SECTION A
CURRENT REALITY

In this section Section A provides a brief history of local government an understanding of this history is necessary in order to transform local government. The section also includes an overview of the existing transitional system of local government. This is necessary as any new system of local government should build on the strengths of what exists, and address the constraints and difficulties which municipalities currently face.

In addition, Section A includes an overview of human settlement patterns and trends the movement and settlement of people. Human settlement patterns have a major impact on local government. They influence demands on resources, the flow of resources, the constraints and possibilities for services, and many other aspects of local government.

Finally, Section A defines the challenge for local government.

1. A HISTORY OF LOCAL GOVERNMENT

The major influences on local government in South Africa have been apartheid, local struggles against apartheid, built-in financial strengths and weaknesses and the negotiations process in the early 1990s. In particular, apartheid has left its imprint on South Africa's human settlements and municipal institutions. Transformation requires an understanding of the role local government played in separating people and in perpetuating inequity. We also need to understand how national apartheid policies affected municipal institutions. Equally important is the history of resistance to apartheid at the local level, and the struggles which were waged against apartheid local government.


Group areas and spatial separation 		Racial segregation and disadvantage
Apartheid was not the beginning of geographic, institutional and social separation at the local level. Segregation was already a policy by the time apartheid was introduced in 1948. However, apartheid entrenched the segregation of black residents in urban townships and bantustans and the disadvantages that this spatial segregation imposed on them. The Group Areas Act, the key piece of apartheid legislation, instituted strict residential segregation and compulsory removal of blacks to 'own group' areas. Through spatial separation, influx control, and a policy of 'own management for own areas', apartheid aimed to limit the extent to which affluent white municipalities would bear the financial burden of servicing black areas. The Group Areas Act restricted the permanent presence of Africans in urban areas through the pass system, and reserved a viable municipal revenue base for white areas by preventing townships from attracting industry.
'Own
management' 		Various attempts were made under apartheid to introduce 'own management' structures for blacks at the local level. This was in part to compensate for restricted rights, and in part to bolster racial privilege and exclusion.
  • In bantustans, limited local government was established. Traditional leaders were given powers over land allocation and development matters on communally owned land. Some small rural townships (the so-called R293 towns) were given their own administrations, but these lacked real powers.
  • In the 1960s, 'coloured' and Indian management and local affairs committees were established as advisory bodies to white municipalities.
  • The Bantu Affairs Administration Act of 1971 established appointed Administration Boards, which removed responsibility for townships from white municipalities.
  • In 1977, Community Councils were introduced. These were elected, but were given no powers and resources. They never gained political credibility.
  • In 1982 Community Councils were replaced by Black Local Authorities (BLAs). BLAs had no significant revenue base (sources of revenue), and were seen as politically illegitimate from their inception. They were rejected by popular (and sometimes violent) community mobilisation in the mid 1980s.

To some extent these forms of 'own local government' acknowledged the permanent presence of blacks in urban areas. However, they were designed to reinforce the policies of segregation and economic exclusion. None had resources to make any real difference to the quality of life of their constituents.

 

Most revenue self generated

Financial constraints

Historically, most local government revenue in urban South Africa is self-generated, mainly through property taxes and the delivery of services to residents and business. This particularly suited white municipalities which had small populations to serve and economic resources to tax.

Black urban areas deprived of revenue sources Financial shortfalls were built into local government for black areas. Apartheid regulations barred most retail and industrial developments in black areas. This limited the tax base and forced residents and retailers to spend most of their money in white areas. Municipalities in black areas were therefore deprived of the means to meet the needs of local residents.
In rural areas, most resources directed to whites In rural areas, discrimination and segregation was equally stark. Water and electricity were supplied to white residents in rural areas at enormous cost, while scant regard was given to the needs of the rural majority. Crisis and collapse was inevitable.
UDF launched - communities reject BLAs The United Democratic Front, at its launch in 1983, gave prominent attention to the Koornhof Bills which established the BLAs. BLAs attempted to impose rent and service charges on township residents to increase revenue. This revenue source could never have provided for meaningful delivery. It only served to anger increasingly politicised communities. The rejection of BLAs in the mid 1980s led to a popular uprising which shook the foundations of the apartheid order.
 

