Role of Universities on Urban and Rural Economic Impacts on

Community Development: - Review

C. MATASANE, J. ZAAIMAN

School of Environmental Sciences, DVC Operations

University of Venda

Private Bag X0950, Thohoyandou

SOUTH AFRICA

Abstract: - The Republic of South Africa (RSA) is among a number of countries worldwide with its rural

societies still remain most vulnerable and under poverty challenges for access to economic development, high

rate of unemployment and challenges on education. As such, there are little activities in the rural and urban

communities to enhance their social and economic involvement. The significance of South African Universities

towards the economic growth of rural areas through community participation and assisting with implementation

of national priorities and schemes is of importance. This paper demonstrates the role that universities play in

economy, empowerment and participation in their socioeconomic development and their impact towards the

community sustainability. This report elaborates on the impact of the programs developed for the community’s

economy, change and the attitude in their business ventures and activities. The paper focuses on the BRICS

Countries as representing the world’s emerging markets and doing so as a co unterweight to the G8 and G20

Countries. This paper conveys different aspects of university programs by using literature review on rural and

urban economic growth by evaluating its impacts towards rural communities. That is establishing different key

roles in developing their quality of life through higher education organizations and informed programmes

established by the universities. In the end the objective of the article is to identify collective gaps that will assist

to take action on poverty and the lack of development in rural areas.

Key-Words: - Socioeconomic Development and Growth, Sustainability, Higher Education Institutions, Quality

of Life and Strategies

1 Introduction

South Africa is one of the largest and with major

industries and commercials contributing to the

country’s growth. Statistically, it is ranked 28th

among leading economy countries and 62 percent of

the total population of 50million living in the urban

areas [1]. The RSA is currently fronting a vast

challenge in rural and urban community social and

economic growth, and amending of their quality of

animations. Blom et al. [2] described that although

there is an increment in access to basic services for

the poor communities, there is yet a long way to

achieve the demands.

By Gardiner [3], the terms “urban” and “rural”

still present complicated interpretation and there is

as yet no clear consensus understanding about what

constitutes “urban” and “rural” areas. For instance,

as the University of Venda is situated in Limpopo

Province, and it sees its loyalty towards its

community is by large measured by its impact in

industrial sectors, schools and institutions of higher

learning, business sectors and local community

development as i ts networks into different

programs, such as in the Vhembe District, offering

learning and educational activity and enhancing

skills. Besides the strategic development at the local

communities, there are challenges in order to attain

sustainability and economic growth. In add-on, such

as, infrastructure plays a significant part in the

social and economic growth on the communities [4].

Local economic growth involves the backing of

the local government agencies, higher education

establishments and commercial enterprises. Higher

education institutions have been regarded as the

vehicle and pride within communities for their

living on l ocal economic development and

advancement on the challenges being faced. They

are seen as an immediate solution in changing and

strategies which address their demands, such as

employment, training, soil and infrastructure,

housing, and health services. Hence, in order to

promote and enhance the economic development, is

necessary to clear out the macroeconomic measures

at local levels as easily as the macroeconomic level

at the national levels [5].

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In addition, Ndeke [6], indicated that various

frameworks have been implemented in addressing

the economic development and sustainability. Thus,

there are evidences that could be referenced on how

economy growth and development could be

achieved in order to enhance communities [7]. As

South Africa faces challenges, in particular, dealing

with its rural areas, and increasingly marginalized,

the significant local government will have direct

bearing on the prospects for the development [8].

This report indicates the importance of higher

education institutions involvement in advancing

rural and urban economic development, the meaning

of the economic evolution of rural residential

districts, and sustainability. In addition, it shows the

role of the universities on s ocioeconomic

development and sustainability, economic programs

developed by the BRICS, which enhances the

program designed for improving their wellbeing life

through several interventions.

2 Rural and Urban Economic

Development

Please, leave two blank lines between successive

sections as h ere. Gopaul [9] reported that in most

RSA communities living in the rural communities

remain disadvantageous communities among other

countries and the world facing challenges on access

to education, employment opportunities, land

reforms, housing allocation, access to health

services, technology diffusion, and available

government resources than urban areas.

Furthermore, Sibiya [10], reported that several

research conducted, has been well-defined in local

participation into learning experience involving

them and local external factors contributing to their

development. Hence, by participating in decision

making and cooperative activities they can improve

their qualities of life in improving their live hood

and wellbeing. The World Development Report

(WDR 2008), classified South Africa as one of the

transforming countries within the weather of its

economic development within the Sub-Saharan

African (SSA) countries [11].

