Community Development - the Final Step of Economic Development

Community Development is the Continuation of Economic Development

Nearly every community in America brags about its ‘great quality of life.’

Some community leaders contend that all the community needs to do is focus on being a great place and the economic part will simply take care of itself.

The community highlight may be a zoo, or a monument, a site of historical interest, or a park.

Still others focus on individual economic additions to the community that quantitatively add to the number of businesses in the community. For example, the addition of a fast-food franchise, a new car wash, or a new subdivision. This is economic impact because it increases the "numbers of." Although individuals may enjoy a new source of burgers or a new house, the quality of life is not necessarily improved. Economic impact is a component of economic development.

However, for a community to be economically viable, it must make a concerted effort to work on both community development?and?economic development. They are interdependent and reinforce each other.

It is important to recognize that economic development and community development are not the same, the same as economic impact and economic development are not the same.

Community development is a process for making a community a better place to live and work.

Economic development is purely and simply the creation of opportunities for improved wealth from which many community benefits result. This is still very important, since economic development creates an entire hierarchy of new opportunities and usually diversifies the local economy and creates new careers (not just jobs) and an improved source of revenue for the municipality.

While important to creating a vibrant economy, community development does not factor in important fundamentals necessary to attract businesses interested in the quality of life for their employees.

Communities still must make a basic business case to desirable prospective employers.

A major employer will consider what will life be like for our employees and their families.

Alternatively, an existing employer that plans to grow and rely on recruiting skilled employees normally not available in the local job market, must consider what will attract and retain skilled employees to this location, particularly those with spouses or families.

Community development focuses on the "quality of life" while economic development focuses on the opportunities for improving the individual wealth of citizens. Both are essential for the overall desirability of a community.

Both are necessary, but economic development must be coupled with community development to specifically assure the enrichment of quality of citizen's life's.

Examples may include not only the creation of new career opportunities, but also access to cultural and educational enrichment. More educational opportunities that broaden a person's enjoyment of life, more libraries to expand the mind, better care of the mental and physical well being of people, and greater support for the cultural arts.

The table below gives a summary overview of the difference between community development and economic development.

In conclusion, economic development includes economic impact, but should include and progress toward community development.

The result is a truly desirable place to live.