S O U T H E R N G R O W T H P O L I C I E S B O A R D

Pathways to Prosperity:

Choosing a Future for Your Community

PATHWAYS TO PROSPERITY:

Choosing a Future for Your Community

OKAR

MO

LA

MS

TN

AL GA

FL

SC

VA

WV

KYNC

PR

W

Unlike many other Southern Growthpublications, this guide does not put for-ward a set of recommendations or advo-cate a specific solution or point of view.Instead, it outlines an issue of importanceto the region, along with severalapproaches for dealing with it. Thesealternatives reflect different points of viewthat have been heard in discussionsaround the region. Each approach has itsown priorities and agenda, as well as itsown trade-offs and consequences.

The goal of this guide is not to offer asolution to the issue, but rather toencourage Southerners to listen to oneanother and to explore areas of agreementand disagreement among diverse inter-ests. At first glance, some readers mayconclude that some of the approachespresented are simply bad ideas.

Other ideas may, at first reading, seemto be the obvious “right” answer. But thepoint of these discussions is not to jumpto conclusions too quickly. This guide ismeant to inspire thoughtful examinationof differing points of view, not debate.Once people understand why somegroups hold differing views, they areoften able to find common groundaround which a solution can be crafted.The common ground may be one of theoutlined approaches, some combinationof them, or a completely new alternative.

The Southern Growth Policies Boardhopes that, like the National IssuesForums, this guidebook will be used tostimulate discussion among a wide vari-ety of groups, from leadership groups toreligious organizations, from economicdevelopment organizations to serviceclubs. Reports on the outcomes of theforums will be shared with Southernleaders, including Southern Growth Poli-cies Board members, to give them insightinto what the public is thinking aboutimportant issues in the region.

ABOUT THIS DISCUSSION GUIDE

ith this discussion guide, the Southern Growth Policies Board is embarking ona new process to engage Southerners in dialogue about important regional issues.

The guide has its foundation in the National Issues Forums process, a process that has beenused for nearly 20 years by thousands of groups throughout the country to deliberate aboutnational issues ranging from Social Security to child care.

PATHWAYS TO PROSPERITY:

Choosing a Future for Your CommunityBy Tony Wharton and Linda Hoke

S U M M A R Y

ONE

Q U E S T I O N N A I R E S

Rapid growth has transformed the South from the poorest region in the nation

to the world’s third-largest economy in the span of a single lifetime. But even as

many communities prosper, continued commercial and population growth raise

troubling questions. What of those who are left behind? Does our enthusiasm for

economic progress endanger a distinctive and valued way of life? How do we con-

vert growth into prosperity? It is important to give serious thought to these ques-

tions while there are still choices to be made.

Create Jobs

In this view, the best way to achieve prosperity for all is to create more well-pay-

ing jobs. Paychecks are the remedy for small cities and rural areas that have been left

to decline by changing economic trends. This approach calls for providing incen-

tives to attract businesses, easing government regulations that tend to stifle the devel-

opment of business and industry, and investing in infrastructure to support existing

businesses and attract new ones.

Develop Human and Community Resources First

Although considerable progress has been made, many Southerners lack the edu-

cation and skills needed to keep up in today’s changing workplace. Proponents of

Approach Two maintain that this and other social problems, such as poverty and poor

health, are the true roadblocks to prosperity. Remedies include spending more money

on education and worker training, ensuring easy access to health care, creating pro-

grams to help bridge racial and cultural divides, and developing community-leader-

ship skills.

Manage Growth

Supporters of this approach are not opposed to growth. They are opposed to

uncontrolled growth, which is swallowing up farms and small towns, driving up

smog to unacceptable levels, and overcrowding schools. They fear that this type of

growth will choke the region’s future prosperity. Planning is the answer, in this view.

Both professionals and citizens should be involved in making deliberate and rational

choices about whether, where, and how a community should grow. Leaving those

choices to larger economic forces is a poor way to build the future.

Comparing the Approaches

4

7

12

18

24

27

TWO

THREE

I N T R O D U C T I O N

4

he American South has been trans-

formed in the space of a single life-

time. Just over 60 years ago, Presi-

dent Franklin Roosevelt called the South “the

nation’s number one economic problem.”

Today, the South’s economy is the world’s

third largest, and it generates new jobs faster

than any other part of the United States. It

has helped shift the balance of the national

economy from manufacturing to service

industries. Home to such companies as

America Online and WorldCom, it has made

great strides in becoming a leader in the

telecommunications revolution. And, with

states like Florida, Georgia, and Louisiana

leading the way, the South is an international

tourist magnet.

But as people and wealth have trans-

formed the South, new questions have

cropped up. Even while many cities and

towns work to encourage growth, others

wonder how to cope with its consequences.

The sleepy countryside and wandering roads

that inspired writers and poets from William

Faulkner to Zora Neale Hurston are disap-

pearing under miles of pavement and acres of

new subdivisions. Traffic has become so

heavy in some places it’s a deterrent to new

businesses and home buyers. Once the South

struggled to move beyond its historic tradi-

tion of farming; now farms disappear under

the builders’ bulldozers. Is the South, as a

place with its own rhythms and culture, slip-

ping away?

At the same time, old problems persist.

Inner-city neighborhoods sagged into poverty

and many still languish there, often visible

from the gleaming interstates rushing workers

from suburbs to downtown towers. In some

rural areas, too, poverty is deep and persis-

tent. And many small towns, once a hallmark

of the South, find themselves declining as

people and businesses are drawn to the cities.

Once-tranquil countryside

is increasingly covered

by highways clogged

with traffic.

CO

RBI

S/Ph

ilip

Gou

ld

T

5

All of these approaches represent values

most Southerners hold in common — oppor-

tunity, equality, self-reliance, community, self-

determination, stewardship. But while we

share these values, we often interpret them

differently and give some higher priority than

others. We all have a different perspective on

the choices outlined in this discussion guide.

Oxford, Mississippi, where Faulkner

lived, is one place beginning to face those

choices. The picturesque town, complete

with courthouse and town square, was a well-

kept secret for decades. But in recent years,

national magazines have noticed its qualities

and begun to cite it as a good place to live.

Now, subdivisions are appearing outside of

town and real estate prices in the city are

shooting up.

Now, the people of Oxford are talking

about more than writers and football. Some

welcome growth, and note that some of

the town’s worst neighborhoods are being

spruced up. Others mourn the loss of old oak

trees and a change in the city’s character.

“Beauty is our money crop,” the 1986

Commission on the Future of the South con-

cluded. The rivers, forests, and swamps help

bring businesses, residents, and tourists to the

region. How, then, do we deal with develop-

ment encroaching on the Everglades in Flori-

da and ozone warnings in the Great Smoky

Mountains National Park? Growth — mean-

ing more people, new houses, and new roads

— is everywhere. But how do communities

convert growth into prosperity, meaning a

good quality of life for the whole community?

People’s responses to that question are

shaped by many factors — how long they’ve

lived in the South, what they do for a living,

what they think the future ought to look like.

Several ways of thinking about that

future have emerged over the years. For

some, the answer is simple: We need to keep

creating jobs. These are good times for the

South, and we should make sure nothing

interferes with that. As long as jobs are avail-

able for everyone, we’re on the right track.

Not everyone agrees. Some say that the

region’s economic success has been uneven,

leaving behind people, and sometimes entire

communities. In many of these areas, prob-

lems are too deep to be solved merely by try-

ing to bring in jobs. Unless we share the

South’s newfound wealth more equitably,

focus on deep-rooted problems of poverty,

education, and infrastructure, and give people

the tools they need to compete, long-term

prosperity is likely to remain elusive.

Others argue that we’ve lost control of

residential growth and the accompanying

commercial development. If we don’t do a

better job of managing this growth, we will

destroy the quality of life that makes our com-

munities attractive to citizens and businesses.

We also need to plan better for the transition

of farmland to development, and protect the

natural resources of which the South is

justly proud.

Job and Population GrowthSouth and Non-South, 1979-1998

Source: BEA Regional Economic Information System, U.S.Department of Commerce, 1998

60%

40%

20%

0%PopulationJobs

19%

South Non-South

25%

38%

50%

6

“We know we’re going to grow, and we

don’t want to be perceived as ‘no-growth,’ ”

Mayor Pat Lamar told the Atlanta Constitu-tion. “But we’d like to see the ambience and

history of Oxford duplicated as we grow,

rather than have miles and miles of asphalt

and subdivisions.”

History suggests that Oxford will contin-

ue to grow, but how much and how fast?

Many of the newcomers probably will be

among those speaking out for a slower pace,

while some of those who have lived in town

the longest will welcome the changes.

Oxford is struggling, too, with what

limits should be drawn around its new popu-

larity. People want to choose where they live,

but they also want controls on where things

should be built. It’s hard to have both. Those

individual experiences and perceptions shape

the conversation.

People need to talk with each other

about what they want their community to

look like. What do they care about? How far

should people have to drive to work? How

many parks should there be?

This kind of conversation can go on

continuously, bringing in new residents,

including the many immigrants the South is

already attracting, and adjusting to new cir-

cumstances. What matters is that we keep

talking with one another and take actions

together in our communities.

