Economic
Development
- DEFINING
ECONOMIC DEVELOPMENT
- WHY IS
ECONOMIC DEVELOPMENT IMPORTANT
- WHAT DO
ECONOMIC DEVELOPERS DO?
- DEFINITIONS
THAT ADDRESS EQUITY AND SUSTAINABILITY
- ECONOMIC
DEVELOPMENT VS. ECONOMIC GROWTH
- ECONOMIC
DEVELOPMENT COURSE
- ECONOMIC
DEVELOPMENT INSTITUTE
- ECONOMIC
DEVELOPMENT THEORIES
- ECONOMIC
DEVELOPMENT LINKS
DEFINING
ECONOMIC DEVELOPMENT: -
Economic development is
fundamentally about enhancing the factors of
productive capacity - land, labor, capital, and
technology - of a national, state or local
economy. By using its resources and powers
to reduce the risks and costs, which could
prohibit investment, the public sector often has
been responsible for setting the stage for
employment-generating investment by the private
sector. The public sector generally seeks to
increase incomes, the number of jobs, and the
productivity of resources in regions, states,
counties, cities, towns, and neighborhoods.
Its tools and strategies have often been
effective in enhancing a community's:
- labor force (workforce preparation,
accessibility, cost)
- infrastructure (accessibility, capacity,
and service of basic utilities, as well
as transportation and telecommunications)
- business and community facilities
(access, capacity, and service to
business incubators,
industrial/technology/science parks,
schools/community colleges/universities,
sports/tourist facilities)
- environment (physical, psychological,
cultural, and entrepreneurial)
- economic structure (composition)
- institutional capacity (leadership,
knowledge, skills) to support economic
development and growth.
However, there can be trade-offs between
economic development's goals of job creation and
wealth generation. Increasing productivity,
for instance, may eliminate some types of jobs in
the short-run. There is lively debate within the
field about the differing goals for place-based
development strategies and also about whether
place-based or people-based is
best. Economic development encompasses a
broad and expansive set of activities and tools
that assist communities in growth and prosperity.
The best economic development practitioners
strive to bring quality jobs, new business and
increased services (along with numerous other
benefits) to communities through innovative
approaches and outcome driven strategies.
Introduction To Economic Development breaks down
the complex profession of economic development
into the fundamental practices, principles and
procedures. Value differences, contending
ideological positions, and varied theories of how
economic development occurs and how it should be
practiced are presented in the following section.
Technology-led
Economic Development: -
Technology development has added a new dimension
to the role of economic development
professionals. The quest for increased technology
can be confusing and challenging from many
perspectives. Communities must judge to what
extent they should strive to recruit and support
the technology industry, how to determine the
proper role of advanced technology on the
organizations everyday activities and
design ways to help local businesses tap into
technology opportunities. Many communities have
been able to incorporate technology into both
their practices and programs while others have
struggled to understand the capabilities of this
industry. As the information age and technology
sector maintain steady growth, the need for more
advanced economic development activity is
expanding as well. Technology development
encompasses increased infrastructure
capabilities, advanced financing options,
innovative marketing processes and start-up
business assistance.
- WHY IS ECONOMIC
DEVELOPMENT IMPORTANT: -
Economic development in the
U.S. is a big deal. To start, many argue that
economic development is necessary for sustaining
the competitiveness of the United States economy
and raising overall productivity and incomes.
Second, additional development can help maintain
a high level of employment and job quality for
all Americans. Third, it can help to create the
jobs necessary for providing middle-class
opportunities for the jobless and working poor.
Fourth, it can provide the earnings needed to
make further investments in education, government
services, amenities, infrastructure, and quality
of life.
Moreover, economic development
policy matters. Federal, state, and local
governments spend billions of dollars in its
name. So, development policy choices affect
taxpayers' pocketbooks. What's more, evidence
suggests that many development programs actually
work and do achieve the goals listed above.
Economic development issues
have a way of dominating most policy debates in
state legislatures and city councils. Its
prominence is due in part to citizens' tendency
to evaluate public officials' success by how well
their state or local economy is faring. If jobs
are being generated, incomes are growing, and
high profile companies are being attracted or
retained, then a politician's tenure is likely to
be extended. If not, he or she may become
history.
But there is another important
twist on the significance of economic
development. Almost every major state and local
policy debate, whether it involves taxation,
welfare, environmental regulations, or workforce
healthy and safety, quickly becomes a debate over
economic development. Indeed, most new social and
regulatory policies are fought on the grounds
that they will harm the area's business climate
and cause private investment to dry up.
