Take the first two chapters. The first chapter really expands upon “why” economic development policy development and implementation is so critical in today’s modern “new economy”. Specifically, the authors argue that the “new economy” is: 1) a global economy, 2) is faster paced than past economic eras, 3) is knowledge-based and 4) competitive advantage of firms in the new economy is greater specialization. Additionally, chapter one expands on the “problems” of the new economy, including: 1) troubled manufacturing sector - why we should care, 2) geographic inequalities, 3) inner-city decline, 4) problems of suburbanization - with a spectacular discussion of the role of social capital in local economic development continued in subsequent chapters), and 5) rural/small town economic decline. Other “big” issues include the deeply divided labor force and the “new chronic poverty”.

Chapter 2 lays out a larger policy discussion regarding the roles of federal, state and local governments. It introduces a discussion on monetary/tax policy, trade policy, welfare policy (with a solid discussion on homelessness), health care policy, employment policy, national policy targeting local economic development and coordination of local/national development efforts. The authors even point to Nevada - specifically by name - as one of the “most progressive states (including Washington and Florida)” with “designed well-thought-out plans that included the active participation of state stakeholders, including nonprofits, community groups and businesses”.

Chapter 2 further lays out six critical “realities” that almost every local US community MUST come to terms with, including:

1. “Few communities can anticipate economic growth based on internal population migration alone.” Stated simply, immigration has become and will continue to be an important way local communities maintain, grow and enhance their local workforce.
2. “It is unlikely that any community will be able to increase its local employment opportunities by attracting new manufacturing firms.” Stated simply, local communities must “home-grow” their own firms and must do so in non-manufacturing industries such as advanced information and service sector industries. Sorry to John Edwards and Mitt Romney – but manufacturing jobs are NOT returning. And even more so, why should they? Can’t we replace those jobs with higher-valued jobs?
3. “American communities could once rely exclusively on their regional and national market positions to determine local economic stability, but this is no longer the case.” Stated simply, WE LIVE IN A GLOBAL ECONOMY! For a better of for worse, WE HAE TO ACCECPT THIS REALITY and learn to be competitive and grow within this reality.
4. “Communities based on a single industry (such as agriculture or mining) or a few major employers will be more vulnerable than those with a more diverse economic base.” THAT’S RIGHT! The authors actually say “agriculture or mining” and for Nevada in particular, this is an issue that MUST be confronted head on. Despite the state’s best efforts and the best efforts of local governments in Nevada, Nevada’s economy – at the state and local level – is still DOMINATED by: 1) Mining, 2) Tourism/Gaming and 3) Agriculture. Are we more vulnerable than others? I’ll let you think about that one.
5. “All communities will feel increased pressure to develop programs that deal with adult long-term unemployment.” This issue is pretty straight forward.
6. “Comparative geographic or transportation advantage is no longer determined entirely by the availability of natural resources.” The authors contend that the “availability of specialized technology-oriented infrastructures” - research facilities, higher education services, high-quality up-to-date telecommunications, etc. – is MORE CRITICAL to local economic development efforts than simply geographic/transportation advantages.

What was surprising to me in this book is that the authors base almost every one of their observations and conclusions in actual data! The book itself is a treasure-trove of interesting statistical observations with full citations which allow the reader to further explore the many issues the authors raise.

Do yourself a favor. If you’re interested in local economic development, this is a must read. As I said, I’m not particularly sold on their approach and I’ve always been skeptical of how effective government economic planning is in stimulating national, state and/or local economic growth. However, this book is critical because it SPARKS debate and expands the discussion on economic development beyond the simplistic approach of job creation, job training and redevelopment. If we are to truly pursue MEANINGFUL economic development strategies, we must expand our individual and collective understanding of economic development to include issues not traditionally addressed in this way.