Pict

or

The Everglades and other natural

treasures of the South are already

endangered by unwanted side effects

of rapid growth.

7

he I-85 corridor between Raleigh-

Durham and Atlanta has been

dubbed the South’s “road to pros-

perity.” More jobs have been created along

this 400-mile stretch of highway than in any

comparable place in the country. And these

are good jobs, paying good wages. In North

Carolina’s Research Triangle Park, more than

40,000 workers are employed in research-

based businesses such as IBM, Glaxo Smith-

Kline, and Cisco Systems. In Greenville,

South Carolina, BMW recently expanded its

car assembly plant, nearly doubling its work

force; and in the Atlanta, Georgia, metropoli-

tan area, more than half-a-million jobs have

been added since 1990, many in fast-growing

industries like communications.

Contrast this to the scene in South Nor-

folk. Once a proud city on its own, South

Norfolk is now a part of Chesapeake, Vir-

ginia. South Norfolk is lined with turn-of-the-

century houses with hardwood floors,

Toverlooking broad avenues. In the 1950s and

1960s, the town also had theaters, shops, and

businesses lining its streets.

Not anymore. The elegant houses are still

there, but many are deteriorating, too often

used as rentals instead of as single-family

homes. There are too few businesses, and the

ones left don’t employ many people. Unem-

ployment and crime are higher there than in

other parts of the city. In other words, growth

is not an issue in South Norfolk.

“Spend a couple of weeks in South Nor-

folk on this block and you won’t worry about

growth and traffic,” Terry Scott told the

Virginian-Pilot newspaper. Thieves broke

into his home three times in five years, and he

doesn’t feel safe going out after dark to bring

the cat in.

ONE

The Dale Bumpers National Rice

Research Center has spurred

biotechnology activity in rural

Stuttgart, Arkansas.

Create Jobs

Cou

rtes

y of

the

Dal

e Bu

mpe

rs N

atio

nal R

ice

Res

earc

h C

ente

r

8

and Heflin,” he told the Anniston Star. “It’s

about the tax base, future income, and keep-

ing young folks at home.”

The community put together a total of

$2.6 million in incentives to bring in the new

plant, and it’s been worth it. The company,

which originally planned to hire 120 people,

now employs 200.

Each community should put its best foot

forward and show it is business-friendly, say

supporters of Approach One. Like Heflin,

states and communities may choose to pursue

new industry with incentives. A little boost to

give a company an edge up in today’s

competitive market is worth it in the long run

in terms of jobs and taxes.

Well-placed incentives can also trigger

additional investment by related businesses.

“It’s like a new subdivision,” Gregory Wing-

field, president of a Richmond, Virginia, eco-

nomic development organization, told the

Richmond Times-Dispatch. “The first lot is

discounted to attract a buyer.” Like computer

companies in Silicon Valley, carpet manufac-

turers in Dalton, Georgia, and furniture

makers in Tupelo, Mississippi, similar busi-

nesses are often strongest where they cluster

together. This puts them near their suppliers,

gives them access to bankers, CPAs, and other

service providers who are familiar with the

industry, and increases their chances that the

local work force is skilled in the industry.

While Alabama was criticized for spend-

ing $253 million on incentives for a new

Mercedes plant, the auto manufacturer

brought several supporting companies with it,

and the state’s new prestige prompted Honda

to open a plant there as well. As a result,

many people have seen their incomes rise by

$40,000 to $50,000 a year. To top it off, in

August 2000, Mercedes announced plans for

a $600 million expansion that would add

another 2,000 jobs to the local economy.

This same approach can work in rural

areas, too. In the farming community of

Supporters of Approach One believe

that creating jobs is our “road to prosperity.”

If we create jobs, everything else will follow,

they say. People will have the money they

need to buy good houses and send their

children to good schools. In time, crime will

go down. This approach, more than any

other, has made the South what it is today.

Why change what’s already working?

Let’s not worry so much about control-

ling growth, says Bill Goode, president of

the Business and Industrial Development

Corporation in Charleston, West Virginia.

“Economic developers worry ‘smart growth’

can mean ‘no growth,’ ” he recently told the

West Virginia Gazette. “We’ve been focused

on job development. More and better jobs

are a more immediate need.”

Bring in JobsJobs are what make a community pros-

per; without them, it stagnates and dies.

When you’re adding jobs, you’re strengthen-

ing the community and its social fabric,

advocates of Approach One say. Eddy Dry-

den, a funeral home director in Heflin, Alaba-

ma, appears to agree with this philosophy.

He personally raised more than $90,000 from

fellow business owners and neighbors to help

bring in a new wire manufacturing plant.

“This is about the future of Cleburne County

1970 1980 1990 2000 2010

250

200

150

100

Source: Morrison/Dodd Group, L.L.C., U.S. Department of Commerce,Bureau of Economic Analysis, Regional Economic Information System

Index of Employment Growth, 1970-2010(1970=100) U.S. employment growth

Southern employment growth

ONE Create Jobs

9

Stuttgart, Arkansas, known as the “Rice and

Duck Capital of the World,” are the begin-

nings of what the town hopes will become a

capital of biotechnology. Anchored by the

new National Rice Research Center, a half-

dozen laboratories are using biotechnology to

try to improve everything from cotton to cat-

fish. The town’s efforts are buoyed by an

Arkansas law that provides tax breaks aimed

specifically at the biotechnology industry.

The state also is building its capacity to grow

new businesses by strengthening its university

research base, adopting policies that encour-

age faculty members to commercialize their

inventions, and teaming up with private

investors to form a pool of venture capital to

finance innovative companies.

Growth Needs to Be aConscious Choice

Supporters of Approach One say we

need to make a conscious choice to encourage

growth. It will not just happen on its own. At

the same time, opinions are often divided over

how active a role government should play in

encouraging growth. Some favor a pro-active

role for government, such as in Heflin and

Stuttgart, where government has provided tax

and other incentives to attract growth. Others

think that the best thing that government can

do is to provide a healthy climate for business

growth, but to otherwise get out of the way.

Most agree that government has a key

role to play in providing the infrastructure

that businesses need to succeed. In the past,

this meant roads, water, and sewer. In today’s

economy that list has expanded to include

telecommunications infrastructure and access

to global markets via ports and airports.

In this “information age,” telecommuni-

cations infrastructure is becoming increasing-

ly critical to business formation and growth.

The ability to tap into new markets around

the world has spawned many new businesses.

Existing businesses are using the Internet for

everything from managing their inventories to

providing more efficient customer service.

The U.S. Government Working Group on

Electronic Commerce reports that on-line

retail sales could reach $144 billion by 2003,

while the value of Internet transactions

between businesses could go as high as an

astounding $3.9 trillion. The digital revolu-

tion has made it possible to do business from

anywhere in the world that has access to

telecommunications infrastructure.

As technology makes trade with other

countries easier, exports are accounting for

more and more new jobs. In fact, exports

account for 40 percent of all new jobs created

in the U.S. since 1993. Businesses that export

tend to be stronger, paying higher wages, cre-

ating more jobs, and having greater chances

for long-term survival. Providing efficient

transportation systems that connect our busi-

nesses to global markets is an important role

for government, say supporters of Approach

One.

Regulations Stifle Growth“Don’t just stand there, undo some-

thing,” economist Murray Weidenbaum told a

congressional committee on regulations. The

former chairman of the President’s Council of

Economic Advisers wrote later that new busi-

nesses “…need the flexibility to adapt quickly

to the rapid changes that occur in the modern

global economy. Too many governmental

jurisdictions unwittingly place a bureaucratic

straitjacket on business.”

ONE

Sout

h C

arol

ina

Empl

oym

ent

Secu

rity

Com

mis

sion

/Rod

ney

Wel

ch

Supporters of Approach One say

that the creation of jobs is the

pathway to prosperity.

Create Jobs

10

Regulations all too often have huge costs

relative to only marginal benefits, point out sup-

porters of Approach One. It’s not right that

boarded-up factories stand vacant in inner-city

neighborhoods where jobs are needed, passed

up by developers worried about liability con-

cerns and too-stringent clean-up standards.

Why require groundwater at an abandoned rail-

way yard to be cleaner than our drinking water?

In Support✓ If we create jobs, everything else will fol-

low. People will have the money they need

to buy good houses and send their chil-

dren to good schools. You don’t have a

high quality of life if you don’t have a job.

✓ Business development generates the

tax revenue needed to operate schools,

pick up the trash, and fight crime. Resi-

dential development rarely pays its own

way in terms of taxes. Without business

development, home owners would either

have to pay more for community amenities

or cut back on services.

✓ New business development provides

alternatives for employment and makes our

communities more resilient.

Many supporters of Approach One

believe that overzealous government regula-

tions stifle job creation and undermine our

businesses’ competitiveness in the interna-

tional marketplace. The regulatory burden is

particularly great for small businesses, the

type of businesses that are now responsible

for most of the job growth in our economy.

Figures from the Institute for Policy Innova-

tion put the cost of complying with federal

regulations alone at more than $5,500 per

employee for small firms.

