Economic Development and Urban Revitalization - Assignment Example

Economic Development and Urban Revitalization al Affiliation Economic Development and Urban Revitalization QSN Cluster-based Strategies as a Popular and Effective tool for local economic development agencies Cluster-based strategies are effectively avenues through which economic growth is accelerated, through proper understanding and subsequent application in given contexts. Clusters are defined as pertaining to a group of firm-entities, various related economic actors, agencies and institutions, which being located close to each other, are able to draw productive advantages. These are gained from existing mutual connections as well as connectivity the latter of which may be by way of functional and supportive relationships. In addition, is the notion of competition for other existing markets of similar nature through such avenues, hence enabling local, regional, national and eventually, global economic development. Of pertinent importance, is the prevailing economic basis, upon which these clusters are founded on in essence being amongst the following: - the service industry, manufacturing, mining, and the electronics industry amongst others. The classification of such economic basis is vital in the eventual formulation and implementation of cluster-based strategies; influential in overall output, efficiency, effectiveness and success of such enterprises. As Porter (1998) portrays, clusters as geographical concentrations of inter-connected entities within a given economic field, with such relationships being vital for enhanced competitiveness. Through their ‘down-stream’ extension, especially to channels and the consumer-base; in addition to ‘lateral’ extension to industry, clusters are able to better initiate and implement requisite procedures for eventual success in competitive circles. Strategies that are thus based on clusters are effective in local development initiatives; which are mainly driven by various development agencies. Hence, these strategies ought to be developed around existing cluster boundaries; which are supported by both complementary and linkage across vital institutions and industries. Because clusters rarely do conform to standardized industrial systems of classification, focus is therefore important in capturing the various vital relationships and actors essential in the competitive market arena (Porter, 1998). This is through both cooperation and promotion of competition; the intense competition being essential in winning and subsequently retaining consumers. Cooperation is also essential amongst firms within related local institutions and industries; much of it being vertical. Consideration is placed upon the capacity of clusters being able to mitigate problems that are inherent within arm’s length relations; without the imposition of either management challenges or vertical integration inflexibilities. Groenewegen (2003) is of the opinion that such strategies should revolve around such aspects as the increase of productivity; through continuous input of innovation, and the eventual promotion of new enterprises. The presence of novel entities enables both the expansion and strengthening of the whole cluster, thereby enabling all pertinent entities to benefit of such interdependence. This is without formal sacrifice of existing flexibility, hence providing a ‘win-win’ situational context for all. Hence, focus is aimed at enabling better access to both suppliers and employees; access to existing specialized information; utility of, and enhancement of complementarities; greater access to both public goods and institutions and better measurement and motivation measures. Adding to this is the essence of location choices; enhanced local engagements; continuous upgrade of the cluster as a whole and collective entrepreneurship, which are critical in enhancing overall private-public responsibilities (Groenewegen, 2003). QSN 2 Local Economic Development Plans: The City of Miami Florida East Coast Railway (FEC) Strategic Development Plan Economic development is defined as a given economy’s progress, in terms of qualitative measures taken. Pertinently so, it regards to the adoption of novel emerging technologies, vital to the general improvement of living standards in a given regional context. Essentially, it does pertain to the transition taken, from agri-based economies to industrial ones. Thus, in the broadest sense possible, economic development encompasses three core arenas: - job creation and subsequent retention; service and infrastructure programs, and government initiatives and undertakings; essential in meeting broad economic objectives. Thus, local development plans pertain to the various policies and pertinent processes; through which nation-states are able to improve the overall wellbeing of its citizens. Local Economic development plans thus are majorly concerned with a given area or locality, essential in securing better and brighter economic outlook. As plans, they mainly involve around economic growth i.e. per capita income increases; essential in attaining standards of living that are equivalent to industrial nations. In addition, the above involves varying forms of improvements; as influenced by different indicators i.e. life