april 19, 2012 rural economic development & employment
TRANSCRIPT
April 19, 2012
Rural Economic Development & Employment
My Talk TodayThanks to Nancy Arnold & the Team at the University of Montana
• Let’s Start with a Rural Story• Understanding Rural Economic Development
Outcomes• The Role of Human Talent in Development• Value of Economic Development• Components of Economic Development• An Economic Development History Level• Keys to Success
A Story from Rural Kansas
A SMALLTOWN
SUCCESSSTORY
Atwood &Rawlins County, Kansas
Atwood & Rawlins CountyKansas – Success Story
Very Rural – Very IsolatedNorthwest Kansas – Wheat Country
Too Small to SucceedChronic & Severe Depopulation
Historical Population Trend Line for Rawlins County, Kansas
1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
1,623
6,756
5,241
6,380
6,799
7,362
6,618
5,728
5,279
4,3934,105
3,404
2,966 2,875 2,846 2,765 2,690 2,601 2,557 2,536 2,466 2,425 2,519
Nonfarm Proprietors’ Income & Employment (1960-2008)
Rawlins County, Kansas
Net MigrationRawlins County, Kansas
Source: Internal Revenue Service, Statistics of Income, Migration Data
USD 105 School EnrollmentRawlins County, Kansas
Source: Kansas Department of Education & Kansas USD 105, 2010
Atwood, Kansas Wrap Up
Keys to Success
Community Reinvestment & BuildingSmart People Attraction Strategy
Entrepreneur-Focused Economic DevelopmentCommunity Philanthropy
KFB Report – Search for Solutions, The Future of Rural Kansas
• The Global Challenge
• Understanding Rural Development Outcomes
• Role of Human Talent
• Great Recession/Reset
• Value of Development
• Components of Development
Global Competition
In today’s global environment both individuals and communities must have economic relevance rooted in genuine competitive advantages.
At Least Four Rural Americas
Remote RuralGreat Plains
Eastern Washington
High AmenityAspen, CO
Finger Lakes, NY
Urban AdjacentOne-Third of Rural
Pottawattamie County, IA
Micropolitan Trade CentersKearney, NE
Tyler, TX
Desired Development OutcomesBroadly HeldCommunity
WealthDevelopment efforts that are able to nurture and grow communities that afford wealth formation or assets that provide personal and community choice.
EconomicOpportunityFor Careers
Development investments should foster and economy that creates opportunities for meaningful and living wage careers for all residents of a community.
Human Talent is the Key
Human Talent Based Development
HumanTalent
Competiveness
CivicEs
Social Es
Innovation
BusinessEs
Diversity & Resilience
Prosperity
Creativity
Great Recession
Most significant economic event in our life times!
A new economic and social world will emerge from this recession.
Great ResetThere is new space in our economy and society for creativity and innovation that can lead to a new round of economic and social progress and prosperity.
There is strong evidence from the Long Depression of the 1870s and the Great Depression of the 1930s that this is and can be the case with the Great Recession.
This is called the Great Reset!
The Reset ProcessCrisis
Unraveling
Opportunity Space
New Innovation
New Ventures
Prosperity
Components of Development
Human Development…The foundation of development begins with a focus on people and their development. Fostering human talent through education, personal support growth and workforce development can enable a modern competitive and prosperous economy.
Community Development…Next comes community development and investments into infrastructure, housing and other amenities like parks and recreational opportunities. Community development creates positive climate for both people and ventures.
Economic Development…Sustainable economic development is only possible with related investments in human talent and the community. With these in place a community can grow its economy.
Rural Iowa…
Believe it or not this old home is the center of remarkable development in rural Southwestern Iowa.
• Development Tipping Points
• Starting with WWII
• Employment Shifts
• Natural Resources
• Business Attraction
• Entrepreneurs
Development Tipping Points
Local Education
Local Health Care
Local Basic Shopping
Leadership &Institutions
Peers
Rural communities that are experiencing challenges often have high rates of depopulation, poverty and/or unemployment that can impact their ability to sustain local access to key attributes essential for development. Once these thresholds of decline are reached a community can devolve rapidly further undermining its internal capacity for renewal and development.
World War II – A New Start
IndustrializationBefore World War II the U.S. was already a major industrial nation. But the war took the U.S. and its economy to an unprecedented level of industrialization.
How We MakeA Living
During this period Americans went from working for themselves and small employers to working for large corporations and governments.
Industrial LocationAmerican industry also began to migrate from core cities to more rural areas during the war and then accelerated following the war.
Rural to UrbanMigration
Despite the relocation of manufacturing to rural America, the overwhelming migration was from rural to urban, swelling the population of cities at the cost of rural communities.
Employment Shifts – 3 Waves
Pre-World War IISelf-Employment – Smaller Local Employers
World War II into the 1990sLarge Corporations, Government & Non-Profits
1990s through TodaySwelling Self-Employment & Smaller Ventures
Rural America’s 3 Economies
Natural ResourcesAg – Mining – Energy – Timber – Fish – Waste - Tourism
Business AttractionBranch Plants – Logistics – Call Centers - Corridors
EntrepreneursNecessity - Opportunity
The Entrepreneurial Pipeline
Local Responsibility!
Unlike almost any other mature economy in the world, the United States places the primary responsibility for development in the hands of local communities whether that is tiny Mullen, Nebraska with less than 500 residents or the Los Angeles basin with millions of residents.
Key Opportunities & Challenges
OpportunitiesCore Industries
Regional EconomyNew Residents
Reset OpportunitiesMarginalized Human Talent
Asset based or opportunity focused development is recommended and requires a community taking the time to truly understand their genuine opportunities for development.
ChallengesThe Past
Bad or Weak LeadershipConservatism
Lack of Outside SupportChronic Decline
Identifying, empowering and growing local leadership that can help their community understand and embrace needed change is the keystone to successful and sustained trend line changing development.
Key Leadership Attributes• Visionary Leadership• Consistent• Empowering• Leadership Transition• Leadership Development• Effective OrganizationsCommunities with effective leadership are also communities that can raise new capital to financially support desired and needed investment into both community betterment projects and economic development.
A Closing Thought
Jim Jenkins
Callaway, Nebraska
Beth Stube
Dickinson, North Dakota
Wrap Up
Questions & Discussion
Thank you for your time, interest & consideration.
Don Macke & the RURPI [email protected]
www.energizingentrepreneurs.org