Economic Development

The Basic Idea

Economic Development is one of the three central components of Rural Development, the other two being Business development and community development. When viewed as an approach to community development, it has much to recommend it:

• It cerates a hospitable climate for the development or expansion of businesses, which in turn create jobs.
• It often requires a development of infrastructure which results in the creation of jobs while that is being created.
• It often requires the empowerment of people as part of he process which boosts the human capacity of the community in many other areas.

There are many approaches to Economic development at the local level. These are outlined in the Economic Development section of this site.

Off-Line Resources

• (no author)"Understanding Your Community's Economy" Community Development SeriesManhattan, Kansas State University, Cooperative Extension Service, (p.1-4). Reprinted in Ferrazzi, Gabe. Course Reader, Rural Community Development, Brandon University, 2001.
  This article outlines the "rain barrel " aspect of local economic development, which focuses on plugging leaks of money out of , and increasing the inflow of money into the local economy. It lists two ways to increase the inflow and seven to stop leaks in the outflow. It describes economic base theory and import substitution. It draws attention to the fact that the dynamic factor must also be worked in to one's consideration of economic development by considering the "turnover" or "multiplication" effect of the "gross community product". A "balanced portfolio" effort will consider the three aspects of "earn it", "capture it", and "make it".

• Darling, David. "Ideas You Can Use: ". Creating Economic Opportunities, no.46. Fall 1999, (p.1-5).Reprinted in Ferrazzi, Gabe. Course Reader, Rural Community Development, Brandon University, 2001.
  This article is a spin-off article from the author's being alerted to the book which served as an outline in the Economic Development segment of this web site, where the issue of metaphors for economic development are raised. He reiterates the questions from the text, "Economic development - for whom? for what?".

  This article also has an excellent tool he calls a "Strength Index" map in which counties in as state are rated for their relative scale.

• Akpadock, Frank "The Changing Semantics of a Community Economic Development Strategy: Growth Pole Vs. Industrial Targeting Concepts". Journal of the Community Development Society. Vol 24. No.1,1993.(P103-124).
  Of the five approaches he lists, this is the economic one:
  1. ethnographic
  2. qualitative
  3. sociological
  4. ecological
  5. economical

  This article gives a good historical sketch of some of he economic development dynamics. It takes the development process it describes up to the stage of "the marketing plan". What it describes is the shift from the more general "growth pole" policies of the 1960's and 1970's to the more intentional process of "industrial targeting" in the 1980's and 90's. Industrial targeting involves starting from the community and assessing its assets and capabilities , then going after industry which would be an excellent match for it. It gives four examples of communities which did just that.

• Shaffer, Ron. "Building Economically Viable Communities: A role for Community Developers. Journal of the Community Development Society. Vol.21, NO.2. 1990p74-87).
  This is an introduction to Supply, Demand, and Institutional forces to community development workers. It notes that the third one is often critical to RCD workers and for the communities they work in, but that they also need to know the economic development material alluded to in the first two items, in order to broker, empower, and so on in their work. This is an excellent article for people in institutional roles in a community , such as clergy and educators.

• Gunn, Hazel Dayton."Local Government's Role in Retaining Capital for Community Economic Development". available also at http://www.cardi.cornel.edu/publications/cdr/cdr3.3.html
  Two key economic development strategies are:
  1. Retaining locally produced capital
  2. Recycling money in the local economy.

  This article deals with local government's role in increasing these activities by:

  • plugging holes by adding value to materials
  • creating alternate institutions to be centers for local capital
  Th author lists six institutions and a few public ones which might serve the purpose. This is a good easy-access article for community organizations and leaders.

• Lehr, John C. and Julie Kentner Hildalgo. "The Tourist Picture: Murals and Small Town Tourism Animate Boissevain, Manitoba< in Western Canada". Small Town, March-April, 1998.(p12-21)Reprinted in Ferrazzi, Gabe. Course Reader, Rural Community Development, Brandon University, 2001.
  This article outlines the Boissevain Mb. imitation of the Chemainus town project to cover the outside walls of large buildings with murals. It notes that compared to other provinces on a pro-rated basis, Manitoba's Gross Provincial Product from the tourism sector is very high Boissevain has tried to capitalize upon that fact to boost its local economy.

• Fairbairn, Brett."Social Movements and Co-operatives: Implications for History and Development. (p.24-34)Reprinted in Ferrazzi, Gabe. Course Reader, Rural Community Development, Brandon University, 2001.
  Brett Fairbairn is a prominent historian of the co-op movement. He notes in this article, "which history we choose to tell does make all the difference"(____p.32). This consideration of Co-ops and their history draws out the point that co-ops arise out of social movements rather than just out of the need for that particular structure. Failure to address that fact,, he says, makes for a serious mis-reading of the history of co-ops. The philosophical underpinnings of co-ops is critical to their survival.

• Ferrazzi, Gabe. "Ecoomic Development Strategies" . Rural Community Development Introductory Modules,(WebCT class notes). Brandon University, Fall, 2001.Module #6-a .
  Gabe's notes here deal with:
  • Exoginous business and the pros and cons of smokestack chasing which can end up as so much dust in one's hand
  • Endogenous business and the five major aspects of this type of endeavor:
    1.       creation of a positive business climate
    2.       Business incubators
    3.       Business Improvement areas
    4.       Mentoring Programs
    5.       Regional Development Strategies
  • Community Economic Development Strategies or bottom up community based initiatives
  • New Rural Economy research consortium initiative

• Ferrazzi, Gabe. "Community Economic Development" . Rural Community Development Introductory Modules,(WebCT class notes). Brandon University, Fall, 2001.Module # 6-b .
  Gabe provides details on the Community economic Development (bottom up) initiatives and their most common configurations:
  • Community Economic Development features in general using the Simon Fraser CED Group 11 point listing as an example
  • The Informal Economy with details of barter and local currency systems and their relation to the tax structure
  • Micro enterprises with the note that the shift has been from employing micros to self-run micros in this tougher economy. He details the micro loan systems which have emerged of late around the world referring to both the Calmeadon foundation and Grameen Bank:
    1.       Micro enterprise programs
    2.       Development Banks
    3.       mainstream Financial Institutions
  • Community Development Corporations as government sponsored and funded bridge organizations between bottom up and top down initiatives focusing on promotion and capacity building for the most part.

• Ferrazzi, Gabe. "Co-operatives" . Rural Community Development Introductory Modules,(WebCT class notes). Brandon University, Fall, 2001.Module # 6-c .
  Gabe's notes walk through the common features of both traditional and new generation co-ops, outlining both the history and the worldwide spread of the movement.

• Ferrazzi, Gabe. "The New Rural Economy" . Rural Community Development Introductory Modules,(WebCT class notes). Brandon University, Fall, 2001.Module # 6-d .
  Gabe's notes give a bit more detail on the 5-year research initiative on rural economy which has emerged as a dominant project of he Agricultural and Rural Restructuring Group.

On-line Resources

• Local Economic Development Link