Do you ever sit back while watching politicians promise to “grow
the economy,” “create jobs,” and “put Americans back to work” and wonder how
they plan to make it all happen? Most often than not, politicians don’t have a
clue, not necessarily due to incompetence (although that’s questionable), but
because they increasingly rely on a set of economic development experts to
guide them through the madness. For those unfamiliar with the whole idea behind
Economic Development,
William
Fulton of the Kinder Institute for Urban Research at Rice University best sums
it up as the act of growing, stealing, adding, and ensuring constituents have “jobs”.
And by jobs we mean
quality, long-term
jobs; jobs that propel individuals or families to the middle class and have
added value to the community.
Today more than ever, economic development has become the new
hot trend in public administration and we’re seeing not only states, counties,
and large cities, but also small towns incorporate economic development offices
as integral parts of their administrations. What has become of the phenomenon
is what some experts call the
Economic
Development Wars. The result is more than $80 billion spent by states and municipalities each year in competitive
tax breaks, cash payments, building subsidies, and worker training to start-up,
steal, and keep U.S. firms. The huge question remains, are any of these strategies
working? Who’s accountable? And more importantly, is $80 billion each
year better spent elsewhere?
The truth like in most things is, it depends. It depends on
your community’s skill sets, landscape, and natural advantages in gaining capital
investment. For many years and to this day, what this has transitioned into is an
arena of competitive business incentives where states, counties, cities, and
towns all compete for businesses and businesses, particularly the Boeing’s, G.M.’s,
and Tech Giants of the world, sit back and watch states compete in a
gladiator style
race
to the bottom. Today, quality/ long-term jobs have become the exception not
the norm, but economic developers continue to rely on the same strategy. Regardless,
of this fact one thing rings true, even at its worse, economic development has
a bigger stake in directly and immediately affecting constituents than many government
services. So what is there to do?
These questions sparked my passion for Economic Development
last fall and luckily there are plenty of individuals taking on the challenge.
One of them being, Victoria Demchak whose 2013 book emphasized the importance of
considering economic development as a three pillared edifice, where too much or
too little investment in one pillar produces an unsound or unstable environment
for economic development. This is a much better mindset and most likely a much more flexible, sustainable, and effective strategy for economic developers particularly as we see the definition of "jobs" change in the future. I for one, will consider this strategy as I move forward in my career, and advise that you do the same if ED is something your into. What do think?