10 Principles in Economic Development - Comprehensive Strategy
- Do you have a comprehensive economic strategy
for your state or region?
- Do you have specific goals and action plans
for each of the areas that affect your economic foundations
work force, physical infrastructure, natural resources, knowledge
and technology, enterprise development, fiscal stability,
and quality of life?
- To what degree are these efforts in alignment?
Issues of education, housing, health care, transportation,
and general quality of life have important contributions to make
to the economic health of an area. The connection between community
development and economic development cannot be ignored in an era
when many of the issues of social welfare ultimately come to rest
on the shoulders of economic opportunity. Infrastructure now means
human as well as physical capital. We are growing increasingly
aware of the systems and interrelationships that link our activities
rather than divide them into separate corners.
In 1986, the Committee for Economic Development
(CED) issued a report entitled Leadership for Dynamic State Economies.
The report changed the way many economic development professionals
thought about their job by recommending that state policymakers
consider all aspects of public policy in designing a state economic
strategy. The report suggests seven areas that affect a state's
economic foundations work force, physical infrastructure, natural
resources, knowledge and technology, enterprise development, fiscal
stability, and quality of life and recommends that states conduct
a diagnosis of their strengths and weaknesses, develop a vision,
and implement an action plan taking into account these seven foundations.
Economic foundations
- A CAPABLE AND MOTIVATED WORK FORCE that is
well educated and supported by a human resource system that
facilitates and assists in finding employment.
- SOUND PHYSICAL INFRASTRUCTURE, including
transportation, communications, energy, supply and waste management.
- WELL-MANAGED NATURAL RESOURCES for current
and future use and development.
- UNIVERSITIES AND OTHER RESEARCH AND DEVELOPMENT
INSTITUTIONS that are involved in the development, dissemination
and market application of knowledge and technology.
- A SYSTEM OF REGULATION, CAPITAL, AND TECHNICAL
ASSISTANCE that encourages enterprise development.
- A QUALITY OF LIFE that is attractive to employees
and their families.
- FISCAL STABILITY characterized by reasonable
tax rates and prudent spending policy.
* Committee for Economic Development, Leadership
for Dynamic State Economies (New York: Committee for Economic
Development, 1986)
The comprehensive approach recommended in the CED
report allows states to get out of the narrow box of traditional
economic development incentive programs and take a broader-based
approach to making investments to increase economic competitiveness.
Several states have undertaken comprehensive assessments
of their economic competitiveness as a basis for their economic
strategies. The Massachusetts strategy report referred to earlier
is a good example. The state action plan covers areas of taxes,
regulations, and government-affected business costs, as well as
transportation and communications infrastructure, work force education
and training, and university and research sector innovations.
This more comprehensive approach to economic development is also
reflected in the economic development strategies of Oregon, Indiana,
and Minnesota, among other states.
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