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For many years, economic development has meant a process where business-at-any-cost was preached by a small elite, where civic discord replaced civil discussion, where families made more money but had less to spend, where resi- dents learned to lock their doors, where commu- nities changed from the unique to commonplace and a thousand towns came to look alike. But now, scores of communities are saying no to old, worn-out approaches and embracing a new kind of development that respects the community and the environment. Created collaboratively by people from all walks of community life, this new approach is called sustainable community economic development. Sustainable development stands in sharp con- trast to conventional economic development strategies. It: Redefines prosperity, weighing community values, quality of life, and the environment alongside economic considerations. Seeks true development, in the sense of getting better, instead of expansion, which is merely getting bigger. Advocates the long-term stewardship of community resources, ensuring that pre- sent actions don’t erode the basis for future prosperity. Pursues self-reliance and a more democrat- ic approach to decision-making, represent- ing community-wide interests over those of an elite few. Stresses diversity, resilience, and a convic- tion that many small efforts work better than a single one-size-fits-all solution. You may be saying to yourself, “Sure, sustain- able development sounds like a fine idea, but how do I translate it into something useful for my own community?” This paper answers that question. It introduces a practical way to achieve sustainability, called Economic Renewal. Created by Rocky Mountain Institute, a Colorado-based research and educational foun- dation, Economic Renewal (ER) has been suc- cessfully implemented in dozens of communities throughout North America. Although Economic Renewal refers to a par- ticular process for bringing about sustainable development at the community level, it’s based on set of guiding principles and tools that many communities are already using, even if they don’t use the term sustainable. The principles, described in the first section of this paper, will help guide you in identifying specific projects to strengthen your community and its economy. The tools, explored in the second section, can be applied in every stage and aspect of your eco- nomic development effort. Together, they offer new perspectives on old problems, revealing opportunities that might otherwise be over- looked. The third section of the paper gives an overview of the eight-step ER process, which is designed to get practical results in communities experiencing real-life problems. Based on the concept of collaborative decision-making, the process is an approach to community problem- solving that meaningfully involves all different kinds of people, many of whom seldom talk to one another. With ER, they’re no longer passive observers who can only briefly comment at some long, dreary public meeting. Instead, they become active participants who may even lead fun and creative problem-solving sessions. The fourth and fifth sections will help you determine when to start the process in your com- munity and suggest the kinds of results you can expect when you do so. Four Principles of Economic Renewal Think, for a moment, about the economy of your community. What makes it work? In many ways a local economy is like a bucket that the community would like to keep full. However, economic buckets invariably have holes in them. RMI’s Economic Renewal Program: An Introduction by Michael J. Kinsley Economic Renewal offers a practical process for achieving sustainable economic development.

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For many years, economic development hasmeant a process where business-at-any-cost waspreached by a small elite, where civic discordreplaced civil discussion, where families mademore money but had less to spend, where resi-dents learned to lock their doors, where commu-nities changed from the unique to commonplaceand a thousand towns came to look alike. Butnow, scores of communities are saying no to old,worn-out approaches and embracing a new kindof development that respects the community andthe environment. Created collaboratively bypeople from all walks of community life, thisnew approach is called sustainable communityeconomic development.

Sustainable development stands in sharp con-trast to conventional economic developmentstrategies. It:

• Redefines prosperity, weighing communityvalues, quality of life, and the environmentalongside economic considerations.

• Seeks true development, in the sense ofgetting better, instead of expansion, whichis merely getting bigger.

• Advocates the long-term stewardship ofcommunity resources, ensuring that pre-sent actions don’t erode the basis for futureprosperity.

• Pursues self-reliance and a more democrat-ic approach to decision-making, represent-ing community-wide interests over those ofan elite few.

• Stresses diversity, resilience, and a convic-tion that many small efforts work betterthan a single one-size-fits-all solution.

You may be saying to yourself, “Sure, sustain-able development sounds like a fine idea, buthow do I translate it into something useful formy own community?” This paper answers thatquestion. It introduces a practical way to achievesustainability, called Economic Renewal.Created by Rocky Mountain Institute, aColorado-based research and educational foun-

dation, Economic Renewal (ER) has been suc-cessfully implemented in dozens of communitiesthroughout North America.

Although Economic Renewal refers to a par-ticular process for bringing about sustainabledevelopment at the community level, it’s basedon set of guiding principles and tools that manycommunities are already using, even if they don’tuse the term sustainable. The principles,described in the first section of this paper, willhelp guide you in identifying specific projects tostrengthen your community and its economy.The tools, explored in the second section, can beapplied in every stage and aspect of your eco-nomic development effort. Together, they offernew perspectives on old problems, revealingopportunities that might otherwise be over-looked.

The third section of the paper gives anoverview of the eight-step ER process, which isdesigned to get practical results in communitiesexperiencing real-life problems. Based on theconcept of collaborative decision-making, theprocess is an approach to community problem-solving that meaningfully involves all differentkinds of people, many of whom seldom talk toone another. With ER, they’re no longer passiveobservers who can only briefly comment at somelong, dreary public meeting. Instead, theybecome active participants who may even leadfun and creative problem-solving sessions.

The fourth and fifth sections will help youdetermine when to start the process in your com-munity and suggest the kinds of results you canexpect when you do so.

Four Principles of EconomicRenewal

Think, for a moment, about the economy ofyour community. What makes it work? In manyways a local economy is like a bucket that thecommunity would like to keep full. However,economic buckets invariably have holes in them.

RMI’s Economic Renewal Program: An Introductionby Michael J. Kinsley

EconomicRenewal offers apractical processfor achieving sustainable economic development.

Every time someone buys something from out-side the community, dollars leak out.

To balance the dollar drain, money must flowin from outside the local economy. Money comesin when people in other places buy products orservices created by local people. Extracted rawmaterials, harvested crops, or manufacturedgoods are “exported”; many communities alsoearn income from tourists and other visitors.However they do it, communities must bring inat least as much money as they spend or they willwither and die. When income falls short of out-goings, communities typically react by trying torecruit outside businesses—a risky and expensivestrategy. Even if its accounts balance, a localeconomy that’s heavily reliant on only one or twoindustries may be vulnerable to swings in thenational or global economy. To achieve greaterdiversity, the usual response, again, is businessrecruitment.

Recruitment is an attempt to find new ways topour more money into the community’s eco-nomic bucket. Though it can be useful in manycircumstances, this strategy rests on the oftenunquestioned assumption that new businessfrom outside the community offers the best—orthe only—solution to local economic problems.

Economic Renewal focuses on easier, cheaper,and less risky means to achieve the same end.And while this approach may lack the fanfare andribbon-cuttings of a business-recruitment cam-paign, it typically fosters a deeper kind of com-munity spirit and self-reliance that comes fromsolving problems locally instead of waiting forsalvation to come from outside.

