Cosatu, too, in various documents and statements, has supported the concept of developmental local government as part of a broader argument for an strong, interventionist, and active state in order to overcome poverty. There are clear grounds for arguing that local government must play a key role in any strategy to alleviate poverty, improve living conditions, and deepen democracy. In other words, local government must have a central role in any development strategy. In addition, national and provincial governments provide services within local government. The kinds of services, level of service and quantity of service provided can impact significantly on poverty reduction, the extent of inequalities, and on the standard of living of all communities.
Local governments play both direct and indirect roles in employment creation.
Municipalities also support employment indirectly, by providing basic services to communities and industry. Local government is the sphere of government closest to the people and can serve as a laboratory for participatory democracy. Participatory democracy is a corner stone of South Africa s democracy and requires that people participate in decision-making. It is easier to involve people in decision-making in local issues than in provincial and national forums. However, this is contingent upon the council actively promoting participation.