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2~'05 UNIVERSITY OF THE WESTERN CAPE UNIVERSITEIT VAN WES-KAAPLAND This book must be returned on or before the last date shown below. Hierdie boek moet terugbesorg word voor of op die laaste datum hieronder aangegee. NB: Telephonic renewals only between 19h30 - 22hOO at issue desk 959 2946 \~ .----+- 1~o3~( ~ 18 'b ~64--1_ ~ t" l \4--·0'.~ }"~~*.__'--_.- ...~.".. _....... \_- i I I f""Mjr;t:t:1W-i:!H~*===i~---~~ ~J 30001600053802 111111111111 III https://etd.uwc.ac.za/ DEVELOPMENTAL LOCAL AUTHORITIES IN SMALL RURAL TOWNS OF THE NORTHERN CAPE - THE CASE OF VICTORIA WEST A research report submitted to the School of Government, University of the Western Cape, in partial fulfilment of the requirements for the degree of Master in Administration EMIL NOTHNAGEL 2344195 Supervisor: Prof. Wolfgang Thomas May2004 https://etd.uwc.ac.za/ .... IEii VAN WE8.~ aa.1OTEEK 3S2....\461b~ ~ https://etd.uwc.ac.za/ DECLARATION I hereby declare that this is my own, unaided work. It is being submitted for the Degree of Master of Administration in the School of Government, University of the Western Cape. I further testify that it has not been submitted for any other degree or to any other institution of higher learning. DATE: 13 MAY 2004 11 https://etd.uwc.ac.za/ ACKNOWLEDGEMENTS I would like to express my gratitude and appreciation to some organisations and individuals: • My loving wife and beautiful daughter, Euruka and Mieke Nothnagel for your unconditional love and belief in me, your interminable patience and made time and space to make this mandate part of the loving nature of the Nothnagel family. • My parents and sister, Steve, Claude and Monique Carsten for your love, prayers, support and belief in me and my studies. I love you. • My parents-in-law, John and Cupie Drury for the support, your love and for whom no sacrifice is ever too big. • Prof. Wolfgang Thomas for his inspiration, continuous interest, encouragement and guidance in the completion of this study despite his heavy workload. • My friends, David and Gail Robbins, for their faith in the Apollo project, their friendship, interest and contribution to one of the most successful community-based development projects in the Northern Cape. 111 https://etd.uwc.ac.za/ • The Mayor, Councillors and Personnel, and Ubuntu Municipality for supporting me as Municipal Manager and believing in this local economic development initiative. • The Chairman, Board Members and Staff, Apollo Development Association for serving through this project the beautiful people of Victoria West. IV https://etd.uwc.ac.za/ ABBREVIATIONS ADA Apollo Development Association AFF Apollo Film Festival ANC African National Congress BASA Business & Art South Africa DBSA Development Bank of South Africa B&B Bed and Breakfast CBO Community based organization CDE Centre for Development and Enterprise CMIP Consolidated Municipal Infrastructure Programme DA Democratic Alliance DACST Development of Arts, Culture, Science & Technology DEAT Department of Environmental Affairs and Tourism DSH District Health Authority FRU Film Resources Unit IDP Integrated Development Plan LA Local Authority LED Local Economic Development NAMAC Northern Cape Manufacturing Advice Centre NCACC Northern Cape Arts and Culture Council NCTA Northern Cape Tourism Authority NDA National Development Agency NFVF National Film & Video Foundation NGO Non-Governmental Organisation NLF National Lotteries Fund PPP Public-Private Partnership SBAS Standard Bank Arts Sponsorship SMME Small, Medium, Micro Enterprise SWOT Strengths, Weaknesses, Opportunities, Threats VIP Very important person v https://etd.uwc.ac.za/ INDEX CHAPTERl PAGE 1. INTRODUCTION 1.1 Subject choice 1 1.2 Role oflocal authorities 3 1.3 The broader context 5 1.4 Background to the LED paradigm 8 1.5 Challenges of small, rural towns 11 1.6 Problem statement and structure of the report 13 CHAPTER2 2. CHANGING ROLES OF SOUTH AFRICAN LOCAL AUTHORITIES 2.1 Local government in transformation 17 2.2 Local councils 19 2.2.1 Merger of former municipalities 19 2.2.2 Status, powers and functions of municipalities 22 2.3 Local economic development - a new paradigm 24 2.4 Critical elements of the LED process 27 2.4.1 Leadership in LED 28 2.4.2 Service delivery JO 2.4.3 Public- private partnerships 34 2.4.4 Co-operative government 36 2.5 Conclusion 39 CHAPTER3 3. VICTORIA WEST - SMALL TOWN IN THE RURAL SETTING OF THE NORTHERN CAPE 3.1 Victoria west in provincial context:a profile of the 40 Northern Cape 3.2 Victoria West in local context 45 3.2.1 Economic Geographies 45 3.2.2 The new municipality 50 3.2.3 Socio-demographic characteristics 52 VI https://etd.uwc.ac.za/ 3.3 Development challenges 54 3.3.1 SWOT analysis 54 3.3.2 Upgrading of the local infrastructure 57 3.3.3 LED strategies and policy goals 58 CHAPTER4 4. THE APOLLO DEVELOPMENT ASSOCIATION - AN EVALUATION 4.1 History and background of Victoria West and the 61 Apollo Theatre 4.2 The Apollo Development Association: history and 63 background 4.2.1 The