The Economic Renewal path to sustainabledevelopment is based on four principles.Although they’re described separately here forclarity, in practice they’re interrelated and oftenoverlap. For instance, many things done in acommunity to pursue the first principle (plug theleaks) will assist in the second (support existingbusiness). A smart community integrates all four,but it takes them in order, since the earlier strate-gies, as a rule, give more bang for the buck thanthe later ones. Going for the surer bets first givesa community momentum and puts it in astronger position to reap the benefits of the sub-sequent strategies.

Plug the Leaks The lively interchange of commerce is an

important part of community vitality. Your daysmay begin with coffee grown in Africa, LatinAmerica, or Hawaii. You may drive to work in acar bought from Detroit, Japan, or Europe, madefrom metals mined in dozens of countries.Television brings you news, culture, and sportsevents from different continents. Almost no partof your life stands alone without commerce fromoutside your community.

These products of international trade enrichour lives. However, many other imports—notably such necessities as energy, food, water,health care, and housing—can often be suppliedlocally at no extra cost, and sometimes at a sav-ing. In our analogy of the community bucket,these expenditures are leaks; before trying topour more money into a leaky bucket, a townshould simply plug some of its leaks. Economistscall this strategy “import substitution,” but it’slittle more than practicing the old adage, “apenny saved is a penny earned,” at the commu-nity level.

Leak-plugging is an important, but all toooften overlooked, economic opportunity. Whena community plugs an unnecessary leak, it putsmoney back into the local economy just as sure-ly as if it had earned it through new industry.Likewise, as individual residents spend andrespend the money they’ve saved, the local eco-nomic benefit multiplies in the same way it doeswith new income: more money in circulationcreates more value, pays more wages, financesmore investments, and ultimately creates morejobs. Unlike income, however, savings are infla-tion-proof—once you’ve cut out an expense, youno longer need to worry about its price going up.Further, money spent on local goods and servicesoften goes to small businesses, the backbone ofmost local economies.

In every community, many goods and servicesthat are purchased from out of town are, or couldbe, produced or marketed locally. Food, forinstance. A study by students and faculty ofHendrix College in Fox, Arkansas revealed thatthe college was buying most of its food from dis-tant suppliers, even though the majority of thosefood items were, or could be, produced locally. In1987 the college changed its purchasing policyand is now committed to buying locally, and area

2

Before trying to pour moremoney into a

leaky economicbucket, a townshould simply

plug some of its leaks.

farmers have learned how to produce for the col-lege’s specific food needs.

Leak-plugging can turn a town’s whole atti-tude around. For instance, in the early ’90s thefuture looked bleak to many residents of Tropic,Utah. The timber mill had closed and ranchingwas part-time for most. But some made a livingserving tourists visiting nearby Bryce CanyonNational Park, and high school students in anentrepreneurship class noticed that tourists werebuying a lot of bottled water. In 1995, with thehelp of their teacher, Kaylyn Neilson, they start-ed producing and selling Bryce Canyon Mist,local spring water bottled with an attractive labeldepicting the national park’s red and yellow cliffsrising out of the morning fog. The new producthasn’t single-handedly saved the town, but it hasdemonstrated to residents that they can improvetheir local economy by replacing imports withlocal products. By late 1995, there was talk ofBryce Canyon beef jerky (using local beef ), lol-lipops, and crafts.

Even when a commodity can’t be producedlocally, it can often be used more efficiently toachieve the same net result. Indeed, this is prob-ably the most reliable economic developmentstrategy of all. Energy is a case in point.According to energy analyst Amory Lovins, atypical community spends more than 20 percentof its gross income on energy—and 80 percent ofthose dollars immediately leave the local area.Plugging this leak through efficiency is typicallymuch easier (and cheaper, as it turns out) thantrying to produce more energy locally. For exam-ple, the University of Northern Iowa spent$7,000 once in 1994 to install efficient shower-heads, and is now saving $67,000 each year onwater heating. Osage, Iowa (population 3,800)plowed $7.8 million back into its local economybetween 1974 and 1991, thanks to a series ofweatherization and energy-efficiency projectsthat continue today through the efforts of thelocal utility and service groups. As a result of effi-ciency, 1995 electric rates were 50 percent lowerthan the state average. Much of the saved moneyis respent locally.

The untapped economic potential of energyefficiency is enormous. It has been calculated thatthe United States could save $200 billion worthof energy annually—and create millions of jobsin the process—simply by being as efficient as

Western Europe or Japan. Since those countriesaren’t as energy-efficient as they could be either,the savings potential is probably much greaterstill. It’s as if every town in America had an invis-ible, clean-burning, maintenance-free powerplant just waiting to be hooked up to the grid.

To promote a spirit of leak-plugging, somecommunities have encouraged residents to buylocally by creating their own currency. “IthacaHours” are a currency that “entitles bearer toreceive one hour labor or its negotiated value ingoods or services.” In Ithaca, New York, that’sequivalent to about $10 an hour, the averagelocal wage. Twelve hundred local individuals andbusinesses of all kinds accept Ithaca Hours,approximately 4,600 of which are in circulation.

Of course it doesn’t necessarily take an officialprogram to plug a leak. Most towns have somesort of barter, or “informal,” economy thatenables local goods and services to replaceimports. While the informal economy is virtual-ly ignored by economic-development experts, itsimportance was quantified by Shanna Ratner ofYellowood Associates of Vermont, who estimatedits economic value in Crown Point, New York tobe equal to approximately 100 jobs. In a town ofless than 2,000, that’s a lot of jobs.

Leak-plugging—through import substitution,resource efficiency, buy-local programs, and astronger informal economy—is an importantstep toward greater self-reliance, and a crucialaspect of any community’s development strategyin an increasingly globalized and unpredictableeconomy. The more efficiently resources can beused, and the more local purchases (especiallynecessities) can be produced locally at reasonableprices, the more resilient the local economy willbe, and the more able it will be to withstandexternally created shocks and changes.

Support Existing BusinessesThe economic heart of a community is its

small businesses. Many development experts areconvinced that the fastest way to increase jobsand strengthen a community’s economy is toencourage existing businesses to become moreefficient and successful. A 1991 report by theNational Conference of State Legislatures notesthat smaller businesses—those that are most like-ly to start up in your community—“while notproviding the windfall of jobs promised by a

3

Even when acommodity can’tbe producedlocally, it canoften be usedmore efficientlyto achieve thesame net result.

Saturn plant…are the largest source of new jobcreation and tend to be less mobile and morecommitted and loyal to the…community overtime and more willing to endure economic hardtimes.” Yet, caught up in the dream of high-techindustrial recruitment, many communities over-look local opportunities.

