A discussion about the Randfontein municipality and what challenges it is faced with when coming to the Local Economic Development (LED). Randfontein is based in the west side of Johannesburg, it falls under the West Rand District Municipality (WRDM). According to ( Reich, 1991) “ suitable economic policies could cure all economic problems by stimulating local economic development to create better human and financial capital flows”. South African government has developed a policy in which all local governments help the people in their community and put an end to the pro poor emphasis, that’s when LED come to place, a well formulated and implemented strategy which can improve quality of life of local people. We going to look at how …show more content…
In the case of unemployment and low wages, there is always going to be people who are unemployed as the rate of unemployment is very high so in order for the municipality to fix this situation in to create more jobs in rural areas because most people leave rural areas to go work in urban areas (urban migration), the LED can create internships for young people who have just finished matric, because not everyone is able to further their studies at universities or college. Low wages is a result of low funding in a company or business, the LED can support local businesses and fund them. Isolation is about a community that lacks service delivery meaning that there is no improvement in anything and have limited access to material. Lack of local opportunities has to do with the lack of skill people have, the municipal needs to create local opportunities for the …show more content…
In order to improve the quality of life of the citizens, the Randfontein municipality have to overcome the challenges which they face when coming to the LED, these challenges are high unemployment and low wages and isolation and lack of local opportunities. LED ‘s purpose is to be able to improve these challenges that are encountered in the Randfontein municipality meaning that it must create new opportunities in order to fight the high unemployment and low wages, it can do this by providing basic education, I mean like the government does provide free education for children from primary to secondary schools, most people drop out of school at a very young age which makes it hard for them to find proper well-paying jobs, because they have no experience and no company would hire a person with no experience or even a proper