1984 uprising

Protesting against a distorted system

As the 1984 uprising gathered momentum, civics and other community bodies started to organise. Their rallying cry was the poor social and economic conditions in townships and bantustans. Their chief weapons were the organised boycott of rents and service charges, and consumer boycotts. For the first time people began to protest systematically against the way human settlements were spatially and economically distorted.

Late 1980s - apartheid fails to prop up BLAs In the late 1980s the apartheid state attempted to prop up collapsing BLAs and calm political tensions by redirecting funds to disadvantaged areas. A system of ad hoc intergovernmental grants was developed to channel resources to collapsing townships. Regional Services Councils and Joint Services Boards were established to channel funds to black areas. However, these interventions were 'too little too late'. By the late 1980s there was no effective government in most townships and many homeland rural areas, and it was clear that BLAs (or any similar structures) would never be viable.
Talks begin The crisis opened up by the collapse of local apartheid eventually led to the realisation that a new deal was needed. White municipalities, experiencing the financial impact of organised consumer, service and rent boycotts, began to enter into negotiations with civic and other organisational representatives from townships. Initially these forums were little more than crisis management structures. However, these initial talks formed the basis for later local negotiations, and the system of local government we have now.
Local Government Negotiating Forum Local forums recognised that the legal constraints which separated black residents from the municipal tax base, had to be addressed nationally. The popular slogan, 'One City, One Tax Base', could only be realised through national legislation. Local forums collectively pushed for the establishment of a national forum, the Local Government Negotiating Forum.
 

A negotiated transition process for local government

An incomplete transition

The crisis in local government was a major force leading to the national political transition process that started in 1990. However, debate around the future of local government only took place near the end of the national negotiating process, in talks within the Local Government Negotiating Forum. The Local Government Negotiating Forum put together the Agreement on Finance and Services, signed by Nelson Mandela and F.W. De Klerk, writing off arrears to BLAs. It also negotiated the Local Government Transition Act (LGTA) of 1993. The LGTA did not provide a blueprint for a new local government system, but simply sketched a process for change. The process was essentially a locally-negotiated transition, which has resulted in a wide diversity of forms of local government.

Three phases of transition The LGTA mapped out three phases:
  • the pre-interim phase, which prescribed the establishment of local forums to negotiate the appointment of temporary councils, which would govern until municipal elections
  • the interim phase, beginning with municipal elections in 1995/96 and lasting until the next elections in 1999, and
  • the final stage, when a new local government system will be established.
The Interim Phase We are now in the interim phase. While the LGTA has effectively deracialised the system of local government through the amalgamation of former racially-based structures, real transformation has yet to occur. The weaknesses of the LGTA, such as its bias towards urban areas and the lack of structured support processes to enable municipalities to manage the change process, are reflected in our current municipal system.
New LG to meet development challenge While newly elected councils in many areas have made significant progress with respect to addressing backlogs and extending services, they face many constraints. The huge infrastructural disparities and inequalities resulting from apartheid local government remain. The transition process has clearly shown that the old institutional framework will not permit local government to deliver on its new democratic municipal mandates, namely, to overcome the injustices and imbalances of apartheid and promote development and prosperity for all.

2. THE CURRENT STATE OF LOCAL GOVERNMENT

2.1. Existing local government institutions

Our existing system, established as a transition measure to bridge the gap between the old apartheid councils and the new local government system, comprises a number of types of municipality. Each existing type presents specific challenges:

 

Types of municipality

Metropolitan Councils with Metropolitan Local Councils

This two tier system comprising a metropolitan council and metropolitan local councils (MLCs) has been established for the six areas identified by the demarcation process as

metropolitan areas: four in Gauteng Province (Greater Johannesburg Metropolitan Council, Vaal/Lekoa Metropolitan Council, Pretoria Metropolitan Council and Khayalami Metropolitan Council) together with the Durban Metropolitan Council and the Cape Metropolitan Council. The demarcation process in metropolitan areas has resulted in considerable variation in the number and geographic size of MLCs in each metropolitan area. Some areas which comply with the definition of metropolitan area in the LGTA were not demarcated as metropolitan councils.

