Rural Development Tools: What Are They and Where Do You Use Them?

Transcription

1 Faculty Paper Series Faculty Paper June, 2000 Rural Development Tools: What Are They an Where Do You Use Them? By Dennis U. Fisher Professor an Extension Economist Juith I. Stallmann Associate Professor an Extension Economist Department of Agricultural Economics Texas A&M University College Station, Texas John F. Thigpen III Coastal Recreation an Tourism Specialist North Carolina Sea Grant Program Sociology Department Institute of Coastal an Marine Resources East Carolina State University Page 1

2 RURAL DEVELOPMENT TOOLS - WHAT ARE THEY AND WHERE DO YOU USE THEM? Dennis U. Fisher, Juith I. Stallmann an John F. Thigpen, III 1 What tools are require to be an effective rural evelopment practitioner an where are the best places to use those tools? These questions have haunte evelopment practitioners an acaemics for some time. The questions come from two sources. First, stuents an rural evelopment practitioners frequently ask about reaing materials or courses of stuy that woul give them the "right" set of skills. If the question focuses on specific tasks, suggesting alternatives can be relatively easy. The more general question is harer to answer. The secon source of the question is even more challenging. This source comes from the observation that people with a wie variety of skills are successful rural evelopers. It is not uncommon for these iniviuals to act as though their particular skills are the most important. Inustrial evelopers may claim their approach is the most important or Main Street project managers may feel that their approach is superior. This attitue is especially prevalent among practitioners who are new to the evelopment business an/or who posses a highly specialize an limite set of tools. While one cannot argue with a track recor of success, the conclusions that each set of skills is preeminent cannot be true. This incongruity can be rationalize at least in part by the notion that in a particular situation, one set of skills may be preeminent, while in another setting that set of tools will not necessarily be useful. This still leaves us with the questions, "What are the rural evelopment tools an where o you use them?" Specific programs like, "Main Street" an "Inustrial Recruiting" use ifferent but relate sets of tools an are targete towar specific areas. To be useful a classification system must accommoate evelopment programs that inclue ifferent sets of tools an that target ifferent areas. One alternative is a two imensional classification system incluing a escription of evelopment tools, an ientification of areas where those tools woul be use. Specific evelopment programs coul be escribe in this system as using selecte tools an targeting particular areas. Development practitioners normally approach their work by becoming proficient in one or more specific programs. An examination of tools an areas will clarify the relationships between the various programs, helping the practitioner select the appropriate set of tools. What Are the Essential Tools? Four categories seem to be require: analytical tools, ieas, allies an outsie resources, an group processes. Dr. Fisher is Professor an Dr. Stallmann is Associate Professor, Department of Agricultural Economics, Texas A&M University, an Economists with the Texas Agricultural Extension Service. Dr. Thigpen is Coastal Recreation an Tourism Specialist, North Carolina Sea Grant Program, Sociology Department, an Institute of Coastal an Marine Resources, East Carolina State University. Page 2

3 Analytical Tools: These are the tools that are use to unerstan the local economy, culture, an political structure. They come from several isciplines--economics, political science, planning, business, an sociology. These tools are necessary to etermine how a region functions. This knowlege is essential for etermining what is wrong, for choosing the appropriate projects to correct the situation, an for taking avantage of opportunities. An unerstaning of the situation is neee before ieas or resources are examine, otherwise the best package solution, rather than the most important problem, may rive the evelopment activity. People with training in analytical skills are foun preominantly in colleges an universities an in consulting firms. Acaemics representing a variety of isciplines ten to have knowlege of a wier range of analytical tools than o consultants but may not be available when it is convenient for the client an typically eliver results more slowly. Consultants ten to cost more, be focuse on a narrower range of tools that clients are willing to buy, an eliver in a more timely fashion. Ieas: Nothing stimulates community leaers to try something more than seeing what a similar community has successfully one. Information about success stories can be foun among practitioners an to a limite extent in publishe materials. Practitioners who have implemente a particular option have ae creibility. Acaemics are not normally goo sources for ieas for two reasons. Researchers are focuse on evaluating a limite set of options so their experience is selom as broa as practitioners. Secon, most acaemics have not been irectly involve in implementing ieas an thus lack the creibility of a seasone practitioner. Fining information an making it available in a usable form is a continuing challenge for several reasons. First local leaers view iniviual communities as unique. Thus they may resist the very notion of a comparable community. Secon, iniviual practitioners may have a limite set of experiences. Thir, sorting through written materials is teious, particularly for practitioners who ten to be oers rather than researchers. Fourth, there is no obvious source to fin this material. While the Internet is becoming the obvious source for information, it is still in its infancy an requires some skill to use it to its fullest potential. Ieas nee to be explore before examining government or private resources an programs. If resources an programs are examine first, then evelopment activity may be riven by the best package resources an programs rather than by the most important problems an the best ieas for aressing those problems. Outsie resources: This category inclues preominantly knowlege of government programs an agencies. It woul also inclue public/private initiatives an private programs although there are fewer of these. The search for resources logically follows the choice of the problem an examination of solutions. People skillful in this area ten to be government officials an practitioners who have evelope a variety of program proposals. The number an complexity of programs in any one agency often results in government officials unerstaning best those programs they aminister. The State Rural Development Councils are esigne in part to sprea the knowlege of programs between agencies. Acaemic types are selom a useful source for this information. Pursuing outsie resources before oing the analytical work an before exploring ieas is most angerous. The result can be to focus the entire evelopment effort away from the problems an Page 3

