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The Professisn and professionals

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In Search ofa professional ldentity


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THE LOCAL ECONOMIC DEVELOPMENT PROFESSION AND PROFESSIONALS


The individuals who work as economic development specialists are forming a new profession. This profession has its base in several other o."rrpuiion, ranging from planning and economics to social work' The forerunner anteedents of the current profession can be traced to the or promoters. The content of the profession of industrial developers ii.ld h", u".y mixed origins. In some respects, it has no real origins in the classical prfessional sense; yet, it owes a great deal to the existing afplied disciplines of geography, business administration, public finun"", und poiiticat economics. In essence, the local economic developmerri profission, or set of practices, is a hybrid of existing concepts' area of discipiines, and areas of practice molded together to form a new *professionalism" that overlays existing professional practice-plana ning, social work, community development-or acts as the base for is little to Suggest that local n"*",ul..,'u of professionalism. There

, The central components of this emerging profession are derived from the functions that the professional, p.rior^ rather than from the various disciplines from which it is derived. The eeonomic development profession 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 practitioner orientation (I). The ecoomic development (ED) specialistiole may be seen 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 . . .)

(abc

Each of the five factors has within it a group of related components

as economic development is part of larger professional areas or operates practitioners are defining the a new area of practice. Instead, various limits of this emerging professional arena rather than any

"nui.on*"ntal organization, clients, task, and individual orientations. Some of these factors are more heavily weighted within any given circumstances. In some instances, the individual ED specialist has a set of capabilities that create opportunities for economic improvement that person in the same situation cannot produce. in .rr.n.e, the personallariabre, ".roth", both skills and personality, can be dominant in some place. on the other hand, the task themselves may provide a productive or counter_ productive environment. Therefore, in searching for an definition/ role, we will examine each of these factors in orerio "pp.of.i"r. wetop a framework for both the profession as well as the professional roles.
THE LOCATION

' . .) that relate to the other

factors such

as

roles and

professional establishment defining the limits of practice' In many practitioners are respects, this flexibility is an asset to this field because however, is that the absence ,roi."rtiui.r.d by rigid code. The converse' most of standards *t"r it difficult to exclude any activities, even the

as local economic government or local community "u.top.n"nt initiatives. Moreover, any

pu*"trv anticommunity activities, from being labeled

group can (and sometimes does) merely change the name.of.their as ctiv-ity or the name on the door in order to label their activities
economic develoPment.

Almost all communities or regions present unusual circumstances irrespective of the commonalities in thi causes of their economic ins. Because a community has suffered plant closures does not mean that the remedy or alternatives for it are precisely the same as for another community that has similar losses. There are many intervening factors that influence the situation. For example, one community maf be easy to mobilize because there is a clear pattern of leadership wtrite another has virtually no identifiable leaders. The goals in bot circumstances may be identical and the toors or methods used by the practitioner may bear superficial similarity, but the precise mode of opiration will vary based on the conditions. In essence,the milieu for d"u.lopo'ant ,ro,
"rr

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l

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only the objective circumstances are significant issues for the ED


specialist.

The total community or area circumstances must be taken into consideration in assessing the economic development need as well as in determining the priorities for action. The atmosphere in which the change is to be made is as important as the change itself. As a result, the ED specialist must reach well beyond technical "know-how"to help the community see itself as a social and physical entity that in many instances goes well beyond the parochial boundaries of the municipality. This identification task is a necessary and important ingredient in the development process, and failure to come to grips with the real "locational" issues can doom even the most dedicated ED specialist. In addition to getting the economic geography right, the ED specialist must also assist the community in getting the problem right. This is not an easy task, as stated in earlier chapters. Many communities identify their problems as external such as involving lower-wage areas in foreign nations or international competition. This may or may not be the case. In most instances, however, dwelling on the external will not create any new options. Therefore, the ED specialist's job is to identify the economic problems that can be solved within the context of that locality. This frequently means helping the community recognize that remedies selected elsewhere (high tech, tourism, factory attraction, and so on) may not suit the locality. In essence, the situation determines both the means of and the limits on local economic development. The ED specialist must be aware of this and use appropriate skills within the milieu to assist the community find the correct path to a sustainable
economy.
THE ORGANIZATION

programs.

difficult role to play. In other circumstances, the organization may view itserf as a developer or development partner. In these circumstances, the ED specialist must be creative and aggressive and seek opportunities to participate in new economic activities on a broad froni ranging frohousing to industrial development. The ED specialist mighi .i* u" required to design new financial instruments or help firris organize themselves to take advantage of government or other develofment

few direct actions themselves. In such instances, the ED specialist is more of a resource person than an expert. Because other organizations are carrying out the action, the ED specialist must possess the skill of encouraging without displacing, and monitoring wiihout ruring. It is a

housing, finance, and small business. Finally, economic development organizations operate in a wider framework of organizations and institutions at thJ local, state, and interorganizational 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 well as the substantial lobbying requirements with s[ate andfederal legislatures provide an exceptionallydynamic situation for the ED speciiist.
THE TASK FUNCTIONS