Similarly, education reform and adult retraining
are promoted for their potential impact on
economic growth.
- WHAT DO ECONOMIC
DEVELOPERS DO?
During the last thirty-plus
years, the field of economic development has
changed significantly. Once an ad hoc art and
practice, it is gradually becoming more of a
science, an industry and a profession. Today, the
field has its own journals and trade
associations. It is taught in universities and
colleges. Certificates are awarded to those who
undergo appropriate training. Regional, national,
and international conferences are held from
Frankfurt, Germany, to Raleigh, North Carolina.
Many lay people mistakenly
believe that economic development is simply a
hands-on profession. The economic developer
promotes sites, visits existing industries, runs
a revolving loan fund, and so forth. But this is
only the field's external face.
Economic development activities
and outcomes are also shaped by public policies.
Funding for infrastructure, tax and regulatory
policies, new workforce training grants, and
countless other examples influence the
environment for investment and commerce. Called
"business climate," this contested term
refers to the extent to which the political and
policy environments of a particular state or
locality, compared with other jurisdictions, are
seen to be supportive or burdensome to
businesses. The implication is that any area
whose business climate is not
"competitive" will be shunned by the
corporate sector and will find it difficult to
attract or grow new firms and the jobs they
provide.
The business climate is
affected by both major cost factors (e.g., land,
labor, taxes, regulations) and non-cost factors
(e.g., quality of life, attitudes toward
business). Government has a big impact on
business climate (and hence, economic development
practice), for it is that combination of services
provided by the public sector, such as education,
infrastructure, taxation, and regulation, which
creates the context within which companies
operate. Moreover, government delivers other
direct programs to companies in the form of
grants, low interest loans, debt insurance
mechanisms, and business advisory services.There
is no complete roster of all who are involved in
this field, but here are some indicators of its
size.
- There are more than 2,000
community development corporations (CDCs)
operating in low-income areas throughout
the U.S. These groups boast 17 statewide
associations and a national organization
-- the National Congress for Community
Economic Development -- with over 800
members.
- The state of Minnesota has
200 revolving loan funds providing
financing and management services to
small businesses.
- The American Economic
Development Council, a major national
trade association, has nearly 3,000
members, as well as its own research
foundation that is affiliated with a
major university.
- The North Carolina
Economic Development Association has
close to 650 members, with 200 of these
based in local and state organizations
and agencies and another 400-plus
engineers, attorneys, consultants,
businesspersons, bankers, and utility
personnel. In fact, its director
estimates that 85 of the state's 100
counties have at least one economic
development staff person in place.
Once it was virtually
synonymous with business recruitment efforts; now
it has broadened its boundaries. Today's economic
development involves initiatives ranging from
improving local amenities (e.g., building a
museum and aquarium) to reforming the K-12
educational system, from retaining existing
businesses to fostering minority ownership of
business enterprises.Indeed, a recent trade
association publication that surveyed economic
developers found them in general agreement that:
- The issue of educational
quality and workforce preparation will
become increasingly critical.
- Changes in information
technology, communications technology,
and the growth of the Internet will have
a major impact on the profession.
- Existing business
development will be central to economic
developers in the years ahead.
- Economic developers will
have to know more about global markets.
- The ability to forge
political consensus within a community
will be critical to successful economic
development efforts.
- Because of the scale of
investments needed and the speed of
economic change, the New Economy places a
premium on collaboration. No one can
afford to go it alone.
Yet, in many respects the
challenge is the same. Economic developers invest
to build up their location and promote their
assets and opportunities to prospective
investors, both inside and outside the community.
- DEFINITIONS THAT
ADDRESS EQUITY AND SUSTAINABILITY:
Economic development
policymakers and practitioners who are concerned
about economically disadvantaged and depressed
communities highlight some different issues when
they define economic development. Community
economic development or CED typically has five
goals:
- Stimulating a self-sustaining process of
economic development (the dynamic and
rate of development); Creating jobs at
acceptable wages, with appropriate
benefits and career ladders for area
residents (the distribution of
development)
- Producing goods and services that meet
social needs, like affordable housing,
lowered energy costs, better health care,
and accessible day care (the composition
of development)
- Establishing greater community control,
accountability, and participation in
basic economic decisions such as hiring,
investment, and location (the control of
development)
- Broadening business and asset ownership
within poor and ethnic minority
communities.
