Download - Basic Economic Development Strategies
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