The Ithaca and Osage examples demonstratethat one way to support existing businesses is toplug the leaks. Ithaca Hours are a substantialincentive to patronize local small businesses.And, though Osage residents started their ener-gy-saving effort to save money, they also foundthat lower electric rates strengthened local busi-nesses. Fox River Mills, a major employer inOsage, was able to cut its production costs by 29percent thanks to lower electric rates and moreefficient electric motors, making possible a plantexpansion that nearly tripled jobs.

Though these and other innovative ideas canbe powerful ways to support local business, anycommunity’s development effort must deal withthe two most important causes of failure: inexpe-rienced management and inadequate financing.Federally supported small business developmentcenters (SBDCs) are often a big help, offeringclasses in such basic business skills as manage-ment and accounting. Central to many commu-nities’ development efforts, SBDCs are easilyaccessed in colleges throughout the UnitedStates.

Community development corporations(CDCs), which lend to businesses, develop com-mercial and industrial space, and create housing,are also crucial to many towns. Nationally, thereare more than 2,000 of these community-ownedcorporations, usually targeting services to lower-income people. An excellent example is theMountain Association for CommunityEconomic Development: operating statewidefrom Berea, Kentucky, it works on issues of for-est products, micro-enterprise, displaced work-ers, affordable housing, water quality, and accessto local government.

A CDC in Eugene, Oregon was the birthplacefor a simple but extraordinary idea in the early’80s. One of its board members, Alana Probst,asked ten local businesses each to list forty itemspurchased out of state. She then called other localbusinesses that might be interested in bidding onitems from the list of 400. In its first year,

“Oregon Marketplace” created 100 new jobs and$2.5 million in new contracts. In 1987, this sim-ple program blossomed into a statewide comput-er-based service that now matches all interestedpurchasers with Oregon suppliers. The conceptworks both at the local and state levels.

Oregon Marketplace not only boosted localbusinesses, in some cases it even created wholenew markets. For example, an airline meal com-pany had imported processed chickens all theway from Arkansas, despite a host of chickengrowers just outside its home base in Eugene.Oregon Marketplace secured a commitmentfrom the airline meal company so that a localbank would lend the growers enough money tobuild a processing facility.

Some might suggest that Oregon Marketplaceis an attempt to isolate the area from the nation-al economy; on the contrary, equipment for thefacility, unavailable in Oregon, came from aChicago firm that in turn bought its steel froman Indiana company. Therefore, buying locallymade Eugene a stronger trading partner in thenational economy, supporting jobs in Eugene,Chicago, and Indiana.

Other successful efforts to strengthen localenterprises have focused on business networks. Abright light in the troubled wood-productsindustry of Washington state is WoodNet, aloose-knit network of small- to medium-sizedwood-products manufacturers that helps mem-bers help each other. It finds markets, connectssuppliers with buyers, encourages the use ofwaste products, pursues joint manufacturing andpurchasing opportunities, creates forums forsharing business ideas, and seeks to stretch theregion’s dwindling wood supply. In an otherwisefiercely competitive industry, WoodNet membersroutinely communicate with each other, toureach other’s shops, and enter into flexible busi-ness relationships. Acting together, membersreduce costs for materials, professional services,and marketing. They gain access to larger mar-kets by jointly manufacturing products no smallfirm could supply alone.

The business relationships nurtured byOregon Marketplace and WoodNet can evolveinto practical “flexible manufacturing networks.”In Eugene, a group of cottage manufacturersjoined together to secure a contract to make banduniforms for a local school. Similarly, small busi-

4

Caught up in thedream of high-tech industrial

recruitment,many communi-

ties overlook localopportunities.

nesses within WoodNet partner to bid on woodproducts contracts.

Farms are businesses, too. A way to supportfarms that’s spreading rapidly throughout thecountry is community-supported agriculture(CSA), which generates up-front capital forfarmers and secures markets for their products.Farmers sell “shares” of their crops in the fall andwinter, when farm income is typically lowest. Fortheir investment, customers are assured a supplyof fresh fruits and vegetables. Everyone benefits:the farmers get winter cash, consumers get sum-mer discounts, and the community strengthensits local food supply and agricultural economy. Inaddition, members share in the satisfaction, aswell as the risks, of agriculture. Rural Action, anOhio-based nonprofit organization, found thatranchers participating in this approach to agri-culture made at least $1,000 more per animal byprocessing and selling their livestock themselves.

Another source of support for family farmingis community land trusts. Communities useCLTs to preserve the availability and affordabili-ty of land to low-income residents, farmers, andothers to whom rising property values can meandislocation or bankruptcy. One example is theWisconsin Farmland Trust, which helps farmerswithstand development pressures, encouragesstewardship of the land, invigorates local agricul-ture activity, and stimulates farmer-to-farmercooperation.

City-dwellers are also taking action to supportexisting business. According to the publicationZPG Reporter, residents of Washington, DC’sMarshall Heights neighborhood decided in theearly 1980s to do something to stem the exodusof neighborhood businesses. They conducted astudy that showed retailers how much pent-uppurchasing power existed in the area, then per-suaded the DC government to pave theirunpaved and gravel streets. They established theMarshall Heights Community DevelopmentOrganization, which now provides a 90,000-square-foot space for start-up businesses and co-manages a shopping center that it bought andrenovated. Which brings us to the third principleof Economic Renewal…

Encourage New Local EnterpriseIn any dynamic economy, businesses are con-

stantly folding and being created. In most com-

munities this process goes largely unnoticedunless business failures outnumber start-ups.However, your community can do a lot to tip thebalance toward success by encouraging new localenterprise. Pursuing the previous two steps willlay a firm foundation for this effort. They createan exciting business climate: a town that’s plug-ging leaks and supporting existing businesses is agreat place to start a new one. And plugging leakswill often lead automatically to opportunities forcreating new businesses—such as the water-bot-tling plant in Tropic, Utah, mentioned earlier.

Many communities whose industries are basedon limited resources can create new businessesand jobs by adding more value to the productsthey export. A classic example is the logging townwith its own timber mill: by shipping milledlumber instead of raw logs, the town creates morejobs per trees cut down than a town without amill. Some troubled logging communities aretaking this concept a step further by processingmilled lumber further into furniture or other fin-ished goods, thus supporting even more jobswith a limited resource base.

Whether the resource is timber, grain, cattle,or coal, adding value is a powerful strategy forstimulating a local economy. A group of organicfarmers in Saskatchewan has harnessed this prin-ciple both to support their own businesses andcreate a new one. In 1995, in a project that grewout of their participation in Economic Renewal,they built a facility to process their grain prod-ucts instead of shipping them unprocessed.Similarly, corn farmers in Marshall, Minnesota,formed a co-op in the 1980s that built a plant toprocess local grain into syrups, oils, and meal.