Environmental regulations are often

among the most daunting. In 1995, the cost

of environmental regulations to American

businesses and taxpayers was estimated to be

$170 billion, according to the U.S. Chamber

of Commerce. Yet in looking at a single pro-

gram, the Superfund cleanup of hazardous

waste sites, less than

half the money was

actually spent on

cleaning up

waste, and the

rest went to

administration or

lawyers.

ONE

Niculae Asciu

What Can Be Done?

Supporters of Approach One generally favor the following measures:

. Invest in infrastructure, such as roads and telecommunications,to support industry.

. Streamline permit processes to make development easier for businesses.

. Provide tax and other incentives to attract industry.

. Reduce regulations that inhibit business growth.

. Support the development of new, entrepreneurial businesses.

. Help identify new domestic and overseas markets for business.

Create Jobs

11

✓ Growth attracts people to our commu-

nities and helps keep our property val-

ues high.

✓ More development means more conve-

nience and more choices. It’s convenient

to have a grocery store, gas station, and

video rental store down the street.

✓ A strong and growing economy gener-

ates resources to protect the environ-

ment. A look around the world shows

that it is poor areas that are most likely

to pollute.

✓ A growing economy provides the

opportunities needed to keep our young

people at home. Without growth, our

children will need to move away in order

to make a living.

In Opposition✗ Business growth doesn’t necessarily

reduce unemployment. Faster-growing

communities often attract new residents

just as quickly as they create new jobs.

✗ Not all jobs are good jobs. While all the

talk is about high-paying computer jobs,

the reality is that many of the new jobs

being created are still in low-paying

positions, such as janitors, waiters, and

retail sales clerks.

✗ We already have enough jobs. The

unemployment rate is at a 30-year low.

We should be worrying more about how

to help businesses fill the jobs that are

going unfilled due to a lack of skilled

workers.

✗ Attracting new industry can be expen-

sive, both in terms of infrastructure

required, as well as an increased need for

services by new workers moving to the

community. New development often

doesn’t pay the full costs of its impact on

the community, especially where busi-

nesses have been given tax breaks.

ONE

For Further Reading/ Create Jobs

✗ Incentives divert money that might oth-

erwise be spent on schools, medical

care, and other services that would make

our communities more attractive in the

long term.

✗ Competition for new business pits

one community against another. Those

areas with fewer resources (especially

rural communities and inner cities) find

it difficult to compete with already-thriv-

ing communities.

✗ Uncontrolled development can hurt

economic development in the long run

by making the community less attractive

to potential workers and businesses.

. Bob Davis and David Wessell, Prosperity: The Coming Twenty-Year Boom and What It Means to You (New York: Random House, 1998).

. National Association of Manufacturers, Pro-Growth Agenda.

View on-line at www.nam.org

. Naomi Lopez, Barriers to Entrepreneurship: How Government Undermines Economic Opportunity, IPI Policy Report #149 (Lewisville, TX: Institute for

Policy Innovation, June 15, 1999) and Naomi Lopez, Tom Giovanetti and

W. Michael Cox, “Turning Lemonade into Lemons: How Government Puts the Squeeze on Entrepreneurs, IPI Insights (Lewisville, TX: Institute for Policy

Innovation, June 1, 1999) both at www.ipi.org

. See also the Web sites of the Heritage Foundation at www.heritage.org,

the Cato Institute at www.cato.org, and the Competitive Enterprise

Institute at www.cei.org

Create Jobs

12

own along the Mississippi Delta,

one of the birthplaces of the

blues, you’ll find Jonestown,

Mississippi, home to about 1,500 people.

Cotton once provided all the work people

needed, but that day is past. Now people

drive or ride the bus for miles, to towns like

Clarksdale or Tunica, to get to their jobs —

or they move out of Jonestown.

Jonestown used to have businesses,

doctors, and schools of its own. Today

trash collects in the empty storefronts along

Main Street. The old school building has

stood vacant for years. It’s said that people

have even burned their dilapidated old homes

in the hope that Habitat for Humanity would

build them new ones. Two-thirds of Jones-

town’s people live in poverty and the commu-

nity is plagued with illiteracy, teen pregnancy,

unemployment, and teen violence.

“Most people here worked out on the

farms at one point,” said Jonestown’s mayor,

Joe Phillips. “But not as many people are

needed to work the crops as used to be. So

they moved to the town. But they really didn’t

have the education or the skills to get other

jobs. And there wasn’t enough work anyway.”

Develop Human andCommunity Resources First

D

Pict

or/M

artin

Rog

ers

Education is the key to success,

Approach Two advocates say.

TWO

13

In communities such as Jonestown,

problems often are so ingrained they can’t be

fixed simply by bringing in a shiny new man-

ufacturing plant, even if one could be con-

vinced to locate there. Approach Two argues

that communities need to develop their per-

sonal and economic capacities before they

can participate in the opportunities of today’s

economy.

Education and retraining are particularly

important. Too often, we have left some peo-

ple, particularly minorities, in low-paying,

dead-end jobs that require few skills. We must

also pay attention to deep-seated issues, such

as race relations, that we often put off in favor

of easier, but potentially less lasting, solutions

to community problems.

Those who advocate Approach Two

believe true prosperity will be elusive or

incomplete until a community makes the

development of its people and its resources

the first priority. Only then can a community

develop its economy from a position of

strength rather than weakness.

Build Self-SufficiencyTowns and small cities across the South,

far outside the booming cities, are in a

predicament similar to Jonestown’s. Often,

they relied on a single industry, such as cot-

ton, or textiles, or tobacco, and when those

jobs disappeared through uncontrollable

shifts in the national or international econo-

my, people were left with few prospects. Even

some of those living in the Sunbelt’s booming

cities do not have the education or the

resources to take advantage of the good times.

Vance County, North Carolina, wants

some of the prosperity that has transformed

the Triangle region of that state. Instead,

Vance County is full of empty tobacco ware-

houses and textile mills; it has one of the

state’s highest unemployment rates and work-

ers who don’t have the skills or the education

that employers need. It’s a potentially devas-

tating combination that could not only endan-

ger the county’s future but become a costly

burden for state and federal taxpayers.

“Most people aren’t taking applications,”

said Patricia Williams, age 41.“There’s just

so many people out there out of a job.” She

used to make less than $9 an hour at Burling-

ton Industries and thought she would always

work there. But Burlington closed the plant

and Williams realized her 18 years there had-

n’t prepared her for any other job. Recently,

Williams started taking classes in early child-

hood education at a community college,

planning to become a teacher’s aide or day

care worker.

In the old economy, it was traditional

and safe to rely on one source of jobs. Not

anymore. When a company leaves or an

industry collapses, the upper-level executives

and managers can find new jobs or move. But

low-paid employees, frequently minorities

and usually poor, never learned other skills

and must scramble to find a new living.

Such is the legacy of the coal industry

in Letcher County, Kentucky. “They took

the raw materials, the resources, and the man-

TWO

1993 1994 1995 1996 1997

Source: Winning the Skills Race, Council on Competitiveness, 1998(from Coopers & Lybrand data)

America’s CEOs Say That Skill ShortagesAre the Number One Barrier to Growth

Percentages of U.S. Growth Company CEOs ReportingSkilled-Worker Shortages as Top Barrier to Growth

Perc

ent

%

70

60

50

40

30

20

10

0

Develop Human and Community Resources First

14

power that was available and used them to

make their millions of dollars,” Charles

Hawkins, a longtime resident, told the South-

ern Rural Development Initiative. “When they

got all they wanted, they sold out to somebody

else — and then they came in and got all they

wanted.”

Many in the community are understand-

ably wary of pinning their hopes for the future

on bringing in another big business. Instead,

Letcher County residents are looking to build

their future on the strengths of their communi-

ty, including strong family relationships and

rich cultural traditions. Creating programs to

teach parenting and life skills, promoting com-

munity schools, and further developing the

community’s arts and crafts traditions are

among the ideas that have emerged from Sow-

ing the Seeds, a citizen-initiated planning

process.

Educate and RetrainDespite significant progress, citizens of

many Southern states lag in math, science, and

reading achievement; high school dropout rates

are higher than average; and there is a lower

rate of adult literacy than in other parts of the

country. Other factors such as poverty,

teenage pregnancy, and lack of prenatal care

also put our children at risk for failure in the

future.

Supporters of Approach Two believe

these are the true roadblocks to prosperity in

the region. Investment in quality education,

skills training, and health care is essential not

only for individual success, but for communi-

ty success. If we develop healthy, educated

citizens, well-paying jobs will follow — the

kind that will sustain our families and com-

munities in the long term.

Investing in education, research shows,

provides the kind of returns any Wall Street

trader would approve of. One dollar spent on

quality preschool for a child saves us $7 that

we would otherwise spend later on special

education, social programs, and other costs

for that same child, according to a long-term

study. Developing our communities and our

citizens simultaneously is a smart strategy.

In Little Rock, Arkansas, one program

provides adult education and preschool in

the same building. So, while Mary Glover

studied for her GED, her sons Zachariah and

Caleb attended a preschool program across

When factories close and businesses move

out, they leave behind workers without needed

skills to pursue other economic opportunities.

