Sustainable local economic development: the role of informatics in determining municipal revenue management

Abstract

This paper discusses the challenges undermining the ability of smaller municipalities in South Africa (SA) to raise revenue to sustain local economic development (SLED). The concept of enactment of technology-in-practice (ETiP) of Structuration Theory (ST) was adopted as a lens to understand and interpret the factors hindering the implementation of relevant legislation e.g., the municipal property rates Act of 2004 (MPRA) for SLED. The purpose of the study was to determine the role informatics can play in the implementation of MPRA to institutionalise its provisions to improve revenue collection. An extensive investigation in twenty-five (25) smaller municipalities across SA indicated a number of factors suggested by ETiP have impacted on the implementation of MPRA and property rates collection. The view is that implementation of legislation e.g., MPRA is similar to the deployment of ICT solutions in governments. Thus, in the world of social theory, legislation implementation is a socio-technical phenomenon with significant political, economic and social components. The findings of the study is a general framework as a lens through which factors influencing SLED can be understood and interpreted to provide a richer understanding of the complexity associated with the role of informatics in government revenue management to support SLED.