Economic Development Week is May 8-12. The International Economic Development Council (IEDC) designates this week to recognize the work of economic development organizations and professionals in their communities.
This brings up questions. What is economic development and how does it differ from community development? Definitions vary and build upon one another. IEDC describes economic development as the intentional practice of improving a community’s economic well-being and quality of life. The Fort Collins Area Chamber in Colorado explains economic development as the creation of new wealth resulting in many community benefits; in contrast to community development being the process for making a community a better place to live and work. A founder of the Next Move Group further distinguishes these interdependent and important pursuits, pointing out economic development is generally private sector led with public assistance; whereas community development is typically public sector led with private sector assistance. Economic and community development are long-term processes and investments. In 2019, I had the privilege of representing Mandan and Morton County in an American Communities Project briefing and panel discussion in Washington, D.C. about diverse, yet common opportunities and challenges in rural communities. To emphasize the importance of injecting new wealth into communities and its multiplier effect, a speaker quipped, “We can only walk each other’s dogs and paint each other’s nails for so long.” Economic development theory indicates if an area has a strong primary sector — businesses that create new wealth by adding value to products and services — then retail and secondary services will follow. In my hometown of Mandan, N.D., economic development theory didn’t live up to its promise. Mandan’s sister is the capital city of Bismarck, located just across the Missouri River. Despite Mandan having strong primary sector employers like Cloverdale Foods, a Marathon Petroleum Refinery, and National Information Solutions Cooperative, the little sister city’s retail and services were lacking. Resident expenditures were leaking — more like flowing — across the river, and elsewhere. Manufacturing, processing and tech businesses are important to economic strength of a region. Retail and services matter to city officials and community members for additional reasons:
Mandan paid special attention to its retail and service sectors to fill market gaps. By communicating needs and wants, and pursuing them, Mandan attracted a general merchandise store, vital services such as assisted living and orthodontic care, plus several restaurants, unique shops and recreational businesses. Revenue from the city’s 1% local sales tax reached a record $3.2 million in 2022, up 40% percent over the decade. The city uses 65% to offset property taxes, 19% for economic development, and 16% for infrastructure improvements. Economic and community development matter. Please join in recognizing and thanking the people who make your community a better place to live, work, do business, and play. For more thoughts, stories and updates about community betterment and small business development, please follow future blogs at www.communitymattersnd.com, or on social media: www.facebook.com/CommunityMattersND and www.linkedin.com/company/community-matters-llc-nd. #EconDevWeek Leave a Reply. |
About EllenEllen Huber is a country girl passionate about nurturing communities. She gets things done and welcomes opportunities to assist enthusiastic, committed community and business leaders in reaching their goals. Archives
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5/8/2023
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