SECTION3LEGALFRAMEWORK.docVIP

SECTION 3: LEGAL FRAMEWORK INTRODUCTION The Constitution of the Republic of South Africa affirms: “A municipality must structure and manage its administration, and budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and economic development of the community. Only when all citizens receive at least a lifeline supply of basic-need services and goods, can equity be achieved; only with the social and economic development of a community, can there be justice”. Guidelines for the implementation of Local Economic Development Strategies have been presented by the various spheres of government. Legislation and policy on this subject matter provides a legal framework and influence the manner in which local authorities conduct local development. Local government is legally mandated in terms of the National Constitution (Act no. 108 of 1996) to “promote social and economic development”. This mandate marks a significant departure from the service-orientated focus of local government and has led to a series of important legal developments (Nel Binns. 2001:356). The current legislative framework affecting local government (with reference to LED) is indicated in figure 3.1 FIGURE 3.1: LEGISLATIVE FRAMEWORK Source: DPLG, 2004 This section provides an overview of the legislation applicable to local economic development and is discussed in the subsequent paragraphs of this section. The legislation includes, inter alia, the following: The Constitution The White Paper on Local Government Municipal Structures Act Systems Act Integrated Development Planning The Reconstruction and Development Programme Local Economic Development Policy Paper: Refocusing Development of the Poor The Municipal Finance Management Act The Municipal Infrastructure Grant National Strategy for the Development and Promotion of Small Businesses in South Africa Integrated Sustainable Rural Development Strategy Black Econ