The LGTA allowed for a local negotiation process to define the allocation of powers and functions between the metropolitan council and MLCs, resulting in different allocations in each area. Some metropolitan councils have assumed core coordinating and redistributive functions, but play a limited service delivery role. Others play a larger operational role and are responsible for more service delivery functions directly to the public.

Metropolitan governments also differ in the extent to which they permit the redistribution of municipal resources within their area of jurisdiction. Redistribution was one of the key original justifications for metropolitan government. In all metropolitan areas some redistribution occurs between high income and low income consumers of services. Redistribution can be structured within a specific service, and between services. Redistribution also occurs through the allocation of old RSC levies (employment and turnover levies) to underdeveloped parts. In other metropolitan areas a metropolitan levy is also charged on MLCs, and re-allocated across the metropolitan area.

There are also differences in property rating systems: in some areas there is a common property rating system (site and improvements and site as a minimum respectively), but MLCs are allowed to set their own rate. In other areas the metropolitan council has not only determined a common rating system, but has also set a common rate for the entire metropolitan area, and redistributes rates income across the metropolitan area in accordance with various equity criteria (a set of principles and rules to ensure fairness and justice). Significant tensions exist around redistribution within a given metropolitan area, and the new system of metropolitan local government will need to spell out clearly the mechanisms which are to be used for redistribution.

The existing forms of metropolitan government, where metropolitan councils play either a stronger or weaker role in relation to their MLCs, have achieved varying degrees of success in enhancing co-operative government, and ensuring the equitable distribution of metropolitan resources. The nature of the current system of metropolitan government, as defined by the LGTA, has proved very open to different interpretations by local players. A new system of metropolitan government will need to be more clearly defined, and provide both clear guidance on the role of metropolitan government, and sufficient powers to fulfil this role.

District Councils

There are considerable variations in the size of the budgets and staffing complements of District Councils. The LGTA did not provide for clear powers for District Councils, hence the roles played by District Councils vary, as their powers and functions derive from provincial proclamations which are different in each province. In most of the country, District Councils build on the old Regional Services Councils and Joint Services Boards. In some areas District Councils are completely new structures established during the transition. Generally they are responsible for the bulk service functions (for example, bulk supply of electricty) of the old RSCs. They also have the task of assisting in the development of new primary structures in rural areas.

Most District Councils have sufficient managerial and technical capacity to fulfil 'original' (or old RSC) functions. However, some have been slow to implement new functions, including support to rural local governments, and direct delivery on their behalf. Others have been innovative in assisting small towns and rural areas, and in extending services to poor rural communities. Some have adopted a flexible approach to addressing priority issues that are not formally within their functional scope. Most, however, have not adopted a major role as development agents.

District Councils are intended to have a strong redistributive function. This redistributive function is not without problems. The large proportion of District Council levy income is collected from urban areas, and urban municipalities complain that not enough of this income is re-invested in urban infrastructure. It should also be noted that wealthy metropolitan areas do not fall within District Council areas. The levy income collected in metropolitan areas is thus used exclusively for the metropolitan area. Non-metropolitan areas may perceive this as being unfair, since it could reinforce the development disadvantages that struggling urban centres, outside of the major metropolitan areas, already face. The role of District Councils in redistribution is complicated by a perception that powerful special interest groups continue to wield undue influence over the allocation of funds.

District Councils operate in very different contexts and serve areas of very different size and settlement patterns, ranging from areas of dense settlements to vast, sparsely populated regions. Generally, however, District Councils have at least some administrative capacity, and consideration should be given to building on this capacity in the design of a new local government system.

Transitional Local Councils

A Transitional Local Council (TLC) model has been applied to most urban areas (excluding metropolitan areas), ranging from major cities to small rural towns, with very different economic and social realities. There are significant differences between towns: some towns are emerging economic growth points, others are in rapid decline. Some are expanding, others are depopulating.