Another well-tested method for encouragingnew local enterprise is the business incubator.Developed by private businesses, local govern-ments, and colleges and universities, these facili-ties vary widely from place to place, but general-ly provide affordable (sometimes subsidized)space, business services, and consulting underone roof. A typical incubator is a cluster of smalloffices or shops around central secretarial andcomputer services. Businesses are often requiredto move on to other conventional space after aspecified period of time.

Encouraging new business activity oftenrequires creative financing. For example, manylocal start-ups are so small or risky that conven-

5

A town that’splugging leaksand supportingexisting businessesis a great place tostart a new one.

tional banks won’t lend to them. Based on theoverwhelming success of “micro-enterprise” loanfunds in developing countries, the Good FaithCommunity Loan Fund of Pine Bluff, Arkansas,was created by a public-spirited foundation toprovide financing to very small local businesses.Because the mostly low-income borrowers standlittle chance of getting conventional bank loansfor their fledgling businesses, the nonprofit fundis putting needed money behind self-employ-ment and new economic activity in depressedregions of rural Arkansas.

Some communities are developing their owncreative ways to finance local enterprise.Residents of Oberlin, Kansas gathered risk capitalfrom current and past residents at no more than$1,000 per person—very patient capital that noone expected to get back—and invested in a feed-lot, which later went private. Ivanhoe, Virginiasells deeds to square feet of land in a town park toraise money for sustainable development projects.They have land owners from all over the world!The project creates community pride, developscommunity capacity, and raises money.

After establishing Oregon Marketplace, AlanaProbst moved on to yet another groundbreakingidea, helping found the ShoreTrust TradingGroup in 1995. The nonprofit organization offersbusiness support, marketing assistance, and high-risk, non-bank credit to businesses in the lowerColumbia River region that reduce waste, saveenergy, limit chemicals use, add value locally, orimprove fishing, farming, and forestry practices.

Recruit Compatible New BusinessHaving pursued the first three steps, your

town will be in a much better position to recruitnew business. A community that’s pluggingleaks, supporting existing business, and encour-aging new local enterprises won’t be desperate forany economic activity, regardless of the harm itmay cause. Businesses looking to relocate will bemore attracted to a community with vibrant localenterprise and a high quality of life. Governmentagencies and foundations will also be more likelyto direct their resources toward a communitythat’s working hard to improve itself.

Business recruitment can bring significantrewards, especially if undertaken in a sophisticat-ed way. It can attract new enterprises to developunderutilized resources and meet needs unful-

filled by existing businesses. Incoming companiescan bring fresh capital, new jobs, economies ofscale, technical expertise, and participation innational or international networks. If these char-acteristics complement local resources, the new company can bring renewed vigor to yourcommunity.

However, business recruitment pursued with-out regard for community and environmentalvalues can also create serious problems that out-weigh benefits. Many communities have soughtnew industry at any cost, believing that any eco-nomic expansion is better than none. However, acommunity should add up whether a proposednew business will bring a net benefit. Will theadvantages outweigh the costs? Will it be com-patible with the community’s goals? Residents ofsleepy Cripple Creek, Colorado, assumed noth-ing but benefits would accrue from the gamblingcasinos that moved into town in 1993. Manyspent a lot of personal time and money to ensuresuccess of a state ballot question to allow gam-bling in their town. Within two years, demandsfor new public services to the new industry hadresulted in a 350-percent increase in propertytaxes, forcing many residents to leave their owncommunity.

If you decide to offer incentives to entice anew business to relocate to your town, under-stand that they usually don’t work and oftenbackfire. Incentives should play only a limitedrole within a larger development effort. Theyshould be used very cautiously, only with strictsafeguards in place, and only when there are solidguarantees of net new jobs.

A cautious approach is the most cost-effectiveway to attract new business. By choosing themost promising and compatible development foryour community, you’ll be able to take your bestshot at a range of possibilities, and make the bestuse of limited resources and time. Where indus-trial recruitment seems appropriate, make it workon your terms. A responsible company will beconfident moving to a place where communityvalues and goals are clearly stated, and local gov-ernment and businesses collaborate to achievethose goals. It won’t mind firm local rules ifthey’re clearly stated and fairly enforced.

Taken together, these four principles offer animportant message to every community: do bet-ter with what you have, instead of seeking “sav-

6

Having pursued the

first three steps,you’ll be in

a much better position to

recruit new business.

iors” from outside the community such as foot-loose companies and government programs. It’snot unlike the advice you might offer a goodfriend who’s having problems at work or home.You might say, “Don’t expect them to change—work on yourself.” Similarly, a community thatattempts to strengthen itself by knocking on gov-ernment and corporate-boardroom doors wouldbe well advised to acknowledge its weaknesses,work to change them, and build on its strengths.Whatever direction your community chooses,taking care of what you already have will giveyour economy the strength to multiply the bene-fits of any later economic development.

Nine Tools of Economic RenewalThe preceding four principles are the founda-

tion of a smart community’s developmentefforts—they offer a framework for thinkingabout how to approach development sustainably.But case studies of successful community devel-opment efforts compiled by Rocky MountainInstitute reveal a number of other specific toolsyou can employ as your community considersways to strengthen itself.

Ask WhyIn any community development effort, one of

your most important tools is the question “why.”Asking why helps strip away unfounded assump-tions and establish what’s really needed. It shiftsthe focus from particular proposals, which maydivide the community by appealing toentrenched positions, to the underlying goalsthat unite the community. Having asked why,you can then choose the best way to achievethose goals rather than narrowly focusing on one-size-fits-all solutions.

This simple technique helps identify the mostcreative, sensible solutions to community prob-lems. It can be applied to virtually any issue. Forinstance, during one community’s meeting ondevelopment, one participant repeatedly insistedthat the community needed a big arch over MainStreet. Though most participants rolled their eyesor ignored his idea, someone finally asked why hewanted the arch. “We have no pride,” he said.“We need something to make people feel goodabout this community.” Another participantsaid, “I agree, we need to build our sense of com-munity. So let’s say that’s what we need to do.

Maybe then we can find additional ways to buildpride, including the arch.”

The second participant illustrated the point:when discussing a possible solution, ask why it’sbeing considered. Maybe it’s only one of severalpossibilities. Others may be more attractive, lesscontroversial, and less expensive. One may appealto the whole community, including the guy whowanted the arch.

Asking why can help reveal alternative pathsthrough many thorny dilemmas. Struggling witheconomic problems, many earnest town leadersassume that a new industry is the solution. If theydiscover later that their chosen new industry willcause big problems, they may forge ahead anyway,blinded by their original assumption. But whenan assumption leads to a painful conclusion, thesensible response is to question it: Why newindustry? The answer may be increased income,more jobs, or more savings. New industry is onlyone of many ways to fulfill these needs.

Assumptions about how to achieve the com-munity’s goals are very different from the valuesthat underlie those goals. Therefore, challengingthe assumptions doesn’t threaten community val-ues. On the contrary, it’s the most effective wayto achieve the goals that support the communi-ty’s values.

