06-18-07 Item 2B, EDC Plan Presentation

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As a result, the new goal for economic development, particularly in fully developed areas, should be to raise average per capita incomes through higher-wage jobs, while working to reduce poverty and expand opportunity for economically disadvantaged residents, all the while boosting the region's quality of life. This does not mean that communities should oppose growth and erect regulations limiting it; it does mean that most areas should not continue to pursue job creation for its own sake. This is not to say that the strategy should remain fixed, If, unlikely as it is, productivity growth rates slow significantly in the next decade and unemployment increases, the appropriate goals and strategies might change. But for now and the foreseeable future, economic strategy should focus on raising incomes rather than simply attracting jobs. Beliefs About Economic Development in the Old and New Economies In the old economy people believed that: In the new economy, people believe . that: 1 ---~~------,.- --~--cr----"-'----"-------~---------~----'-"-""'---"'- _.'''___.mn,,_..,,__._ i Being a cheap place to do business was the 1 Being a place rich in ideas and talent is : key. I the key. ~"""'.a.'__'__'M____'_;_"';""'M"_'__"~__"";"~;"",;~~-=--~~_"~"'"_''_'__;~''~~''_''__'''_M""M_'____''___''___'_''''' : Attracting companies was the key. i Attracting educated people is a key. i---------- ._-".. .,,--.-.---- -.... .. ._'.C' .c..c~~_~~"_,_,"".""";_;;_,,~;;.",. : A high-quality physical environment was a : luxury stood in the way of attracting cost- i conscious businesses. i Physical and cultural amenities are key in - attracting knowledge workers. - _~~~_'__'''-'~"''_~______M , ! Regions won because they held a fixed - Regions prosper if organizations and ! competitive advantage in some resource or i individuals have the ability to learn and i skill. ; adapt. ~-~--_.._-----_..._--~~-~~~.~~-_._._---~--~~._---_. i Economic development was government- : Only bold partnerships among business, led. I government, and nonprofit sector can i bring about change. A New Means: Get Better, Not Cheaper A new goal requires new means. In the old economy, places sought to get big by "getting cheap." In the New Economy, the key to success is to "get better." Policy makers used to believe that a low-cost environment was the key to success and that making investments to create a high-quality physical Strategic Plan for Economic Development Page 17 of 20 \\Metro-inet.us\ardenhills\Admin\Committees\Economic Development Commission\AH Strategic Plan - Final 5-16--07.doc