Need a Community Plan?
Targeted Economic Development: Providing Care For Healthy Communities

Rural areas and communities are changing. Some are experiencing positive change while many are dealing with negative trends such as population decline, job loss, and a smaller tax base. These rural areas are searching for viable options to diversify and expand the local economic base. Organizations and supporting groups offer much through training, technical assistance and support for capacity enhancement. Capacity enhancement refers to the ability of local leaders and residents to access data and information to enhance the economy and quality of life in their local community and region. There are many issues and events impacting rural areas and communities. The information era brings new challenges and opportunities to local communities. Technology may allow new or expanded business opportunities and enhanced quality of life in rural areas. But these rural areas will have to insure adequate investments in physical digital infrastructure and workforce preparation for this to occur. Even if we have the required infrastructure, will our rural residents and workforce receive the required training to effectively utilize the new technology? The globalization and economic restructuring of our national economy is also important. World markets offer new opportunity for rural businesses - conversely there will be enhanced competitive pressures as well. The evolving structure of our economy means new economic sectors will emerge. Hopefully, rural areas will be in position to build on past strengths and participate in the growth of new economic activities. Changing household and family patterns have also emerged. More families have two incomes and multiply wage earners. Businesses in rural areas often compete with large discount retailers who offer diverse selection and 24-hour (or extended hour) service. Another demographic trend is the maturing of America. Americans are living longer and the older population controls much of the nation's wealth. Retirees have been identified by many rural areas as a source of economic activity. Of course, services such as health care and public safety will be required to attract these wealthy and mobile retirees. A final issue is the increased concern with environmental stewardship. Rural areas contain much of our nation's national resources. Traditional extractive industries such as mining or agriculture are generally located in rural areas. Growth in rural areas will have to balance profitable enterprise with society's concern for our environment and the benefit of future generations. Clearly, these are major issues facing those of us who care about the future of rural America. In fact, the term CARE provides a good economic perspective.

CARE For Healthy Communities Healthy communities share several characteristics.

A vibrant and diverse economy providing jobs and income for residents.
Available services and facilities to insure a high quality of life for residents and visitors.
Informed and trained local leaders equipped to deal with the complex issues of the coming century. These characteristics require care and attention. The term CARE provides a useful approach to considering economic development options.

CREATION refers to all local efforts to encourage the formation of new business. In the age of the entrepreneur, concern with emphasis on a local climate helpful for new job formation may lead to greater dividends in the future. ATTRACTION refers to the traditional business recruitment efforts many states have pursued. Community preparation, industrial parks, tax incentives and other attraction strategies are familiar tools. This is highly competitive arena - few businesses relocate every year and there are thousands of local development organizations seeking this relocation or expansion. However, this may be a viable option in some cases.

RETENTION refers to activities targeted to existing firms. Retaining 100 existing jobs in a community is as important (or more so) as attracting 100 new jobs.

EXPANSION takes the concept of retention one step further. Why not encourage expansion of existing firms? After all, there must be a competitive reason for those firms locating where they are in the first place!

There you have it: The CARE model refers to creation, attraction, retention and expansion of local jobs. These are the principal methods or avenues for bringing jobs to a locality. Of course, local areas can target specific sectors such as tourism, retirees, main street businesses, manufacturing or home-based businesses. Depending upon the local circumstances, you may desire to create, attract, retain or expand across these specific sectors. Well thought out strategies will utilize the resources of rural areas most effectively.

Communities have limited resources (both volunteer/professional time and funds). It is critical that some form of strategic planning be utilized so these resources are utilized in the most effective manner. The CARE model offers alternatives-the community must decide which alternative(s) provides the greatest opportunity. Before reviewing the steps for planning, possible additional benefits of planning are reviewed.