Community Cooperation or Community Collapse: The Reality of 21st Century Canada

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Building Strong Regional Foundations for
Rural-Urban Growth Presented at theBusiness
Retention and Expansion International
ConferenceRegina, Saskatchewan June 7,
2007___________
Mark Partridge Swank Professor in Rural-Urban
Policy The Ohio State University
Swank Program in Rural-Urban Policy
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Outline Why are we here?

• Rural MythsTodays rural North America is much
  more diverse than 1950.
• Government policies are based on the myth
• Other bad policies include chasing fads or good
  intentions combined with wishful thinking
• Good policy is building a broad-based foundation
  for the entire region.
• Rural-Urban interdependence
• In 1950, communities detached from their
  neighbors
• In 21st Centurycommunities are linked in a web
  of inter-relationships
• Should rural communities compete or cooperate?
• Successful cooperation builds strength
• Leverage growth in an entire regioni.e. town and
  country
• Build supporting institutions too many
  win-wins are left on the table.

Swank Program in Rural-Urban Policy
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Rural Myths Back to the FutureThe 1950s Rural
Economy

• The myth is that rural areas are solely natural
  resource based.
• This is a common media story.
• Too often, federal and state/provincial policy is
  aimed at making this imaginary place healthy
  with policies mostly aimed at supporting resource
  based sectors.
• The reality is that there are 3 rural Americas
• Amenity/recreation rich near mountains, lakes,
  oceans
• Ex In the last 40 years, the transformation of
  N. MN to an amenity driven economy is remarkable
  was mining, timber, farming.
• Less of a pattern in Canada, though increasing
  this decade
• Metro adjacent with commuting wrestling with
  sprawl, growth
• Remote Rural that is dependent on natural
  resource sectors.

Swank Program in Rural-Urban Policy
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1990-2000 Plains States Engines of Growth
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Farm HHs rely on other sources

• 89 of U.S. farm household income is from
  off-farm sources
• 68 of U.S. farm households have one or both
  spouses working off farm
• source U.S.D.A., 2006, described in the notes
  below
• 87 of Canadian farm household income is from
  off-farm sources
• Source AAFC Canada

Swank Program in Rural-Urban Policy
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Lessons!

• The 1950s Rural North America no longer exists.
• Today, rural is more dynamic and diverse
• Communities are more tightly integrated as
  regions
• Calls for a policy that recognizes regional
  interdependence
• Rural vitality is far more complex than farm
  policy.
• Note the contradiction, farm competitiveness
  requires producing more food with fewer
  workersnot the same as community prosperity!
• Farm/food policy is sub-optimal when linked to
  rural revitalization.
• Agriculture policy should focus on food supply
  and safety.
• Agricultures urban influence is under-rated.
• Agriculture is too important to be diverted to
  local econ dev.

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Measuring Success in North America

• Success is long-run population growth
• Combines good economy quality of life
• People vote with their feet
• Not subjective or elitist such as rankings in
  (say) the Economist
• Look North-South to see real patterns
• Shows the high degree of regional connectiveness
• Looking E-W across the continent is simplistic
• Great Plains/Prairies population loss
• Alberta and BC are in the fast growing Mountain
  West

Swank Program in Rural-Urban Policy
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1990/91-2006 North American Population Growth
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Basic Patterns

• Cities are engines of growth, especially in
  Canada
• North American rural development
• Critical mass threshold effects
• Growth poles or growth clusters
• Not everyone in small community/neighborhood
  commutes in their growth cluster, enough to
  stabilize their population and build critical
  mass
• This North American pattern underlies why regions
  should work together.

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Communities should band together

• Growth doesnt end at city border!
• Growth spreads out for hundreds of kms, though
  the growth effects decrease with greater
  distance
• Closer regional ties are an opportunity that
  should be taken in Canada and U.S.

Swank Program in Rural-Urban Policy
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1996-2001 Population in Manitoba and Saskatchewan
at the CCS level With 100 km rings around CAs
and CMAs
Source Statistics Canada1996 CCS Boundaries
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2001-2006 Population in Manitoba and Saskatchewan
at the CCS level With 100 km rings around CAs
and CMAs
Source Statistics Canada2006 CCS Boundaries
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Interdependence at the Rural-Urban Fringe

• Regional planning takes pressure off the fringe
• Regional transport is good, but avoid U.S. roads
  at all costs.
• Avoid sprawl and donut development that also puts
  pressure on rural areas
• Example Columbus, OH (like many U.S. cities).
• Weak cooperation and planning led to unintended
  consequences even with great roads.
• Can lead to a high-service cost development.

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Employment and IncomePre-1964 Outerbelt
ConstructionColumbus, OH
Jobs by Traffic Analysis Zone
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Employment and Income2000 Outerbelt
ConstructionColumbus, OH
Jobs by Traffic Analysis Zone
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Commuting shows range of rural-urban
interdependence

• Commuting zones extend far outside of urban
  areashow growth clusters that benefit the entire
  region.
• If someone can commute, they likely shop, utilize
  health care, participate in service
  organizations, etc.
• Such regions share common interests.
• Live work shop play in broad regions in a
  web of interdependenciesnot like the 1950s
• Common interests imply that communities should
  work together and exploit the gain in critical
  mass.