There are major variations in the capacities of municipalities serving cities and larger towns on the one hand, and small towns on the other. Municipalities in cities and larger towns face problems of poverty and uneven development, but have relatively solid administrative and financial capacity that enables them to address their current responsibilities to a significant extent with their own resources. Many small town municipalities, on the other hand, do not have the financial, administrative or service delivery potential to provide adequate services and governance without strong external support or rationalisation. A system whereby larger towns or District Councils provide financial and accounting as well as other administrative services for smaller municipalities on an agency basis is becoming increasingly common.

Generally TLCs have tended to focus narrowly on service delivery. Few have adopted strategic planning or integrated development planning systems. In addition, comprehensive human resource development strategies for staff are uncommon, as are structured mechanisms to ensure greater gender and racial balances in staff complements. Environmental development functions have also not received much attention. However, some TLCs are increasingly focusing on Local Economic Development.

TLC relations with District Councils are often conflictual and TLCs are critical of the level of infrastructure funding provided by the District Councils.

Rural municipalities

There are essentially three types of government in rural areas: Transitional Representative Councils (TRepCs), Transitional Rural Councils (TRCs), and District Councils with Remaining Areas. TRepCs have been established in most provinces. TRepCs have only a representative function and no executive powers. There is an expectation that they will graduate into fully-fledged TRCs as their capacity increases. TRCs, which have similar powers to their urban counterparts (TLCs), have been established across two provinces: the Free State and Northern Province, as well as in some parts of others. In KwaZulu/Natal and parts of the North West there are no primary rural structures and the District Council administers what are termed "Remaining Areas". In these areas, voters directly elected representatives onto the District Council through proportional representation.

It is generally true that very few powers and duties have been devolved to rural municipalities due to their lack of capacity. TRepCs generally do not have their own administrations, and remain little more than advisory structures to District Councils, on whom they rely for administrative, technical and financial support. Although TRCs have taxing powers, they have very limited potential to generate adequate tax and service charge revenue, and thus very little ability to sustain a level of fiscal autonomy (the ability to raise sufficient revenue through taxation). They are reliant on grants from and through the District Councils. This financial support is limited, and the basis for transfers is not entirely clear and so does not generate financial certainty. The limited powers and resources of rural municipalities, and their consequent inability to serve local communities, has lessened their credibility. This loss of credibility poses a threat to the future development of local government in these areas.

The Transitional Representative and Transitional Rural Council models have been applied to a range of vastly different contexts, from sparsely populated commercial farmland to densely settled areas in former homelands. Consideration should be given to different policies or types of institution which will be able to address issues of rural democracy, development and services in the very different contexts which are categorised as 'rural'.

 

2.2. The local government system

While the unique challenges of each type of municipality need to be considered, a number of more general issues which cut across the various types should also be taken into account.

Financial stress

Local government finance

The amalgamation of previously divided areas has markedly increased the population which municipalities must serve. However, there has not been a corresponding increase in the tax base. Combined with service backlogs, collapsed or deteriorating infrastructure, deteriorating creditworthiness and borrowing capacity, administrative inefficiencies and non-payment, South African municipalities are experiencing financial stress, and in some instances crisis. However, there are great differences between municipalities with respect to financial position, and many municipalities are financially stable and healthy, despite these difficulties.

Need for improved finance systems and capacity building In some municipalities, current budgeting, accounting, financial reporting and management practices are weak. Problems include under-capacitated financial staff, unrealistic budgeting, and a lack of meaningful popular participation in the budgeting process. Improved municipal accounting systems and capacitation programmes are required.
 

Problems in Administration

Administration

There is a lack of centralised information regarding local government staffing, as well as a lack of adequate municipal-level information to facilitate human resource planning. Municipalities are understaffed in some functions, and over-staffed in others. Given that many municipalities have only recently amalgamated, the extent of over/under staffing is difficult to determine. However, given the changed mandate of local government (with additional developmental functions) it is generally the case that local governments lack adequate capacity with respect to some skills. Rural municipalities are generally under-capacitated, and urgent attention must be given to building delivery capacity in these areas.

National Bargaining Council for LG Other administrative problems experienced by municipalities include a breakdown of staff discipline, a reluctance to enforce staff discipline, a lack of performance management systems, gender imbalances, a lack of career planning, and a complex and ineffective national training system.