The first objective is shared by other more
conventional economic and business development
strategies. But the last four distinguish
community economic development from many
traditional approaches and are especially
important for both low-income and working class
communities. The practice of CED also has a
strong institution-building dimension, involving
the creation and strengthening of economic
organizations controlled or owned by residents of
the area where these institutions are located.
These might include business firms, industrial
parks, banks, credit unions, cooperatives,
community development corporations, and mutual
housing associations. Lastly, there is an
implicit anti-poverty mission implied in this
definition, given the goal of creating more
family-wage jobs.
The following economic development definition
goes further on issues of fairness, environmental
compatibility, and quality of life. The
Corporation for Enterprise Development has argued
that economic development should help to achieve
a more widely shared and sustainable quality of
life. This overall definition may be broken down
into three elements:
- Development entails the enrichment of
material, social well-being, which can be
measured in the flow of money and goods
over time; increases in a jurisdiction's
quality and quantity of public goods
(such as clean air and water, freedom
from crime, better schools, etc.); and
access to good jobs (e.g., with wages and
benefits sufficient for supporting a
family, and opportunities for
advancement)
- Shared growth means there is broad
distribution of opportunities for
meaningful participation in the economy
and enjoyment of the benefits of an
increased standard of living.
- Sustained growth implies that the above
goals are achieved in a manner that does
not detract from - but rather enhances -
the economy's ability to achieve the same
goals in the future.
Obviously, this conception of economic
development adds to the debate about the means
and ends of development policy. Many economic
developers see their job solely as one that
concerns employment generation and income growth.
They believe that they have little influence on
other objectives and are not responsive to
constituencies that are most concerned with
issues of equity and environmental conservation.
But an increasing number of voices contends
that economic development policies must pass the
tests suggested by the last few definitions: Are
the policies, programs, and practices generating
a higher standard of living and more and better
jobs? Are programs becoming more accountable,
cost-effective, and user-friendly? Are they
expanding opportunities for all Americans? And
are they becoming more compatible with conserving
our environmental assets and promoting a higher
quality of life?
- ECONOMIC
DEVELOPMENT VS. ECONOMIC GROWTH: -
Economists Peter Bearse and
Roger Vaughan write that:
- 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.
According to this view,
economic development and economic growth are not
necessarily the same thing. First, development is
both a prerequisite to and a result of growth.
Development, moreover, is prior to growth in the
sense that growth cannot continue long without
the sort of innovations and structural changes
noted above. But growth, in turn, will drive new
changes in the economy, causing new products and
firms to be created as well as countless small
incremental innovations. Together, these advances
allow an economy to increase its productivity,
thereby enabling the production of more outputs
with fewer inputs over the long haul.
Environmental critics and sustainable development
advocates, furthermore, often point out that
development does not have to imply some types of
growth. An economy, for instance, can be
developing, but not growing by certain
indicators. Indeed, the measure of productivity
should not be solely monetary; it should also
represent and shed light on how effectively
scarce natural resources are being used and how
well pollution is being reduced or prevented
- ECONOMIC
DEVELOPMENT COURSE: -
Mission
Statement: -
The Course is a comprehensive
educational experience on the theory and practice
of economic development offering a standard
course curriculum augmented by region-specific
subject matter. The Course offering meets the
needs of the new economic development
professionals, allied professionals, and
community leaders. Completion of the Course
qualifies the participant into the Economic
Development Institute program.
Description:
-
This publication is a
compilation of specially selected articles
published in the Economic Development Review,
describes the basics of the economic development
practice and profession. It is perfect for
Economic Development Course attendees, students,
professional just entering the field or local
community leaders who wish to understand economic
development.
Among the major topic areas
covered are perspectives on economic development,
addressing the fundamental components of economic
development, creating and marketing a competitive
community, case study examples of economic
development programs, use of technology in
economic development, the role of incentives,
retail development, and professional development
of the practitioner (including tips on passing
the Certified Economic Developer Exam).
The Certified Economic
Developer (CED) Program, established in 1970,
recognizes the professional economic developer
and sets the standard of excellence for the
profession. A Certified Economic Developer has
attained proficiency with the professional
competency standards identified and adopted by
the American Economic Development Council (AEDC)
and demonstrates to members of the economic
development profession, the business community,
the public, and governmental authorities, a
commitment and interest in providing only the
highest quality professional economic development
services available. Since the program's
inception, almost 1400 professional economic
developers have been certified. Certification
maintenance is required every three years and is
achieved through participating in education and
other defined activities. The CED designation is
an important qualification for executive
employment opportunities in the profession.
