Bureau of Labor Statistics Makes
Changes to Its Current Population Survey

Those of you with a research bent will appreciate this tid bit. BLS has made some recent changes to its Current Population Survey (CPS), which could invalidate historical comparisons that you have been able to comfortably make up till now.

Monthly labor market data are based on two surveys: 1) the survey of establishments; and 2) the CPS, or the household survey. The establishment survey provides information on employment, hours and wages by industry, as supplied by companies and government entities. The household survey is used to develop labor force trends, including the unemployment rate and labor force characteristics for a variety of demographic groups. The advice from BLS is to use the establishment data until problems are resolved with the CPS series.

You should familiarize yourself with these changes if you use this data. Go here to read what BLS has to say, and then go here to hear what some economists are saying about the changes and their implications.

Weak Business Confidence, Why, and What It Means

Economy.com recently launched a new business confidence index that assesses business hopefulness on a weekly basis. Go here to check it out. (You must subscribe to Economy.com to get access to the detailed information.) Here's the picture over the past month.

First, business confidence worldwide is falling fast, down a sharp 30% from the start of the year. Confidence in North America and Asia are especially weak, although European confidence is also deteriorating. Confidence in Latin America is holding up for now. In short, no place across the globe has been spared.

Confidence in both current business conditions and prospects six-month hence has fallen significantly, although expectations regarding the future have eroded more substantially in recent weeks. This says that businesses are not very hopeful, right now, about the next 6 months. Implication: not many business investment deals expected.

Nearly all businesses indicate that weak sales are their most substantial problem. Businesses are paring their investment and hiring plans in response. Pricing appears to be holding firm.

The sharpest declines in confidence have occurred in government and business and financial services. Confidence in the health care and real estate industries is also weakening, but measurably less so. High-technology confidence, which had been holding up well through mid-February, has declined sharply since then. Manufacturing confidence has held up better, particularly among North American manufacturers due to the weaker U.S. dollar. European manufacturers' confidence level is down sharply as the much stronger Euro (it is up more than 20% during the past year) is taking a toll.

What does all this tell us? Not much investment action for economic development as long as this view holds. It also says that the Bush Administration should seriously re-consider its options in dealing with Iraq. We have heard many estimates of what a war with Iraq would cost us. None of those estimates have considered the cost of "lost opportunities" that have been created by the high level of risk and uncertainty created during this period of waiting for war. I believe the numbers would be staggering.

What is the terrorist's biggest weapon? It's fear! What is the single biggest issue eroding our economic strength? It's fear! Until we dispel the high level of fear and uncertainty that exists in the world today, the economy will continue to gasp for air and local economies will continue to sink. It's about time that some of us said what's really on our minds. I hope you will take that opportunity. Let's get over this Iraq thing and get back to living.

A Perspective on the Cleveland
Convention Center Debate
By Tony Bodak, Economic Development Consultant
GUEST AUTHOR

Cleveland, Ohio is noisy with debate on its convention center issue. With public officials signaling willingness to spend as much as $500 million to replace the community’s current antiquated, cramped facility, developers have built plans and cost estimates for five potential downtown sites. Community development corporations and business groups are busy passing and publicizing resolutions supporting their favorite locations, and the City has held three public meetings seeking resident input on facility siting. Yet the debate on where to build the complex ignores the more central question of whether it should be built at all.

Some officials have attempted to make the general case for convention center upgrade, but only as formality. While the notion that “We have to do something!” (the most popular rationale for building a new facility) may be true, it isn’t enough. Yet, sadly, our public reasoning does seem to stop there. We must establish – even if we agree that something must be done – that upgrading our convention facility is the specific something we must do with our $500 million.

For a new convention facility to be the wisest use for our half billion dollars, we must agree that the old building is a primary constraint to meaningful convention industry growth in Cleveland, an assertion that might wilt in the face of a stiff argument, given (permanently!) the region’s cold and wet climate and (temporarily, hopefully) its national reputation as an industrial dinosaur.

But even if everyone in the community did agree that building a new facility would make Cleveland significantly more competitive as a convention destination, there is another hurdle that must be cleared in order to justify an investment of this size in a time of such scarcity. We must establish that a growing convention industry would more effectively drive broad growth to the regional economy than other potential uses of our money.

If an argument exists that passes these two criteria – one that shows that a new facility will accelerate convention industry growth AND shows that accelerating convention center growth will generate broader economic benefit than the innumerable other investments we might choose – now would be a good time for advocates to share it with the public. Come November, Cuyahoga County voters will decide whether to pay for the facility at all, not where to build it.

