It's About People, Not Jobs
Michael Hicks, the George and Frances Ball Distinguished Professor of Economics and the director of the Center for Business and Economic Research at Ball State University, posted an article titled, A not-so-quiet revolution in economic development. In this, he states how many Indiana economic development practices in the past 50 years have been sad efforts of "romancing the smokestack."
He states, "Since the 1960s, economic development in most of Indiana meant luring a business, sometimes any business, to town. The tools for these policies were cheap land, cheap labor, tax breaks, and subsidies. That process cheapened our land, immiserated workers, and starved local governments of much-needed revenues."
He continues, "Over the past 15 years, nearly every Indiana county has subsidized a new business that pays below-average wages, subsidized a big company that reneged on its hiring promises, or constructed a still-empty shell building. It is easy to trace the popularity of these policies to those who benefit from them. It is clearly not the taxpayer nor future residents of Indiana."
Well said. His call for new community leadership to redefine the meaning and practice of economic development is spot on. As we have worked with associates in the community development field, we see this transition in practice. New language, such as "placemaking," is emerging to redefine this space and bring a clearer emphasis to the importance of first attracting people—not jobs—to communities.
Without population growth, communities die. If you live in a community where people are not clamoring to find an apartment or home, you are in trouble -- and you are not alone. Communities around the world are starting to realize the fact that the annual growth rate of world population has been rapidly declining. The population growth rate in the United States is currently 0.98% (the highest since 2001), and it is expected to decrease to negative levels, similar to other developed countries. Only areas in Africa, India, and the least developed countries are expected to show steady population growth rates in the years to come.
This context is particularly important, especially when considered in conjunction with national macro trends that demonstrate demographic and migration changes. This proves that urbanization is real. Millennials and seniors alike are moving to urban, walkable communities. When it comes to staking their ground, millennials first choose where they want to live, then find a job, and they tend to stay. The days when jobs were the primary attraction to communities are gone. It is about the quality of place and social connection. It is about winning people over to live in your community.
Our associates at Thomas P. Miller Associates have coined the term "community resiliency." This may best describe the elasticity and stickiness that communities need these days to adapt and thrive economically. As workforce availability is expected to remain low for decades to come, economic development must shift from initially focusing on attracting industry to creating a place where people want to live.
Perhaps the following top 30 list is a starting point for defining the components that will achieve community resiliency and placemaking, attracting people. These are in no order of importance. However, it could be argued that the elements at the bottom are not possible without the tax base and environment developed by offering the elements at the top of the list.
Social connection and events
Walkability and bikability
Less suburban and more urban - a strong downtown
Street life and nightlife
Great food
Cool places to shop or hang out
Recreation
Nature
Environmental care
Health and fitness
Strong leadership
A community identity, story, and pride
Diversity
Inclusion
Regional proximity and friendliness to more opportunities
Philanthropy and volunteerism
Entrepreneurship
Neighborhoods with character
Apartments and rented housing
Higher property values
Affordable housing
Jobs with career paths
Entry-level jobs
Learning institutions and opportunities
Interesting and diverse industrial base
Investment-ready space for new retail, commercial, and industrial growth
Public transportation
Great schools
Public safety
Appealing aesthetics and maintained infrastructure