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THE LOCAL ECONOMIC DEVELOPMENTPROFESSION AND PROFESSIONALS

The Professisn and professionals

In Search ofa professional ldentity, The central components of this emerging profession are derived fromthe functions that the professional, p.rior^ rather than from thevarious disciplines from which it is derived. The eeonomic developmentprofession can be viewed as comprising the interrelationships i riu.elements: locational factors (L); organizational role (o); task iunctions(T); nature of the clienrs served (c); and the individlar practitionerorientation (I). The ecoomic development (ED) specialistiole may beseen as a function of all these factors. This might e shown as

ED spclst role = f(La, b, c . . . Od, e, f . . . Tf, g, h . . . Cj, K, I . . . Is, t, u . . .)Each of the five factors has within it a group of related components(abc ' . .) that relate to the other "nui.on*"ntal factors such asorganization, clients, task, and individual orientations. Some of thesefactors are more heavily weighted within any given circumstances. Insome instances, the individual ED specialist has a set of capabilities thatcreate opportunities for economic improvement that ".roth", person inthe same situation cannot produce. in .rr.n.e, the personallariabre,both skills and personality, can be dominant in some place. on the otherhand, the task themselves may provide a productive or counter_productive environment. Therefore, in searching for an "pp.of.i"r.efinition/ role, we will examine each of these factors in orerio wetopa framework for both the profession as well as the professional roles.

THE LOCATIONAlmost all communities or regions present unusual circumstancesirrespective of the commonalities in thi causes of their economic ins.Because a community has suffered plant closures does not mean that theremedy or alternatives for it are precisely the same as for anothercommunity that has similar losses. There are many intervening factorsthat influence the situation. For example, one community maf be easyto mobilize because there is a clear pattern of leadership wtrite anotherhas virtually no identifiable leaders. The goals in bot circumstancesmay be identical and the toors or methods used by the practitioner maybear superficial similarity, but the precise mode of opiration will varybased on the conditions. In essence,the milieu for d"u.lopo'ant "rr ,ro,

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The individuals who work as economic development specialists areforming a new profession. This profession has its base in several othero."rrpuiion, ranging from planning and economics to social work' Theanteedents of the current profession can be traced to the forerunnerprofession of industrial developers or promoters. The content of theii.ld h", u".y mixed origins. In some respects, it has no real origins in theclassical prfessional sense; yet, it owes a great deal to the existingafplied disciplines of geography, business administration, public fin-un"", und poiiticat economics. In essence, the local economic develop-merri profission, or set of practices, is a hybrid of existing concepts'discipiines, and areas of practice molded together to form a new area of*professionalism" that overlays existing professional practice-plan-ning, social work, community development-or acts as the base for an"*",ul..,'u of professionalism. There is little to Suggest that localeconomic development is part of larger professional areas or operates asa new area of practice. Instead, various practitioners are defining theroles and limits of this emerging professional arena rather than anyprofessional establishment defining the limits of practice' In manyrespects, this flexibility is an asset to this field because practitioners are,roi."rtiui.r.d by rigid code. The converse' however, is that the absenceof standards *t"r it difficult to exclude any activities, even the mostpu*"trv anticommunity activities, from being labeled as local economic"u.top.n"nt initiatives. Moreover, any government or local communitygroup can (and sometimes does) merely change the name.of.theirctiv-ity or the name on the door in order to label their activities aseconomic develoPment. i

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290 PLANNING LOCAL ECONOMIC DEVELOPMENTonly the objective circumstances are significant issues for the EDspecialist.The total community or area circumstances must be taken intoconsideration in assessing the economic development need as well as indetermining the priorities for action. The atmosphere in which thechange is to be made is as important as the change itself. As a result, theED specialist must reach well beyond technical "know-how"to help thecommunity see itself as a social and physical entity that in manyinstances goes well beyond the parochial boundaries of the municipality.This identification task is a necessary and important ingredient in thedevelopment process, and failure to come to grips with the real"locational" issues can doom even the most dedicated ED specialist. Inaddition to getting the economic geography right, the ED specialistmust also assist the community in getting the problem right. This is notan easy task, as stated in earlier chapters. Many communities identifytheir problems as external such as involving lower-wage areas in foreignnations or international competition. This may or may not be the case.In most instances, however, dwelling on the external will not create anynew options. Therefore, the ED specialist's job is to identify theeconomic problems that can be solved within the context of thatlocality. This frequently means helping the community recognize thatremedies selected elsewhere (high tech, tourism, factory attraction, andso on) may not suit the locality. In essence, the situation determines boththe means of and the limits on local economic development. The EDspecialist must be aware of this and use appropriate skills within themilieu to assist the community find the correct path to a sustainableeconomy.THE ORGANIZATION

As previously discussed, local economic development activities areconducted by a variety ofinstitutions at both the local and state levels.Primarily, the ED specialist works in municipal or multijurisdictionallocal government organizations. Therefore, most of the comments inthis section concern practice at the local level.

