LITTLE ROCK — As the U.S. economy has grown more global and dynamic, it has become increasingly difficult for smaller towns to attract private investment.
Many Arkansas communities have learned that fact the hard way.
We can no longer rely on the promise of low wages and low operating costs. During the 1950s and ’60s, that promise of lower costs helped attract industries needing unskilled employees with a solid work ethic. Since then, a lot of the manufacturing operations we attracted from the Northeast and the Upper Midwest have made their way to Mexico, Central America, China and Southeast Asia.
I grew up hearing the expression, “a strong back and a weak mind.” Now we find ourselves needing strong minds in the knowledge-based economy of the 21st century.
The current U.S. economy rewards those communities that can attract professional, technically skilled workforces. The communities that succeed will be the ones with quality public schools and the other amenities now demanded by workers with college degrees.
When I worked at the Delta Regional Authority, we hired a nationally known development consultant from Austin, Texas, named Jon Roberts to help us develop a strategic plan for the region. Roberts believes that attracting talent is the linchpin of 21st century economic development.
“You not only need more young people, you need skilled and educated young people,” he says. “By talking about talent, we are also forced to realize that the greater the education level, the more likely that person is to be mobile. In other words, educated people are far more likely to consider where they will work. Place matters.When there is also economic opportunity associated with that place, the decision is easy to make.
“Making talent a part of every economic development strategy has become a necessity. It is on the minds ofevery business and is among the largest barriers faced by expanding companies. This will play out in communities throughout the United States and the world for years to come. Strategies for dealing with talent retention and attraction will need to address these points in creative and aggressive ways.”
Talented people demand good public schools and quality health care. These people also look for other amenities-cultural and recreational activities along with vibrant downtowns with restaurants, bookstores and the like. One Arkansas community that has taken on the challenge of attracting talented people is Harrison.
Former Congressman John Paul Hammerschmidt, who at age 88 remains a pillar of the community, initiated an effort that led to the establishment last year of what’s known as the Central Organization for the Revitalization and Enhancement of Harrison. Known around Boone County simply as CORE, the group’s mission is to “passionately engage thecommunity in revitalizing the health and heart of our cultural, historical, social and entrepreneurial enterprises.”
The first step was to create a master plan for improving the heart of Harrison. The city’s business and civic leaders realize that a healthy downtown is needed to attract talented people, including entrepreneurs. CORE has brought in several new retailers, formed the Historic Harrison Business Association, initiated a partnership with the Harrison Convention & Visitors Bureau to promote the city as the Gateway to the Buffalo National River, established a self-guided walking tour, installed historic plaques, secured agrant for 38 trees that were planted at Lake Harrison Park and conducted six entrepreneur workshops.
On Monday, CORE held a litter pickup campaign from noon until 5 p.m. The coordinator of that effort, Rob McCorkindale, said: “Litter is a problem. Our organization has made a commitment to twice a year make an impact. It is illegal to litter. It can affect our community’s potential to attract business, industry and tourism.”
Picking up litter? Establishing walking tours? Installing historic plaques? Planting trees in a park? Believe it or not, those types of things are as integral to attracting entrepreneurs as building industrial parks and securing water and sewer lines were to attracting manufacturers in the 20th century. It’s all about quality of place.
“When we think about economic development, what comes to mind is business attraction,” Roberts says. “The literature and the data and the debates all support this view. Only recently has the economic development profession begun to focus on entrepreneurshipand new business development. This focus is long overdue.
“It is becoming abundantly clear that entrepreneurship is a key element in community and regional economic growth. Unfortunately, most ofus are still a bit uncertain how to fit entrepreneurship into our economic development program.” Want to see an Arkansas community that’s doing it right? Look to Harrison. The leaders there have gotten the message that economic development in the 21st century is far different from the approach Arkansas communities took in the second half of the 20th century.
Free-lance columnist Rex Nelson is the senior vice president for government relations and public outreach at The Communications Group in Little Rock.
Editorial, Pages 19 on 10/23/2010