expectancy, literacy rates, environmental quality, social justice, freedom and individual leisure times. As Sen & Sheffrin (2003) portray, within the U.S., the aforementioned may be defined in terms of Project Socrates; vital in outlining economic competitiveness as the core driving force behind successful economic in both industry and government. The City of Miami Florida East Coast Railway (FEC) Strategic Development Plan is a prime example of local economic development plans; fundamentally regarding the city of Miami. In particular, it regards to the product of community planning initiative, which culminated in the 2002 plan that focused on the facilitation of economic revitalization opportunities found within the FEC corridor, and the surrounding areas (Sen & Sheffrin, 2003). Its intent was to build upon existing competitive advantages present within the FEC corridor, in addition to developing workable and clear implementation action steps and strategies. This was towards ensuring the realization of the Florida community’s vision. Key guiding principles of redevelopment subsequently shaped the plan, as initially articulated in the FEC’s Task Force – Findings and Recommendation Report. These guiding principles, being interrelated include: - the vision of urban-scale, mixed-use redevelopment plans/ patterns; the need for creation of a sustainable, yet diverse economy; the development of a wide-ranging spectrum of both economic opportunities and housing, and the necessity of both and integrated and balanced system of transportation. In regard to competitive advantage, these pertains to various aspects i.e. the city’s significant inventory of warehouse and industrial properties; Buena Vista site’s core opportunity of re-development; the existence of ‘known’ service-affiliation of existing districts within the state; proximity to key freeways, arterial and expressway circulation systems and rail access, and the proximity of employment centers such as Downtown. Subsequently, redevelopment strategies revolve around transportation such as: - the Premium transit services, with specific focus on long-term and near-term alternatives on light railway. In addition, is the presence of roadway improvements i.e. premium transit service based on the improvement of existing roadway. Economic development is further based on implementation strategies based on prevailing advantages found within different sectors of the state. In addition, are aspects such as street-scaping, proper housing by way of utilizing proposed zoning changes, and the effective utility of neighborhood implementation strategies (Executive Summary, FEC). QSN 3 Economic development: The Utility of ‘Core Competencies’ in the building of an Effective Economic Development Organization Core competencies regard what pundits refer to as key indicators (metrics) present; in terms of socio-cultural and macro-economic contexts. As regarded by various pundits and expertise i.e. geographers and economists, these competencies are essential in the assessment of relative economic advancement of various localities, nations and regional arenas. Accordingly, as Campbell & Kathleen (1997) aver, these include: - the per capita GDP; Education and literacy; income distribution; modern transportation infrastructure; access to existing healthcare, and pensions and social security. In terms of building and effective economic development organization, the aforementioned are essential; abate on a micro-level basis of analysis. Within an organization, economic development is influenced by prevailing aspects of policymaking, in addition to the subsequent administering of proposed policies, projects and programs. To be noted is that the aforementioned competencies are best achieved through public (government)-private cooperation. Pertinent economic development organizations do function in both individual capacity (as individual entities), as well as through cooperation with various key institutions of governance. Thus, it is on this basis that the key goal is towards the creation of new economic opportunities, as well as the retention of prevailing business wealth. As is well documented, productivity, and not exports or mineral resources, is the main determinant of any given state/ nation’s overall prosperity. It is in consideration with the aforementioned that economic development organizations are able to focus on the positive, efficient and effective utility of core competencies present. In order to alleviate the prevailing conditions of such disadvantaged populations and neighborhoods, it is essential for public-private partnership that is focus on enhancing the general literacy and education levels of individuals (especially the younger generations); aiming at bettering their future prospects. Subsequently issues such as income disparities and distribution can be tackled through knowledge-driven initiatives that essentially affect positively on social aspects such as proper infrastructure, healthcare, social security and pension schemes (Campbell & Kathleen, 1997). Education in this case, can be in the form of employee training and development, as well as early childhood education; in addition to the requisite normal education systems present. An additional positive outcome, would be enhanced through leadership