Creating Economic Opportunities Through Partnerships

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Creating Economic Opportunities Through
Partnerships

• PRESENTED BY DAVID L. DARLING
• CD Economist at K-State
• The Kansas Partnership Conference
• MANHATTAN, KANSAS
• September 28, 2004

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Creating Economic Opportunities Through
Partnerships

• Today we will
• Define a good community
• Present the Community Life Cycle
• Explore alternative ways to promote economic
  development
• Present the Economic Development Pyramid
• Define six forms of capital
• Define community economic development
• Present the Sustaining Progress Model

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A Good Community

• A place where individuals and families can
  easily meet their basic needs such as food,
  shelter, clothing, health care, and safety. And,
  with this security, they can focus on higher
  order needs such as building a career, educating
  children and contributing to the success of their
  church, school, and home town.

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Abraham Maslows Hierarchy of Needs
Hierarchy of Needs
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Building a Middle Class
HIGH
HIGH
Benefactor
Key Stakeholder
Contributor
Investor
Employer
Independent
Debt Free
Self Employed
Debtor
Employee
Dependent
Impoverished
Jobless
LOW
LOW
Source David L. Darling K-State Research and
Extension, February 2003
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Top Ranked Counties

• Ellis 3.17
• Miami 3.15
• Douglas 3.13
• Shawnee 3.04
• Saline 3.07
• Jackson 3.00
• Sherman 2.99
• Sedgwick 2.94
• McPherson 2.93
• Source K-State Research and Extension

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Five Alternative Approaches to Community
Growth and Development

• Let the market decide
• Let big governments rule
• Let the local elite rule
• Rely on inside or outside technical assistance
• Create a capacity building process guided by
  community citizens and assisted by outside
  educators and technical assistants.

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ECONOMIC DEVELOPMENT PYRAMID
BUILD A FIRM FOUNDATION THAT WILL SUPPORT A
SUCCESSFUL ECONOMY
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Six Forms of Capital

• A comprehensive approach to community
  economic development is well planned with
  adequate resources. These assets are grouped
  into six forms of capital.
• They are
• Human Capital
• Social Capital
• Political Capital
• Financial Capital
• Engineered Capital
• Natural Capital

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Six Forms of Capital

• Human Capital is the knowledge and skills used in
  the production process. It includes the skills of
  production workers, marketing officers, financial
  managers, and organizational leaders. It includes
  the work ethic, attitudes, and values of the work
  force.
• Social Capital is the trust and working
  relationships in a community, state and nation.
• Political Capital is the access to and influence
  over local, state and federal policies and
  resources.

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Six Forms of Capital (Contd.)

• Financial Capital comes in different forms to pay
  for tasks such as starting a business, expanding
  a business, or building a school.
• Engineered Capital is the collection of human
  engineered things not already covered as human,
  social, or financial capital. Hard-engineered
  capital includes physical infrastructure such as
  fiber optic cable and soft- engineered capital
  includes the organizational and institutional
  infra-structure as well as the governance of
  these two.
• Natural Capital is the endowments of nature.

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What Causes Communities to Prosper? David Darling
and Sreedhar Upendram, Kansas State University,
Manhattan, KS.

• Five Alternative Approaches to Community Growth
  and Development
• Let the market decide
• Let big governments rule
• Let the local elite rule
• Rely on inside or outside technical assistance
• Create a capacity building process guided by
  community citizens and assisted by outside
  educators and technical assistants.

Community Life Cycle Communities go through a
life cycle. The phases are growth, development,
stagnation, retrenchment, and revitalization.

• ED Strategies
• Retention Expansion
• Firm Creation
• Local Linkages
• Capture Dollars
• Attraction

• Resources
• The resources are divided into six forms of
  capital
• Human Capital
• Social Capital
• Political Capital
• Financial Capital
• Engineered Capital
• Natural Capital

A good community is a place where individuals and
families can easily meet their basic needs while
pursuing higher order needs.
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Community Economic Development

• Vision charged civic process
• Focuses attention on a set of key issues that
  when resolved will improve
• Short-term economic health vitality
• Medium and long-term economic health vitality
• Made possible when local assets are effectively
  used and then matched with outside resources

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Sustaining Progress Model

• P A V P R B
• where
• A stands for attitudes
• V stands for a vision
• P stands for the plan
• R stands for the resources
• B stands for benefits

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Building Healthy Communities

• Website provided by David Darling
• www.agecon.ksu.edu/ddarling