Agreement has recently been reached on the establishment of a National Bargaining Council for Local Government. The National Bargaining Council will have to address the urgent question of parity in conditions of service between municipal employees, as well as investigate the development of a single job evaluation system for local government.


Old laws remain 		Legislative complexity
There have been changes in the local government system since 1993. However, many of the laws and regulations which supported the old system remain in effect and continue to impact upon the operation of new municipalities. (See the list of these laws in Annexure A at the back of this book.) These inherited pieces of legislation are often applied differently in different parts of the country, resulting in considerable confusion and uncertainty. The current legislative complexities and legal gaps have to be addressed. Inherited laws must be rationalised (adapted or removed) to support the new vision and role of local government.


Powers listed in Constitution 		Powers and functions
Local government has a range of powers and functions at its disposal. Municipal powers are defined in the Constitution, in Part B of Schedules 4 and 5:
  • The powers listed in Schedule 4, over which national and provincial governments have concurrent legislative competence*, include air pollution; building regulations; child care facilities; electricity and gas reticulation; fire fighting services; local tourism; municipal airports; municipal planning; municipal health services; municipal public transport; municipal public works (only in respect of the needs of municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under the Constitution or any other law); pontoons, ferries, jetties, piers and harbours (excluding the regulation of international and national shipping and matters related thereto); stormwater management systems in built-up areas; trading regulations; water and sanitation services (limited to potable water supply systems and domestic waste water and sewage disposal systems). National and provincial governments have the right to legislate on these powers and functions, and the executive authority to ensure that municipalities perform these functions adequately.
  • The powers listed in schedule 5, over which provincial government has exclusive legislative competence, include beaches and amusement facilities; bill boards and the display of adverts in public places; cemeteries, funeral parlours and crematoria; cleansing; control of public nuisances; control of undertakings that sell liquor to the public; facilities for the accommodation, care and burial of animals; fencing and fences; licensing of dogs; licensing and control of undertakings that sell food to the public; local amenities; local sports facilities; markets; municipal abattoirs; municipal parks and recreation; municipal roads; noise pollution; pounds; public places; refuse removal; refuse dumps and solid waste disposal; street trading; street lighting and traffic and parking.
Other legislation Other local government powers are defined in national and provincial legislation. For example, the Local Government Transition Act (Second Amendment Act) gives local government powers for integrated development planning.
Potential powers and functions In addition, municipalities have potential powers and functions, that may be devolved or delegated to them from provincial and national government. These national and provincial powers and functions are listed in Parts A of the Constitution's schedules 4 and 5. The Constitution provides that a Minister or an MEC may delegate powers and functions to local government if municipalities are regarded as the most efficient site from which these may be exercised. Again, local government's exercise of these powers and functions is subject to national and provincial oversight.
Relationship with nattional and provinicial spheres needs clarification Local government's core function needs to be understood as part of the functioning of the state and its three sphere government system as a whole (national, provincial and local). The constitutional definition of local government's powers and functions in relation to provincial and national government, is, however, not clear in some respects, and requires further clarification. This situation is further complicated by the fact that most powers and functions have several components, and not all of these components are best performed by the same sphere of government. While the Constitution goes some way in drawing these distinctions (between trade and trading regulations, for example), grey areas remain.


Local economy part of wider economy 		Global and national trends
No municipality can ignore the economic changes taking place in its locality, in the surrounding region, in the nation, and internationally. As industries rise or decline, there can be a significant impact on local income, employment and tax revenue.
GEAR and international competitiveness The Growth Employment and Redistribution Strategy (GEAR) places greater emphasis on exports and will lead to increased international openness and competition. The ultimate aim is to achieve internationally competitive industries and enhance economic growth and well-being. In the immediate term, local governments will need to manage consequences such as the restructuring and relocation of industries.
Competition and co-operation Local government has an interest in attracting investment based on promoting the comparative advantages of the area for competitive industries (what makes the area a better investment than other areas), as well as supporting the growth of local enterprises. It will become increasingly important for municipalities to find the right balance between competition and co-operation amongst themselves. Whilst some competition will improve both efficiency and innovation, co-operation between South African municipalities can enhance the global competitiveness of all.


