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The Evolution of Local Economic Development in South Africa: The Case of Stutterheim and Social Capital

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  • Etienne L. Nel

    (Rhodes University)

  • Ronald W. McQuaid

    (Napier University)

Abstract

Local economic development and promoting racial reconciliation have been key foci in addressing the legacy of apartheid in South Africa. This article examines what is arguably the most well-established example of local economic development in South Africa, namely a local government and community-led development initiative in the small rural town of Stutterheim. As the project has evolved over a decade, it has changed its development focus to reflect the changing context and various internal constraints. The study reveals that even though the project has had difficulties, its sheer survival and ability to adapt in a rapidly changing society have been important. More general lessons include the significance of key social entrepreneurs and the development of social and human capital in concert with physical and business infrastructure.

Suggested Citation

  • Etienne L. Nel & Ronald W. McQuaid, 2002. "The Evolution of Local Economic Development in South Africa: The Case of Stutterheim and Social Capital," Economic Development Quarterly, , vol. 16(1), pages 60-74, February.
  • Handle: RePEc:sae:ecdequ:v:16:y:2002:i:1:p:60-74
    DOI: 10.1177/0891242402016001007
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    References listed on IDEAS

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    4. Keith S. Glancey & Ronald W. McQuaid, 2000. "Socio-Economic Influences on Entrepreneurship," Palgrave Macmillan Books, in: Jo Campling (ed.), Entrepreneurial Economics, chapter 5, pages 78-97, Palgrave Macmillan.
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    Cited by:

    1. Garidzirai Rufaro & Muzindutsi Paul-Francois, 2020. "A Panel ARDL Analsis of the Productivity of Key Economic Sectors Contributing to Local Economic Growth in an Emerging Country," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 65(1), pages 39-53, April.
    2. Amjad Ali & Sania Yousuf, 2019. "Social capital and entrepreneurial intention: empirical evidence from rural community of Pakistan," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-13, December.
    3. Greig, Malcolm Stewart & Lindsay, Colin & McQuaid, Ronald W., 2002. "Delivering job search services in rural labour markets: the role of ICT," ERSA conference papers ersa02p235, European Regional Science Association.
    4. Hernan 'Banjo' Roxas & Fara Azmat, 2014. "Community social capital and entrepreneurship: analyzing the links," Community Development, Taylor & Francis Journals, vol. 45(2), pages 134-149, May.
    5. Cecile Gerwel Proches & Shamim Bodhanya & Stan Hardman, 2012. "The Challenges of Service Provision and Economic Development in South Africa," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(Special N), pages 580-599, November.
    6. Crittenden, Victoria L. & Crittenden, William F. & Ajjan, Haya, 2020. "Women in sales in developing countries: The value of technology for social impact," Business Horizons, Elsevier, vol. 63(5), pages 619-626.
    7. Etienne Nel, 2009. "Misplaced Expectations? The Experience of Applied Local Economic Development in Post-Apartheid South Africa," Local Economy, London South Bank University, vol. 24(3), pages 224-237, May.
    8. Hoogendoorn, B. & Pennings, H.P.G. & Thurik, A.R., 2010. "What do We Know about Social Entrepreneurship: An Analysis of Empirical Research," ERIM Report Series Research in Management ERS-2009-044-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    9. Ronald Mcquaid, 2002. "Entrepreneurship and ICT Industries: Support from Regional and Local Policies," Regional Studies, Taylor & Francis Journals, vol. 36(8), pages 909-919.
    10. McQuaid, Ronald W., 2002. "Entrepreneurship and regional development policies," ERSA conference papers ersa02p187, European Regional Science Association.

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