Increasingly, the ED specialist is part of a larger government or nonprofit organization bureaucracy. As a government agent, the ED specialist may have limitations imposed irom varieiy o ,ou."., ranging from advisory boards to elected officials. " The tensions created in this environment can be overwhelming, especially when different constituencies have widely varying concepts r tn" iot" and responsibilities of the ED specialist. Economic development organizations grow and specialize. As a result, the ED specialist may operate within a large economic or planning bureaucracy. Organizations of this type -expect the ED specialist to have certain definable subareas of special'skill such as

national levels and, more recently, at the international level. The

As previously discussed, local economic development activities are


conducted by a variety ofinstitutions at both the local and state levels. Primarily, the ED specialist works in municipal or multijurisdictional local government organizations. Therefore, most of the comments in this section concern practice at the local level. Each economic development organization is formed to fulfill some preconceived mission. That mission may be clear or fuzzy, but it forms the justification for the organization's existence and a limitation on the authority of the ED specialist. In many, perhaps most, circumstances, economic development organizations are coordinating bodies that take

carrying out the activities of any specialist. The process component

The task of the specialist is complex to say the least. There are two generally recognized characteristics, however-process and methods. It is difficult to separate these activities because ih.y a." intertwined in

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relates to the activities associated with organizing people or resources for economic development. No amount of technically correct activity will help a community revitalize or direct its economy unless there is sufficient internal capacity. It is the process side ofthe ledger that helps build capacity in terms of leadership and organizational strength. The methods dimension refers to the set of strategies and approaches

component. The marketing of the place is also associated with the marketing of many other factors, for example, human resources, organizational capacity, and community incentive programs.
(5) Dota development and analyss. Economic development data are not always clear or clean. The ED specialist is constantly attempting to find good information on the local situation, ranging from oemograplic to institutional analysis. usually large-scale data sour"", a.e inaJequate for the purpose. Therefore, the ED specialist must refine data from the census and other sources, conduct surveys, or identify unobtrusive methods to measure any particular development dimension. Having

communities change. They both add and lose capacity dependent upon events. No matter what role the ED specialist plays, markting will be a

the ED specialist either fashions or identifies as suitable for the


situation. These methods have been discussed in previous chapters. The methods are administered through (1) identifying community problems, (2) providing technical and analytical assistance, (3) determining the resource mix required to meet the economic development needs of the situation; and the process skills of (4) developing networks among

individuals and institutions and (5) stimulating interaction among diverse groups to achieve a common objective. The specific tasks of the ED specialists are as follows: (l) Building development organizations. One of the most important functions of an ED specialist is to develop a strong, viable, and continuing organization. Capacity building relates both to helping the organization gain expertise and to identifying and developing future leadership. In addition, the ED specialist must assist theorganization in strengthening its network with institutions at the local, national, and international levels. (2) Inventory of area resources. Keeping track of community or area resources goes well beyond physical assets inventories. An area's development resources extend to its culture, its leadership, and the quality of its community social life. The ED specialist must not only know the resource base but find new ways to use it to achieve community objectives. Of course, the ED specialist must also find ways to build resources where there are deficiencies or to transform other resources 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 one of the most important process skills of a specialist. Sometimes the data help make the decision or the resources available. The ED specialist must be careful to "assist" rather than push or sell a particular strategy.
Moreover, the ED specialist must help the decision makers
see

ceptionally good analytical and presentation skills. All of the above tasks relate to the institutional and locational circumstances of the community. All five are required at different times.

data and determining what they mean are also not easy tasks. As a result, the ED speciast must frequently develop ways to display complex information for layperson consumption. This requires ex-

So timing is an extremely important skill, and mastering good timing is a fundamental task of a good ED specialist. THE CLIENTS

for comprehensive approaches, incorporating several methods

the need over

single-component strategies, for example, tourism. (4) Marketing the area. Marketing a community is not like marketing a product. Products remain constant in terms of their performance.

The ED specialist must work with a wide variety of clients. clients are both individual and collective. In many respects, the total population of the community or area form the client base. The ED rp""i"list usually has a direct contact with a regular group and more limited contact with a wider constituent base. Generally, the ED specialist will work with a single advisory body or group and maintain contact with others through organizations or other collective agencies. The clientele for local economic development is usually lay leaders. Such persons are generally volunteers working for the god of the community. As laypersons, they may have little o. no pr"p"iation in the field. They may well represent community groups with considerable influence but without any special expertise. As a result, the ED specialist must respect these individuals for the knowledge they bring from their constituents and use this information in program developrnent. on the other hand, the professional must provide training and technical assistance to the group. This is a delicate role. The ED specialist needs to balance the groups'lay knowledge with professional eipertise.

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Local officials are frequently the employers of ED specialists.