Develop Human and Community Resources First

NY

T P

ictu

res/

Bruc

e Be

rman

TWO

15

South’s population grows increasingly

diverse. The issue is no longer just black and

white. For the U.S. as a whole, growth rates

for Hispanic and Asian populations are

almost double that for blacks or whites. Four

Southern states, led by Arkansas, are among

the top five states in the nation in terms of the

growth rate of the Hispanic population. To

put things in perspective, today, one in six

Nashville residents is foreign-born. Approach

Two envisions communities working together

to find ways to turn this diversity into a

source of strength rather than tension.

Make the Community aDesirable Place

Vance County, North Carolina, is build-

ing an arts center because people there under-

stand that jobs and new businesses by them-

selves don’t make a community whole. Many

executives who work in the county still

choose to live in Raleigh’s suburbs because

they want its cultural amenities.

Henderson, Vance County’s principal

town, has recruited native son and prominent

television journalist Charlie Rose to produce

a fund-raising video. The town is hoping to

raise $15 million to build the new arts center.

the hall. Mary was proud to be a role model

for her children, and parenting education

classes helped make the family stronger. At

the end of their first year, Mary started a new

job as an assistant in a Head Start classroom.

She soon enrolled in pre-algebra and comput-

er classes at a local college as a first step

toward fulfilling her dream of becoming a

child psychologist.

Both of Mary’s boys are doing very well

in school. “The benefits they received from

the classroom are countless,” she said.

Those benefits are greater than ever.

Education is the ticket for success today.

Despite a booming national and regional

economy, income inequality is at its highest

level since the U.S. Census began tracking

this data in 1947. Many economists say the

main reason for this gap is the rising value of

education. On one end of the scale are high-

paying jobs in fields such as microelectronics,

robotics, and electronic commerce. At the

other end are service sector jobs that require

fewer skills and command lower pay. A 12

percent unemployment rate for 25- to 34-

year-old male high school dropouts stands in

sharp contrast to an unemployment rate of

only 1.5 percent for those with at least a

bachelor’s degree.

Bridge Racial and Cultural Divides

In Fort Myers, Florida, a new shopping

center at the corner of Sabal Palm and Martin

Luther King, Jr. boulevards serves as a sym-

bol of progress in a community that was once

referred to as one of the most racially segre-

gated in the South. The shopping center,

which serves a low-income area, is just one

of the more tangible results of a process that

brought citizens together to address issues

of race, racism, and segregation in the

community.

This kind of pulling together will only

become more important in the future as the When coal mines in Letcher County, Kentucky, closed, coal miners were out of work.

A citizen initiative, called Sowing the Seeds, now looks to developing other strengths

in the community.

Pict

or/M

artin

Rog

ers

Develop Human and Community Resources First TWO

TWO

16

Niculae Asciu

Supporters of Approach Two generally favor the following measures:

. Spend more money on education, from preschool through higher education.

. Implement aggressive dropout-reduction programs.

. Develop programs to provide training and retraining to those already in the work force.

. Strengthen families through programs in family literacy, parent education, abuse prevention, and other areas.

. Make sure everyone has easy access to quality health care.

. Increase home ownership as a tool for building family wealth and stronger

communities.

. Conduct programs to help bridge racial and cultural divides.

. Provide incentives to encourage investment in inner cities and rural areas

that have been left behind in the new economy.

. Develop programs to build community leadership and civic engagement.

What Can Be Done?

Similarly, Jonestown is embarking on

a project with Mississippi State University

to reclaim and renovate its old school

building as a community center. The goal is

to provide a focus for the town’s activities

and provide some much-needed services

such as day care, recreation, and adult edu-

cation in one place.

“As a mother of a three-year-old, I was

amazed to hear that many young mothers

leave their homes at 5 a.m. to catch a bus to

Tunica to work,” said Shannon Criss, direc-

tor of the Small Town Center at Mississippi

State University. “After working for eight

hours, they then travel back to be home by

8 p.m. Who attends to their children?

What kind of family life is there for these

kids?”

Jonestown also is building a small

nature trail on the bayou near the school

building, and the local community college

is renewing its effort to provide job train-

ing. Those who live in Jonestown are com-

mitted to changing their lives and their

community from the ground up, making it

a better place, before any new businesses

come in.

Develop Human and Community Resources First

TWO

17

In Support✓ Education is the ticket to success

today. A growing percentage of busi-

ness leaders say that skills shortages

are the number one barrier to business

growth. Communities that develop a

skilled work force will be well on their

way toward attracting high-growth,

high-wage businesses.

✓ The South’s population is becoming

more diverse. With the economy

becoming increasingly global, we

would be wise to find a way to turn

this diversity into a strength rather

than a source of tension.

✓ Strong families are the backbone of

prosperous communities. Studies

show that teens who have close family

relationships are least likely to engage

in risky and violent behaviors.

✓ The health of our inner cities and

our rural areas affects the entire region.

We all pay when these areas suffer

business closings, high unemployment,

and low wages.

✓ Research has shown that strong com-

munity groups and involved citizens

are a key ingredient in a community’s

economic success.

In Opposition✗ Having everyone hold hands and sing

“kumbaya” sounds nice, but realistical-

ly, how is this going to solve a commu-

nity’s long-term problems?

✗ Investments in prenatal care, early

childhood education, and the like will

take a long time to show any payback.

We need to improve economic

conditions now.

For Further Reading/ Develop Human and Community Resources First

✗ Investments like the ones we’re talking

about are expensive. We would have to

raise taxes to pay for these programs and

that would slow economic growth.

Besides, there’s a lot of waste in govern-

ment programs already.

✗ We have been trying to improve our

educational system for decades. Throw-

ing money at the problem doesn’t seem

to work. Per pupil funding for K-12 edu-

cation has almost doubled in the past 30

years and we still lag in achievement.

✗ Everyone should be able to make it on

their own if they just work hard enough.

Government should not be meddling in

family affairs.

Develop Human and Community Resources First

.Robert Putnam, Bowling Alone: The Collapse and Revival of American Community (New York: Simon & Schuster, 2000). See also, Robert Putnam,

“The Prosperous Community,” in The American Prospect, Volume 4, Issue 13,

March 21, 1993 at www.prospect.org/print/V4/13/putnam-r.html

.Brookings Institution Center on Urban and Metropolitan Policy,

The Value of Investing in Youth (Morino Institute).

See www.brookings.org/es/urban/morino.pdf

.Michal Smith-Mello, Reclaiming Community, Reckoning with Change (Kentucky Long-Term Policy Research Center, December 1995).See www.kltprc.net/PDFs/Reclaim.pdf

.U.S. Department of Housing and Urban Development, Now Is the Time: Places Left Behind in the New Economy (Washington, D.C.: HUD, April 1999).See www.hud.gov/pressrel/execsumm.html or order a free copy through

HUD USER at 1-800-245-2691 or www.huduser.org

18

tlanta burned during the Civil War,

but you would never know it now.

Between 1990 and 2000 alone,

the metropolitan area’s population grew by

more than one-third, to 4.1 million people.

Suburban development around the city con-

sumes 50 acres of forest every day. The aver-

age commuter drives 35 miles a day, more

than anywhere else in the U.S., and often in

heavy, aggravating traffic.

Growth is swallowing up once-rural

counties and small towns. Ozone and smog

levels are so high the federal government

began to withhold money that would build

roads. The very health of Atlanta’s residents

has been threatened. Scientists even say that

Atlanta now has so much pavement, it is cre-

ating its own weather.

Fearing that such growth will choke the

region’s future prosperity in traffic and smog,

Georgia’s leaders are trying to get things under

control. But years of habits in decision making

— to build more subdivisions, more malls and

more highways — are hard to turn around.

“We’re trying to slow down the QueenMary, and we’ve just now seen the rocks in the

water ahead,” said Lucy Smethurst, director

of Atlanta’s Clean Air Campaign, in the NewYork Times.

Supporters of Approach Three say

Atlanta’s predicament illustrates that if we

don’t manage growth, the South as we know it

will disappear. Blindly allowing more develop-

ment, in the name of prosperity at any price,

will leave us with an ugly place where no one

wants to live — and that’s not prosperity by

anyone’s definition.

“So many American cities today have lost

their souls — they have let go of the very charac-

ter that made them special,” observed John

THREEPi

ctor

A

Manage Growth

Atlanta is among the most prosperous

cities in the nation. But at what price,

proponents of Approach Three ask.

19

consider itself fortunate, because many towns,

particularly in the Midwest and Northeast,

actually have lost jobs and population. And

Approach Three does not necessarily mean

growth must be tightly controlled. A commu-

nity may decide that at this particular time, it

wants a significant rate of growth. But every

city should give conscious thought to that

choice and make the decision in full aware-

ness of its advantages and its consequences.

Elaine Ogburn, 65, once saw farms and

trees through her kitchen window in Varina,

Virginia, east of Richmond. Now she sees

new houses.

