THE CHALLENGES OF SERVICE PROVISION AND ECONOMIC DEVELOPMENT IN SOUTH AFRICA

South Africa faces difficulties related to the provision of services, which stem from common challenges related to globalisation, urbanisation, and the divide between the rich and poor. The country also has to take account of other factors which impact negatively on economic development. Various stakeholders in the public and private sector, Non-Governmental Organisations (NGOs) and even communities engage in Local Economic Development (LED) initiatives. Such efforts include job creation and economic stimulation, the creation and support of enterprise establishment and development, infrastructure investment, and attempts to increase the competitiveness in a local area, through the use of the available physical and intellectual resources. The aim of this theoretical paper is to focus on the role of LED in addressing the local and global challenges that impact on service provision and economic development in South Africa. The specific challenges will be outlined, and LED in South Africa will be discussed in some detail, along with recommendations to address areas of concern.