Basic EconomicDevelopment Strategies

Alan Barefield

Southern Rural Development Center

1. Begin/Continuethe Process

2. Engage theCommunity andLegitimize the

Process

3. Form anOrganizational

Structure

4. ConductCommunity

Assessments

5. Develop aStrategic Vision

andAction Plan

6. Seek Feedback& Commitment

from theCommunity

7. Implementthe Plan

8. Evaluate theOverall Effort

9. CelebrateYour

Success

10. Create anOngoing

DevelopmentProcess

Ten Steps: CARETen Steps: CAREFor Your FutureFor Your Future

Economic Development

Can Mean Many Things To Different People

What is Economic Development?

The Economic Development Administration (www.doc.gov/eda) defines economic development as:

Economic development is fundamentally about enhancing the factors of productive capacity - land, labor, capital, and

technology  - of a national, state or local economy.

Difference Between Economic Development and Economic Growth

•Development is a qualitative change, which entails changes in the structure of the economy, including innovations in institutions, behavior, and technology.

•Growth is a quantitative change in the scale of the economy - in terms of investment, output, consumption, and income.

1Roger Vaughan and Peter Bearse, "Federal Economic Development Programs: A Framework for Design and Evaluation," in Robert Friedman and William Schweke (editors), Expanding the Opportunity to Produce: Revitalising The American Economy Through New Enterprise Development (Washington: DC, 1981), 309. back to text

Definition Interpretations

EconomistsEconomic development is an issue of economic growth.

Business LeadersEconomic development is the application of public policy to increase U.S. or regional competitiveness.

Government ActivistsEconomic development is a code phrase for industrial policy.

Definition Interpretations

EnvironmentalistsEconomic development should be sustainable development that harmonizes natural and social systems.

Labor LeadersEconomic development is a vehicle for increasing wages, benefits, basic education, and worker training.

Community-based Leaders and ProfessionalsEconomic development is a way to strengthen inner city and rural economics in order to reduce poverty and inequality.

Levels of Economic Growth

Economic Growth Deals with economies Growth is profitable

Shared Economic Growth Deal with equity Is fair for all involved

Sustained Economic Growth Addresses the long-term consequences Is healthy for the community and the environment

RCCI Principles

Economic development is not a bad thing

Profitable growth is necessary for sustainability

Shared and equitable growth strengthens communities

Long-term sustainable growth ensures our communities will be here for the next generation

EnvironmentalProtection

Overall EconomicGrowth & Efficiency

“Green, profitableand fair”

(sustainable development?)

Social Justice,Economic Opportunity,

Income Equality

The Property Conflict

The Development

Conflict

The Resource Conflict

Conflicting Goals for Planning

Source: Scott Campbell: Green Cities, Growing Cities, Just Cities? JAPA

Benefits of Strategic Planning

Outline steps to follow

Promote efficient use of resources

Improve coordination

Build concensus

Increase public awareness

Strengthen competitive position

Encourage forward-thinking

“CARE For Your EconomySources of Jobs/Income

Creation

Attraction

Retention

Expansion

Creation Strategies

Provide a supportive entrepreneurial climateProvide technical training and assistanceHost a one-stop permit centerBe knowledgeable of capital sourcesDevelop a small business incubator program

Attraction Strategies

Recruit compatible new businesses

Target specific sectors and types of industries

Location factorsMarkets Labor

Raw materials Transportation

Industrial site Utilities

Financial capital Other factors

Retention & Expansion Strategies

Goal is to retain and expand existing businesses

Firm visits to assess needs and opportunities

Immediate followup – especially “Red Flags”

Response and direct assistance to firms

Local EconomicDevelopment Strategies

Home Based and/or Micro BusinessesMain Street RevitalizationManufacturingValue-added AgribusinessRetiree RecruitmentTourism DevelopmentService Business DevelopmentE-commerce

For Success: Think Strategically

Forward thinkingAddress the need to survive in a changing environmentNothing mystical – It just involves:

Hard work CommunicationThought Cooperation

Applies to communities and private sectorKey role is data and communication

Observations/Lessons LearnedLocation still matters (sometimes)

Know your competition

Attributes of successful committees Positive attitude Professional Use all resources Communication Persistent

Organized plan and defined roles

Accountable to the community