On a global level, local government generally has been undergoing a process of
fundamental restructuring, transformation, reform and renewal to meet global
development priorities and the international development agenda. More specifically,
countries are required to inter alia, respond to the Millennium Development Goals
(MDGs). It has been acknowledged and recognized that development initiatives and
activities to achieve the MDGs are most marked and effective at the local government
sphere where basic needs of the local citizenry is met and service delivery is most
visible and has the desired impact. It would appear that the results have been more
marked and visible in those countries where policies designed to improve local
governance is also complemented by efforts to enhance public governance through
effectiveness and efficiency nationally and at the subnational levels (UNDP2010:23).
Developing the capacity of the municipal service in the African context is critical to
not only inclusive MDG achievement, but also in terms of ensuring national
ownership of local development interventions and programs (UNDP 2010:23). Local
Economic Development (LED) has continentally been viewed as an integral part of
local governance or community development and there has been a tendency to focus
on poverty alleviation strategies as social goals rather than sustainable development
longitudinally (Reddy and Wallis 2012:70). This paper will critique capacity
development and LED in South Africa in the broad context of inclusiveness and
attainment of the MDGs. More specifically, it will also highlight some of the key
challenges/obstacles currently being faced relative to enhancing capacity
development, LED and the attainment of the MDGs. Recommendations will be made
at the end of the paper in responding to some of the key thematic issues highlighted
earlier.