4 opportunities facing your local area an towar obtaining government funs. The result may be an approach that oes not fit local conitions or that istracts leaers from the community s highest priorities. Community leaers have great incentives to take this path. It is natural to look for that elusive "silver bullet." Because what is being one currently is not working satisfactorily, there must be an alternative. What outsie programs or resources will help? This natural posture is encourage by government officials whose measure of success is implementing their particular programs. These two forces push community leaers towar pursuing programs that may not match community priorities. Group Processes: Successful programs require skills for ealing with groups. This inclues functions like ealing with local politics, bringing iverse groups to consensus, enfranchising iniviuals not currently part of the process, generating creative ieas, an putting eals together. Most evelopment activities involve some public choices an therefore requires skill in group processes. Perfectly goo evelopment projects may be iscare because effective group processes were not pursue. Some skills in this area are essential for someone to be an effective evelopment practitioner. Where oes one obtain group process skills? Some training is available from acaemic institutions. It is also available through non-profit organizations such as Texas Rural Leaership Program an from private consultants. The quality of this training varies wiely across sources. There seems to be no easy answer to fining the best sources. These skills are essential to help the practitioner survive local politics while pursuing evelopment goals. Community leaers planning for community evelopment shoul pursue the first three areas of tools in the orer they have been presente -- analytical tools first, then ieas an finally outsie resources. This fourth area, group process skills, shoul be use as one pursues the other three. This will help leaers focus on the most important problems an avoi having evelopment activities riven by the most attractive ieas or by the best package programs. If community priorities have been establishe an are base on an unerstaning of the community, then the orer of approach is less critical. The salient concept is to make sure the community s highest priorities are being aresse. The evelopment tools are liste on figure 1. Figure 1. Development Tools Development Areas Development Tools Analytical Ieas Resources Group Processes Where Are the Tools Use? Page 4

5 While the tools fall into four categories, they are use to eal with iverse issues. These issues can be groupe several ways. A three category system is suggeste here -- business issues, people an family issues, an public policy an management issues. The first two are clientele groups an the thir area eals with a variety of public policies an issues. Business : The nees of business owners, an managers can be groupe in the following areas: Finance. Finance inclues ebt an equity, an short an long term capital. Equity finance markets are not available in rural areas. Increasingly local businesses must eal with non-local banks or financial institution that are too large or too small. Unlike urban businesses, rural businesses face few financing alternatives. Training an technical assistance. Help may be neee with business techniques an proceures in the areas of planning, management, finance, an marketing. The changing rural economy requires new approaches to eal with international markets, the new information highway, an non-local banks. The institutions proviing training an technical assistance to eal with these changes are often not in rural areas. Market expansion an iversification. Rural businesses have few market expansion alternatives. The alternatives available are often foun in areas new to the business. Businesses may nee help exploring market alternatives such as value ae processing, government procurement, niche markets an international business. Government manates an taxes. Manates an taxes may have a etrimental impact on both new an existing businesses. Government provisions may become impeiments to businesses when that was not the original intent. Making the business environment frienly is always an important an ifficult problem. A number of specific programs; such as inustrial recruiting, tax abatement, business incubators, an entrepreneurship training; have been initiate to eal with one or more of these issue areas. They will be iscusse in the section examining the relationship between selecte programs an the evelopment tools use an areas targete. Is rural ifferent? One might stop at this point, if this paper were about economic evelopment in urban areas. To be successful, however, rural economic evelopers must take a broaer view. Rural areas are ifferent, so a ifferent approach is require. The leaership pool is normally fairly shallow. This is not to say that there are no goo leaers in rural areas, just not enough of them to aequately share the loa. At any one time a metropolitan area may have people working on all the issue areas an using all the tools. Someone intereste in economic evelopment may be able to specialize in inustrial recruiting even focusing on a specific type of business. A rural area may require work on a number of other issues before recruiting becomes a viable option. Specialization is often a luxury rural areas o not allow. The rural eveloper must be willing to see that tools are use an issues aresse that are outsie of his or her interests or abilities. Networking an flexibility are ingreients necessary for long Page 5