Problems of transition process 		The transition process
Municipalities are all experiencing problems arising from the transition process. These include:
  • costly and complex administrative reorganisation
  • the need to focus energy and capacity inwards, rather than towards delivery or innovation
  • prolonged uncertainty (over which types of municipalities will be legislated, final boundary demarcations and allocation of powers and functions)
  • increasing demands and expectations on delivery
  • unfunded mandates (having functions and responsibilities to perform without the necessary resources)
  • awkward realignment with a range of sectoral policies and programmes; and
  • inadequate information and capacity.
Resistance to democracy While grappling with inherited inefficiencies and inequities, municipalities have also had to put in place a system of democratic and equitable governance, often in the face of resistance from a range of local players who benefited under apartheid.
Need for support programmes It is essential for the successful implementation of a new system of local government that support programmes are implemented to assist municipalities during the next phase of the transition process.
Fewer municipalities and councillors? The transition process has resulted in a local government system consisting of 843 municipalities and close to 12 000 democratically elected councillors. Serious consideration needs to be given to reducing the number of municipalities and councillors to ensure a viable sphere of local government, directed towards development. 




Understanding settlement types 		3. HUMAN SETTLEMENT PATTERNS IN SA

Introduction
Understanding settlement types is critical for policy makers seeking to create appropriate municipal institutions to manage the diversity of settlements across the country, for several reasons:

Demands on resources

Cost and levels of services

  • settlement dynamics (the movement and settlement trends of people) have a major influence on the resource demands made on local government, particularly demands for access to basic services and infrastructure. Factors such as the population density and economic base of a settlement influence proximity to bulk services, the cost of installing services and levels of affordability for households. Settlement conditions therefore need to be taken into account when defining approaches to service delivery and appropriate municipal institutional arrangements
Changes in population affect functional boundaries
  • changes in population distribution affect the size of functional boundaries. Boundary demarcation needs to take into account, and anticipate, the population distribution and concentration which is to be served by any municipality
Rapid urbanisation Over half of the nearly forty million people who live in South Africa are currently urbanised. It is estimated that, by the year 2000, this number will increase dramatically tp over 70% of the population. Metropolitan areas and secondary cities are expected to absorb most of the urban population growth. This urbanisation trend is driven by both natural urban population growth and migration into urban areas from rural areas. The population of rural areas is not expected to grow in either proportional or absolute terms, and according to some estimates, it may even decline. Rapid urbanisation needs to be seen in relation to other migration trends. An analysis of rural populations reveals that a significant number of people below and above the economically-active age live in rural areas. This suggests that circular migration (where people move to an urban area for a period of time before returning to the rural areas) is an important trend to consider in planning for rural development needs.
Addressing distorsions of past

Challenges posed by current settlement patterns

Apartheid influenced South African settlement patterns in profoundly inequitable ways, and imposed enormous costs on movement between rural and urban areas, and within urban areas. Municipalities can play a key role in transforming settlement types, and addressing some of the existing distortions.

Homeland areas A few examples of the particular challenges posed by current settlement patterns are:
  • creating viable municipal institutions for those settlements in former homeland areas, which as a result of influx control measures, are overcrowded. These settlements have large populations with very little access to services, and little or no economic base.
Integrating fragmented towns


Managing rapid urbanisation and service backlogs

  • great spatial separations and disparities between towns and townships and urban sprawl (the ever-outward spread of cities), which increase the costs of service provision and transport enormously. Most urban areas are divided along racial lines with discontinuous land use and settlement patterns townships and informal settlements in particular tend to be far from amenities and employment opportunities and are separated from city centres and former white areas by areas of undeveloped land. Municipalities in urban areas will need to develop strategies for integrating the fragmented areas. At the same time they will have to manage the continuing consequences of rapid urbanisation and service backlogs.
Urban / rural linkages
  • creating municipal institutions which recognise the linkages between urban and rural settlements. There are a wide variety of urban settlements, ranging from those which play the roles of local or regional service centres (supplying services to rural areas and other towns), to functionally specialised towns (most commonly based on mining) and administrative centres (such as former homeland towns). Importantly, almost all towns are functionally part of rural areas, relying on their surrounding areas for productive economic activity and providing important centres for the delivery of social services.
Major changes in migration trends and settlement patterns The end of apartheid and the removal of legal restrictions to movement (influx control and group areas), the demarcation of new boundaries, and migration trends within Southern Africa have not (yet) meant fundamental changes in national population distribution, urbanisation and migration. However, research reveals that major changes may be under way in migration trends and settlement patterns, which will have a major impact on local government in the years to come.

