalela 2020:3).
Municipalities do not have enough skilled staff. There is a shortage of qualified
people in key positions, especially engineers and managers. Without skilled
workers, it is very hard to plan and carry out development projects properly (Koma
2012:127).
There is not enough money for LED projects. Many municipalities spend more than
they earn and operate at a loss. This means they cannot afford to support small
businesses or fund development programmes without outside help (Kaywood
2021:57).
Political problems and corruption get in the way. Political fighting between
councillors affects governance and service delivery. Corruption also steals money
that should be used for development (Kaywood 2021:57).
There is poor coordination between different levels of government and
stakeholders. This results in fragmented efforts, duplicated work, and limited
involvement from communities and businesses (Department of Provincial and Local
Government 2006).
, QUESTION 2: Why is infrastructure crucial for poor urban communities?
Infrastructure is very important for poor urban communities because it gives them the
basic tools they need to improve their lives.
when poor communities get access to services like energy, transport, water, and
sanitation, they become less vulnerable and better able to escape poverty. These
services give them assets that help them build better lives (United Nations Human
Settlements Programme 2022:15).
Water and sanitation services improve health and allow people to be more productive.
Studies show that every dollar spent on water and sanitation brings back between US$4
and US$34 in benefits (United Nations Human Settlements Programme 2022:15).
Roads and public transport help people get to work, schools, and markets. This makes
it easier for poor people to find jobs and sell their goods (Ng, Law, Jakarni &
Kulanthayan 2018:1).
Infrastructure improves living conditions in informal settlements. Paved roads,
electricity, and proper sanitation turn unhealthy, unsafe areas into better places to live
(Kiefer & Ranganathan 2018:1).
Building infrastructure creates jobs. If Africa catches up with its infrastructure needs, it
could increase economic growth by 1.7% every year (United Nations Human
Settlements Programme 2022:134).
ASSIGNMENT 2
DUE DATE: SEPTEMBER 2026
,DVA2603 ASSIGNMENT 2 2026
DUE SEPTEMBER 2026
QUESTION 1: Mention five reasons why local economic development (LED) plans
may fail.
Local economic development (LED) plans in South African municipalities often fail to
achieve their goals due to a number of problems.
There is a lack of clear understanding about what LED really means and how it
should be done. Many municipalities do not know how to put LED plans into
practice, which leads to confusion and weak strategies (Koma 2012:127; Asha &
Makalela 2020:3).
Municipalities do not have enough skilled staff. There is a shortage of qualified
people in key positions, especially engineers and managers. Without skilled
workers, it is very hard to plan and carry out development projects properly (Koma
2012:127).
There is not enough money for LED projects. Many municipalities spend more than
they earn and operate at a loss. This means they cannot afford to support small
businesses or fund development programmes without outside help (Kaywood
2021:57).
Political problems and corruption get in the way. Political fighting between
councillors affects governance and service delivery. Corruption also steals money
that should be used for development (Kaywood 2021:57).
There is poor coordination between different levels of government and
stakeholders. This results in fragmented efforts, duplicated work, and limited
involvement from communities and businesses (Department of Provincial and Local
Government 2006).
, QUESTION 2: Why is infrastructure crucial for poor urban communities?
Infrastructure is very important for poor urban communities because it gives them the
basic tools they need to improve their lives.
when poor communities get access to services like energy, transport, water, and
sanitation, they become less vulnerable and better able to escape poverty. These
services give them assets that help them build better lives (United Nations Human
Settlements Programme 2022:15).
Water and sanitation services improve health and allow people to be more productive.
Studies show that every dollar spent on water and sanitation brings back between US$4
and US$34 in benefits (United Nations Human Settlements Programme 2022:15).
Roads and public transport help people get to work, schools, and markets. This makes
it easier for poor people to find jobs and sell their goods (Ng, Law, Jakarni &
Kulanthayan 2018:1).
Infrastructure improves living conditions in informal settlements. Paved roads,
electricity, and proper sanitation turn unhealthy, unsafe areas into better places to live
(Kiefer & Ranganathan 2018:1).
Building infrastructure creates jobs. If Africa catches up with its infrastructure needs, it
could increase economic growth by 1.7% every year (United Nations Human
Settlements Programme 2022:134).
