- Campuses :
- Twin Cities
- Crookston
- Duluth
- Morris
- Rochester
- Other Locations
The strength of a single local economy depends on the economic strength of surrounding areas. Economic strategies need to achieve economies of scale by being directed to regional areas.
During the past decade there has been an increasing emphasis among economic development professionals on regional strategies. Substate regional planning organizations are becoming more important in a range of policy areas, including transportation, social services, and economic development. While competition for business development among local governments continues, there is an increasing awareness that regional cooperation may be a more effective approach in the long run.
Minnesota has seen a resurgence of substate regional groups after a decline in the 1970s and early 1980s. Several factors have contributed to this resurgence: economic dislocations in rural areas, which have encouraged agricultural areas in southwestern Minnesota and mining areas in northeastern Minnesota to band together; creation and continued support of regional initiative funds by the McKnight Foundation; shrinkage of federal and state categorical funds, which has forced regions to work together in setting priorities; federal legislation, such as the Intermodal Surface Transportation Efficiency Act, which transfers greater authority to metropolitan planning organizations in setting priorities for transportation funding; and state legislation, which increases the responsibilities of the Metropolitan Council to include operating as well as planning functions. Regionalization is occurring as a result of both top-down actions and bottom-up recognition by local areas that regional cooperation makes sense.
Several states have incorporated a regional approach in the organization of their economic development activities. Oregon and Massachusetts have both tailored their economic development strategies to a substate regional approach. Massachusetts' plan calls for regional offices that can provide access on a "one-stop shopping" basis to Commonwealth agencies and services that are relevant to business growth.
Another trend in regional cooperation has been collaboration across state and even international boundaries. One example of multistate-province regional cooperation is the Red River Trade Corridor, which involves the states of Minnesota and North Dakota and the Canadian province of Manitoba. The Red River Trade Corridor Council works with regional businesses and existing organizations, networks, and institutions to increase trade within the region and between the region and the rest of the world.
Another example is the Pacific Northwest Economic Region, which includes the states of Alaska, Idaho, Montana, Oregon, and Washington and the provinces of Alberta and British Columbia. The focus areas for this regional organization are marketing environmental technology and services, building a global tourism market, adding value to regional forest resources, developing new markets for regional recycling, training world-class workers, and using telecommunications to link institutions of higher learning.
One benefit of increased cooperation across state boundaries may be a reduction in zero-sum-game competition for businesses among states. In the past, compacts between states to avoid raiding each other's businesses have been generally unsuccessful. A regional economic development strategy that covers a range of public policy issues and is based on cooperation and collaboration may increase the potential to reduce this type of nonproductive competition.
Humphrey School of Public Affairs | 130 Humphrey School, 301 19th Ave. S., Minneapolis, MN 55455