“I used to be able to know who was in

the cars driving on Midview Road, but not

anymore,” Ogburn told the Richmond Times-Dispatch. “It’s been a real change to see hous-

es pop out of the ground on land that was

cultivated.”

The farm her family once operated has

been cut up into subdivisions, like many oth-

ers. Ogburn and her neighbors, and even

Williams, chairman of the Metropolitan

Atlanta Chamber of Commerce, in testimony

before Congress. “We have adopted an Any-

where, USA, persona that is damaging to local

economic growth.”

Those who advocate Approach Three

think the best strategy is to manage growth in

a rational way, using all the expertise avail-

able. Growth is still better for a community

than the alternative, but it needs to be proper-

ly planned. Communities can and should be

able to preserve their unique qualities. That

includes the way our cities and neighbor-

hoods look, the number of trees we allow to

be uprooted, the kind of jobs we want our

children to have, and the level of daily stress

we’re willing to tolerate.

Simply leaving those choices to larger

economic forces is not the best way to build

the future. Emphasizing economic develop-

ment over planning, even with a focus on the

people and places left out, is a dangerous

course to take. Witness the overcrowding in

so many of our children’s schools. When

communities can’t build enough schools to

keep up with growth, that should sound an

alarm. Get control of the growth first, and

other problems will be easier to tackle later.

If we take stock of what we value,

whether it’s a river, a historic district, or a

park, we can lay a solid foundation for making

intelligent decisions.

This kind of planning benefits everyone

with a stake in the future: suburban com-

muters tired of battling heavy traffic; rural

towns worried about being swallowed up by

expanding metropolitan areas; farmers who

need to know whether they’ll be able to devel-

op their land; and low-income residents who

don’t want to be left behind in the rush to

build.

Planning for the FutureBringing in more jobs and new residents

is good for a community, keeping it vibrant

and diverse. Any growing community should

Planning Saves MoneyCosts of public services in a planned growth area, in an unplannedarea, and in a rural area ten miles from existing public services, 1989

Source: J. Frank, “The Costs of Alternative Development Patterns:A Review of the Literature,” Urban Land Institute, Washington, D.C., 1989

$50,000

$40,000

$30,000

$20,000

$10,000

$ 0

In an unplanned area In an unplannedrural area

In a planned area

$18,000

$35,000

$48,000

Costs of public services per dwelling unit

THREEManage Growth

20

THREE Manage Growth

some of those new residents, fear that the very

qualities they saw in Varina are vanishing.

Sometimes that’s unavoidable. We

change the places we move into, simply by

moving there. But if that is repeated over and

over, without any thought to the conse-

quences, the results can be devastating.

This is a particular concern in the South,

which has historically had a strong sense of

identity and place. Growth increases stress on

people and livelihoods in many ways.

Farming, a long and respected tradition

in the South, has come under pressure from

growth in the last 50 years. Of the ten states

identified by the U.S. Department of Agricul-

ture as experiencing the highest conversion of

farmland to development, four are located in

the South. In Georgia alone, an average of

37,000 acres of farmland are being developed

each year.

Our cities, too, are facing pressure as

both residents and businesses flee to the sub-

urbs. In St. Louis, the regional population has

grown slowly but land development in subur-

ban areas has accelerated, as people move out

of the city. Between 1950 and 1990, the area’s

population increased by only 39 percent,

while the amount of land consumed increased

by 219 percent. Father James Edwards, a

Catholic priest active on this issue, put it

this way in the St. Louis Review: “The core

area has been emptying out for several

decades, with consequences for everyone.

The taxpayers keep paying for new infrastruc-

ture, new sewers and roads in new areas,

while the older infrastructure suffers.”

In similar ways, our current patterns of

development do little to bring us together as a

community, caution supporters of Approach

Three. As we abandon our downtowns, we

are increasingly becoming divided by race, a

phenomenon also playing out in St. Louis.

“This is a society that, since the beginning,

has always equated moving up with moving

out. We happen to be in a city, St. Louis,

where if you move west, you’re making

progress,” a law enforcement officer told Ray

Suarez, former host of National Public

Radio’s “Talk of the Nation.” Although blacks

make up only 18 percent of the metropolitan

area’s population, they account for 51 percent

of those living in the central city.

Supporters of Approach Three believe

we can address these issues if we take the

reins of growth firmly in our hands.

We already know a lot about how com-

munities grow. Knowing what kinds of houses

are being built, we can calculate how many

more cars will be on the roads and how many

people will commute between certain com-

munities. Using that kind of information, we

ought to be able to better manage that growth.

We should tap into the expertise of planners,

people we pay anyway in every city and town,

and consider their best advice.

Learning from InnovationOne approach is what’s called “planned

communities.” These kinds of towns, usually

small, are carefully planned from the start.

Frequently, businesses and homes are kept

closer to each other than they are in most

Williamsburg,Virginia. Historic sites are

part of a community’s character, and

it is important to maintain their

integrity by controlling development

around them.

Pict

or

21

suburbs, more like the way towns used to be

built. At its best, this approach eliminates

sprawl and maximizes community identity.

Seaside, Florida, is one example of a

planned community; where the emphasis is

on walking, not driving, where houses have

front porches and smaller lots. In Atlanta,

some builders are now putting up urban vil-

lages close to downtown, designed on similar

principles.

Not everyone can live in a planned com-

munity because there aren’t that many;

they’re small, and they can be expensive. But

there are lessons we can learn from the idea,

particularly about community character.

Planned communities know exactly what

they want to be. Ideally, every decision

springs from that self-image, and everything is

built with that picture in mind. That can be

useful in any city, because the wrong kind of

growth often results when people lose track of

what they want their community to be.

Many towns have a river, a hill, a forest,

or another natural feature that is an integral

part of the town’s character. If new houses

and businesses are built without keeping that

in mind, a community may start to lose a vital

aspect of its identity. This should be part of a

community’s deliberation: Are there water-

ways that contribute to the urban character?

Do people identify the region with particular

natural resources?

Farms are increasingly pressured by

urban sprawl. Of the ten states with

the highest rate of conversion of

farmland to development, five are

located in the South.

Pict

or

Planning gives people more control over residential, commercial, and industrial development

that affect their communities.

CO

RBI

S/St

eve

Che

nin

Manage Growth THREE

22

Manage Growth

The Tennessee River runs through the

city of Chattanooga, but by the 1980s no one

went near the river, which was lined with

empty warehouses and dilapidated factories.

In 1982, the city brought residents together

to talk about what they valued and what

ought to be done. During the months of dis-

cussions that followed, it became clear that

people cared about the river. A master plan

for the riverfront, which emerged from those

discussions, has produced a rebirth of interest

and investment along the Tennessee River.

More than $350 million has been invested in

revitalization projects, such as the Tennessee

Aquarium, most of it from private sources.

People in Chattanooga are enjoying the

river again, something that reminds them why

they love their city.

Similarly, historic buildings and sites

form part of a community’s character and are

equally vulnerable to development. Should

certain buildings be preserved by working

with business and government? Is there a

neighborhood that would be threatened by

encroaching development?

Coming Full CircleMany cities are learning that growth

needs to be kept in line with the community’s

plans for the future. Otherwise, it can endan-

ger prosperity in the long run, damaging the

quality of life and driving people away.

Some businesses are beginning to see

that managed growth is economically prefer-

able to uncontrolled growth. The quality of

life in a community has become increasingly

important to businesses, as the Internet and

other technological advances have made it

possible for them to locate just about any-

where in the world. The key question then

becomes, “Where would my employees want

to live?”

“We could almost go brain dead here

and still get economic development,”

observed a Nashville, Tennessee, metropoli-

tan-area leader during a series of discussions

on the future of the region. But, he said, “I’m

really concerned about transportation, roads.

We keep moving forward a step and then slide

two back. That’s what could stop us — the

quality-of-life issue. I see us hurtling toward

Atlanta conditions, just ten years behind.”

In Support✓ Growth is threatening our quality of life.

We are stuck in traffic jams, taking time

away from our families; our children go

to class in trailers because their school

buildings are bursting at the seams; and

our health is threatened by increased

pollution.

✓ Uncontrolled development is hurting

our long-term economic prospects by

making our communities less attractive

to potential workers and businesses.

What Can Be Done?

Supporters of Approach Three generally favor the following measures:

. Use regulations and incentives to direct development to specific areas.

. Favor existing communities rather than new developments when making public infrastructure investments.

. Ensure that new developments in outlying areas pay the full costs of services.

. Provide incentives to encourage historic preservation and the reuse of vacant buildings.

. Encourage more compact, mixed-use, pedestrian- and transit-oriented developments through zoning regulations and incentives.

. Re-create small, close-knit communities through design features such as front porches, smaller streets, and shared open spaces.

. Undertake comprehensive efforts to revitalize inner cities.

. Preserve farmland and open space through acquisition programs,incentives, and/or regulations.

. Provide more transportation choices, such as rail, bus, and/or bike lanes.

. Enact regulations to protect the environment.

THREE

23

✓ Communities are losing their unique

character as sweeping landscapes and

historic buildings give way to identical

shopping malls and cul-de-sacs all

across the South.