In defining the rural area, it is critical to qualify

it by understanding the human, socioeconomic and

environmental evolution of the region. South Africa

(SA), has initiated a n umber of strategies and

programs to address and tackle the economic

challenges and accelerate the growth on short and

long term goals [12, 13, 14]. These plans include: -

1. The National Development Plan (NDP) is

the government vision aimed for the year

2030 to eliminate poverty and inequality.

2. The second economy for intervention

through expanded public works reforms

(EPWP).

3. The Government’s action towards targeting

mass unemployment, poverty and inequality

through the New Growth Plan (NGP).

4. The formation of the Department of

Provincial and Local Government (DPLG).

5. The formation of the macro and micro

economic reforms through the Accelerated

and Shared growth Initiative for South

Africa (AsgiSA).

6. Creation of the Growth, Employment and

Redistribution (GEAR) macro-economic

framework which intends connecting the

business and closing the skills gaps between

the business and employment.

7. Small Micro Enterprises (SMMEs), Black

Economic Empowerment (BEE), instruction

and skills development.

8. The formation of the Local Economic

Development and Agencies (LEDA’s) for

the public, business and non-governmental

sectors for creating development and

employment generation.

9. Historically Disadvantaged Individual

(HDI) which is principles of Black

Economic Empowerment (BEE).

10. Integrated Sustainable Rural Development

Program (ISRDP) is a national policy

directed at economic systems approach for

growth.

11. The Limpopo Employment, Growth and

Development Plan (LEGDP) have specific

programs that are planned to achieve

structural change in vital regions of the

provincial economy.

Based on these initiatives, driven by local

stakeholders, the demand for integrating with higher

institutions to collectively identify the major

investments, concepts and accomplishments in a

direction to stimulate economic development and

development in the localities has been posted. In

addition, Perret et al. [15], reported that since the

first democratic elections in 1994, massive reforms

have been made by the administration to gear up

social development initiatives that have been

included in the Reconstruction and Development

Program (RDP).

The universities have balance components in

achieving the sustainable economic development

through instruction as the means to bring the mass

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C. Matasane, J. Zaaiman

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communities on distributing resources and securing

economic prosperity. By such, universities are

vehicles which are enhancing education, skills,

knowledge, technology diffusion, adaptation and

adoption of new products, sharing of knowledge

which is of the most important in developing and

overseeing the future of the residential regions.

Table 1 displays the significance of universities in

economic sustainability [16].

Table 1: - The three significant components that

universities should consider in getting up f or

economic sustainability

Components

Develop and promote greater

interaction between the political

and private sectors, by creating

and developing knowledge

through research and having a

multidisciplinary approach

Introduce sustainability to all of

the training that they supply

Transfer knowledge and

cooperate fully with society, to

make sure that society brings

into account the socioeconomic

that leads to the ecological

dimensions

on community

growth.

3 Significance of the Economic

Development on Rural Communities

Access to the economy, employment, education,

land, housing, health services, sustainability and

growth has significance in community development

and addressing their challenges in different areas.

Fig.1 shows the conceptual framework developed

for the economic growth by the private and public

sectors in improving the employment rate and

towards sustainability. Thus, improved health and

quality of life is set by individuals to further

increase productivity and boosting lifetime earnings.

Furthermore, would help economies to keep

improving with more technologically advanced

societies through education [17].

Fig.1: - Conceptual framework for a higher

education on economic development [18].

4 Roles of the Universities on

Socioeconomic Development and

Sustainability

Competence on securing sustainable growth and

economic success needs processes in achieving the

goals [18, 19]. H ence, Lucey [20] noted that

sustainable growth should be looked at as a system.

Furthermore, Castells [21], reported that

globalization and emerging knowledge have made

growth to the new financial, societal, governmental

and educational challenges. These are currently

being addressed nationally, regionally and by higher

education institutions [22]. In add-on, they are seen

as a strategic vehicle in delivering the skills on how

economic development could be achieved.

Watkin [23] reported that to sustain the dynamic

understanding of local development, psychiatric

hospitals and local communities should find a model

which constitutes the integrated, peripheral,

subsidiary, interdependent and independent

institution with their involvement appropriately. A

basic pillar for the economic development is

demonstrated in Fig.2.

