Economic Development

TheBasic Issue

Economic Development is one of the three major pillars of rural Community Development, along with community development and Business development

This aspect of the work is concerned with the general overall growth of a local district, region, country or trading block. It is concerned with the context within which businesses can grow and develop. It is concerned with the inter-active effect of multiple businesses and their forward and backward "linkages" to suppliers and markets. It is concerned with a host of tangible and intangible factors which go into the making of a strong and vibrant economic sector of society.

This area of work is experiencing significant action as changes in the larger structures of international trade are impacting downward on all other structures of world political, economic and social systems.

There are many ways to approach this task, depending on the circumstances. An outline of many of these is on the Ec-dev segment of this web site. That segment also has links to others who are taking each of the approaches.

Rural Development Institute Research Studies

• "Structuring Rural Economy for the 2000's" - Peter Apidaile and Richard Rounds
  This is a summary of a 1991 Conference. Some people find this sort of report of limited value as it falls somewhere between the liveliness of the original live presentation and the liveliness of a piece of literature written for a specific purpose.

  It reminds me of a story:
  Once a little farm boy, with his denim-bibbed coveralls and lace-up black runners squished together with his wriggly brothers and sisters in the back seat of their father's old Ford to see Niagara Falls. Exploding from the confines of those long sweaty miles in exuberant expectation, he found himself engulfed in the enormity and majesty of the place. After a long period of silence, he asked his dad if he could take some water from below the falls home in a jar to show his friend. His father agreed, and the jar was filled. All the way home he sat in silence with his precious jar tight-gripped between his legs, excited to show his friend.
  At last, the screen door flew open, the words tumbled out as he excitedly opened the lid. And then there was silence. No roar, no foam, no majesty. Just water.
  "Proceedings" somehow just don't cut it.

• "Stimulating Rural Economies for the 2000's: The Challenge for Rural Manufacturing and Tradable Services" - Tony Fuller, Paula Nichol, and Shirley Davie (eds).
  This study looks at the effects of the decline of manufacturing on rural areas(in Ontario especially) which goes with the decline of natural resources.

• "The Economic and Social Impacts of Public Schools on Rural Communities" - Jack Lam
  Jack looks at the economic and social impact of schools and counters the notion that they are an economic drain. He posits them as being an investment in human capital. His research model could provide a pattern for similar evaluations on other rural institutions.

• "Performance Contracts and Regional Development: New Approaches to Government-Community Relations in Newfoundland and Labrador" - Robert Greenwood. Chapter 8 in Changing Rural Institutions
  This Paper describes the Newfoundland and Labrador performance contract system which is in place in many communities. Performance contracts are designed to give more control to local communities while still providing accountability for top-down funds from upper level governments. The are an attempt to address long-standing "territorial" attitudes which are not sustainable. In effect is to keep both arena players out on the ice and out of the bleachers. Accountability is for short-term outputs rather than medium-term outcomes or long-term impacts . A global problem is of governments reneging on contracts (with little recourse) owing to:
  • changes in administration
  • fiscal restraint
  • mismanagement of money

  He feels some of this can be prevented. The system has been in effect in Scandinavia for several years.

• "Small and Medium Sized Exporting Enterprises, Rural Restructuring and Local Economic Development in Quebec" - Andre Joyal. Chapter 11 in Changing Rural Institutions
  This report is of a study of 20 businesses in 5 regions and 6 sectors of the Quebec economy. They were all established businesses, with their names changed to protect the companies. The author has a typology for grouping the characteristics sought in the study:
  • Charactersitics of Executives' Behavior (turned out to be the key factors)
  • Characteristics of Business
  • Characteristics of external business environment

  The study was to find input regarding success factors and the impact of the Free Trade Agreement on Small and Medium Sized Companies (known as "SME's") who exported products.

  He does some case studies and illustrates some of the factors of success. He also has an interesting diagram for illustrating the typologies of exporters. I thin his diagram would be clearer if he used a cube with height width and depth to illustrate the three characteristics:

  1. Development of strategies (simple to complex)
  2. Mobbility of resources (Weak to important)
  3. Committment of Management (reactive to proactive)

• "Developmental Strategies for Rural Canada: Evaluating Partnerships, Jobs, and Communities" -
  

• "Community Development Strategies on the Northern Plains" -