Old assumptions blind communities to newopportunities. As your community’s develop-ment effort proceeds, notice and respectfullyquestion the assumptions—your own as well asothers’—that underlie particular ideas. Are theylimiting the community’s possibilities? Are theyleading the community down an unwise path?Continually asking why will expose limiting ordamaging assumptions and clear the way formore productive problem-solving.

Manage DemandThe conventional response to running out of

something is to look for more of it. For instance,facing burgeoning demand in the 1980s, manyelectric utilities invested in new power plants.They assumed that consumers would pay for thisnew supply, whatever it cost. But the new powerplants were so expensive that electric rates soared.In response, consumers reduced their demand,eventually bankrupting several major utilities.

Such “supply-side” solutions often overlookthe true nature of demand. It isn’t electricity that

7

Old assumptionsblind communities to new opportunities.

people want, it’s the services that electricitymakes possible: refrigeration, lighting, hot water,home heating. But it’s typically cheaper to findmore efficient ways to provide these services thansimply to increase the supply of electricity. That’swhy utilities like the one in Osage, Iowa havelearned that they can often meet customerdemand more effectively by investing in weather-ization and appliance-rebate programs ratherthan in new power plants. It sounds counterintu-itive, but the utility can actually make more prof-it by paying its customers to use less of its prod-uct. The customers, for their part, still have hotshowers, cold beer, and so on—and they havemore money left over, which filters back into thelocal economy.

The solutions to many problems are often farless expensive when they address demand ratherthan simply adding new supply. “Demand man-agement,” as this approach is called, starts by ask-ing what job the user wants done, and thendetermining the most efficient way to do it. Itusually turns out that no kind of new supply cancompete with the more efficient use of whatyou’ve already got.

Some community organizations have foundthey can play a vital—and lucrative—role inmanaging demand. In Southern California, forexample, a group called the Mothers of East LosAngeles teamed up with water utilities to imple-ment a toilet rebate program. The utilities werewilling to pay customers $100 to trade in theirold toilets for new, water-saving models, but theprogram was failing in low-income neighbor-hoods because many residents simply couldn’tafford to shell out $100 and wait weeks to bereimbursed. The “Mothers,” backed by a privateconsulting firm, bought the new toilets up-front,hired local people to install them, recouped theirexpenses with the utility rebate, and had moneyleft over to fund a child-care program. The utili-ties saved money on distribution costs in the longrun, and residents who took advantage of theoffer benefited from lower water bills.

Demand-management solutions are not onlybetter for the economy, they’re better for theenvironment. For example, some cities are realiz-ing that widening roads and highways doesn’tsolve traffic problems. “Traffic demand manage-ment” programs, such as ride-sharing, canaccomplish the same objective much more

cheaply. Lester Prairie, Minnesota reducesdemand on roadways while supporting localbusinesses with “Rideshare Bucks,” which com-muters earn by giving rides to fellow residents.Funded by a state energy grant, the bucks can beredeemed at local retail outlets. In the program’sfirst two years, Lester Prairie commuters saved$600,000 in travel and fuel costs (and in theprocess prevented 100 tons of carbon dioxidefrom polluting the atmosphere).

Pursue Development, Not NecessarilyExpansion

Growth and development aren’t the same.Growth, in the sense of expansion, is an increasein quantity, while development is an increase inquality. This distinction is particularly importantto the many communities that are learning thehard way that growth is not the solution to theireconomic woes. While they enjoy the benefits ofgrowth, they’re also vexed by the problems itcauses: higher taxes, traffic congestion, crime,long commutes, air pollution, increasing intoler-ance, disrespect for traditional leadership,increasingly cutthroat business competition,higher rents, housing shortages, spiraling costs,and demands for higher wages to meet the high-er cost of living.

Fortunately, communities have many opportu-nities to develop that don’t require them to getbigger. They can create jobs, increase income,improve conditions, save money, and provideopportunities for subsistence (non-cash) activi-ties—all of which strengthen the local economywithout necessarily requiring its expansion. It’strue that expansion creates jobs in a community;but sustainable development puts people towork, too, without the problems often associatedwith physical expansion.

Successful communities confronting impor-tant decisions about proposed developmentshould ask hard questions: Is this particular kindof development sustainable? Is it something thatwill support or detract from the ability of ourgrandchildren to make a living? Will it createproblems that the community cannot adequatelydeal with? Is it compatible with the traditionalvalues of the community? Sustainability can bedifficult to determine. Some development ideasare clearly unsustainable; others are less clear.However, it’s worth asking questions early to save

8

Communitieshave many

opportunities todevelop that don’t

require them toget bigger.

yourself the grief of unintended consequences.

Seek Small SolutionsCommunities with big problems often seek

big solutions. But the bigger the solution, theharder it is to pull off, and the greater the risks.When a community puts all its eggs in one bas-ket and someone drops the basket, the commu-nity’s development effort cracks.

Consider the community that puts its hopes inattracting a particular industry. It usually takes acouple of years before the new company makesthe final decision to move in. As time passes,unhappy news may come to light. Local leadershear that the new company will buy (in somecases, take) water from local farmers. “That’sunfortunate, but we need new industry,” say theoverburdened leaders. Then they discover thatthe industry can’t afford to avoid dumping chem-ical effluents that may seep into the groundwater. Leaders, who have already committedthemselves beyond the point of no return, say,“There’s no proof that it’ll end up in the groundwater and, anyway, we need the jobs.” Later, dis-tressing news: the company will import most ofits workers. “Well,” say local leaders, “that’s toobad, but we’re committed now.”

In contrast, small solutions are usually moreflexible, less expensive, and more manageablethan large ones. When a community embarks ona diverse effort that includes many small projects,each of which can produce results, then thepotential for success is high. If a few projects turnout to be duds, no problem. Others will succeed,making the overall effort a success— the kind ofsuccess that builds toward a better future.

In 1995–96, Snowflake, Arizona used theEconomic Renewal process to select several pro-jects intended to strengthen the community: his-toric tours for tourists, business education andmentoring, and niche marketing and cooperationamong local farmers. Even if one of these projectsdoesn’t succeed, others will thrive and provide abig win for Snowflake. Better, each of Snowflake’sthree projects is diverse by itself. Some parts canfail while others flourish. If Snowflake insteadhad sought one big solution, it could have nettedone big failure. By pursuing many solutions, itsstrategy was resilient and durable.

This is not so say that your communityshouldn’t attempt a large project—just don’t rely

on that big project as the sole basis for your com-munity’s success.

Find Problem-Solvers Who CareMany communities pursuing development

seek saviors—a big corporation, government, ormaybe a foundation—someone from outside thecommunity who’ll wave a magic money wandand save the community from disaster.

