Local economic development in the developing countries : issues, trends and options

Abstract

This article examines the implementation of local economic development policy in the developing countries and a comparative analysis of two case studies, namely, the Republic of South Africa and Hungary are discussed. Local economic development in the developing countries has the potential to help address the perennial problems manifested through low economic growth rates, high unemployment and poverty levels facing the majority of the population. The academic discourse on the concept of a developmental state is analysed coupled with its application in the South African setting. The research methodology utilised for the purpose of gathering data involved offi cial documentation (namely, government policies and legislation); fi eld research visit to Hungary, at the Hungarian Academy for Regional Studies and literature review. This article presents important strategies that could be employed in order to propel and sustain local economies in the context of developmental local government.