Each economic development organization is formed to fulfill somepreconceived mission. That mission may be clear or fuzzy, but it formsthe justification for the organization's existence and a limitation on theauthority of the ED specialist. In many, perhaps most, circumstances,economic development organizations are coordinating bodies that take

few direct actions themselves. In such instances, the ED specialist ismore of a resource person than an expert. Because other organizationsare carrying out the action, the ED specialist must possess the skill ofencouraging without displacing, and monitoring wiihout ruring. It is adifficult role to play.In other circumstances, the organization may view itserf as adeveloper or development partner. In these circumstances, the EDspecialist must be creative and aggressive and seek opportunities toparticipate in new economic activities on a broad froni ranging fro-housing to industrial development. The ED specialist mighi .i* u"required to design new financial instruments or help firris organizethemselves to take advantage of government or other develofmentprograms.Increasingly, the ED specialist is part of a larger government ornonprofit organization bureaucracy. As a government agent, the EDspecialist may have limitations imposed irom " varieiy o ,ou.".,ranging from advisory boards to elected officials. The tensions createdin this environment can be overwhelming, especially when differentconstituencies have widely varying concepts r tn" iot" and respon-sibilities of the ED specialist.Economic development organizations grow and specialize. As aresult, the ED specialist may operate within a large economic orplanning bureaucracy. Organizations of this type -expect the EDspecialist to have certain definable subareas of special'skill such ashousing, finance, and small business.Finally, economic development organizations operate in a widerframework of organizations and institutions at thJ local, state, andnational levels and, more recently, at the international level. Theinterorganizational scope of local economic development is expanding.The need to create linkages with larger or more specialized org"r,irution,such as airport authorities or international deveiopment ageicies as wellas the substantial lobbying requirements with s[ate andfederal legis-latures provide an exceptionallydynamic situation for the ED speciiist.THE TASK FUNCTIONS

The task of the specialist is complex to say the least. There are twogenerally recognized characteristics, however-process and methods. Itis difficult to separate these activities because ih.y a." intertwined incarrying out the activities of any specialist. The process component

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292 PLANNING LOCAL ECONOMIC DEVELOPMENTrelates to the activities associated with organizing people or resourcesfor economic development. No amount of technically correct activitywill help a community revitalize or direct its economy unless there issufficient internal capacity. It is the process side ofthe ledger that helpsbuild capacity in terms of leadership and organizational strength.The methods dimension refers to the set of strategies and approachesthe ED specialist either fashions or identifies as suitable for thesituation. These methods have been discussed in previous chapters. Themethods are administered through (1) identifying community problems,(2) providing technical and analytical assistance, (3) determining theresource mix required to meet the economic development needs of thesituation; and the process skills of (4) developing networks amongindividuals and institutions and (5) stimulating interaction amongdiverse groups to achieve a common objective.The specific tasks of the ED specialists are as follows:(l) Building development organizations. One of the most importantfunctions of an ED specialist is to develop a strong, viable, andcontinuing organization. Capacity building relates both to helping theorganization gain expertise and to identifying and developing futureleadership. In addition, the ED specialist must assist theorganization instrengthening its network with institutions at the local, national, andinternational levels.