It may happen. But the success of thisapproach depends entirely on an important deci-sion made by people with no direct stake in thecommunity. They may be terrific people wholove their children, but their personal goals prob-ably don’t include ensuring the success of yourcommunity. They’ve got other responsibilities,other needs, other demands on them. Entrustingyour community’s future to such disinterestedoutsiders is likely to lead to delay, disappoint-ment, and an unacceptable loss of control overthe outcome.

This not to say that a community shouldn’tfully use outside resources; on the contrary, aneffective development strategy taps outsideresources. But don’t rely on them for your solesupport. Depending on outsiders is worse thanputting all your eggs in one basket—it’s handingthe basket to someone who doesn’t care if theeggs break.

The people who found and provided the fledg-ling solutions in Tropic, Utah lived there and byall accounts cared about the community. Allunderstood that a stronger local economy was intheir interest—they didn’t need to be altruistic tounderstand that the community’s success wouldmake them more successful.

When looking for problem-solvers, don’t over-look local business people. They, as much as any-body, have an interest in seeing your communitythrive. Many care so much about the communi-ty that they started a business to remain in it.They’re in it for the long haul. In contrast, out-side businesses might be induced to move in, butthey’ll move out just as easily if they’re offered abetter deal elsewhere. Locals don’t move to Asiato save labor costs.

Increase the ‘Multiplier Effect’When a dollar enters a community and is then

spent outside the community, its benefit is feltonly once. If that same dollar is respent within

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Small solutionsare usually moreflexible, lessexpensive, andmore manageablethan large ones.

the community, its benefit is multiplied: it addsmore value, pays more wages, finances moreinvestments, and ultimately creates more jobs.Thanks to this “multiplier effect,” each addition-al transaction in which the dollar is involved cre-ates just as much wealth as a new dollar from theoutside, but relies on local decisions made bypeople who care about the community.

Let’s say you sell your particular product out-side the community (or you provide a service toa visitor from outside the community) andreceive new dollars for it. After you pay yourbusiness’s operating costs, you spend some ofyour new dollars to buy a jacket from a catalog.A tiny fraction of your expenditure returns to thecommunity to pay the driver or postal workerwho delivers the jacket. If you buy the jacketfrom a local factory outlet or superstore, more ofyour dollars return to pay salaries of the store’sstaff. But if you buy the jacket from a locallyowned dry goods store, even more of your dollarsstay in the community. Its owners spend some oftheir profits and a much larger share of theiroperating costs locally. They may even buy one ofyour products. It’s unlikely the superstore ownersor the catalog company would do the same. Thegreatest multiplier effect, and thus the greatestbenefit to the community, is achieved when youbuy the jacket from a locally owned business thatmade the jacket itself.

Your community can increase its multipliereffect by plugging leaks, supporting existing busi-nesses, and creating new local businesses—espe-cially if those new businesses supply locals withthings that had previously been imported.

Find Hidden Local Skills and AssetsColquitt, Georgia was a community that

appeared to have nothing much to work with. Infact, it had an asset whose importance had, for along time, gone unrecognized. The mayhawberry had grown around Colquitt since beforethe town was settled, but no one thought of it ashaving any “economic development” value. Theythought of the berry simply as something thatfamilies canned for their own use.

But one autumn, a small group of creativewomen canned more mayhaw jelly than theirfamilies could eat. They made labels and tried sell-ing small jars of the jelly to specialty stores. Thestores thought the product was great and wanted

more. The women created a business that went onto employ 50 people who prepared mayhaw jellyand a dozen other products for sale in 36 states.

The women of Colquitt put to work an assetthat was literally growing on trees. Though themayhaw business has since been purchased andmoved to another town, it demonstrated that vir-tually every community has some unique asset orskill that can be put to work creating wealth. Itcould be a raw material, a recreational opportu-nity, perhaps a traditional craft or a historicalaffinity for a certain industry. Hidden opportuni-ties can even be found in waste: in Rifle,Colorado and Hazleton, Pennsylvania, hugegreenhouses are kept warm with the waste heatfrom local power plants. The trick is to examineyour community with a fresh eye.

What asset or skill is hidden in your commu-nity? As you consider this question, think beyondthose that are literally hidden. Opportunitiesmay be right there for everyone to see but wait-ing for someone like you to recognize and put towork. After all, some of the best ideas are thosethat, once you hear them, seem obvious.

Build Social CapitalA community’s most important strength is the

capacity of its people to work together for thecommon good. This capacity is often referred toas “social capital.” Like more conventional formsof capital, it’s essential to successful development.Unlike other forms of capital, the more you giveaway, the more you get back.

According to Harvard political scientistRobert Putnam, social capital is indicated bysuch things as voter turnout, newspaper reader-ship, participation in community decision-mak-ing, and membership in arts, sports, and serviceorganizations. Many people regard these thingsas not very important, just something you dobecause it’s fun or necessary. But Putnam’s twen-ty-odd years of research indicates that each ofthese activities is an important thread in the fab-ric of a community. The stronger the fabric, thebetter residents feel about living there, and thebetter a place it is in which to do business. Inother words, a community’s economic success isbased on its social capital rather than the otherway around.

Towns succeed because they’re communities,not just collections of buildings and people. This

10

A community’s most important

strength is thecapacity of its

people to work together.

is not to say that residents all agree with oneanother. On the contrary, they have importantdisagreements, but they deal with those disagree-ments in a civil way. They solve problems insteadof attacking one another. They know that theycan’t just sit back and wait for prosperity; theymust work together to seize it.

Successful communities have committed vol-unteers who serve in many ways, some organized,some quietly individualistic. They have lots oforganizations, meetings, events, festivals, andparties. There’s not a night in the week thatsomething isn’t going on. Though one of theseactivities alone may seem insignificant, togetherthey create the foundation for a community andits economy.

Successful development can result from oneperson’s great idea, but a community that sitsback and waits for that person to come forward islikely to drift in complacency, hoping things willget better. In contrast, a proactive communitysails to success by gathering residents to examinewhere the community wants to go and how bestto get there. That gathering is the place wheremany ideas, including that one person’s greatidea, can be offered, considered, and improvedupon.

At each step in the Economic Renewal process,you’ll add another building block of social capi-tal to serve as the foundation upon which yourcommunity will succeed.

Organize RegionallyThough prosperity for your own community

must be the ultimate aim of your developmenteffort, your community is not an island. Takentoo far, community-centeredness can crush cre-ativity (“We’re gonna do it this way because we’vealways done it this way”), provoke petty rivalrieswith neighboring towns or neighborhoods, or,worse, cause residents to retreat into narrow-minded hostility toward anyone from the outside.

Just as your family needs the community, thecommunity needs its connections to neighboringtowns, the region, the nation, and the world. Thehuman scale of a community—which is itsstrength on a social level—can make for limitedeconomic options and few opportunities to makebusiness connections. A smart developmenteffort looks for ways to tie in more fully to theregional economy.