Settlement types
There is no single, simple way to categorise settlement types. Even the definition of 'urban' and 'rural' is hotly debated. However, the following categorisation of settlement types indicate the wide diversity of settlements, and should assist in discussions about what types of municipal institutions can best manage the specific challenges posed by different settlement types:

Settlement types
  • URBAN CORE refers to the formal city and town, including the former white municipal and former townships areas. A key characteristic of these areas is their high population density, with generally over 10 dwelling units per hectare. These areas have high levels of economic activity, and consequently higher land values.
  • URBAN FRINGE refers to various settlement conditions which exist within the boundaries of municipalities, but outside the urban core. This includes low-income settlements on the outer edges of towns and cities, many of which display middle order densities and large service backlogs. However, it also includes high-income low-density settlements, particularly on the outskirts of metropolitan areas.
  • SMALL TOWNS, most of which have intermediate density levels and the typical apartheid urban form, namely, a former white area with intermediate to high service levels, and former black areas with little access to services. Small towns vary greatly, but all are economically and socially linked to surrounding rural hinterlands (areas).
  • DENSE RURAL SETTLEMENTS: There are two predominant kinds of dense rural settlement, namely

"Betterment' settlements which are common in the former homeland areas. These are dense planned settlements, with populations of over 5 000 people.

Informal settlements which are unplanned and largely unserviced settlements, with populations of over 5000 people. Some are close to urban areas, and others are located in rural areas with a minimal local economic base. Some intensive commercial farming settlements also fall within this category.

  • "VILLAGES", or smaller rural settlements with populations of more than 500, but less than 5000 people. These are often unplanned traditional settlements or resettlement areas.
  • DISPERSED OR SCATTERED SETTLEMENTS, which are mostly unplanned homestead settlements with a population of less than 500 people. Extensive settlements in commercial farming areas, some located on communal land and others on privately owned land, also fall within this category.
  • "AGRI-VILLAGES" are planned dense settlements in rural areas, which service the surrounding farms.

Each category is complicated by variations in such features as land tenure systems (for example, individual freehold ownership, tenancy, communal rights).

LG can address local needs and aspirations Across categories, the individuals and households living within a settlement system attach more specific, localised meanings to their living spaces based on the activities, interactions, needs and opportunities that colour their daily lives. Local government is ideally placed to address these local needs and aspirations in the transformation of human settlements.

 
  4. DEFINING THE CHALLENGE FOR LOCAL GOVERNMENT

A new local government system needs to build on the strengths of the current system, but equally, it needs to address its weaknesses, and build the capacity of municipalities to address the considerable challenges they face.

 

 South Africa's specific challenges for LG

In addition to the challenge of managing viable urban and rural systems faced by municipalities the world over, our municipalities must also address:
  • Skewed settlement patterns which are functionally inefficient and costly
  • Irrational concentrations of taxable economic resources in formerly white areas, demanding redistribution between and within local areas
  • Huge backlogs in service infrastructure in historically underdeveloped areas, requiring municipal expenditure far in excess of the revenue currently available within the local government system
  • Entrenched ways of decision-making, administration and delivery inherited from municipalities which were designed to implement urban and rural apartheid
  • Substantial variations in capacity, with some municipalities having little or no pre-existing institutional foundations to build on, and
  • The historical lack of credibility and legitimacy of local government in the eyes of many local residents.

Concluding Comment

Local government has been given a new constitutional mandate to create and sustain humane, equitable and viable human settlements. It is doubtful whether local government, as it is presently designed, can fulfil this developmental mandate. Local government has been democratised, but the local government system is still structured to meet the demands of the previous era. A fundamental transformation is required.

Return to Contents | Section B