Community Choices: Public Policy Education Program Exploring the Human Resources/Economic Development Connection Program Overview Henry Cothran Bo Beaulieu University of Florida Southern Rural Development Center March 2000 The Southern Rural Development Center © The Current Situation Rural America leads the nation in: Families living in poverty. Rate of unemployment/underemployment. Functionally illiterate adults. Only a small segment of rural workforce has a college education or more. These human capital shortfalls can impede economic and social progress in rural areas. Situation is most acute in the South. The Current Situation (cont.) Many college-educated rural residents move to urban communities. Brain drain remains significant in rural areas. Essential for the community to explore how its economic future is shaped by its human resource conditions. Purposes and Objectives To offer local citizens an opportunity to study and resolve problems in their community using the framework. Four objectives: Introduce the public policy education framework. Strengthen citizens’ understanding of human resource and economic development issues. Mobilize citizens to explore links between human attributes and economic development opportunities. Enhance citizens’ involvement in working on solutions to identified problems. Format and Resources Most modules contain: Instructor’s Guide Module Overview Small Group Activities Transparency Masters Background Readings and References Table 1. Topics Covered Section I Module One The Public Policy Education Model: A Framework for Addressing Local Issues Module Two Identifying Local Decision Makers Module Three Promoting Multicultural Awareness Section II Module Four Understanding the Local Economy Section III Module Five The Community’s Human Resource Attributes Module Six Migration’s Impact on the Community’s Human Resources Module Seven Human Resources and the Family Module Eight The Job Market: The Opportunities for Youth Community Choices: Public Policy Education Program Exploring the Human Resources/Economic Development Connection Module One: The Public Policy Education Model 8 March 2000 The Southern Rural Development Center Objectives Determine the meaning of public policy education. Know the criteria for assessing which issues can be characterized as public policy issues. Understand how to use the public policy education model for addressing issues of local importance. Foundation for the Public Policy Education Program Give citizens a better understanding of community policy issues. Stimulate citizens’ interest/involvement in local policy decisions. Enhance community’s capacity to arrive at key policy decisions. Help citizens participate in the democratic process. Key Terms Policy—agreed upon course of action. Public Policy—a designated course of action adopted by a governmental entity. Education—process of imparting information and technical assistance to people and communities. Public Policy Education—program that applies the university’s knowledge base to assist citizens in making informed policy choices. Characteristics of Public Policy Issues Involve problems that require group decision. Solutions are based on value judgments. Issues are of broad interest and concern. Deal with controversial matters. Tend to be recognized by decisionmakers as problems/concerns. Values People’s views of what should be or what the desirable situation should be. A person’s perceptions of what is good and bad. Affect how people think about problems and policy strategies. Conflicts arise when people discuss public policy issues with different sets of values. Figure 1. The Public Policy Education Model Source: House and Hahn. Prepared by Lionel J. Beaulieu Southern Rural Development Center March 2000 Community Choices: Public Policy Education Program Exploring the Human Resources/Economic Development Connection Module Four: Understanding the Local Economy 8 March 2000 The Southern Rural Development Center Events That Have Impacted the Economy of Rural Areas Employment declines in agriculture, manufacturing, and natural resourcebased industries. National shift toward a service and information-based economy. Development of new technology. Internationalization of the U.S. economy. Structural shifts within agriculture and manufacturing. Challenges Facing Rural Areas Maintaining and enhancing the competitiveness of farms and rural businesses. Further diversifying the rural economy. Easing the transition for families. Providing technical and educational assistance for local government. Identifying options for increasing jobs and income. Helping conserve and manage natural resources. Module 4: Objectives To present export base theory as a model of the way a local economy works. To relate general export base theory to your home state and community. To use the export base model to examine local economic development alternatives. Export Base Theory Basic Industry—Consists of those local firms that sell goods and services outside the local areas. Service Industry—Consists of those firms that sell goods and services in local markets. Includes inputs to basic industries and goods and services to local residents. How Basic Industries Influence Local Economic Development Direct Impacts—sales, jobs, and income generated directly by firms producing for non-local markets. Indirect Impacts—sales, jobs, and income generated by firms selling goods and services to basic industries. Induced Impacts—sales, jobs, and income generated by spending activities of employees in direct and indirect firms. Multiplier—sum of direct, indirect, and induced impacts. Defining Economic Development: Some Perspectives Growth measure in economic or demographic terms. A particular event in a community, such as a new shopping facility or industrial plant. Programs to improve local services, increase equality of opportunity, and expand the economic based of the community. Defining Economic Development: Some Perspectives (cont.) What it is, however, is a system for meeting the needs and wants of people in a particular geographic area over time. The capacity to meet these needs serves as the focus of the the economic development process over time. Economic Development Alternatives Economic development successes are likely to be based on a mix of activities . . . Improve efficiency of existing firms. Improve ability to capture dollars. Attract new basic employers. Encourage business formation. Increase aid from broader government. Figure 1. Economic Activities of a Community Rest of the World $ G&S Goods and Services Export Firms Labor Services $ $ G&S Goods and Services Service Firms (Input Suppliers) $ Labor Labor Local Population (Households) $ $ Service Firms (Local Population) $ G&S G&S Imports (Leakages $ G&S $ Export Firms: Some Examples • • • • • • 1.___________________________ 2.___________________________ 3.___________________________ 4.___________________________ 5.___________________________ 6.___________________________ Service Firms: Some Examples • • • • • • 1.___________________________ 2.___________________________ 3.___________________________ 4.___________________________ 5.___________________________ 6.___________________________ Economic Development Alternatives Economic development successes are likely to be based on a mix of activities . . . Improve efficiency of existing firms. Improve ability to capture dollars. Attract new basic employers. Encourage business formation. Increase aid from broader government. Improve Efficiency of Existing Firms Start educational programs to improve management skills. Start a business-industry visitation program. Identify capital sources to encourage business growth. Provide educational programs to keep local businesses aware of latest R&D. Improve quality of the local labor force. Provide local and regional services that compete in price and quality. Improve Ability to Capture Dollars Survey consumers to assess market potentials. Revitalize downtown shopping districts or other retail areas. Develop training programs for local retail and service. Encourage residents and businesses to buy locally. Seek to combine sales/service activities with recreational events. Organize the retail and business community (I.e. Chamber of Commerce) Attract New Basic Employers Develop local industrial, office or commercial sites; have public services in place; provide information on local labor supply. Develop local and regional facilities (such as transportation, recreation, business services, communications) Provide local tax incentives that reduce location or operating costs of new or expanding firms. Attract New Basic Employers (cont.) Lobby for state and federal programs and facilities that could be located in the community. Explore non-traditional sources of employment—retirees, recreation resources, trade centers, bedroom community for nearby urban centers. Encourage Business Formation Form capital groups to invest private funds locally. Provide counseling and education assistance to those wishing to start a new business. Study the market potential for new retail, wholesale, service, and input-providing businesses. Encourage Business Formation (cont.) Be aware that adversity often stimulates entrepreneurship. Adopt an encouraging community attitude toward new businesses. Increase Aid Received from Broader Government Seek to ensure that assistance programs for the elderly, handicapped, and others are being fully tapped. Obtain aid from state and federal governments in the form of grants for local projects (such as water and sewer systems, streets, parks). Prepared by David Mulkey University of Florida March 2000 Community Choices: Understanding the Local Economy Where can you find these modules? http://srdc.msstate.edu/publications/commchoice/commchoice.htm Community Choices: Understanding the Local Economy