6 run success. Because rural areas are ifferent we will outline the complementary areas that nee attention. People an Family : A healthy, well eucate, prouctive work force is essential for evelopment. Of course ifferent businesses an jobs require iffering skill levels. For example, a community intereste in a foo processing plant woul require a ifferent eucational level than a community intereste in a software esign company. Examples of people an family issues inclue: Eucation. This area inclues the quality of schooling, financing eucation, elivering services to remote areas, the curriculum mix, ault eucation, job training, literacy, an leaership evelopment. Health care. This area inclues financing health services, elivery of services an the mix of services available. Transition policies. Rural economies are going through substantial change, some increasing while others are eclining. Either irection means changes in employment. People will be moving from one location to another an changing jobs. Families often nee help to make these transitions. Public Policy an Management : Government policies, laws, an regulations, an even the very form of government entities, have a major impact on evelopment. While government expenitures may create some evelopment, the larger impact of government on evelopment is through the policies it sets. Government policy may create an environment which encourages evelopment or it may create an environment which is hostile to evelopment. Local government institutions: These institutions set the environment (efine the rules of the game) within which local government functions. of concern inclue: powers of local government, restructuring local government, public finance, coorination of services between governments, government manates, an one-size-fits-all programs. Delivery of services: Availability of infrastructure an services affects both quality of life an the ability of the community to increase jobs an income. Although the local government may not irectly provie all of these services, it is instrumental in assuring that citizens an businesses have access to: water an sewer, soli an hazarous wastes isposal, telecommunications, electricity an gas, all moes of transportation, eucation, an public health. Natural resources an environmental protection. Governments exercise more or less control over the use of natural resources an protection of the environment. Policies in this area balance the conservation an exploitation of natural resources, the protection an use of the environment, an human an willife habitat. This is not an easy task. Page 6

7 Figure 2 isplays the evelopment areas across the top an the evelopment tools own the left sie. We are now reay to place specific evelopment programs into this classification matrix. Figure 2. Development Tools an Areas Development Areas Development Tools Analytical Ieas Resources Group Processes Business People an Family Public Policy an Management Special Programs Use Selecte Tools an Target Specific Areas Practitioners normally think of rural evelopment in terms of specific programs or approaches. Examples coul inclue the Main Street Program, inustrial recruiting, tourism evelopment, retention an expansion, business incubators, enterprise zones, literacy training, employment services, inustrial revenue bons, municipal waste isposal an leaership programs. Each of these special packages has been esigne to aress a specific issue or subset of issues liste above an inclues a unique combination from the four categories of tools liste above. Therefore special programs can be thought of as using a select set of tools an targeting specific areas. We now turn our attention to particular programs. Examples inclue retention an expansion, inustrial recruiting, Main Street, leaership, strategic planning, literacy training, on-the-job-training, regional lanfills, water an sewer systems, an environmental protection. These are inclue in the list because they target ifferent issues an use ifferent tools. Placing several of the programs on the gri will illustrate this point. Strategic planning may be use across all issue areas, although it is often use to aress one area at a time, an inclues primarily group process tools. To a lesser extent, strategic planning inclues some analytical tools. As one moves from strategic planning to operational planning, ieas an resources take a more prominent role. Page 7

8 Figure 3. Development Tools, Areas an Programs: Strategic Planning Development Areas Development Tools Business People an Family Public Policy an Management Analytical minor minor minor Ieas Resources Group Processes Major Major Major Inustrial recruiting falls into the area of business issues an calls for the use of the full range of tools. Analytical tools are use to unerstan the local economy. Ieas show how similar communities have succeee or faile. Resources may be foun to help the recruiting an group processes may be use for the community to etermine which types of firms it wishes to consier. To a lesser egree inustrial recruiting may inclue public issues, such as the use of public resources, an may inclue political group processes. Figure 4. Development Tools, Areas an Programs: Inustrial Recruiting Development Areas Development Tools Analytical Ieas Business Major Major People an Family Public Policy an Management Resources Major minor Group Processes Major minor Conclusions an Implications What is require to be a successful rural eveloper? A cursory examination of the four types of tools an the three areas where those tools are use, leas to several conclusions. No one institution or organization teaches all these tools or their applications. Page 8

9 No one iniviual will likely possess all the tools or be proficient working in all areas. The success of any particular tool or set of tools is epenent upon the particular situation an/or the use of complementary tools. For example aressing business issues through inustrial recruiting may not be successful if the area is losing its hospital. Alternatively a soun approach to evelopment may be rejecte by a broa cross section of the community because effective group processes were not use. This may occur even though careful analytical work foun the option to be far superior to the next best alternative. The value of any one of these tools is enhance by the use of other tools. They are complementary rather than competitive. Gaining access to the tools an covering the areas will require effective networking...an most likely, working outsie of your comfort zone. Page 9