Description
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).










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