Presentation to KwaZulu Natal Department of Economic Development LOCAL ECONOMIC DEVELOPMENT CONFERENCE “Working Together with Government in Pursuit of Local Economic Development (LED) ………………………………………………………………………………… Presented by: Jimmy Gotyana National President : SANGOCO 29 October 2012

CONTENTS Introduction Policy Context for LED in South Africa Why Civil Society has to work closer with the GOVT./State in Local Economic Development (LED)? Who is Civil Society? Role of Civil Society in LED /SANGOCO Challenges facing Pro-poor LED Way Forward Conclusion

INTRODUCTION Purpose – Civil Society in particular the NGO’s and the general public provide constructive and practical inputs that are sustainable and that relate to how they can assist and partner the State/Government in Pursuit of local economic development beyond. Reflect on Civil Society’s positions and attitudes in relation to why LED has to be pro-poor led. Comment on Policy Context for LED in South Africa. Come up with implementation modalities and strategies of how this partnership can be effected. Come up with recommendations to input to future framework by the both the State/Govt. and Civil Society. Add community and civil society voice for consideration into future Local Economic Development programs

POLICY CONTEXT FOR LED White Paper on Local Govt. (1998) introduces the “developmental local government” which is defined as “Local Govt. committed to working with citizens and groups within the community to find sustainable ways to meet their social, economic and material needs, and improve the quality of their lives.” However, same document makes it clear that “ Local Govt. is not directly responsible for creating jobs. Rather, it is responsible for taking active steps to ensure that the overall economic and social conditions of the locality are conducive to the creation of employment opportunities” LED is about creating a platform and conducive environment to engage stakeholders in implementing strategies and programs. Community participation and active involvement of citizens in LED process is paramount as they have to shape their own in terms of change, rather than passive citizens to whom services must be delivered.

POLICY CONTEXT FOR LED CONTINUED Constitution (1996) places a great responsibility on State to facilitate LED The National Framework for LED in SA provide a necessary framework within which the local; district; regional and national government can shape the development trajectory. This Framework takes into consideration that LED in its totality has to consolidate democracy and integrate citizens as beneficiaries of a growing economy Civil society, fully backs the Framework as this presents the Govt. with a clear plan for fighting poverty, underdevelopment and social inequalities. Also, Civil Society’ perspective is that the Framework fully recognizes people as the biggest asset and that they need to be supported. Civil society fully support a pro- poor led Local Economic Development.

WHY CIVIL SOCIETY HAS TO WORK CLOSER TO GOVT? Government has a plan in place to address the many social and economic problems facing our country. It cannot do this on its own. The State has since 1994 been trying to correct market and apartheid legacy distortions, but it must be noted that it has had only partial success. It is now the right time for business, labour and the civil society to practically engage and partner government in order to realize these objectives. We are saying this precisely because this limited success has been due to a fragmented and piece-meal approach, un-sustained by a shared understanding and vision across State and social actors of the needs and potential of different local economies. This Summit or Conference is a necessary platform as it has to cement stronger and cohesive relationship between State as well as the voice of the civil society sector in particular NGO’s -(SANGOCO).

WHO IS CIVIL SOCIETY? Civil Society is the arena outside of the family, the state and the market where people associate to advance common interests. It is sometimes referred to as the “third sector "of society or essentially to the so called “intermediary institutions” such as religious groups, labour unions and citizen advocacy organization professional associations and to some extent Non Profit Organizations that give voice to various sectors of society and enrich public participation in democracies. Other definition are: (1)Aggregate of Non-Governmental Organizations (NGO) and Institutions that manifest interests and will of citizens (2)Individuals and Organizations in a society which are distinct and independent of the Government and Business. NGO’s/Non-Profit Organizations, Faith Based Groups, Labour Unions, Research and other Professional Association constitute a core in Civil Society matters as they raise voice from ordinary people.

ROLE OF CIVIL SOCIETY IN LED/SANGOCO? Mobilise Communities to participate in LED processes. Ensure the fullest participation and involvement of Community Based Organizations and other stakeholders to take the LED initiatives and work together for growth and development. To forge stronger and cohesive relationship with Government and Business and facilitate “Social Contract” between all stakeholders(Institutionalise Partnership with Government & Business). Be the voice of the ordinary and vulnerable groups by forming part of LED Forum at Ward and Community Level. Develop Training and Capacity building programs that will benefit all those involved in LED Projects. Ascertain Skill level and gaps and develop Training Plans. Advocate for creation of new jobs or new sources of employment and economic activity. In this regard, we will ensure labour targets are met including employment of women, disabled people and other vulnerable groups. Helps in the development of Sustainability Plans for community owned LED Projects and Initiatives.

CHALLENGES FACING PRO-POOR LED Community centred, people driven and controlled LED. Active involvement of people and residents / Recognition of communities as their own change agents, rather than being passive participants in their development. NGO Capacity Building and Resources on LED initiatives. Limited budget for LED projects generated from programs of government institution, municipal entities and business. Lack of formalized community LED forums at community/ward/local levels thus weakening community participation and involvement. Never-ending differences between government, business, labour and community sectors on implementation of LED strategies.

WAY FORWARD Establish community driven LED forums in each local/ward and proper prioritization of LED programs /projects initiated IDP process. Provision of capacity building resources and financial support and aid to community owned LED projects and NGO’s. The State providing a clear strategic direction in policy making process and implement its electoral mandate by enhancing its developmental role and working together with communities in a “peoples contract’ to find solutions to their economic; social and material needs. Formalized relationship and mutual agreement between Govt./State and civil society around the LED campaigns and programs.

CONCLUSION Genuine development cannot take place without the full involvement of the community and their representative structures. Community and civil society participation is central in all efforts by government /state to improve the quality of lives of the poor and marginalized. Community must actively and practically contribute on efforts initiated by the government /state to eradicate poverty, hunger and that of bringing development to its citizens. Promote community/public/private partnerships so as to enhance enterprise development at community level. Community ownership on LED related projects/programs will form the basis for community centred, people driven development for the benefit of the community and the citizens of our country. Formalized and strengthen relations between the State and broader civil society.

National President: SANGOCO Cell: