"The New Economic Development"
Sara Hudson
Executive Director at Snowy Mountain Development Corporation—Montana's only all-woman-staffed economic development organization.
The field of economic development as a profession is focused on economic growth. Economic growth is understood by analyzing the market. The market is based upon supply and demand. Supply and demand is concerned with optimum efficiency. But efficient economic development is not always equitable economic development. And, equitable economic development is essentially community development in an economic development context.
A conceptual framework for equity-driven economic growth illustrates the differences between the efficiency orientation of traditional economic development and the equity orientation of community development. Our orientation toward the profession is manifest in the manner in which we structure our EDOs. A top-down, efficiency-, market- and resource driven structure inevitably drives our outcomes toward efficient economic development. A bottom-up, remedial-market, community-driven structure inevitably drives our outcomes toward equitable development.
The convergence of efficient economic development and equitable economic development is “The New Economic Development” that drives EDOs to the cutting edge of the industry. It is at once a holistic approach to economic growth that creates capital and community wealth instead of aggravating existing inequities by simply moving capital around the urban landscape in a zero-sum sort of way.
Below is my conceptual framework for equity-driven economic growth, which I presented last year at International Economic Development Council's Annual Conference.
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Conceptual Framework for Equity-Driven Economic Growth |
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Dimension |
Economic Development Policies and programs explicitly directed at improving the business climate through specific efforts, business finance, marketing, neighborhood development, business retention and expansion, technology transfer, real estate development and others. |
Community Development A process of creating and utilizing physical, human, financial and social assets that decreases inequality in development by raising the standard of living and improving the quality of life. |
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Orientation of Profession |
Efficiency Economic – Profit Maximizing |
Equity Political – Fair, Just, Equitable |
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Direction of Authority Direction of Communication |
Top-Down |
Bottom-Up |
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Leadership Style |
Lead |
Serve |
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Organizational/Service Orientation |
Market-Driven / Competition |
Remedy Market Distortions / Collaboration |
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Decision-Making Drivers |
Resource-Driven Quantitative |
Community-Driven Qualitative |
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An EDO’s Tools and Strategies |
EFFICIENCY-ORIENTED TOOLS & STRATEGIES Supply-Side Incentives (Reduce Production Costs)
Demand-Side Incentives (Promote Growth throughout the Local Market)
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EQUITY-ORIENTED TOOLS & STRATEGIES
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Economic and Business Development Consultant
9 年Great framework. Helps to clearly see the strengths and motivations in each approach.
CEO of Public-Private Collaboratives, LLC
9 年Great piece! Note that both the *both* orientations / cultures generally exist and are implemented through local government controlled entities of one sort or another...
President at Tooley Communications
9 年The idea of engaging all stakeholders in Economic Development and targeting communities (and larger populations) to receive the benefits of growth is innovative and inspired. In a time of polarizing messages and activities that undermine cooperation, New Economic Development offers an alternative that gives us hope for a scenario where everybody wins. Thanks, Sara!
Retired Certified Economic Development Professional who served communities for over 31/2 decades.
9 年Sara, you are such a great study and speaker of truth, taking the complex out of the economic development world. Well done.