(2) Inventory of area resources. Keeping track of community or arearesources goes well beyond physical assets inventories. An area'sdevelopment resources extend to its culture, its leadership, and thequality of its community social life. The ED specialist must not onlyknow the resource base but find new ways to use it to achievecommunity objectives. Of course, the ED specialist must also find waysto build resources where there are deficiencies or to transform otherresources to meet the need.(3) Selecting strategies. Strategies are selected by the community, but

the ED specialist works with the community in this process. This is oneof the most important process skills of a specialist. Sometimes the datahelp make the decision or the resources available. The ED specialistmust be careful to "assist" rather than push or sell a particular strategy.Moreover, the ED specialist must help the decision makers see the needfor comprehensive approaches, incorporating several methods oversingle-component strategies, for example, tourism.(4) Marketing the area. Marketing a community is not like marketinga product. Products remain constant in terms of their performance.

communities change. They both add and lose capacity dependent uponevents. No matter what role the ED specialist plays, markting will be acomponent. The marketing of the place is also associated with themarketing of many other factors, for example, human resources,organizational capacity, and community incentive programs.(5) Dota development and analyss. Economic development data arenot always clear or clean. The ED specialist is constantly attempting tofind good information on the local situation, ranging from oemograplicto institutional analysis. usually large-scale data sour"", a.e inaJequatefor the purpose. Therefore, the ED specialist must refine data from thecensus and other sources, conduct surveys, or identify unobtrusivemethods to measure any particular development dimension. Havingdata and determining what they mean are also not easy tasks. As aresult, the ED speciast must frequently develop ways to displaycomplex information for layperson consumption. This requires ex-ceptionally good analytical and presentation skills.All of the above tasks relate to the institutional and locationalcircumstances of the community. All five are required at different times.So timing is an extremely important skill, and mastering good timing isa fundamental task of a good ED specialist.THE CLIENTS

The ED specialist must work with a wide variety of clients. clients areboth individual and collective. In many respects, the total population ofthe community or area form the client base. The ED rp""i"list usuallyhas a direct contact with a regular group and more limited contact with awider constituent base. Generally, the ED specialist will work with asingle advisory body or group and maintain contact with others throughorganizations or other collective agencies.The clientele for local economic development is usually lay leaders.Such persons are generally volunteers working for the god of thecommunity. As laypersons, they may have little o. no pr"p"iation in thefield. They may well represent community groups with considerableinfluence but without any special expertise. As a result, the ED specialistmust respect these individuals for the knowledge they bring from theirconstituents and use this information in program developrnent. on theother hand, the professional must provide training and technicalassistance to the group. This is a delicate role. The ED specialist needs tobalance the groups'lay knowledge with professional eipertise.

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294 PLANNING LOCAL ECONOMIC DEVELOPMENTLocal officials are frequently the employers of ED specialists.Economic development departments or agencies are important com-ponents of local governments. ED specialists may direct such depart-ments and, doing so, report directly to local elected officials. The EDspecialist's success in such circumstances is to support these officials inmeeting the needs of the community. This role may require anythingfrom general economic development planning to community educationto consultation with community groups.Civic and economic development organizations are frequently theprime sponsors of economic development. These organizations, de-scribed earlier, are public-private institutions that take on the mantle oflocal development generally with official sanction from the local ormultijurisdictional authorities. These groups are also organized byvolunteer laypersons. They frequently include individuals with con-siderable business expertise and resources, however. The ED specialistusually facilitates the activities of this type of agency. Because suchgroups tend to have substantial resources, the professional role isusually to coordinate economic development activities including thehiring of additional specialized expertise. In addition, the ED specialist

acts as the principal contact person with other organizations andagencies.In sum, the clientele for local economic development is dependent onthe organizational form and task. The ED specialist must be attuned tothe circumstances of the community and work with laypersons as well asprofessionals. The role the ED specialist plays is to utilize the expertiseof the clients as well as the profession to fashion economic developmentalternatives for the community.The Professional Roles

The tasks of the ED specialist are also related to the three work rolesof consultant, enabler, or community organizer. Sometimes, thecircumstances prescribe the role of the ED professional; more often, theorganization's mission defines it.The consultant role does not refer to a professional occupation butthe mode of delivery. As consultant, the ED specialist provides expertiseand problem-solving skills in the situation confronted. The consultantacts as the provider of accurate technical information, showing theoptions available to the decision-making group.

