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.
