Rural Futures Lab. Orientation on Economic Regionalism Brian Dabson Council on Foundations Rural Philanthropy Conference July 25-27, 2011

Transcription

1 Orientation on Economic Regionalism Brian Dabson Council on Foundations Rural Philanthropy Conference July 25-27, 2011

2 Economic development is: A program, group of policies, or activity that seeks to improve the economic well-being and quality of life for a community, by creating and/or retaining jobs that facilitate growth and provide a stable tax base. International Economic Development Council 2

3 Economic Development Tools Financial Incentives Grants, loans, tax-exempt bonds, equity (and near-equity) financing Tax Policies Business climate, tax incentives Nonfinancial Assistance Site development, enterprise zones, human resources, research

4 Conventional Economic Development Entrepreneurship Retention Recruitment Focus on attracting investment and jobs from elsewhere Emphasis on marketing and financial incentives Less attention given to assisting existing businesses or fostering start-ups 4

5 The New Economic Development Recruitment Retention Entrepreneurship Entrepreneurship as the bedrock for economic development Emphasis on creating an e-friendly community easier to attract and retain businesses E-friendly = business and community environment 5

6 New Regional Framing Economic regions are basic units of global competitiveness Innovation and entrepreneurship in a regional context are the engines of job creation, growth, prosperity Creativity is what distinguishes successful regions in new economy 6

7 Competitiveness Regional prosperity based on sustained productivity growth New paradigm: converting assets into intellectual capital, added value No longer exploitation of location, natural resources, low cost labor Depends on productivity of all industries and assets; productivity based on continuous innovation 7

8 Innovation Transformation of knowledge into potential commercial products, processes, services Entrepreneurs are the drivers of the transformation process Applies in every sector not just in high tech areas, and in every place not just in favored metro areas 8

9 Cluster Strategies Commonly used tool for economic development many statewide and regional studies by Michael Porter. Cluster groups of firms and related institutions, located close to each other and find productive advantage from proximity and exchange. Part of process of identifying and assessing competitive assets of a region, and shaping future directions. Techniques for measuring the density and strength of interfirm connections within a region helps to identify economic drivers. 9

10 California Wine Cluster Michael Porter et al (2004) Grapestock Fertilizer, Pesticides Grape Harvesting Equipment Irrigation Technology Growers/ Vineyards State Agencies Wineries/ Processors Winemaking Equipment Barrels Bottles Caps & Corks Labels Agriculture Cluster Education, Research, Trade Organizations Tourism Cluster Food Cluster PR & Advertising Publications 10

11 The White House and Place-based Investments [Our] nation is increasingly a conglomeration of regional economies and ecosystems promote planning and collaboration across jurisdictional boundaries rural development programs should be coordinated with broader regional initiatives 11

12 Regional Innovation Clusters geographically close groups of interconnected companies and associated institutions in a particular field, linked by common technologies and skills Porter Benefits of geographic proximity promote knowledge sharing and innovation through thick networks of formal and informal relationships across organizations the social structure of innovation. Mills, Reynolds & Reamer 12

13 Clusters as a metropolitan paradigm Brookings Institution: New research shows promise of clusters in times of economic uncertainty Reflect the nature of the real economy focus on true sources of growth Cluster thinking a compelling framework for rethinking, reorganizing and reforming economic development at federal, state, regional levels 13

14 Rural Regional Innovation Means that other factors than proximity are important to rural businesses although those within/close to metropolitan centers can plug into cluster networks and value chains More remote businesses are of two main types: Those that build on community assets, entrepreneurial opportunities, using broadband building upon community and virtual sector networks Those that require space rather than proximity natural resources; linking into regional, national, and global supply chains 14

15 Rural Regional Innovation Means a sharp focus on linkages between rural regions and urban center Rural areas provide critical consumption goods to metro consumers food, energy, water, environmental remediation, lower-cost land & labor, unique experiences Urban areas are end-market for rural production, provide specialized services, offer diverse job opportunities, generate resources for rural investment Many rural services ecosystem services (wetlands, carbon storage, pollinators, aquifers) not appropriately valued 15

16 Rural Regional Innovation Means effective cross-jurisdiction and cross sector approaches Systems approach to design and delivery of services and responses for rural people and places connecting resources and expertise Regional collaboration all levels of government, business and nonprofit organizations find common ground, cross boundaries to solve problems, plan for the future 16