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C. Matasane, J. Zaaiman

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Volume 2, 2022

In addition, universities always find ways to

convert their research outputs into the commercial

technologies and products to assist and uplift the

communities to enhance their technology skills.

These add value on technology transfer and artefacts

that are being used by the communities [24]. In

addition, it contributes to the technology transfer on

designed products being commercialized from the

new or improved products and procedures for

improvement of the economic and sustainability.

Competence on securing sustainable growth and

economic success needs processes in achieving the

goals [19, 20]. H ence, Lucey [21] noted that

sustainable growth should be looked at as a system.

Furthermore, Castells [22] reported that

globalization and emerging knowledge have made

growth to the new financial, societal, governmental

and educational challenges. These are currently

being addressed nationally, regionally and by higher

education institutions [23]. In add-on, they are seen

as a strategic vehicle in delivering the skills on how

economic development could be achieved.

Watkin [24] reported that to sustain the dynamic

understanding of local development, psychiatric

hospitals and local communities should find a model

which constitutes the integrated, peripheral,

subsidiary, interdependent and independent

institution with their involvement appropriately. A

basic pillar for the economic development is

demonstrated in Fig.2.

In addition, universities always find ways to

convert their research outputs into the commercial

technologies and products to assist and uplift the

communities to enhance their technology skills.

These add value on technology transfer and artefacts

that are being used by the communities [25]. In

addition, it contributes to the technology transfer on

designed products being commercialized from the

new or improved products and procedures for

improvement of the economic and sustainability.

Fig.2: - Pillar of the socioeconomic development

and sustainability on rural residential districts

As residential areas require placing a number of

intermediate steps to reach their goals, strategies

should outline steps to pursue, promote efficient use

of the scarce resources, and improve coordination of

such resources to increase public consciousness and

development actions. Further, they will encourage

forward-thinking and strengthen the communities’

competitive position to attract possible business or

industry.

Furthermore, Colantonio [26] mentioned that in

order to achieve a v iable socio-economic

development and high performance on environment

increase towards sustainable performance, should be

compared with the socio-economic which are

sustainable linked to different programmes of

universities through different linkages on s ocial

activities, institutional developments, economic

programmes and environmental systems available as

the method of estimation methods.

5 Economic Programmes developed by

the BRICS countries

Various surveys have been reviewed and effective

strategies have been done to enable economic

development and environmental change in the rural

and urban areas. Fig.3 lists common activities

carried out by most BRICS countries in community

development. This indicates the landscape of most

of all the institutional approach in economic growth

and social sustainability [27]. Thus, increasing and

strengthening the local government, economy and

improving the participation of the local

communities.

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Fourie and Schirmer [28] reported that since the

New Millennium Development Goals (MDG),

significant work has been undertaken to address

economic challenges, and finding appropriate

mechanisms for the South Africa Government and

comparing to other countries like Brazil, India, and

China as to what extend is being seen as a

successful economic and developing state.

Fig.3: - Landscape on B RICS for the economic

development and sustainability

In summary, there is 2,165 total number of

Higher Education Institutions (HEI’s) in Brazil

which are divided into public, federal, state,

municipalities and private universities; over 2,000

HEI’s exists in China; the Russian HEI’s combines

607 public and 358 private; over 177 universities in

India and the 23 country’s HEI’s in RSA. All these

universities participate in different higher learning

skills, instruction, research and community outreach

that supports the above economic development.

6 Programme Design Approach for

University Participation Process

Universities have the opportunity to be role models

for sustainability and developing relevant skills

among its leaders and residential areas and

promoting consciousness about the economic

growth and sustainability. The iterative and

participatory process for planning, developing,

piloting and evaluating the economic impact

program should have a number of factors identified

that require special consideration as the design

evolved. Some of these include the following:

1. Nature of relationships between the

University and various stakeholders.

2. Characteristics or nature of the engagement

with the stakeholders.

3. Demands of the virtual community-focussed

program activities.

4. National level participation and

collaboration governance on e conomic

development.

The kinship between the universities and

community can view as shown in Fig.4 for the

sustainable evolution.

Fig.4: - The kinship between the university

responsibility towards community economic

sustainable growth.

Feris [29] reported that it is important to look at

how decision-making is made among the

government and its community on g overnance and

integration of systems, policies and strategies for

good performance on implementations.

