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

Rhodes University

Ronald W. McQuaid

Napier University

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.

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