Basic Economic
Development Strategies
Alan Barefield
Southern Rural Development Center
10. Create an
Ongoing
Development
Process
1. Begin/Continue
the Process
2. Engage the
Community and
Legitimize the
Process
9. Celebrate
Your
Success
8. Evaluate the
Overall Effort
7. Implement
the Plan
Ten Steps: CARE
For Your Future
3. Form an
Organizational
Structure
4. Conduct
Community
Assessments
6. Seek Feedback
& Commitment
from the
Community
5. Develop a
Strategic Vision
and
Action Plan
Economic Development
Can Mean Many Things To Different People
What is Economic
Development?
The Economic Development Administration
(www.doc.gov/eda) defines economic development as:
Economic development is fundamentally about enhancing
the factors of productive capacity - land, labor, capital, and
technology - of a national, state or local economy.
Difference Between Economic
Development and
Economic Growth
•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.
1Roger
Vaughan and Peter Bearse, "Federal Economic Development Programs: A Framework for Design and
Evaluation," in Robert Friedman and William Schweke (editors), Expanding the Opportunity to Produce: Revitalising The
American Economy Through New Enterprise Development (Washington: DC, 1981), 309. back to text
Definition Interpretations
Economists
Economic development is an issue of economic growth.
Business Leaders
Economic development is the application of public policy to
increase U.S. or regional competitiveness.
Government Activists
Economic development is a code phrase for industrial
policy.
Definition Interpretations
Environmentalists
Economic development should be sustainable development
that harmonizes natural and social systems.
Labor Leaders
Economic development is a vehicle for increasing wages,
benefits, basic education, and worker training.
Community-based Leaders and Professionals
Economic development is a way to strengthen inner city and
rural economics in order to reduce poverty and inequality.
Levels of Economic Growth
Economic Growth


Deals with economies
Growth is profitable
Shared Economic Growth


Deal with equity
Is fair for all involved
Sustained Economic Growth


Addresses the long-term consequences
Is healthy for the community and the environment
RCCI Principles
Economic development is not a bad thing
Profitable growth is necessary for
sustainability
Shared and equitable growth strengthens
communities
Long-term sustainable growth ensures our
communities will be here for the next
generation
Social Justice,
Economic Opportunity,
Income Equality
The
Development
Conflict
The Property
Conflict
“Green, profitable
and fair”
(sustainable development?)
Overall Economic
Growth & Efficiency
Environmental
Protection
The Resource
Conflict
Conflicting Goals for Planning
Source: Scott Campbell: Green Cities, Growing Cities, Just Cities? JAPA
Benefits of Strategic Planning
Outline steps to follow
Promote efficient use of resources
Improve coordination
Build concensus
Increase public awareness
Strengthen competitive position
Encourage forward-thinking
“CARE For Your Economy
Sources of Jobs/Income
Creation
Attraction
Retention
Expansion
Creation Strategies
Provide a supportive entrepreneurial
climate
Provide technical training and
assistance
Host a one-stop permit center
Be knowledgeable of capital sources
Develop a small business incubator
program
Attraction Strategies
Recruit compatible new businesses
Target specific sectors and types of
industries
Location factors
Markets
Raw materials
Industrial site
Financial capital
Labor
Transportation
Utilities
Other factors
Retention & Expansion Strategies
Goal is to retain and expand existing
businesses
Firm visits to assess needs and
opportunities
Immediate followup – especially “Red
Flags”
Response and direct assistance to firms
Local Economic
Development Strategies
Home Based and/or Micro Businesses
Main Street Revitalization
Manufacturing
Value-added Agribusiness
Retiree Recruitment
Tourism Development
Service Business Development
E-commerce
For Success: Think Strategically
Forward thinking
Address the need to survive in a
changing environment
Nothing mystical – It just involves:
Hard work
Thought
Communication
Cooperation
Applies to communities and private sector
Key role is data and communication
Observations/Lessons Learned
Location still matters (sometimes)
Know your competition
Attributes of successful committees





Positive attitude
Professional
Use all resources
Communication
Persistent
Organized plan and defined roles
Accountable to the community