✓ Our communities are becoming geo-

graphically divided by race, with

minorities concentrated in inner cities

that have been all but abandoned as

growth flows to the suburbs.

✓ It is a waste of taxpayer dollars to aban-

don infrastructure in our inner cities

and rebuild it in our suburbs.

✓ Sprawling residential growth often

costs more in terms of public services

than it generates in taxes.

✓ Our very way of life is threatened as

farmlands and open space give way to

development. The natural resources of

the South are critical to maintaining a

lifestyle that draws and retains resi-

dents, businesses, and tourists.

✓ Our natural resources are finite. Once

they’re gone, they’re gone.

In Opposition✗ Growth restrictions violate personal

property rights. If individuals want to

buy property and build a house in the

suburbs (or sell their land to provide

money for retirement) that’s their right.

People should be able to decide where

they want to live and in what type of

house. We don’t need planners to

decide for us.

✗ Growth restrictions will make houses

more expensive and put the American

dream of home ownership out of the

reach of more and more people.

✗ It’s not realistic to believe that people

will use mass transit. It’s simply not

convenient. We shouldn’t throw more

money after an idea that hasn’t worked.

For Further Reading/ Manage Growth

. Andres Duany, Elizabeth Plater-Zyberk, and Jeff Speck, Suburban Nation: The Rise of Sprawl and the Decline of the American Dream(North Point Press, March 2000).

. Richard Moe and Carter Wilkie, Changing Places: RebuildingCommunity in the Age of Sprawl (Holt & Co., April 1999).

. Richard Florida, “Competing in the Age of Talent: Quality of Place and the New Economy,” a report prepared for the R.K. Mellon Foundation, Heinz

Endowments, and Sustainable Pittsburgh ( January 2000). View on-line at

www.heinz.cmu.edu/~florida/talent.pdf

. National Association of Local Government Environmental Professionals,

Profiles of Business Leadership on Smart Growth (Washington, D.C.:

NALGEP, June 1999). View the executive summary on-line at

www.nalgep.org/smartgrowth.htm or order through NALGEP at

202-638-6254 or www.nalgep.org

✗ Growth restrictions discriminate against

newcomers to the community, including

immigrants. The elite want to pull up the

drawbridge after they’ve arrived.

✗ Restricting growth would hurt our

economy. We need business development

in order to pay for our schools, fire pro-

tection, and other community services.

✗ Growth is exaggerated as a problem.

Only 5 percent of the land in the U.S. is

now developed. Advances in technology

mean that we now need less land for

farming, and that our industries and cars

are cleaner and less likely to pollute.

✗ Purely localized growth management

will not solve the problem. It may even

make it worse by forcing growth to

more outlying areas without growth

restrictions.

Manage Growth THREE

Create Jobs

Jobs are the key toprosperity for all.If we create jobs,everything else will follow. Thisapproach, morethan any other, hasmade the South what it is today. Why change what’s already working?

What Can Be Done?

◆ Invest in infrastructure, such as roads and telecommunications,to support industry.

◆ Provide tax and other incentives to attract industry.

◆ Reduce regulations that inhibit business growth.

In Support

◆ Jobs are what make a community prosper; without them, it stagnates and dies.

◆ Job creation provides the opportunities needed to keep our young people at home. Without growth, our children will need to move away in order to make a living.

◆ Business growth generates the tax revenue needed to operateschools, pick up the trash, and fight crime.

In Opposition

◆ Not all jobs are good jobs. Many of the new jobs being created are in low-paying positions such as janitors, waiters, and retailsales clerks.

◆ Attracting new industry can be expensive. This money might be better spent on schools, medical care, and other services thatwould make our communities more attractive in the long term.

◆ Uncontrolled development can hurt economic development in the long run by making the community less attractive to potentialworkers and businesses.

A Likely Trade-off?

◆ Focusing solely on job creation may result in undesirable sideeffects, such as traffic congestion and air pollution, which endanger a distinctive and valued way of life.

ONE

“It’s the end of the world as we know it…(and I feel

fine),” penned by the Southern rock band R.E.M., is a

song remarkably attuned to recent times.

You could make the song relevant for any decade of

the twentieth century and its unprecedented pace of

change. It was the end of the world as we knew it after

World War II, when the South used its cheap labor, cheap

land, and low taxes to bring thousands of manufacturing

plants, and jobs, to our states. It was the end of the world

as we knew it when farms and small towns, once the hall-

mark of the South, began to give way to development. It

was the end of the world as we knew it when the first desk-

top computers armed us with powerful spreadsheet and

word-processing applications, and again when the Internet

forever altered the ways in which we communicate.

R.E.M.’s song is no less relevant today. But how fine

do we feel? What do we think of our quality of life? Many

of our most successful communities bemoan commute

times and other by-products of rapid growth while more

economically deprived areas hunger for jobs at almost any

cost.

Faced with all the changes that are taking place

around us, what is the best pathway to prosperity for our

communities? Our purpose here is not to suggest a single

correct path, but to support exploration of many pathways,

each with its own trade-offs and consequences. To spur

conversation, deliberation, and action, three possible path-

ways are outlined in this summary. These options and the

guide itself are intended to serve as the beginning points

for a community’s discussion about what is important as it

pursues sound, informed decisions about its future.

24

Comparing theApproaches

SUMMARY

DevelopHuman andCommunityResources First

The region’s economic progress has leftmany behind.Unless we address long-standing problems such as illiteracy,poverty, and poor health, prosperity is likely to remain elusive formany people and communities.

What Can Be Done?

◆ Improve education and training programs for children and adults.

◆ Provide incentives to encourage investment in inner cities and rural areas that have been left behind in today’s economy.

◆ Develop programs to build community leadership and civicengagement.

In Support

◆ Education is the ticket to success today. Communities that develop a skilled work force will be well on their way towardattracting high-growth, high-wage businesses.

◆ The health of our inner cities and rural areas affects the entireregion. We all pay when these areas suffer business closings,high unemployment, and low wages.

◆ Research has shown that strong community groups and involvedcitizens are a key ingredient in a community’s economic success.

In Opposition

◆ Investments in things like education take a long time to show anypayback. We need to improve economic conditions now.

◆ Providing cultural amenities and building nature trails are worthyactivities but, realistically, how will they solve a community’s long-term problems?

◆ We’ve been trying to address these types of problems for decades.Throwing money at them doesn’t seem to work. They’re likely to be with us always.

A Likely Trade-off?

◆ Investing in human and community resources may be a wise strategy in the long run, but this approach is likely to take a longtime to show results.

Manage Growth

If we don’t do a betterjob of managing growth,we will destroy the quality of life that makes our communitiesattractive to citizens and businesses. Growthis still better for a community than the alternative, but it needs to be properly planned.

What Can Be Done?

◆ Use regulations and incentives to direct development to specificareas.

◆ Favor existing communities rather than new developments whenmaking public infrastructure investments.

◆ Preserve farmland and open space through acquisition programs,incentives, and/or regulations.

In Support

◆ Growth is threatening our quality of life. We are stuck in traffic jams, our children’s schools are bursting at the seams, and our health is threatened by increased pollution.

◆ Uncontrolled development is hurting our long-term economicprospects by making our communities less attractive to potentialworkers and businesses.

◆ Current development patterns are often economically inefficient and waste taxpayer dollars.

In Opposition

◆ Restricting growth would hurt our economy. We need businessdevelopment in order to pay for community services.

◆ Growth restrictions violate personal property rights. People shouldbe able to decide where they want to live and what they can do with their land.

◆ Growth restrictions are elitist, making houses more expensive andputting the American dream of homeownership out of the reach ofmore and more people.

A Likely Trade-off?

◆ Taking a more pro-active approach to planning for growth may helpprotect a community’s natural resources, but it is likely to restrictindividual property rights and may slow economic growth.

25

QUESTIONAIRESSUMMARY

TWO THREE

Notes

PRE-FORUM QUESTIONNAIRE

One of the reasons people participate in discussion forums is that they want others to know how they feel about certain issues. So thatwe can present reports on your thoughts about the issue, we’d like you to fill out this questionnaire before you attend a forum. At theend of the forum, your moderator will ask you to fill out the Post-Forum Questionnaire. Before answering the questions, please make upa 3-digit number and fill it in here: .

Pathways to Prosperity:Choosing a Future for Your Community

1. Which statement best describes your thoughts about what should be done to build prosperity in your community and the region? Check one.

a. I am not at all sure what should be done.

b. I have a general sense of what should be done.

c. I have a definite opinion about what should be done.

Strongly Somewhat Somewhat Strongly Not2. Do you agree or disagree with the statements below? agree agree disagree disagree sure

a. While much of the region prospers, too many people are left behind.

b. Professional planning is needed to manage growth.

c. Building an educated, skilled work force should be our top priority.

d. Government regulations stifle business growth.

e. Uncontrolled growth threatens our quality of life in both rural and urban areas.

f. Business growth is the key to prosperity for all.

g. Community input is needed to manage growth.