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Percent of Local Labour Force Commuting to
Winnipeg CMACCS Level Data
Source See notes to the slide
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Percent of Local Labour Force Commuting to
Brandon CACCS Level Data
Source See notes to the slide
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Moral

• Regions can link-up to attain critical mass.
• Regional growth clusters that can conduct econ
  development and provide govt services
• France recently cut sub-national govts by ¾ to
  enhance planning and regional development
  efficiencies. If a country that is so adverse to
  change can do it, so can we.
• Source, Economist, Failure at the Top. A
  Special Report on Cities. May 5, 2007, pgs 12-14.
• Need to ensure all rural/urban communities
  participate in urban led growth and that rural
  stakeholders have a voice in this process.
• This includes the exurbs to more distant rural
  communities

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How can we cooperate?

• This can be a formal consolidation of govts
• Need a consensus!
• Borders can exclude people or include people.
• Why rely on borders drawn for the needs of the
  19th century
• Other regional needs for neighbors common
  interests
• Should reflect broad regional needs
• Transport people/access to urban services and
  amenities
• Environment/Land use
• Economic development
• Education/health
• Quality of life initiatives
• Increased political clout in state/provincial
  capitals or in Ottawa or Washington.

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• Need to build regional identity.
• Despite the interdependence of communities, too
  many think as if they are an island.
• My favorite is how nearby towns compete for
  each others businessdestroying everyones tax
  base.
• Nongovernmental approaches
• Chambers of Commerce, service organizations
• Cooperatives and other community organizations
• Overlay regional govt on top of municipalities
• Regional development authorities
• Transportationcritical to build regional
  clusters
• But these regional govts need real tools.

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What is needed for success?

• Check petty jealousies at the door
• Maybe better to think of towns as neighborhoods
  rather than municipalities in a living web of
  connected regional neighborhoods. (Mayor Ayling
  of Grande Prairie, AB)
• Define region commuting sheds is a good start.
• Communities need to build trust
• Realize everyone benefits, though not always
  equally
• Build supporting infrastructure
• Soft governance and grassroots buy-in and
  cooperation.
• Hard such as roads

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More Community/Regional tools for Success

• Most states and especially provinces should
  devolve authorityA positive case is Quebec
• Greater ability to zone/plan near
  community-region boundary
• E.g., Saskatchewans towns and cities have little
  influence on their future foot print. (Say)
  Minnesota does this better
• Leads to sprawl and expensive development.

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Local Devolutioncontinued

• More tax tools, especially at the regional level
• Regional fuel/use taxes for transportation
• Sales taxes (say 1 regional levy)
• Regional approaches stop the city from keeping
  all of the gains while the rural/exurb
  communities lose.
• Currently, (say) Regina keeps all of its tax
  revenues from nearby shoppers. Regional
  approaches would disperse some of this back to
  the countryside through needed regional projects.
• Weakness of Conference Board of Canada (Globe and
  Mail) approach is that it is not win-win.

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Examples of Cooperation

• Ft. McMurray/Wood Buffalo (growing pains).
• Action Southwest centered around Swift Current,
  Saskatchewan is proactive.
• Outlook, SK is a good example of 1st Nations
  participating in a regional plan.
• 1 hour away, Saskatoon reflects an opportunity
• This is an opportunity in this larger region.
• Gander, NFLD and surrounding villages

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• NW Ohio 3 counties recently supported Van Wert
  Countys effort to land a Honda plant
• The Darby River accord brought together 10 OH
  municipalities to protect an environ. treasure.
• Some people claim the MN Arrowhead region does a
  good job of cooperatingsome truth in that.

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Summary

• Clinging to the rural myth of the 1950s is not
  helpful
• Policy should refocus, not perpetuate a myth.
• Growth in much of rural North America depends on
  linking to urban areas
• Groups of communities can band to form viable
  regions with the critical mass to be growth
  clusters and leverage their growth for a
  sustainable future.
• The status quo of going it alone will mean the
  death of far too many rural communities in the
  Great Plains/Prairies, Atlantic Canada, the Deep
  South, and Central Appalachia.
• Urban areas can benefit from more cooperation
  between urban center, suburbs, and exurban towns

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Thank you

• Presentation will be posted at The Ohio State
  University, AED Economics, Swank Program website
  
• http//aede.osu.edu/programs/Swank/
• (under presentations)
• For commuting maps for all urban areas of Canada
• Canada Rural Economy Research Lab (CRERL) Mapping
  the Rural Urban Interface Project.
  http//www.crerl.usask.ca/infra.php

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Appendix Slides
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For those who like statistics

• Rural Canada avg every 1 greater 1991 Other
  Primary Emp share implied -0.30 less population
  growth in 1990s
• Source Statistics Canada Partridge, M.D.
  R. Bollman M.R. Olfert and A. Alasia. 2005.
  Riding the Wave of Urban Growth in the
  Countryside Spread, Backwash, or Stagnation.
  University of Saskatchewan, Canada Rural Economy
  Research Lab Working Paper. Available at
  www.crerl.usask.ca. forthcoming Land Economics