Rising to the Challenge: Advising Change to 40-Year-Old Federal Policy

by Deborah Wince-Smith, President, Council on Competitiveness, and Chairperson, Strengthening Americas Communities Advisory Committee

Deborah Wince-Smith

At first, our task seemed daunting. In April 2005, U.S. Secretary of Commerce Carlos M. Gutierrez appointed 17 accomplished individuals to an Advisory Committee, with the charge of reviewing the recommendations of the Strengthening America’s Communities Initiative and providing the Secretary with our thoughts on the proposal. In essence, our mandate was to advise first steps in updating current federal economic and community development policy and programs, which in large part, have not changed for 40 years.

It would be an understatement to describe Committee members’ backgrounds as diverse; we are state and local officials, private-sector economic development practitioners, and leaders of community-based and research organizations. We come from 16 states and the District of Columbia, representing urban and rural regions, and a wide range of resources, strengths and needs. Indeed, it became clear upon looking around the table at our first meeting in Fresno, California, that this group could articulate firsthand the economic and community development challenges facing our nation.

Despite our diversity, we quickly agreed on several principles: The primary goal of economic development – securing an increasing standard of living for all citizens – has not fundamentally changed; community development and economic development are integrally linked; and there is no “one size fits all” solution for helping distressed communities and regions across the nation build prosperity.

After two additional public sessions and several months of research, deliberation and dynamic discussion, I am pleased to report that we reached consensus on a roadmap for directing future economic and community development policy. The resulting recommendations, set forth in the following report and presented to Secretary Gutierrez on June 21, 2005, are offered as our vision for ensuring the prosperity of America’s communities and regions in the 21st century. The recommendations fall into three categories: 1) bringing federal policy into the 21st century; (2) targeting need and responding to opportunity; and 3) assuring flexibility, accountability and results.

The updating of federal policy is so extensive as to require a new vocabulary for 21st century community and economic development, bringing to light concepts of globalization, regionalism, competitiveness, innovation, and entrepreneurship. These concepts, detailed in the report, pave the way for the broadening context in which federal policy must be set. They also provide suggested guideposts for communities and regions to use as they begin focusing on the critical elements to innovation- based economic growth in a globally competitive world: talent, investment, and infrastructure.

There is no question that the playing field is leveling; America will have to work harder than ever before to maintain its position as economic world leader. America’s ability to successfully compete in the global marketplace will be determined by the strengths of its regions.

Just as we compete in the world marketplace, so too must we compete at home. Economic and community development funds can no longer be provided exclusively on the basis of 40-year-old formulas. Rather, we must challenge each community and region by creating a system that rewards innovators and the visionaries while providing for those communities that truly need a helping hand.

Therefore it is my great hope that with these recommendations, our common goal of securing an increasingly higher standard of living for all citizens will be more attainable in the 21st century than at any time in our history.