1 / 21

Overview: Economic Development Policies

Prof. Scott Campbell Urban Planning 539 University of Michigan. Overview: Economic Development Policies. Typologies of ED policies. Place-based vs. industry-based vs. occupation-based, etc. e.g., what are you emphasizing?

davida
Download Presentation

Overview: Economic Development Policies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Prof. Scott Campbell Urban Planning 539 University of Michigan Overview: Economic Development Policies

  2. Typologies of ED policies Place-based vs. industry-based vs. occupation-based, etc. e.g., what are you emphasizing? a friendly business climate; agglomeration economies; a good offering of local amenities to attract a highly educated workforce; low-cost labor and land; a tight network of innovative firms; aggressive economic development tools (e.g., IRBs, TIFs); proximity to universities, research parks, airports, etc.; active neighborhood-based involvement; protectionism; free-trade; to name just a few.

  3. Choices / Priorities in ED Policies • How do you define the public interest? • How you view the relationship between the public and private sectors, and one’s willingness to work within the market, be entrepreneurial and/or pragmatic. • What tools do you use? • Where do you stand on the equity versus efficiency debate? • Where do you stand on the policy intervention versus market incentive debate? • How much risk can you handle?

  4. Three Waves of Economic Development • Source: Blakely, Edward J and Ted K Bradshaw. 2002. Planning Local Economic Development Theory and Practice: Third Edition. Sage. Page 45: Table 2.3

  5. Another historical view…. Fitzgerald, Joan and Nancey Green Leigh. 2002. Economic Revitalization: Cases and Strategies for City and Suburb. Sage. pp. 10-26

  6. Multiple Strategies and ... • Boosterism, Place Marketing • Investing in comparative advantages • Human capital development • Developing markets • Creating clusters, agglomeration economies • Infrastructure (physical, technical, social) • Smokestack chasing, Business attraction: taxes, etc. • Partnerships • Multiple Goals • Employment • Higher wages • Lower poverty • Reduce inequality • Increase human capital • Increase living conditions • Job attraction and retainment • Capacity building • Increase multipliers • Sustainable growth

  7. Susan E. Clarke Gary L. Gaile, The Next Wave: Postfederal Local Economic Development Strategies, in Blair and Reese, 1998. (originally in EDQ in 1992) • Theme: the rise of the entreprenurial, risk-taking, partnership-making local state • Changes: • a shift away from state and federal funding • a rhetoric of devolution, local control and local entrepreneurship. • A blessing in disguise? More local funding means more local control. [166] • This study: from 1978 to 1989: did federal cuts affect the level of local economic development efforts. and if funding sources shifted to localities, were the localities more risky or cautious?

  8. So: initial data suggests that cities using these ED tools are faster growing, with lower taxes, fewer government employees and government expenditures. [NOTE: could this be a spurious relationship? That is, other factors are influencing both variables?]

  9. Trends • a shift from traditional federal sources (e.g., UDAG, EDA) to public-private partnerships, revenues from redevelopment projects, TIF, revolving loan funds, one stop permit shopping, below market rate bonds, enterprise zones, trade missions abroad, etc. [see table 13.2, page 169] [see also Table 13.3, p.170] • with the federal withdrawal, the local setting is more competitive, fragmented • emphasis on entrepreneurial, market based strategies [167] • a shift from wealth creation rather than subsidize locational decisions or employment strategies. • Greater tolerance for risk: public capital used for its investment potential. A view of economic development projects as a "portfolio" (some are winners, some are losers). • Shift to entrepreneurial interest in generating new businesses, not just retaining old ones.

  10. More Trends • More specialized, custom-tailored deals • Use of linkages • With the creation of all these new specialized (dedicated) funding tracks (e.g., TIFs, enterprise zones, etc.) the result is: funding stays within economic development, rather than getting put into general revenues. [171] • A shift from social criteria to market feasibility [173] • The reemergence of downtown as a locus of development • Greater use of non-profits

  11. Reese, Laura A., and Raymond A. Rosenfeld "Yes, But . . . : Questioning the Conventional Wisdom About Economic Development." Economic Development Quarterly , Vol. 15, No. 4, November 2001, pp. 299-312 • Gloucester • Cornwall • Economic development policy making is largely about economics and politics, • local government structure matters in determining policy processes and resultant policies, • fiscal and economic stress force cities to approve costly incentives for private businesses, • the composition of local governing regimes largely determines policies, • cities with similar governing regimes will have similar approaches to economic development, • businesses are a critical part of most local economic development regimes, • businesses will always push for incentives to lower their costs of production, • local economic development policies and processes will vary depending on the extent of business and/or citizen input into the decision-making process, and • cities employing a broad array of economic development techniques or most incentives allowed by state law are “shooting at everything that flies” and lack rational focus in their economic development efforts. • Cadillac • Oakville • Allen Park • Romulus • Coshocton • Fairborn • Kettering

  12. Reese, Laura A., and Raymond A. Rosenfeld "Yes, But . . . : Questioning the Conventional Wisdom About Economic Development." Economic Development Quarterly , Vol. 15, No. 4, November 2001, pp. 299-312 • Gloucester • Cornwall • Cadillac • Oakville • Allen Park • Romulus • Coshocton • Fairborn • Kettering

  13. Reese, Laura A., and Raymond A. Rosenfeld "Yes, But . . . : Questioning the Conventional Wisdom About Economic Development." Economic Development Quarterly , Vol. 15, No. 4, November 2001, pp. 299-312 • Gloucester • Cornwall • Cadillac • Oakville • Allen Park • Romulus • Coshocton • Fairborn • Kettering

  14. Reese, Laura A., and Raymond A. Rosenfeld "Yes, But . . . : Questioning the Conventional Wisdom About Economic Development." Economic Development Quarterly , Vol. 15, No. 4, November 2001, pp. 299-312 • Gloucester • Cornwall • Cadillac • Oakville • Allen Park • Romulus • Coshocton • Fairborn • Kettering

  15. Reese, Laura A., and Raymond A. Rosenfeld "Yes, But . . . : Questioning the Conventional Wisdom About Economic Development." Economic Development Quarterly , Vol. 15, No. 4, November 2001, pp. 299-312 • Gloucester • Cornwall • Cadillac • Oakville • Allen Park • Romulus • Coshocton • Fairborn • Kettering

  16. “Assessing Readiness for Economic Development Strategic Planning: A Community Case Study” Christine M. Reed; B. J. Reed; Jeffrey S. Luke JAPA 1987 Beatrice, Nebraska

More Related