Regional cooperation may take many forms.Perhaps the most common is the regional devel-opment organization, formed by neighboringrural towns to provide staff support and assis-tance for members. These partnerships may bepublic (local governments), private (for example,chambers of commerce), or both. Leaders from20 isolated and fiercely independent towns inthe far-flung Alexander Archipelago of Alaskacreated the Southeast Conference in 1956 tostart a ferry system that today is essential to theregion’s commerce. In other cases, businessesmay lead the way by initiating cooperative mar-keting to regional urban centers. Organic farm-ers in Saskatchewan reached beyond their indi-vidual communities to other farmers over a wideregion to build a cooperative processing facilityfor their products. In 1993, the Arkansas RuralEnterprise Center created WoodWorks, Inc.,which markets Arkansas wood products to sup-port businesses, create jobs, and promote sus-tainable forestry practices. The center helpswood-products businesses of all sizes worktogether and make sales regardless of what townthey’re in. The result is stronger, more diversifiedtowns.

Eight Steps to Economic RenewalEconomic Renewal is a process by which com-

munity residents from all walks of life worktogether to find and develop projects to strength-en their community and its economy. With theexception of the first preparatory step, it’s a seriesof town meetings, each designed to build on theresults of the previous session. At first, this com-munity-based approach may appear long andcumbersome, but because it develops sound deci-sions, builds trust, and diminishes opposition, itsaves time in the long run.

The Economic Renewal process is carried outby a small team of residents with the help of larg-er group of volunteers and sometimes a profes-sional facilitator. While many factors can affectthe length of time required to organize and con-duct the eight-step process, most communitiesfind it takes two to six months. The process cul-minates in the development of project actionplans; actually carrying out the chosen projects,which is beyond the scope of Economic Renewal,can take as little as a few weeks or as long as sev-eral years, depending on their size and complexi-

11

A smart developmenteffort looks forways to tie inmore fully to the regional economy.

ty. The number of participants in the processvaries widely from town to town, from as few as25 to more than 200.

The eight steps summarized below aredescribed in full detail in Rocky MountainInstitute’s Economic Renewal Guide.

Step 1: Mobilize the CommunityThe first step in the ER process is to mobilize

a broad cross-section of community residents toparticipate in the rest of the process. This prelim-inary step is arguably the most important of allbecause, unless it’s done well, the rest of theprocess may not be worth doing. If an importantdecision that will shape a community’s future ismade by an elite group of insiders or by outsideexperts, community residents who are left outmay not stand for it. The result can be delay, dis-trust, controversy, litigation, or inaction. In con-trast, when decisions are developed by all differ-ent kinds of people in the community, they’relikely to enjoy broad support.

Mobilization usually starts with a small groupof people who, having decided that ER soundsappropriate and worth pursuing, schedule thefirst town meeting (Step 2) and try to generate asmuch interest in it as possible. This is done in asystematic manner, initially by personally con-tacting representatives of every organization andinterest group in the community, whether officialor not. Every possible viewpoint should be repre-sented, including those that are typically ignoredin local public processes. Having enlisted thesupport of key representatives, organizers publi-cize the process and the upcoming meetingthrough media announcements and, optionally,special presentations.

Step 2: Envision the Community’s FutureThis is the first town meeting of the

Economic Renewal process. It assembles resi-dents who use worksheets to identify their val-ues, goals, and perceptions, and from them pro-ject the community’s “preferred future.” Theeffect of this exercise is to itemize what the com-munity wants to preserve and what it wants tocreate anew. Unlike many economic develop-ment efforts that begin with a narrow focus onjobs and business, this meeting gives participantsthe opportunity to say what’s important to them.They’re assured that these things, in addition to

business and jobs, will be the basis for the com-munity’s development effort.

In the course of discussing what they careabout, participants often are amazed that oth-ers—even people they regard as adversaries—value most of the same things. This realizationbegins to build the trust that’s crucial to the suc-cess of the program. The information generatedby this session is useful later on when, in Step 6,participants refer back to the preferred future toensure that prospective projects are compatiblewith it.

Because many people who attend this firstmeeting haven’t been thoroughly briefed on theideas of Economic Renewal, the session usuallyincludes an introduction to sustainable develop-ment, the ER process, and the people who areconducting it.

Step 3: Identify What You Have to Work WithThe serious work begins with this meeting, in

which participants inventory the community andits economy. This provides a sound and factualbasis for the community’s subsequent develop-ment effort. Without it, many opportunitieswould be lost.

Participants break up into smaller groups todiscuss seven important aspects, or factors, of thelocal economy: business environment, access tocapital, infrastructure, quality of life, the infor-mal economy, natural resources, and humanresources. Each group then itemizes communityproblems, needs, and assets specific to its factor.The product of the session—worksheets listingproblems, needs, and assets—becomes the rawdata for the next step. If available, other econom-ic and demographic data can be offered at thispoint in the process.

Step 4: Discover New OpportunitiesNow the community’s inventory from Step 3

is displayed so that everyone can see it as a wholeand find opportunities that might otherwise beobscure or hidden among innumerable everydaydetails. Prior to the meeting, the Step 3 work-sheets are transcribed onto large sheets of paperand attached to the walls of a large meeting spacesuch as a high-school gym. The visual effect is ahuge map of community conditions. The task isto make connections—literally—between com-munity problems, needs, and assets.

12

By envisioningthe community’s

“preferredfuture,” residents

itemize what they want to preserve and

what they wantto create anew.

In addition to being challenging and creative,this exercise is also fun: lots of people millingaround in front of the lists, pointing at items,comparing notes, and making connections. Inthe course of the evening, participants list dozensor even hundreds of actions that might be pur-sued to strengthen the community.

Step 5: Generate Project IdeasFreewheeling and creative, this step concen-

trates on identifying more projects the commu-nity might pursue to strengthen itself.Participants brainstorm project ideas based onwhat they learned in Step 4 and on ideas gleanedfrom case studies of other towns.

Some communities find they’ve already gener-ated so many project ideas that they need very lit-tle time to complete this step, and are able tocombine it in the same meeting with Step 6.

Step 6: Evaluate Project IdeasSteps 4 and 5 generate more project ideas than

any community can deal with. Many will beimpractical, incompatible with the community,or too difficult or risky. The worksheetsemployed in this step provide a framework forevaluating how well project ideas fit the commu-nity’s needs.

Participants form committees to evaluate pro-ject ideas. Each committee starts by clarifyingand adding details to the idea, which may origi-nally have been stated in general or vague terms,then evaluates the idea for its practicality, sus-tainability, compatibility with the community’spreferred future, and other appropriate criteria.Projects that aren’t chosen for evaluation are setaside for future consideration.