3. Are there any other things that trouble you about growth in your region? Please explain.

Strongly Somewhat Somewhat Strongly Not4. Do you favor or oppose each of these actions? favor favor oppose oppose sure

a. Reduce regulations that inhibit business growth.

b. Provide incentives to encourage investment in declining inner cities and rural areas.

c. Spend more money on education and training programs.

d. Use public funds to preserve farmland and open space.

e. Provide tax and other incentives to attract new businesses.

f. Use zoning laws and other regulations to direct development to specific areas.

5. Are you male or female? Male Female

6. How much schooling have you completed?

Less than 6th grade 6th – 8th grade Some high school High school graduate

Some college College graduate Graduate school

27

28

7. Are you:

African-American Asian-American Hispanic Native American White

Other (specify)

8. How old are you?

17 or younger 18 – 29 30 – 49 50 – 64 65 or older

9. For which type of business or organization do you work?

Government Business Nonprofit Educational institution

I’m a student I’m not currently employed Other (specify)

10. In what state do you live?

AL AR FL GA

KY LA MO MS

NC OK PR SC

TN VA WV Other (specify)

11. In which type of community do you live?

Rural Urban Suburban

Please give this form to the forum leader, or mail to: Linda Hoke, Southern Growth Policies Board, P.O. Box 12293,Research Triangle Park, NC 27709.

PRE-FORUM QUESTIONNAIRE

29

Now that you’ve had a chance to participate in a forum on this issue, we’d like to know what you are thinking. Your opinions, alongwith those of others who participated in forums, will be reflected in a summary report that will be distributed to officeholders, themedia, and others in the region. Since we’re interested in whether you have changed your mind about certain aspects of the issue, a fewof the questions will be the same as those you answered earlier. Fill in your 3-digit number here: .

Pathways to Prosperity:Choosing a Future for Your Community

POST-FORUM QUESTIONNAIRE

Strongly Somewhat Somewhat Strongly Not1. Do you favor or oppose the actions listed below? favor favor oppose oppose sure

a. Communities should make every effort to increase job opportunities through business growth, EVEN IF that may result in undesirable side effects such as more air pollution and traffic congestion.

b. Communities should focus on solving deep-seated social problems,EVEN IF it takes a long time to show any results.

c. Communities should work with city planners to control whether,where, and how growth should occur, EVEN IF this restricts where people can live and what they do with their property.

Strongly Somewhat Somewhat Strongly Not2. Do you favor or oppose each of these actions? favor favor oppose oppose sure

a. Reduce regulations that inhibit business growth.

b. Provide incentives to encourage investment in declining inner cities and rural areas.

c. Spend more money on education and training programs.

d. Use public funds to preserve farmland and open space.

e. Provide tax and other incentives to attract new businesses.

f. Use zoning laws and other regulations to direct development to specific areas.

Strongly Somewhat Somewhat Strongly Not3. Do you agree or disagree with the statements below? agree agree disagree disagree sure

a. While much of the region prospers, too many people are left behind.

b. Professional planning is needed to manage growth.

c. Building an educated, skilled work force should be our top priority.

d. Government regulations stifle business growth.

e. Uncontrolled growth threatens our quality of life in both rural and urban areas.

f. Business growth is the key to prosperity for all.

g. Community input is needed to manage growth.

4. Which statement best describes what you think should be done to build prosperity in your community and the region? Check one.

a. I am not at all sure what should be done.

b. I have a general sense of what should be done.

c. I have a definite opinion about what should be done.

30

POST-FORUM QUESTIONNAIRE

5. What principles or deeply held beliefs should guide our approach to building prosperity? Please explain.

6. Are you thinking differently about this issue, now that you have participated in the forum? Yes NoPlease explain.

7. Do you see ways for people to work on this issue that you didn’t see before? Yes NoPlease explain.

8. What, if anything, might you do differently as a result of this forum?

9. What else, if anything, troubles you about the challenges of building prosperity? Please explain.

Please give this form to the forum leader, or mail to: Linda Hoke, Southern Growth Policies Board, P.O. Box 12293,Research Triangle Park, NC 27709.

About the Southern Growth Policies BoardFormed by the region’s governors in 1971, the Southern Growth Policies Board

is a unique public-private partnership devoted to strengthening the South’s economy

and creating the highest possible quality of life. With the region’s governors, legislative

leaders, and private citizens as members, Southern Growth is a catalyst for the creative

and sustained actions needed to build a better South. Thirteen states — Alabama,

Arkansas, Georgia, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Okla-

homa, South Carolina, Tennessee, Virginia, and West Virginia — and Puerto Rico partici-

pate in and support Southern Growth’s work.

Southern Growth is especially focused on globalization, technology and innovation,

the changing nature of the workforce, and the vital role of community. Advisory bodies

comprised of leading citizens from across the South guide Southern Growth’s work in

each of these areas. For more information, call Southern Growth at (919) 941-5145 or

visit our Web site at www.southern.org.

AcknowledgmentsThe Southern Growth Policies Board would like to thank the Kettering Foundation

for its support in developing and publishing this issue book. Special thanks are due to

David Mathews and Estus Smith, who saw the promise of developing materials to engage

citizens in dialogue aboout issues of importance to the South; to Carolyn Farrow-Gar-

land, who helped shepherd the project along in its development; and to Ed Arnone, Bob

McKenzie, and Bob Kingston, who helped guide the process of defining and framing the

issue.

Special thanks also go to members of the project’s advisory committee, who were

involved in every step of the project. Their contributions included conducting interviews

to help identify different points of view on the issue, framing the issue and developing

alternative choices, clarifying the presentation, and conducting test forums. Members

include Christine Chadwick, Executive Director of FOCUS St. Louis; Fred Sheheen,

Director of the Center for Citizenship at the University of South Carolina’s Institute of

Public Affairs; Susan Taylor, of Taylor and Associates, representing the University of

Georgia’s Fanning Institute for Leadership Development; and Angela Woodward, Direc-

tor of Leadership Kentucky.

For Additional CopiesFor additional copies of Pathways to Prosperity: Choosing a Future for Your

Community, contact: Linda Hoke, Senior Program Manager, Southern Growth Policies

Board, P.O. Box 12293, Research Triangle Park, NC 27709. Phone: 919-941-5145.

Email: lhoke@southern.org

At Southern Growth Policies BoardExecutive Director: Jim Clinton

Senior Program Manager: Linda Hoke

WritersTony Wharton and Linda Hoke

At the Kettering FoundationEditor: Ilse Tebbetts

Publisher: Edward J. Arnone

Production Manager: George Cavanaugh

Copy Editor: Betty Frecker

Design and GraphicsDesign: Long’s Graphic Design, Inc.

Cover Illustration: Long’s Graphic Design, Inc.

Inside Illustrations: Nicolae Asciu

Pathways to Prosperity: Choosing a Future for Your CommunityCopyright 2001 by Southern Growth Policies Board

All rights reserved

P.O. Box 12293Research Triangle Park, NC 27709(919) 941-5145

www.southern.org

Moderator Guide

Pathways to Prosperity: Choosing a Future for Your Community

Rapid growth has transformed the South from the poorest region in the nation to the world’s third largest economy in the span of a single lifetime. But even as many communities prosper, continued commercial and population growth raise troubling questions. What of those left behind? Does our enthusiasm for economic progress endanger a distinctive and valued way of life? How do we convert growth into prosperity? The Pathways to Prosperity discussion guide is designed to encourage communities to think about these questions and to choose a path to the future for their community. The guide does not advocate a specific solution or point of view. Rather, it is intended to inspire thoughtful examination of differing points of view and a movement towards common ground around which the community can make plans for its future. Equipment/Supplies Needed

� Pathways to Prosperity issue book (or “Comparing the Approaches” summary) for each participant

� Pathways to Prosperity video � Pre-Forum and Post-Forum Questionnaires for each participant � Pencils/pens for completing the questionnaires � VCR � Flip chart and markers � Ground rules poster (optional)

Copies of the issue book ($3 each) and the starter video ($12) can be ordered from the Southern Growth Policies Board. Call Niraj Goswami at (919) 941-5145 to place an order. The issue book can also be downloaded from the Internet at www.southern.org/pubs/ptp/pathways.shtml . Moderators are free to copy the entire book, or just the “Comparing the Approaches” summary and Pre-Forum and Post-Forum Questionnaires.

Suggested Format for a Two-Hour Forum Welcome (5 minutes)Welcome (5 minutes)Welcome (5 minutes)Welcome (5 minutes) Introduce yourself and tell participants about the organization(s) convening the forum. Stress the co-sponsorship if several organizations are involved. Give a brief introduction about the importance of the Pathways to Prosperity topic (growth and economic development) to the community. Explain that the results of the forum will be shared with Southern leaders through the Southern Growth Policies Board, by saying something such as the following:

Participating in this forum means that your views will be heard by Southern leaders. This issue book was prepared by the Southern Growth Policies Board, a regional, multi-state organization. Southern Growth’s work focuses on strengthening the South’s economy and creating the highest possible quality of life in the region. The organization was formed by the region’s governors in 1971 and counts the governors, legislative leaders, business leaders, and citizens as members. Fourteen states, including [your state], participate in and support Southern Growth’s work. Southern Growth plans to prepare a report on forum results that will be presented to the governors and other Southern leaders in 2003.