17 Rural Regional Innovation Means a focus on the creation and retention of economic, social, and environmental wealth Application of triple bottom line, multiple forms of wealth (capital, assets) making wealth stick issues of local control and ownership Challenge: developing the analytical, planning, and design tools to capture stocks and flows of multiple forms of wealth in rural regions Challenge: developing the metrics to describe community health and well-being, guide resources, measure impact 17

18 Rural Regional Innovation Means the ability of rural places to be resilient in the face of disruptive events Requires more intelligent and inclusive approaches to planning and preparedness both coping with impacts and building resiliency to recover and thrive 18

19 Regional Thinking Regional Thinking is NOT More government Another bureaucratic layer A threat to local democracy 19

20 Regional Thinking Regional Thinking is NOT More government Another bureaucratic layer A threat to local democracy It is boundary crossing to achieve common purposes reaching out across Jurisdictional boundaries Organizational territories (turf) Sectors (public, private, nonprofit) Disciplines 20

21 Regional Thinking Regional Thinking is NOT More government Another bureaucratic layer A threat to local democracy It is boundary crossing to achieve common purposes reaching out across Jurisdictional boundaries Organizational territories (turf) Sectors (public, private, nonprofit) Disciplines Window of Opportunity created by Fiscal pressures Capacity constraints Economic shifts Scale & complexity of challenges Metropolitan policy framing Incentives for collaboration 21

22 Regional Thinking Geographical Drawing boundaries of a map to denote some commonality Institutional Reinforcing geographical boundaries with institutional arrangements Political Administrative Operational Bringing together resources appropriate to meeting some challenge or opportunity Flexible geographical and institutional dimensions 22

23 Motivating Forces for Regional Action Flood Hurricane Pollution Capturing Opportunity Competitive Asset e.g. New highway Ecotourism, Global positioning Compelling driver but results unpredictable Responding To Crisis Informal Regionalism Reacting To Threat Proposed development habitat destruction 23

24 The Yin and Yang of Regionalism Pros Long history of efforts to cross boundaries to achieve broader public good Cons Long history of resistance that has pushed back each wave of regionalism 24

25 The Yin And Yang of Regionalism Pros Long history of efforts to cross boundaries to achieve broader public good Many motivations Cons Long history of resistance that has pushed back each wave of regionalism Many objections 25

26 The Yin and Yang of Regionalism Pros Long history of efforts to cross boundaries to achieve broader public good Many motivations Each effort leaves behind evidence in complex governance landscape web of formal and informal organizations Cons Long history of resistance that has pushed back each wave of regionalism Many objections Large structural organizational change inconceivable Doubts about efficiency and effectiveness of voluntary arrangements 26

27 The Yin and Yang of Regionalism Pros Long history of efforts to cross boundaries to achieve broader public good Many motivations Each effort leaves behind evidence in complex governance landscape web of formal and informal organizations Cons Long history of resistance that has pushed back each wave of regionalism Many objections Large structural organizational change inconceivable Doubts about efficiency and effectiveness of voluntary arrangements Suggests an imperative to achieve collaboration beyond what can be achieved by government alone Suggests impossibility of regional governance 27

28 There are several examples of multi-state regions 28

29 The Watershed Region John Wesley Powell Commonwealths defined by watersheds Most appropriate governance structures for managing the West s natural resources. Body of interdependent and unified interests and values all collected in a hydrographic basin segregated by well-defined boundary lines from the rest of the world. Assumed people have common interests, common rights, and common duties, and must work together for common purposes. 29

30 The Watershed Region Watersheds now used by U.S. Environmental Protection Agency for planning, monitoring, and enforcement for: Protection of drinking water Safeguarding of habitats and ecosystems 30

31 The FDR Vision FDR called for creation of Tennessee Valley Authority stemmed from his interests in conservation, regional development, urban settlements Saw a union of agriculture, forestry, and flood prevention Model for organizing and planning use of natural resources on a regional scale It is time to extend planning to a wider field, in this instance comprehending in one great project many States directly concerned with the basis of one of our greatest rivers. Brian Dabson TSPA 31