and youth development, as well as advocacy; which all target individual advancement and development. It is therefore critical to acknowledge the essence of promoting both individual and social development, as the basic foundation for future growth of society. The GDP index ration would further be positively impacted by the aforementioned, as there would be increased per capita ratio within such localities. This would be influenced by way of technical assistance, incubation and capital lending to small enterprises; all being essential components in the overall macro- and micro-economics of a given locality or nation. An effective economic development organization would thus be of positive influence and impacts to prevailing social contexts, if there were greater focus on, and subsequent initiation and implementation of the aforementioned competencies. It is only through wholesome, ‘all-inclusive’ initiatives that sustainable economic development may be achieved (Mansell & Wehn, 1998). QSN 4 The Significance of Community Economic Development (CED) and Role-play of Community Development Corporations (CDCs) within a Local Economic Development Delivery System Community Economic Development (CED), as a specialized field of study, elicits the need for active community involvement; in the aim of building strong local communities, prevailing enterprises and overall market arenas within a given locality. As Schaffer, Steven & David (2004) assert, CEDs encourage the utility of local resources in ways that enhance prevailing economic opportunities, while at the same time engaging in the sustainable improvement of social conditions. Such initiatives are usually implemented in the event of crises; the aim being towards overcoming such situations through enhanced opportunity provision to disadvantaged communities. As a core aspect of ‘localized economies’, CEDs pertain to community-centred processes, which essentially blend both economic and social development of a locality. Under such, the aim is in enhancing the fostering of social, cultural, ecological and economic well-being of society. an important benefit of such initiatives is the availing of traditional venture-capital investments to various under-served region and localities. Accordingly, the central tenet is the addressing of problems facing communities in both a participatory and holistic manner; especially about issues such as poverty, unemployment, job losses, community control loss and environmental degradation amongst others. Vital in the eventual building of social enterprises, CED initiatives is wholesome in nature; through collaborative initiatives between the government and private sector. Community Development Corporations (CDCs) regard those ‘not-for-profit’ organizations, strive towards the provision of programs and services; as well as engagement in various activities that do support and promote community development (Schaffer, Steven & David, 2004). Serving geographical locations, they primarily focus on providing services to the lower-income populations, as well as disadvantaged neighborhoods. This is primarily through their involvement in different activities that positively affect such social contexts i.e. promotion of education and community organizing, as well as real estate and economic development. Subsequently, such entities are usually engaged in the development of proper housing and infrastructure. Within given localities within the U.S., CDCs by definition, target direct investment in such communities; thereby providing reason for association with ‘advocacy organizations’ based on community development. Such entities are thus able to get government recognition, as ‘tax-exempt charities and/ or service organizations; which are recognized by government as vital in the overall uplifting of delicate and often disadvantaged communities and localities. within local economic development delivery systems, such entities cannot be disregarded, as they are of vital importance in the promotion of not only economic advancement of a society, but also in the preservation of their cultures, traditions, way of life and socio-political betterment (Vasquez, 2008). References Campbell, A. & Kathleen, S.L. (1997). Core Competency-based Strategy. (1st Ed.). New York: Cengage Learning EMEA. Florida East Coast (FEC) Corridor Study (Executive Summary). City of Miami Economic Initiatives [Project & Initiatives], retrieved from: http://www.miamigov.com/economicdevelopment/pages/ProjectsInitiatives/FECExecutiveSummary.asp Groenewegen, P. (2003). Classics and Moderns in Economics: Essays on Nineteenth And Twentieth Century Economic Thought (Vol. 2). New York: Routledge. Mansell, R. & Wehn, U. (1998). Knowledge Societies: Information Technology for Sustainable Development. New York: Oxford University Press. Porter, E. M. (1998). Clusters and the New Economics of Competition. Harvard Business Review, 75-90. Schaffer, R., Steven C.D. & David W. M. (2004). Community Economics: Linking Theory and Practice. Iowa, Iowa State University Press. Sen, A. & Sheffrin, S.M. (2003). Economics: Principles in action. New Jersey: Pearson Prentice Hall, Upper Saddle River. Vasquez, I. (2008). Economic Development. In Hamowy, Ronald, The Encyclopedia of Libertarianism. New York: Thousand Oaks/ SAGE. Read More