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new paradigm and Smart Growth as models for building better communities in Michigan. The second article lays out a new set of principles under the rubric of Strategic Growth to position our regions to
utilize their unique assets to best compete in the New Economy.
This approach melds contemporary economic development thinking with traditional local land use master planning and strategic
planning to produce a targeted approach for future prosperity. Strategic growth focuses on the metro area, or region as the best place
to integrate a new public/private partnership for sustainable economic growth.
In the third article I focus on the more practical aspects of this new
challenge. It identifies in general terms the elements that should be
included in local master plans and zoning ordinances to help position communities for the New Economy. It provides three sets of
options for communities and regions to follow in their efforts to prepare strategies for future prosperity.
Following that feature, are local case examples reported by Jen
Gamber and editorial opinions intended to stimulate your thinking further, and hopefully to provoke action. Michigan can ill afford to enter
the New Economy slowly, and local planners and planning commissioners have the skills and access to information to both plan for and
initiate implementation of placemaking strategies that are attractive
to New Economy entrepreneurs and knowledge workers.
means the metropolitan or regional economy, not the economy within a single (or
even two or three) jurisdictions. Every U.S.
state and metropolitan area now competes
on a global stage. While not all elements of
the economy are global, the ones that will
make the most difference in the future are.
For example, most of the jobs lost from
manufacturing in Michigan over the past
thirty years, have been lost to the service
sector. Much of the service sector is oriented to meeting local/regional needs like
personal services (haircutting, shoe repair), employee services (payroll, accounting, vending machines), and resident care
(day care, physicians and hospitals, etc.).
Sometimes, service businesses expand
their services beyond the region and add
major economic value such as specialized
health care services (e.g. Mayo Clinic or
Cleveland Clinic). While services to each
other within a region are critical to the economy of the region and support much of the
transfer of money within the region, they do
not generally attract money from outside
the region, which is usually critical to raising
incomes and prosperity within the region.
The international economic playing field
has been leveled by technology that allows
for rapid communication across previously
unfathomable distances. International
transactions that once took weeks, if not
months to execute, can now be completed
in seconds. Seemingly, infinite sources of
information are now being concentrated in
one network that is accessible to all. Widespread technology and information innovations have shifted the relevance of economic production from a local market to a
global market. Countries with low labor
costs and few regulations can manufacture
products and distribute them to international markets at a fraction of the cost when
compared to countries like the United
States. The availability of investment dollars and capital, which used to be
place-based, is now global. This globalization of the economy, due to advances in
communication and technology, has created, by analogy, an increasingly flat
world, a term coined by New York Times
columnist Thomas L. Friedman in 2005. It
has dramatically changed not only where
work can be done, but also what type of
work can be done.
Communities committed to
helping build the New
Economy are finding that
prosperity comes if the right
mix of economic
development and
placemaking strategies are
in place.
Overview of the
Mission of the Land
Policy Institute
Place Matters
The New Economy, however, thrives in
places where there are lots of talented people and new ideas are rapidly generated. In
short, place matters! It is no longer about attracting companies, but about attracting talented people, and therefore quality of life
plays an important role. Today, areas seeking economic prosperity are focused on
creating a climate known for producing new
ideas, enabling productive partnerships
and attracting talented people rather than
manufactured goods and services, which
almost any country can now do. To prosper
in the New Economy, regions must be
Table 1
COMPARISON OF THE OLD ECONOMY AND THE NEW ECONOMY
Old Economy
New Economy
Cheap place to do business was the key. Being rich in talent and ideas is the key.
Attracting companies was the key.
Attracting talented, educated people is
the key.
Industrial sector (manufacturing) focus.
Sector diversity is desired, and clustering
of related sectors is targeted.
Fossil fuel dependent manufacturing.
Communications dependent.
A high-quality physical environment was Physical and cultural amenities are key in
a luxury which stood in the way of attract- attracting knowledge workers.
ing cost-conscious businesses.
Success = fixed competitive advantage in Success = organizations and individuals
some resource or skill. The labor force
with the ability to learn and adapt.
was skills dependent.
People followed jobs.
Talented, well-educated people choose
location first, then look for a job.
Economic development was governBold partnerships with business, government-led. Large government meant good ment and nonprofit sector lead change.
services.
Ten Smart
Growth Tenets
munities, building on the strengths and assets of each to grow in the New Economy.
The strengths and assets in all communities are different, and a high-performing region successfully leverages those unique
assets instead of just trying to replicate the
strengths of one community in another.
In rural communities too far to be within
the influence of a metropolitan area, then
there will be less focus on building places to
attract new knowledge workers, and more
emphasis on improving quality of life of the
small towns in the area to retain the 24-35
year olds who already live there and to attract back a portion of those who grew up in
the area, but went away for higher education. While a small town cannot provide the
same degree of variety in shopping, entertainment and culture that a large city can, it
can still focus on placemaking that is attractive to this age cohort, and as mentioned
earlier, such Smart Growth also results in a
higher quality of life for everyone. The key
here is tolerant and progressive rural communities where rural innovation is embraced and encouraged.
But to retain and attract the best and the
brightest (in addition to the ones the community has already raised), each rural community has to build on its assetswhich are
largely natural resources in rural Michigan.
In some communities these are visual assets like natural scenery and lakes with high
amenity value, and/or rivers and forests
with many recreational opportunities (boating, fishing, hunting, skiing, snowmobiling,
etc.). In others it is the farms, forest or mineral resources that are the existing source
of wealth, and the asset most available to
build upon.
While that may mean a continuation of
traditional farming, forest management,
mining and tourism, it is also likely to mean
many new entrepreneurial opportunities
that link to the New Economyif the rural
area has places with a quality of life that is
attractive for raising families. In northern
Michigan, this also means building places
that are attractive for retirees. While retirees are on a fixed income, if they move into
Recommended Reading
Atkinson, Robert D. and Randolph H.
Court. The New Economy Index: Understanding Americas Economic Transformation. Washington, DC: Progressive Policy Institute, 1998.
Austin, John. The Vital Center: A Federal-State Compact to Renew the Great
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Ballard, Charles. Michigans Economic Future, MSU Press, East Lansing,
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http://www.regionalstewardship.org/ARS_
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