Economic development departments or agencies are important components of local governments. ED specialists may direct such departments and, doing so, report directly to local elected officials. The ED specialist's success in such circumstances is to support these officials in meeting the needs of the community. This role may require anything from general economic development planning to community education to consultation with community groups. Civic and economic development organizations are frequently the prime sponsors of economic development. These organizations, described earlier, are public-private institutions that take on the mantle of local development generally with official sanction from the local or multijurisdictional authorities. These groups are also organized by volunteer laypersons. They frequently include individuals with considerable business expertise and resources, however. The ED specialist usually facilitates the activities of this type of agency. Because such

The enabler is essentially a facilitator. In this role, the ED specialist focuses on bringing people together and providing a struciure for resolving community economic development issues. The enabler may also mobilize resources but seldom acts as the sole expert. Moreover, the enabler will attempt to create a continuing problem-solving capacity rather than addressing single economic or social issues.

The community organizer role is much more of an advocacy orientation. A community organizer is usually a partisan for a specific group or area and acts as the catalyst to propel it to political and economic action. The organizer model requires a certain type of institutional 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 ED specialist might start out as a community organizer and subiequently
"content/methods" task be delivered to the community in some reasonably responsible manner. The framework here is merely an outline of the role models related to the task function of ttle ED specialist and not a final definition. Economic Development Careers
There are several different career paths that the ED specialist can take. They generally take three distinct forms, which are as follows:
ED manager-managing economic development organizations as separate or component agencies requires considerable managerial skill: the economic development manager must be an expert in process areas and
have a good economics and sound business background.

groups tend to have substantial resources, the professional role is usually to coordinate economic development activities including the hiring of additional specialized expertise. In addition, the ED specialist acts as the principal contact person with other organizations and
agencies.

adopt the role ofenable and consultant as the group increases its power and capacity. The essential factor is that both the "process" and ttte

In sum, the clientele for local economic development is dependent on the organizational form and task. The ED specialist must be attuned to the circumstances of the community and work with laypersons as well as professionals. The role the ED specialist plays is to utilize the expertise of the clients as well as the profession to fashion economic development alternatives for the community. The Professional Roles
The tasks of the ED specialist are also related to the three work roles consultant, enabler, or community organizer. Sometimes, the circumstances prescribe the role of the ED professional; more often, the organization's mission defines it. The consultant role does not refer to a professional occupation but the mode of delivery. As consultant, the ED specialist provides expertise and problem-solving skills in the situation confronted. The consultant acts as the provider of accurate technical information, showing the options available to the decision-making group.

of

Analyst-nearly all economic development organizations and consultant


planning/ business.

firms require individuals with very strong analytical skills particularly in the area of regional economic development, economics, o, u.un

Neighborhoodf community worker-at the neighborhood and small community levels, overall development and process skills are required; community organization and development training is especially useful when working at this level.

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The career choices of the ED specialist and the training received are

not uniform. There are now graduate programs and professional postdegree programs offered by both universities and recognized professional associations. The reader may wish to consult his or her
local state university or state department of commerce or development to determine where such training is available locally'

Conchtsion
Economic development is an emerging field of study and practice-

APPENDIX: GLOSSARY OF TERMS FREQUENTLY USED IN CONNECTION WITH ECONOMIC DEVELOPMENT


AMORTIZATION: 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 is usually instrumental in securing financing for a commercial undertaking. ARTICLES oF coRPoRATIoN: A legal document required by and filed with the state government where the corporation is chartered. This document describes the purposes for which 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.

It

has previous antecedents

in the field of industrial promotion

and

attraction. The new aspects ofthe field have been discussed in this bookThe basic orientation as articulated here is comprehensive development utilizing indigenous resources and capacity. ED specialists are both "process"-community organization, leadership, and capacity building-as well as r'1sl"-ss6nomic and data analysis-oriented. The roles ED specialists play are related to the needs ofthe situation and the resources required. Individuals who want to become professional economic developers will have to pursue special training in economic, regional science, urban planning, or related disciplines-

BALANcE sHEET: The balance sheet shows the assets, liabilities, and owner's equity a business as of a specific date.

of

References
Benveniste, 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 in Organizations 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.

BASIC EMPLoYMENT: Associared with business activities that provide services primarily outside the area via the sale ofgoods and services, but whose revenue is directed to the local area in the form of wages and payments to local suppliers. BOND RATING: An estimate of the creditworthiness of bonds issued by agovernmental unit or corporation. BoNDS: Interest-bearing certilicates of debt issued by a municipal governmental body or a private corporation to finance physical improvements. BUILDING coDE: A system of uniform building regulation within a municipality established by ordinance or law. BUSINESS DEVELOPMENT GRANTS: Funds providcd to economic development groups by local or state governments that carry no obligation for repayment. BYLAWS: Rules, regulations, and controls set by the board of a corporation for the
conduct of its business. CAPITAL COSTS: The costs a business pays for major physical improvements such as buildings, equipment, and machinery. cAPITALIZATIoN RATE: The rate of interest that is considered a reasonable return on an investment. CAPITALIZE: To supply a project or business with funds invested by the owners or developers as distinct from borrowed funds. cASH FLow: A statement showing actual or projected cash receipts and disbursements for a specific period of time. CENTRAL BUSINESS DISTRICT (cBD): Generally refers to the business area of a city or town.

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