The enabler is essentially a facilitator. In this role, the ED specialistfocuses on bringing people together and providing a struciure forresolving community economic development issues. The enabler mayalso mobilize resources but seldom acts as the sole expert. Moreover, theenabler will attempt to create a continuing problem-solving capacityrather than addressing single economic or social issues.The community organizer role is much more of an advocacyorientation. A community organizer is usually a partisan for a specificgroup or area and acts as the catalyst to propel it to political andeconomic action. The organizer model requires a certain type ofinstitutional structure, such as a community development corpoiation,to be effective in an economic development role.Clearly, some of these roles are merged or even evolutionary. An EDspecialist might start out as a community organizer and subiequentlyadopt the role ofenable and consultant as the group increases its powerand capacity. The essential factor is that both the "process" and ttte"content/methods" task be delivered to the community in somereasonably responsible manner. The framework here is merely anoutline of the role models related to the task function of ttle EDspecialist and not a final definition.Economic Development Careers

There are several different career paths that the ED specialist cantake. They generally take three distinct forms, which are as follows:ED manager-managing economic development organizations as separateor component agencies requires considerable managerial skill: theeconomic development manager must be an expert in process areas andhave a good economics and sound business background.Analyst-nearly all economic development organizations and consultantfirms require individuals with very strong analytical skills particularly inthe area of regional economic development, economics, o, u.unplanning/ business.Neighborhoodf community worker-at the neighborhood and small com-munity levels, overall development and process skills are required;community organization and development training is especially usefulwhen working at this level.

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The career choices of the ED specialist and the training received arenot uniform. There are now graduate programs and professionalpostdegree programs offered by both universities and recognizedprofessional associations. The reader may wish to consult his or herlocal state university or state department of commerce or developmentto determine where such training is available locally'

ConchtsionEconomic development is an emerging field of study and practice- Ithas previous antecedents in the field of industrial promotion andattraction. The new aspects ofthe field have been discussed in this book-

The basic orientation as articulated here is comprehensive developmentutilizing indigenous resources and capacity. ED specialists are both"process"-community organization, leadership, and capacity build-ing-as well as r'1sl"-ss6nomic and data analysis-oriented. Theroles ED specialists play are related to the needs ofthe situation and theresources required. Individuals who want to become professionaleconomic developers will have to pursue special training in economic,regional science, urban planning, or related disciplines-

ReferencesBenveniste, G. 1983. Bureaucracy. San Francisco: Boyd and Fraser.Blakely, E. J. 1979. Commtmity Development Research: concepts, Issues, and strategies.

New York: Human Services Press.Christensen, J. and J. Robinson. 1980. Commtmity Developmcnt in America. Ames: Iowa

State University Press.Rothman, J., J. Erlich, and J. Teresa. 1975. Prompting Innovation and Change inOrganizations and Communities. New York: John Wiley.Vollmer, H. M. and D. Mills, eds. 196. Professionalization. Englewood Cliffs' NJ:Prentice-Hall.

Weiner, M. 1982. Human Services Management. Homewood, IL: Dorsey Press.

APPENDIX:GLOSSARY OF TERMS FREQUENTLY USED INCONNECTION WITH ECONOMIC DEVELOPMENTAMORTIZATION: A payment plan by which the borrower reduces debt gradually,usually through payments of principal and interest.ANcHoR TENANT: The most important tenant in adevelopment project whose lease isusually instrumental in securing financing for a commercial undertaking.ARTICLES oF coRPoRATIoN: A legal document required by and filed with the stategovernment where the corporation is chartered. This document describes the purposes forwhich the corporation is formed and how it will be organized.ASSETS: Things ofvalue owned by a business such as money, merchandise, machinery,buildings, and land.BALANcE sHEET: The balance sheet shows the assets, liabilities, and owner's equity ofa business as of a specific date.BASIC EMPLoYMENT: Associared with business activities that provide servicesprimarily outside the area via the sale ofgoods and services, but whose revenue is directedto the local area in the form of wages and payments to local suppliers.BOND RATING: An estimate of the creditworthiness of bonds issued by agovernmentalunit or corporation.BoNDS: Interest-bearing certilicates of debt issued by a municipal governmental body ora private corporation to finance physical improvements.BUILDING coDE: A system of uniform building regulation within a municipalityestablished by ordinance or law.BUSINESS DEVELOPMENT GRANTS: Funds providcd to economic developmentgroups by local or state governments that carry no obligation for repayment.BYLAWS: Rules, regulations, and controls set by the board of a corporation for theconduct of its business.CAPITAL COSTS: The costs a business pays for major physical improvements such asbuildings, equipment, and machinery.cAPITALIZATIoN RATE: The rate of interest that is considered a reasonable return onan investment.CAPITALIZE: To supply a project or business with funds invested by the owners ordevelopers as distinct from borrowed funds.cASH FLow: A statement showing actual or projected cash receipts and disbursementsfor a specific period of time.CENTRAL BUSINESS DISTRICT (cBD): Generally refers to the business area of a cityor town.

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