E-ISSN 2039-2117 ISSN 2039-9340 Mediterranean Journal of Social Sciences MCSER Publishing, Rome-Italy Vol 5 No 2 January 2014 549 Poverty Levels among Local Municipalities in the NMMD of South Africa: A Multidimensional Scaling Approach Kgomotso Charlene Mahole North West University, Mmabatho, 2735 tso.mahole@gmail.com Ntebogang Dinah Moroke North West University, Mmabatho, 2735 Ntebo.Moroke@nwu.ac.za Nehemiah Mavetera, Ph.D North West University, Mmabatho, 2735 Nehemiah.Mavetera@nwu.ac.za Doi:10.5901/mjss.2014.v5n2p549 Abstract The North West Province has four district municipalities which are in turn subdivided into local municipalities. The province is experiencing very slow service delivery levels yet every year each municipality is allocated funds to ensure its smooth running. Although government avails funds, allocates poverty grants to the community and has black empowerment strategies in place, the communities in this province still remain poor. Many reasons can be cited for this status quo, ranging from mismanagement of funds, low resources, insufficient funds and the number of municipalities. This study recommends possible solutions to these problems. Data for the five local municipalities from the Ngaka Modiri Molema District Municipality (NMMDM) was analysed using Multidimensional scaling technique. Each municipality is defined by ten variables measuring poverty. The technique grouped the five local municipalities of the NMMDM into two clusters of local municipalities. An optimal perceptual map identified the levels of municipalities according to their poverty levels. With this information, the NMMDM can formulate appropriate strategic plans and policies that can address the local municipalities. Also the NMMDM can be able to address the targets set for the MDG goals of eradication of extreme poverty and hunger. Keywords: Poverty levels, Local municipalities, Ngaka Modiri Molema District, Multidimensional scaling, South Africa 1. Background of municipalities in the North West Province The government of the Republic of South Africa (RSA) consists of a central government, nine regional governments (provinces) and a total of 262 local governments (municipalities). As Devenish (2005) explained, although local government constitutes the third tier or sphere in the hierarchy of government, it is most certainly not unimportant. Its manifestation in the form of local municipalities or councils is perceived as a cornerstone of contemporary democratic government. De Villers (2008) defines local government as comprising of local community management and administration. As such, it is that branch of government and administration that is most intimately concerned with the lives of ordinary people and with those matters that are closest to them in their daily experience and basic needs. As alluded in Devenish (2005), the South African Constitution accords to local government the following five kindred objectives:  to furnish a system of democratic and accountable government for local communities;  to ensure the provision of services to communities in a sustainable manner;  to promote social and economic development;  to promote a safe and healthy environment; and  to encourage the involvement of communities and community organizations in matters of local government. These objectives present a formidable challenge to the municipal leaders particularly in some disadvantaged communities where there is a dearth of human resources and skills. These skills are very essential for effective local