In addition, in 1996 the
American Economic Development Council established
the Accredited Economic Development Organization
(AEDO) Program as a means of recognizing the
professional excellence of economic development
entities throughout North America. To date, more
than twenty organizations have gone through the
accreditation process. The AEDO Program combines
volunteer commitment and peer networking, two
hallmarks of the American Economic Development
Council.
AEDC offers a variety of
educational programs for economic development
professionals through its National Seminars. Sign
up today if you're interested in gaining more
knowledge about the latest and best in the
profession. Attend an AEDC Seminar and invest in
your career.
- ECONOMIC
DEVELOPMENT INSTITUTE: -
The Economic Development
Institute (EDI) is a nationally renowned,
three-year program of economic development
education which provides: 1) an advanced, broad
education for the professional economic developer
incorporating skills and subjects required to
carry out an economic development program; 2)
classroom training relevant to preparation for
professional certification; and 3) a level of
education in demand by employers of professional
economic developers. EDI is accredited by the
American Economic Development Council (AEDC).
The Economic Development
Institute is now offered in three locations. Each
year of the three-year program is offered in late
March or early April in Indianapolis, Indiana,
and the second is held each August in Norman,
Oklahoma. The third site is San Diego, California
in December. Each years session lasts one
week.
A prerequisite for EDI is
completion of an accredited Economic Development
Course (formerly Basic) or five years experience
and/or education in the field of economic
development. Admission to EDI is open to members
and non-members of AEDC. Participants must
complete research project to graduate from the
Institute.
Advanced Symposia: Advanced
Symposia are also accredited by AEDC and are held
during EDI week at both the Indianapolis and
Norman sites. These symposia are offered to EDI
graduates, CEDs, Fellow Members of AEDC, and
other economic development professionals with at
least seven years of experience. The classes are
two days
- Click here to
View ECONOMIC DEVELOPMENT THEORIES: -
ECONOMIC
DEVELOPMENT LINKS: -
- The Center for Economic
Development at Jacksonville State
University concentrates on providing
specialized assistance to business and
government. Examples of services provided
include economic impact studies,
marketing surveys, employee attitude
assessment, training, and personnel and
pay plan development.
- The Center for Economic
Development at the University of New
Orleans was created to assist
communities in Louisiana pursue economic
development opportunities. The center
utilizes university resources to assist
government and community based economic
development organizations in implementing
economic development initiatives.
- Georgia Tech's Center for Economic
Development Services supports
Georgia's economic development efforts by
conducting specialized development
courses, performing economic development
research, helping communities prepare for
growth, and connecting relocating or
expanding companies with technical
resources at the university.
- Among its many areas of interest, the Cyburbia at SUNY Buffalo
maintains resources in a variety of
topics including economic development,
community development, demographics,
geographic information systems, property
development and finance, growth issues
and urban design.
- Economic developers interested in
customized corporate training and
development should visit the Dowling College, Dowling
Institute web site. The institute
fosters partnerships among business,
governments, and community groups to
enhance local corporation's competitive
edge and further educate and train the
local work force.
- The Economic Development Web
Site, maintained by the Hubert
Humphrey Institute at the University of
Minnesota, is designed to assist economic
development professionals gather and
utilize data available on the Internet.
- The Haas Center for Business
Research and Economic Development -
University of West Florida provides a
number of services and resources designed
to support economic development in
northwest Florida. The center acts as a
liaison among local government's chambers
of commerce, industrial development
groups and businesses while providing
research and data on regional and state
economic development activities.
- The Office of Economic
Development at the University of
Massachusetts, Amherst represents the
campus in regional and community economic
development initiatives and works to
maximize the outreach opportunities for
Massachusetts firms. The office is
situated in the Executive Area of
Research and links several key areas that
connect the campus to business and
industry.
- The Office of Economic
Development at the University of
South Florida is USF's coordination
center for the Florida High Tech Corridor
Initiative and industry, business and
work force development issues"
- The Technical Assistance
Center (TAC) at the State University
of New York at Plattsburgh is an EDA
funded center that works to increase
northeastern New York's local capacity to
manage and enhance appropriate economic
change, including generating employment
and fostering capital investment.
- The Conway Data Site
Selection is the economic developer's
link to the Geo-Economic Library. Conway
Data also sponsors SiteNet,
a digital data network for the
development field.
- County Business Patterns
accesses a database of county, state and
national business and development data.
The Bureau of the Census annually
collects the statistics used in this
database.
{ Click here to View the links to
Rural Economic Development }
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