Step 7: Select Project IdeasThough Step 6 reduces the number of

prospective projects, there usually remain toomany ideas for the community to implement atonce. In this step, participants compare projectideas to one another to select the few that aremost promising for the community at this time.Depending on the number of project ideas, thisstep may require more than one meeting.

Committees present the results of their projectevaluations, which, tempered by comments fromall participants, are summarized on a wall-sized“project menu.” When the presentations have all

been made and the project menu filled in, partic-ipants discuss the comparative merits of eachproject and agree by consensus which projectsshould proceed.

Finally, participants form project developmentcommittees and a committee to create a perma-nent organization to carry on the EconomicRenewal work after Step 8.

Step 8: Develop Project Action Plans This final step is a bridge from the Economic

Renewal process to specific project implementa-tion. It begins with a public meeting, whichensures that the committees get off on the rightfoot, but after that they work independently.

The committees’ task is to create a writtenaction plan for each project. In the process ofdeveloping their plans, they’ll refine project con-cepts, recruit technical assistance, analyze alterna-tives, identify barriers to implementation, createbudgets, secure financial support, and deal withresistance.

When to Do ERThe timing of your Economic Renewal effort

is crucial to its success. Choosing the right timeto start requires intuition and a knowledge of theinner workings of the community. In general,though, a community is probably ready to worktoward bettering itself when one or more of thefollowing conditions exist:

• Residents recognize that something mustbe done and no one else is doing it.

• A crisis (e.g., a natural disaster, closure of amajor business) brings the communitytogether.

• A few people have begun talking seriouslyabout organizing some effort to seek a bet-ter future. Where a few are acting, manyothers are thinking.

• One or more people are committed to takeaction.

It will be more difficult to conduct ER whenthere is:

• Overwhelming apathy or lack of recogni-tion that something should be done.

• A belief that something is coming that willsave the town: “We don’t need to do any-thing, we’ll just wait till…”

• A crisis so deeply divides the communitythat people on opposing sides of the issue

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In Steps 4 and 5,communities typically generatemore projectideas than theycan deal with.

can’t be in the same room together. Though these are useful thoughts about tim-

ing, don’t regard them as rules. Many communi-ties have achieved success despite apparently badtiming. Some have accomplished results even inthe face of rampant controversy. Others thatappeared to be drifting aimlessly have taken dra-matic action to improve themselves. Even a rela-tively apathetic community can be galvanized toaction by a few credible and assertive people.However, your effort will have the best potentialfor getting off to a good start when at least oneinfluential resident is actively enthusiastic aboutthe idea.

The Measure of ER’s SuccessThe outcome of the Economic Renewal

process will be a few realistic projects chosen byparticipants—projects that will build toward amore sustainable future. Because many residentswill have participated in selecting the projects, orat least followed and understood the process,they’ll feel some ownership in and commitmentto them. To enhance community support andenthusiasm, participants will choose at least oneproject that can be implemented quickly and eas-ily to achieve a short-term, measurable success.

Many community residents and leaders, espe-cially those who participated, will better under-stand the community economy; they’ll be morecomfortable with economic development.Participants will have experienced a genuinelycollaborative process, which, if your communityis like most, will be much more creative and lesscontentious than the usual ways of getting thingsdone. They’ll better understand each other andbe more willing to work together. This experi-ence may lead to more effective decisions in thefuture.

Each community that has used EconomicRenewal has created and chosen developmentideas compatible with its particular circum-stances. A few examples:

• Alamosa, Colorado. Residents dramatical-ly revitalized their downtown, launchedalternative crop and fish-farming initia-tives, started a community recreation pro-gram, conducted a business-needs analysis,planned a community/conference center,and instituted a flood-control program thatsaves $115,000 in insurance each year.

Moreover, Economic Renewal “helpedbring the town together” and “fired up thepeople,” according to town manager MikeHackett.

• Kentucky. The Mountain Association forCommunity Economic Development usedEconomic Renewal in three economicallydistressed counties. Participants selected avariety of development projects including afarmer’s market, a co-op art gallery, atourism committee, a small-business assis-tance effort, a value-added wood productsbusiness, and downtown improvements.

• Plateau Valley, Colorado. Residents of thisrural area started a local newspaper, upgrad-ed their fairground, and inventoried his-toric structures. They’re now investigatingalternative local crops.

• Snowflake, Arizona. Economic Renewalparticipants decided to support local busi-ness with a mentoring program, improvetourism by training local tour guides, andsupport local farmers with a co-op for spe-cialty produce.

• Saskatchewan, Canada. Farmers built avalue-added processing facility and starteda marketing campaign for their organicproducts.

Some people may shrug off these successes asflukes, or assume that they resulted from somelucky break. However, though each receivedsome help from the outside, these communitiesdidn’t score any big government grants or indus-trial sitings, nor were they particularly lucky.They created their successes largely on their own.

Like you, the residents of these successful com-munities were trying to make a living and didn’thave a lot of time for meetings. But they bal-anced their commitment to their communitywith their family obligations, juggled their sched-ules, goaded their neighbors. After false starts anda few dead ends, they pulled it off.

These are ordinary folks who chose an extraor-dinary path, the steady and deliberate course to asustainable future. It’s a path that’s yours for thetaking. It relies on your understanding that aprosperous future for you, your children, andyour grandchildren is based on stewardship ofyour community, its environment, and its econ-omy. It starts with your commitment to act.

14

Each communitythat has used

Economic Renewalhas created and chosen

development ideascompatible with

its particular circumstances.

This text is excerpted from The EconomicRenewal Guide (3rd ed., 1997), a manual for cit-izens and practitioners who are looking for spe-cific, practical ways to make development in theircommunities more sustainable and collaborative.

Economic Renewal Guide—Table Of ContentsPart I: Introduction

1. Sustainable Economic Development: Prosperity Without Growth

2. An Introduction to Economic Renewal3. Collaborative Community Decision-

MakingPart II: Laying the Groundwork

4. Getting Started5. Getting the Word Out6. Conducting Effective Meetings

Part III: The Economic Renewal Process7. Mobilizing the Community8. Envisioning the Community’s Future9. Identifying What You Have to Work

With10. Discovering New Opportunities11. Generating Project Ideas12. Evaluating Project Ideas13. Selecting Project Ideas14. Developing Project Action Plans

AppendixExplaining Economic Renewal to OthersResources: Nonprofit Organizations,

Government Agencies, Internet Resources, Publications

Michael Kinsley is the director of RockyMountain Institute’s Economic Renewal Programand the author of The Economic Renewal Guide.Before joining RMI, he served as an elected officialin a rapidly growing community.

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Rocky Mountain Institute1739 Snowmass Creek RoadSnowmass CO 81654Phone: 970/927-3851Fax: 970/927-3420Email: [email protected]: www.rmi.org

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