PLANNING LOCAL ECONOMIC DEVELOPMENT



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FOURTH EDITION PLANNING LOCAL ECONOMIC DEVELOPMENT THEORY AND PRACTICE EDWARD J. BLAKELY NANCEY GREEN LEIGH University of Sydney Georgia Institute of Technology B 366385 SAGE Los Angeles London New Delhi Singapore Washington DC

Contents Preface Overview xi xiii Chapter 1. The Enduring Argument for Local Economic Development Planning 1 Local Economic Development Planning in the Face of Globalization 1 The Influence of Outsourcing and Insourcing 4 People and Places Left Out of the New Economy 10 The Future of Local Economic Development Planning 25 References and Suggested Readings 27 Chapter 2. The Influence of National and State Policies on Local Economic Development 31 Three Approaches to National Economic Policy 32 Monetary and Tax Policy 35 Trade Policy 36 Welfare to Workfare Policy 38 Health-Care Policy 39 Employment Policy 39 National Policy Targeting Local Economic Development 40 Coordination of Local and National Development Efforts 55 State Economic Development Approaches 56 Challenges and Opportunities Inherent in Economic Development Policy Making 62

Conclusion 65 Appendix 67 Notes 68 References and Suggested Readings 68 Chapter 3. Concepts and Theory of Local Economic Development 73 Defining Local Economic Development 73 Theories of Growth and Development 76 Translating Theory Into Practice j 89 Theories, Models, and Fads in Local Economic Development Planning 92 The Continued Evolution of Economic Development Theory Into Local Practice 94 Conclusion 98 Notes 98 References and Suggested Readings 99 Chapter 4. The Local Economic Development Profession and Professionals 101 The Role of the Economic Development Practitioner 105 The Community 106 The Organization 107 The Task Functions 108 The Clients 109 The Professional Roles 110 Economic Development Careers 111 Summary and Conclusion 112 References and Suggested Readings 112 Chapter 5. The Local Economic Development Planning Process 115 Preliminary Tasks of Local Economic Development Planning 116 The Six Phases of Planning 118 Managing Planning Resources in the Community 120 Selecting a Local Economic Development Role 123 Typology of Planning Approaches 126 Features of Local Economic Development Planning 132 Conclusion 135 Putting It All Together: Creating a Local Economic Development Strategy (Part I) 136 References and Suggested Readings 139

Chapter 6. Introduction to Analytical Methods for Local Economic Development Planning 141 Information and Analytical Requirements for Local Economic Development Planning 141 Understanding an Economy's Strengths and Weaknesses 143 The Economic Profile 145 Building on Comparisons 155 Gathering Available Descriptive Data 157 Examining Analytical Techniques ^ 164 Principles of Economic Projections 183 Conclusion 200 Putting It All Together: Creating a Local Economic Development Strategy (Part II) 200 Note 208 References and Suggested Readings 208 Chapter 7. Local Economic Development Strategy 211 The Goals of Local Economic Development 215 Prerequisites for Successful Strategy Formulation 216 Selecting Strategic Options 217 Economic Development Plans Within the Context of Comprehensive Plans 220 Common Traps in Strategy Formulation 221 Assembling the Elements of a Strategy 223 Projects From Strategies 225 Plan Financing and Implementation 230 Conclusion 232 References and Suggested Readings 233 Chapter 8. Locality Development 235 Landbanking and Community Land Trusts 237 Physical Infrastructure Development on Industrial and Commercial Land 240 Speculative Buildings 241 Zoning Regulations 242 Business Improvement Districts 243 Regulatory Improvement Through Simplification 245 Townscaping 245 Shopsteading 247 Housing and Neighborhood Improvement 248 Household Services 249

Community Services 249 Conclusion 262 References and Suggested Readings 263 Chapter 9. Business Development 265 Creating a Good Business Climate 267 Entrepreneur Development and Economic Gardening 269 One-Stop Business Assistance Centers 272 Start-Up and Venture Financing Companies and Development Banks x 273 Small Business Development Centers 276 Micro-Enterprise 277 Women's Enterprises 278 Promotion and Tourism Programs 278 Research and Development 279 Enterprise Zones 281 The Use of Financial Incentives for Business Development 282 Conclusion 283 Notes 295 References and Suggested Readings 295 Chapter 10. Human Resource Development 297 Workforce Development 297 Realities of an Undertrained Workforce 298 Public Role in Workforce Development 301 Goals of Human Resource Programs 305 Matching Human Resource Programs and Economic Development Objectives 306 Education as the Foundation of Human Resource Development 313 Implementing a Human Resource Development Strategy 315 Conclusion 316 References and Suggested Readings. 327 Chapter 11. Community Economic Development 329 Community Development Corporations 332 Community Cooperatives 337 Local Enterprise Agencies 339 Employee/Worker Ownership 339 Targeting and Marketing Neighborhood/Community Assets 341 Conclusion 345 References and Suggested Readings 355

Chapter 12. Building the Implementation Plan 357 Public-Private Partnerships 357 Marketing Community 358 Project Financing 361 Assessing Project Viability 362 Detailed Feasibility Studies 364 Developing Cash Flow Analysis 374 Case Study Pro Forma 376 Project Sustainability j 383 Organizational Design " 389 Monitoring and Evaluation 391 Conclusion 394 Notes 394 References and Suggested Readings 394 Chapter 13. Institutional Approaches to Local Economic Development 397 Organizational Requirements for Local Development 398 Public-Private Partnerships 401 The Economic Development Specialist 403 Institutional Approaches to Local Economic Development 404 A Typology of Development Organizations 405 Conclusion 408 References and Suggested Readings 409 Chapter 14. Local Economic Development Planning's Response to the Flatter and Climate-Challenged World 411 Finding Solutions Through Technology and Innovation 412 The Technology Development Process 414 Fostering the High-Tech Base 416 Conclusion: The Future of Local Economic Development Planning 422 References and Suggested Readings 430 Index 431 About the Authors 445