PrePrePrePre----Forum Questionnaire (5 minutes)Forum Questionnaire (5 minutes)Forum Questionnaire (5 minutes)Forum Questionnaire (5 minutes) Ask participants to complete the Pre-Forum Questionnaire. Explain to participants that the Pre-Forum Questionnaire is a way to get everyone focused on the issue and a way for each participant to take inventory of their initial feelings on the issue. Tell them that there’ll be another questionnaire for them at the end of the forum. GGGGround Rules (5 minutes)round Rules (5 minutes)round Rules (5 minutes)round Rules (5 minutes) Review ground rules with participants before beginning the discussion. Make clear that the forum is not a debate. Stress that there is work to do (this is not just a free flowing discussion with no purpose), and the work is to move toward making plans for the community’s future. The work will be done through deliberation. The following are suggested ground rules:

• The moderator will guide the discussion yet remain neutral.

• The moderator will make sure that:

o Everyone understands that this is not a debate o Everyone is encouraged to participate o No one or two individuals dominate o Every approach is considered fairly and fully o An atmosphere for discussion and analysis of alternatives is maintained

o Participants listen to each other The moderator should ask the group if they agree with these rules and invite them to suggest others to add to the list. Moderators can call the Kettering Foundation at (800) 433-7834 to request a free poster that outlines these ground rules. Show the StartShow the StartShow the StartShow the Starter Video (15 minutes)er Video (15 minutes)er Video (15 minutes)er Video (15 minutes) Explain that the video reviews the problems underlying the issue, then briefly examines three policy alternatives. In so doing, it sets the stage for deliberation. (Starter videos can be ordered from the Southern Growth Policies Board for $12. Call Niraj Goswami at 919-941-5145). Personal Stake (10 minutes)Personal Stake (10 minutes)Personal Stake (10 minutes)Personal Stake (10 minutes) Connect the issues to people’s lives and concerns – in the first few minutes – by getting participants to talk about their personal experiences with the issue. This makes the issue human rather than abstract. Some questions you might ask include: “Has anyone had a personal experience that illustrates the problems associated with this issue?” “Within your family or circle of friends, is this an important issue?” “What aspects of the issue are most important to you?” “When you think about this issue, what concerns you, and why?” Reviewing Possible Approaches (45 minutes)Reviewing Possible Approaches (45 minutes)Reviewing Possible Approaches (45 minutes)Reviewing Possible Approaches (45 minutes) The next step is to review and deliberate on each approach, one-by-one. Deliberation requires weighing the “pros” and “cons” of different approaches so it is important to be sure that both are fully aired. Questions to help ensure a fair and balanced examination of each approach include:

• What makes this approach a good idea? What do you find most appealing about this approach?

• What are the costs or consequences associated with this approach? Is there a

downside to this approach?

• How might others see this approach?

• What would someone who favors this approach be likely to say?

• If we followed this approach, what would be the effects on your life?

• How might your concerns differ if you were poor? Lacked a high school education? Were a business owner?

Review of Approach One: Create Jobs Begin with an overview of the approach, such as: In this view, creating jobs is our road to prosperity. If we create jobs, everything else will follow. People will have the money they need to buy good houses and send their children to good schools. This approach calls for providing incentives to attract businesses, easing government regulations that tend to stifle the development of business and industry, and investing in infrastructure to support existing businesses and attract new ones. Initiate discussion by using the general questions outlined above and/or some of the following:

• Do the job opportunities in your community adequately meet your needs?

What about the needs of young people who want to remain in the community after completing their education? The needs of others in the community?

• What barriers does this community face in attracting or creating jobs?

• How active a role do you think government should play in encouraging

business growth? • What should we do about rural communities and other areas that have not

been able to attract or create new jobs? Review of Approach Two: Develop Human and Community Resources First Begin with an overview of the approach, such as:

Although considerable progress has been made, many Southerners lack the education and skills needed to keep up in today’s changing workplace. Supporters of this approach maintain that this and other social problems, such as poverty and poor health, are the true roadblocks to prosperity. Remedies include spending more money on education and worker training, ensuring easy access to health care, creating programs to help bridge racial and cultural divides, and developing community leadership skills. Initiate discussion by using the general questions outlined above and/or some of the following:

• Does this community have the human and community resources needed to take advantage of opportunities in today’s economy? If not, what areas are in need of improvement?

• What role does education play in ensuring the community’s future prosperity?

If people received more education and/or training, what impact would that have on the community?

• How would you describe the relationships between racial and cultural groups

in the community? What impact would improving relationships between racial and cultural groups have on the community’s future prosperity?

• What role do you think families play in building a strong community? What

do you think should be done, if anything, to help strengthen families in the community?

Review of Approach Three: Manage Growth Begin with an overview of the approach, such as:

Supporters of this approach are not apposed to growth. But, they fear that uncontrolled growth will choke the region’s future prosperity. In their view, prosperity is about more than making a living, it’s about making a life. If we don’t do a better job of managing growth, we will destroy the quality of life that makes our communities attractive to citizens and businesses. Planning is the answer, in this view. Both professionals and citizens should be involved in making deliberate and rational choices about whether, where, and how a community should grow. Leaving those choices to larger economic forces is a poor way to build the future. Initiate discussion by using the general questions outlined above and/or some of the following:

• What do you like about living in this community? What traditions/values

make the community special? As the community grows, what do you want to retain?

• Does anything concern you about growth in the community?

• Do you think we need to manage growth and development in order to ensure

your desired quality of life in the future? In order to ensure that the community will be attractive to businesses?

• What role, if any, do you think government should play in managing growth?

Working through tensions or conflicts (10 minutes)Working through tensions or conflicts (10 minutes)Working through tensions or conflicts (10 minutes)Working through tensions or conflicts (10 minutes) Help participants see and work through the tensions or conflicts between the approaches by asking some of the following types of questions:

• What do you see as the tensions between the approaches?

• What are the conflicts that grow out of what we’ve said about this issue?

• What would be an argument against the approach that you like best?

• Can anyone think of something constructive that might come from the approach that is receiving so much criticism?

• Should communities make every effort to increase job opportunities through

business growth, even if it may result in undesirable side effects such as more air pollution and traffic congestion?

• Should communities focus on solving deep-seated social problems, even if it takes

a long time to show any results?

• Would you support working with city planners to control where and how growth should occur, even if this restricts where people can live and what they do with their property?

Moving towards a shared sense of purpose (10 minutes)Moving towards a shared sense of purpose (10 minutes)Moving towards a shared sense of purpose (10 minutes)Moving towards a shared sense of purpose (10 minutes) Remind people that the objective is to work toward a decision. Test to see where the group is going by asking questions such as:

• Can someone suggest areas that we seem to have in common?

• Would someone identify the values that seem to be clashing?

• What trade-offs are we willing to accept?

• What trade-offs are we unwilling to accept?

• What are we willing to do as individuals or a community to solve this problem? Ending the Forum (10 minutes)Ending the Forum (10 minutes)Ending the Forum (10 minutes)Ending the Forum (10 minutes) Before ending a forum, take a few minutes to reflect on what has been accomplished. Questions like the following have been useful:

Individual Reflections • Did you hear anything that surprised you? • Has your thinking about the issue changed? • Has your thinking about other people’s views changed? • How has your perspective changed as a result of what you’ve heard in this

forum?

Group Reflections • What remains unsolved for this group?

• Can we identify any shared sense of purpose or direction? • What trade-offs are we, or are we not, willing to make to move in a shared

direction?

Next Steps • What do we still need to talk about? • How can we use what we learned about ourselves in this forum? • Do we want to meet again?

PostPostPostPost----Forum Questionnaire (5 minutes)Forum Questionnaire (5 minutes)Forum Questionnaire (5 minutes)Forum Questionnaire (5 minutes) Ask participants to complete the Post-Forum Questionnaire. Please collect both pre- and post-forum questionnaires and return them along with a Moderator Summary Sheet to Linda Hoke, Southern Growth Policies Board, P.O. Box 12293, Research Triangle Park, NC 27709. This information will be used to help inform Southern leaders about citizens’ views on this issue.

Moderator Summary Sheet

Pathways to Prosperity: Choosing a Future for Your Community

After the forum, please complete this brief response sheet and return it with the questionnaires from the forum. Moderator’s Name:____________________________________________________ Phone:_____________________________ Email:___________________________ Date of Forum:____________________ Number of Participants:______________ Location of Forum:________________________(City) _________________(State) Briefly describe the audience of your forum (age, ethnic diversity, educational background, etc.): What concerns about growth/economic development emerged from the discussion? What were areas of disagreement? Was there a shared sense of the direction the community should take in the future?

Did the group identify possible actions or next steps? Please describe. What unique information came out of the forum that Southern leaders need to know? Please return this Summary along with the Pre-and Post-Forum Questionnaires to:

Linda Hoke Southern Growth Policies Board

P.O. Box 12293 Research Triangle Park, NC 27709

Phone: (919) 941-5145 Fax: (919) 941-5594

Email: lhoke@southern.org