7 Model of University’ Approach on

Engagement and Implementation

Strategy

Agbenyegah [30] reported that the rural economy is

mostly ridden by small dwellers in the informal

sectors and they are really dispirited, and goes

through challenges that threaten their sustainability.

Furthermore, as the country continues to increase

the participation in various programmes and

initiatives for serving the local and small business,

the turnaround strategies are needed to ensure that

they deliver cost-effective development and societal

prospects for the confined societies [27].

Twala [31] reported that rural development and

poverty reduction strategies are intrinsic features of

an ecological framework which intended to supply

the rural communities with an array of economic

benefits and services upon which such communities

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depended on. Concerns have often been centered on

poverty reduction policies, the appropriate strategies

that should be adopted for poverty alleviation and

the targeting mechanisms in this regard.

The following are priority areas which are

essential aspects of education agenda for economic

sustainability given the size and diversity of the

universities [32, 33].

7.1 Engage industries, commercial business

and communities in participating on

innovative sustainable topics

Universities need to recognize corporate intentions

and pursue discussions on new paradigm for

sustainable development that could to be

accomplished without compromising the

sustainability plans in place. These would enable the

opportunities develop novel merchandises and

operations responding to public growth with

assistance and further training to address the

sustainability issues and embrace new models that

will be produced.

7.2 Inclusivity to provide a seamless network

of knowledge growth

The publicity and packaging of an appropriate

sustainable practice should circulate and market the

importance of sustainable development so that

awareness of developed and appropriate practice is

shared accordingly.

7.3 Provide research with cutting-edge

knowledge and skills transfer

Like all new emerging scientific knowledge,

information should be well structured for

communities to understand. It should demonstrate

the contributions it makes through scientific and

professional research outputs, adding to the integrity

and research ethics for its publicity, and results

which are traceable and accountable on science

effects that are usable and accessible to the

companionship.

7.4 Provide governance for strategic growth

The government needs training and examination to

guarantee that they are emerging policies which are

established on comprehensive awareness and

knowledge as w ell-versed through systematic

capacity development and trainings intended for

utilization. Hence, tools for assessment and

measurement need to be merged within the

university research to continue professional

development. These would help the communities to

be informed through the results and methods

achieved through the implementation of the

strategies. In addition, it should communicate the

improvement of communities on sustainable and

responsible development, and further to participants

affected and be capable to capture social and

political affairs that have a picture of the economic

situations in the country.

7.5 Appropriate network models

Collaborations with other universities would assist

in comparison of developed models that address

common issues in community economics and

conditions which reflect their societal and cultural

contributions on the development.

8 Conclusion

By comparison of institutional plans and activities,

these have brought a fresh glide path and new

implementation that will heighten the economic

growth. Thither are a number of relevant studies on

financial improvement and few have been observed

in this research. With past research on linking

higher education to economic growth, our studies

examined the impact on rural economic growth and

how important the higher education in promoting

faster technological catch-up and ability to

maximize tits economic outputs. As the results,

higher education institutions play a major role in

local communities with measurable interventions,

effective and meaningful contributions.

The significance is of the potential for enabling

all the stakeholders to develop relevant

competencies for purposes of providing support for

the implementation of economic strategy between

the local community and the university. This was

done by bringing various elements of economic

development, reviewing of various higher education

programs to determine common programs and

established activities. Therefore, through the

establishment of partnerships with relevant

stakeholders in the local community and educational

would improve the growth and alleviate poverty. In

increase, universities have high potential in working

together with communities in economic

collaboration and continuation of partnership in

substantial activities for the benefit of uplifting the

so called wealth, social, intellectual and political

establishments through various interventions.

These can further be applied in the strategies that

integrate the development and processes in the local

municipalities and/or communities to manage their

existing resources. In addition would be grateful to

in communities and private sectors to have business

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C. Matasane, J. Zaaiman

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Volume 2, 2022

agreements and partnering in creating fresh or new

business that would improve the economy and boost

their wellbeing. Hence, all the local municipalities

do require a variety of certification in terms of

knowledge, skills and being capable to integrate

their resources to create the enabling atmosphere for

small business owners at micro level and support

their livelihoods. As the results, when social goals

are linked with the financials whereby there is large

investment in human capital and growth, the

communities welfare would be achieved and

enabling them with a better environment.

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