32 Tennessee Valley Authority The largest electric power producer in the U.S. Serves 80,000 square miles in Tennessee and parts of six other states Alabama, Mississippi, Kentucky, Virginia, North Carolina, and Georgia 29 hydroelectric dams, 11 coal-fired power plants, 3 nuclear power plants 32

33 Appalachian Regional Commission 200,000 square miles All of WV and parts of 12 other states 23 million people 410 counties 42% rural 33

34 ARC Accomplishments 34

35 Salmon Nation Example of a functional region and a placebased identity Region defined by: Coastal temperate rain forest bioregion Multiple water sheds Economically and ecologically important salmon stocks Cultural heritage 35

36 Salmon Nation Concept created by Ecotrust Salmon Nation, a place Defined by coastline and by its rivers anywhere Pacific salmon have ever run Salmon Nation, a state of mind Alliances of tribes, fishermen, farmers, ranchers, loggers, and urban dwellers working to improve neighborhoods and watersheds across arbitrary boundaries and urban-rural divides Salmon Nation, a gift Prosperity based on mutual not special interests; vision of an economy that nourishes human spirit and conserves natural wealth 36

37 Salmon Nation Salmon Nation, an educational tool Schools, eating healthy, buying local Salmon Nation, a marketing concept Credit cards, merchandise 37

38 Local Regional Infrastructure 355 regional development organizations nationwide Aging services Business development finance Community & economic development Emergency preparedness Environmental stewardship Housing GIS services Public administration Transportation planning Workforce development 38

39 But regional approaches are also to be found at the local level 39

40 The Regions of Coos County 40

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48 Collaboration Working Across Boundaries Regional collaboration is working together on a scale that transcends the legal and geographic reach of existing jurisdictions and interests. p.2 Trans-boundary concerns reveal gaps in our strategies for governing and making decisions p.2 48

49 Collaboration Working Across Boundaries Networks = informal arrangements Partnerships = more formal relationships to achieve a common goal Institutions = formal structures coordination to regulation 49

50 Collaborative Regional Initiatives Irvine Foundation: invested in 17 regional partnerships (CRIs) in California Main CRI characteristics: Constant evolution, flexible and adaptive, mutual learning Diverse goals and participants (business, civic leaders, nonprofits, advocates, levels of government) Regional in scope 50

51 Collaborative Regional Initiatives Innes & Rongerude (2005) Irvine Foundation Feature Sierra Business Council Joint Venture: Silicon Valley San Diego Dialogue Issue NRP, WED, CE WED, RID, CE NRP, WED, RID, CE Theory of Change Leadership Style Regional Fit Network Structure Research and dialogue Listening, convening, collaborating Linking economy and environment Distributed, widely dispersed Venture capital model Connecting to social networks Building on regional economic success Teams loosely linked to core Educating elites Personal relationships Building on small town style Central node linked to networks Bay Area Alliance for Sustainable Communities NRP, WED, RID, CE Political coalition Shared decisionmaking Convening advocacy groups Five-node core with satellite caucuses 51

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53 Informal Cooperation Voluntary arrangements for reciprocal or joint action 53

54 Service Agreements Service contracts where one organization provides services for another 54

55 Service Agreements Joint service agreements to plan, finance and provide services within their areas 55

56 Service Agreements Joint purchasing or contracting agreements with third parties 56

57 Joint Agreements, Councils Creation of service bodies controlled by jurisdictions or organizations 57

58 Joint Agreements, Councils Requirements, incentives from Federal agencies, foundations, to collaborate 58

59 Joint Agreements, Councils State mandate to integrate multiple external funding streams State 59

60 Special Districts Formal transfer of functions to a special district or agency 60

61 Special Districts Formal transfer of multiple functions to a special district or agency 61

62 Transfer of Function(s) Permanent transfer of a function to another jurisdiction or organization 62

63 Annexation Annexation of adjacent unincorporated areas 63

64 Merger/Consolidation One jurisdiction/ organization merged into another; two jurisdictions/ organizations consolidated 64

65 Regionalism Endnotes Regional approaches are almost universally considered the best hope of solving many problems facing communities. But they are the least likely to be embraced. JOHN PARR Regional collaboration is often regarded as an unnatural act. BRIAN DABSON 65

66 Brian Dabson RUPRI