MUNICIPALITIES : AGENTS FOR SOCIO-ECONOMIC TRANSFORMATION

FEATURE by Alson Bhebe

Municipalities as local governing authorities should act as the vehicles that drive the creation of an environment conducive for socioeconomic transformation. Economic activities in a transformed socioeconomic environment are performed for the benefit of all citizens. Transformation is the process through which exploitative tendencies are eradicated. Municipalities through their obligation to license all business activities within their jurisdiction, play a cardinal role in policing that economic activities are performed in a just manner. It is every investor’s objective to create wealth for themselves, but that must never be at the expense of citizens.

Harare CBD

The expectations of an independent State is an equitable socioeconomic environment. Most African communities, many decades into democracy are still grappling with economies that are not reflective of African demographics. Ownership of means of production remain under the firm control of former colonisers. Foreign direct investments come wrapped in conditions that render the vision of independence a pipe dream. International organizations such as Credit Ratings Agencies, are used to whip African countries into colonial submission. Foreign interests are entrenched into African governments through various funding schemes. A transformed socioeconomic environment remains a pipe dream for most African communities. But, what does a socioeconomic environment look like? What do we mean when we talk about socioeconomic transformation? “Socioeconomic transformation is a systematic science.” [1] “A systems science is defined as an interdisciplinary field of science which studies the nature of complex systems.” [2] In our instance, this system consists of two unique but related subsets, the economic sciences and the social sciences. The equation below can best explain how these two sciences relate.

During the colonial era, our colonisers created an economic environment that excluded the black majority. Whites gave themselves privileges that helped them outperform blacks in wealth creation. Whites were afforded the best education system which empowered them not only to be employable but to be able to run their own businesses. Financial support of any kind was only offered to the white community. Socioeconomic transformation is therefore a science that seeks to redress these imbalances. However, the redress must be done in a delicate way always so that we do not upset the already functioning economies. Our land reform program is an example of a transformation trajectory that did not go well as it resulted in compromising a well-functioning Agricultural sector, compromising food production. Municipalities as local governing authorities should act as the vehicles that drive the creation of an environment conducive for socioeconomic transformation. Economic activities in a transformed socioeconomic environment are performed for the benefit of all citizens. Transformation is the process through which exploitative tendencies are eradicated. Municipalities through their obligation to license all business activities within their jurisdiction, play a cardinal role in policing that economic activities are performed in a just manner. It is every investor’s objective to create wealth for themselves, but that must never be at the expense of citizens.

Our colonial oppressors were motivated by the desire to amass wealth through affording themselves rights and privileges which they denied indigenous citizens. Communities where locals resided received compromised services. Municipalities serve a critical role not only in assuring that services are provided fairly to all citizens but also that they contract service providers from the previously disadvantaged communities. This will accommodate locals within the wealth creation value chain. Most independent governments have enacted laws that are meant to create an environment that encourages the previously disadvantaged to participate in economic activities. These emerging businesses from the previously disadvantaged rely on local authorities to give them jobs. Democratic processes that are premised on transparency require that they be a clear way of contracting service providers. In most instances there are policies and a clear legal framework that guide how business is conducted at all government levels. Local authorities, who understand the unique needs of their citizens must promote these policies. The monitoring and evaluation of such policies should be at the forefront of every municipality. In some countries municipalities are required to design and implement integrated development plans. Local municipalities can be the engine of any transformation program.

Municipalities in their role as transformation agents have a critical role to play in capacity building. Most of the previously disadvantaged lack critical skills of running sustainable businesses. Strategic municipalities would not only offer small scale businesses with jobs, but they would go an extra mile in providing skills development. Some Municipalities go to the extent of partnering with business advisors. If a smallscale business is offered a project, they are availed the services of a business advisor who will help the small business with any skills sets they lack. This strategy works well as part of an integrated development plan. Capacity building can also involve partnering with academic institutions. It is a fact that most of the communities with indigenous citizens were offered poor education during the colonial era. Postindependence it’s not surprising to find that the 40 to 60-year age group are academically challenged. Empowerment which includes an educational program will assure any local authority of visionary small business owners. Empowering them through relevant education leaves them capable of turning their small businesses into medium or large enterprises. This would assure sustainability. Another transformational trajectory which a municipality should never overlook is the provision of decent accommodation. It is quite sad that some municipalities are governing in areas where local communities are literally living as vagrants. It is an unacceptable norm that most citizens in our communities live in squalid conditions whilst the elite live in luxury. Part of the major reason why living conditions are deplorable for the indigenous majority is because of lack of land to build decent homes. Urban land has been commercialised and left beyond the reach of ordinary citizens.

Municipalities play a critical role in identifying land needs and land use. Rural municipalities equally play a critical role on rural land. One often wonders why land occupied by Black Africans is regarded as communal land with no commercial value whereas land occupied by Whites is always referred to as commercial land. In some instances, this land is divided by a fence. Which means, it’s the same soil type which is capable of the same crop yield. In some farming arears, commercial farms, owned by whites, have a different value to farms owned by blacks. These anomalies aught to be addressed by local authorities. Through municipalities and rural councils, all land can be given commercial value and used as collateral for funding. Municipalities are public funded. If by holding them to account we are only concerned about how they spent public funds, we would not have done enough. Funds can be properly spent according to law and regulations. But those funds can be spent on business entities that do not benefit local citizens. A well-managed local authority is the one that spends its finances according to laws and regulations but spends on businesses that develop and empower local communities.

REFERENCES 1. Bhebe, A. 2018 Understanding Socioeconomic Transformation in South Africa – What has not changed two decades into Democracy. Alef Innovations, Cape Town RSA 2. https://en.wikipedia.org/wiki/ Systems_science