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The Humphrey School of Public Affairs is the University of Minnesota's school of policy and planning.


State and Local Policy Program

10 Principles in Economic Development

Partnerships

  • What partnerships have you formed to encourage economic development in your area (public/private, among businesses, among government agencies, with nonprofits and community organizations)?
  • How do you maintain and ensure the effectiveness of these partnerships?
  • Do you use partnerships to combine resources (more than information sharing and networking)?
  • How do you leverage your resources?

Partnerships are an effective tool toward developing a common ground or set of priorities for economic development. A strong economy is not the responsibility of one, but of all. Economic development agencies need to work closely with other partners, such as businesses, nonprofits, and community organizations, to develop a path toward the future.

Increasingly, economic development professionals are recognizing that partnerships among a wide range of organizations are critical for a successful economic development strategy. An example of how partnerships are being encouraged nationally is the National Rural Development Partnership. The partnership was established through a presidential initiative in 1990 to promote greater collaboration in rural development. The "partners" are representatives from federal agencies, state governments, local governments, tribal councils, and private sector organizations. A national council brings together senior program managers from over forty federal agencies to improve the delivery of federal resources for rural development. State-level councils in thirty-seven states serve as forums for developing strategic responses to state rural needs. The National Rural Development Partnership has become an important mechanism in crossing organizational boundaries to address rural problems.

Partnerships are also emerging at the regional level. An example of a successful regional economic partnership is the Arrowhead Growth Alliance. The Arrowhead region of northeastern Minnesota includes the city of Duluth, the Iron Range, and the Boundary Waters Canoe Area, and is known for fierce competition among communities and turf battles for economic development. The Arrowhead Growth Alliance was formed in 1988 to bring together all regional economic development groups to focus on economic development issues. The group is an informal alliance and decides at the end of each meeting whether it should meet again. There is no defined structure, no officers, no budget, and no stationery. The regional focus and the continuity of membership help to develop trust and provide the thread that keeps the group together.