catalytic role of the ADA 65 4.2.2 Personalities linked to the Apollo 67 4.2.3 Operation of the Association 70 4.2.4 Administrative structure 72 4.3 The cluster approach to add-on activities 75 4.4 Critical issues in the evolution of ADA 77 4.4.1 ADA's start-up 77 4.4.2 Relationship with Ubuntu local Authority 81 4.4.3 ADA finances 85 4.5 ADA and tourism promotion 87 4.5.1 The Ubuntu Tourism Office 87 4.5.2 The Apollo as museum and tourism facility 88 4.5.3 The Apollo as cinema 89 4.5.4 Apollo Film Festival 2003 90 4.5.5 The Apollo as regional tourism development centre 95 CHAPTER5 5. LESSONS TO BE LEARNED 5.1 New partnerships 96 5.2 Other urban development catalysts 96 5.2.1 The Kopana Women's Bakers in Warrenton 97 5.2.2 Galeshewe Compost Project 98 5.3 Local Authorities and NOO's as LED partners: 100 Critical lessons 5.4 Scope for further research 102 BIBLIOGRAPHY 103 vn https://etd.uwc.ac.za/ CHAPTER 1: INTRODUCTION 1.1 Subject choice For the last seventeen years I have been actively involved in local government management and I have also been schooled in this academic field. I made this milieu my career as I have an intense yearning to stand in service of the general community, - more specifically the rural communities in South Africa. Practical engagement in this field also taught me that democracy goes hand in hand with urbanisation and, if not countered, the pauperisation of rural districts. The result of this is impoverishment and increasing unemployment. I see concerned "local economic development" as one of the only instruments through which rural communities can master themselves and so contribute to the economic development of smaller towns and platteland areas, thereby also contributing towards emotional growth arid human dignity. Professor Jeff McCarthy (1996) of the Centre for Development and Enterprise (CDE) suggested that there is a danger that many of South Africa's small towns -like Victoria West in the former 'white' platteland - could "atrophy", leading to politically polarised and economically unstable conditions, not to mention lost opportunities for growth, development and racial reconciliation. 1 https://etd.uwc.ac.za/ In the words of the CDE research: "Some of the most creative thinking about the future of small towns emanates from local institutions of civil society within certain small towns. But this response is uneven and what is achieved is seldom published or shared with small towns elsewhere in the country." (Tomlinson, 2002: 1). These conclusions also apply to local economic development in the Northern Cape; in fact it motivated the research for this thesis. Local authorities' main objective - to deliver affordable infrastructure and services to the population it serves - cannot be sustained unless economic development initiatives are given high priority. However, small-town local authorities find it difficult to understand economic development imperatives and to secure development funding from the various government sources. The question therefore arises, whether there are alternative grassroots-based economic development conduits and arrangements, and how local authorities can relate to them. As we shall demonstrate in this study local authorities need to divide their attention between service delivery and development promotion, differentiating clearly between infrastructural and economic development initiatives. 2 https://etd.uwc.ac.za/ 1.2 Role oflocal authorities This study focuses on the role of local authorities In the economic development planning of small towns. In South Africa local authorities are expected to deliver basic services to their constituents and to contribute to the economic development of the community. During the years of apartheid, local authorities mainly concentrated on "white areas", where local economic development projects were first initialized. This resulted in a situation where "non-European" communities were seen as more "affixtures to developed 'towns"'. Naturally, the (European) suburbs and industrial areas, seen from a local government management viewpoint developed into elite areas with high quality infrastructure. To counter those trends, the South African Constitution, Act 108 of 1996, states in para 153 that "A municipality must a) structure and manage its administration and budgeting and planning process to give priority to the basic needs of the community; and to promote the social and economic development of the community"; and that it should b) participate in national and provincial development programmes. In the language of the 1998 White Paper: "One of the strengths of working together with local citizens and partners is that it recognises the linkages between development, delivery and democracy". Building local democracy is a central role of local government, and municipalities should develop strategies and mechanisms (including, but not limited to, participative planning) to continuously engage with citizens, business and community groups.
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