The opportunity cost question is a critical one. If we choose not to build the center, what else might we do with our $500 million? We could provide a gigantic boon to local research and commercialization efforts in strategic industries. We could provide meaningful support to our anemic entrepreneurial community. We could rehabilitate many of the tainted, vacant brownfields of the central city and inner ring suburbs, opening more of our land for profitable private investment. We could go a long way toward transforming the lakefront-choking Shoreway to a boulevard, providing citizens with precious access to Lake Erie. We could support implementation of the ongoing Innerbelt study, which could open isolated neighborhoods to other parts of the community. (Might we hope for the end of the legendary East Side/West Side split?) We could invest directly in our neighborhoods. We could finally bring our truly embarrassing level of public support for the arts into the respectable range. We could invest in primary education, and send thousands of promising-but-poor young Cleveland residents to college every year.

To her credit, Mayor Campbell has made clear that the convention facility upgrade would be just one part of a more comprehensive plan to ignite economic growth in the region. There is talk about asking voters for $500 million over ten years for neighborhood development, as well as funds for the arts on the November ballot issue. These additional measures must not be viewed as throw-ins or appeasements to lure non-Cleveland voters to the Yes side of the convention center issue. They are important on their own merit. We should be developing and publicizing innovative strategies for neighborhood enrichment at least as energetically as we push for the convention center.

The very best convention centers are beautiful, hollow structures that adapt very well to an enormous range of outside needs. They have their merit. But perhaps at this point in this community’s history, we are ripe for something bolder: a monument to our shared values, a lightning rod for civic engagement, or a real point of public pride. While convention facilities are valuable assets, they are not any of these things. In a sense, their value lies in their very fickleness. We should be very careful not to say the same of ourselves with our investment choices.

Intelligent people can debate the best uses of public funds, but we absolutely must recognize the range of options available to us. We must recognize that we will not be able to fund all of our promising projects at the same time, in part because of the dwindling state and federal investments in local initiatives. In weighing this decision, we will speak very plainly about our priorities as a community. It is not just about where to build our new convention center, but rather how best to use our public resources in pursuit of a future Cleveland that we can all aspire to.

Tony Bodak is an independent economic development consultant in Cleveland, Ohio.His email address is: tonybodak@hotmail.com.

Yet Another Example of Where We Are Vulnerable

Read this story in the Atlanta Constitution. It's about an economic development deal that headed south. The Constitution raises the almighty question: Have we done sufficient due diligence? Go here to read about the Macon, Georgia situation.

Don Iannone's 48th Law of Economic Development Success says: "Deal-making is your number one job, but economic risk management is your second most important job."

Also, remind your stakeholders that even good deals are turning bad in our current economic environment. I am finding that even where effective due diligence was done, companies are running into serious problems in honoring their incentive agreements. People need to really look at how the current state of world affairs is eroding local economic success everywhere. It's a huge ball of string that is coming unraveled everywhere.

Christian Science Monitor Article: ED Takes a Hit
in These Tough Economic Times

A recent Christian Science Monitor article tells the same story we have been telling here at ED Futures; that is economic development has taken quite a beating in recent times. Go here to read the article.

I would offer one observation and a couple questions for all to consider. First, here is my observation. Economic developers are not using their collective strength to respond to the new wave of budget cuts and other attacks. United we stand, divided we fall. Why haven't we organized on a statewide, regional and national basis to help one another? Maybe we should be using our national, regional and state associations to address these issues.

Now for my questions:

1. Will the current cutbacks in economic development spending have lasting effects on the quality and integrity of the economic development infrastructure nationally? I see lots of little and some big holes poked into the economic development ship. Are these holes enough to sink the ship?

2. How can we make the case that economic development is really an investment that can help us pull out of this rough economic time? Should we be considering a "business model shift" that helps us increase our impact on common threats and opportunities? I will say it again--we need more national and global partnerships in economic development. Weave the national and international networks.

3. How do we prevent this situation from happening again in the future?

Kansas City, MO Debates Incentive Policy Options

Having a policy to guide the use of economic development incentives is a good thing. There is only one thing better. That is having the "right" policy that aligns squarely with your economic development goals or priorities.

This should be the heart of the debate in Kansas City about whether and how to best target its incentives to achieve the biggest bang for the buck. Should these tools be focused more intensively in downtown, or should other targets of opportunity be given more support? These choices must be approached carefully.

Here is our advice on this matter:

1. Incentive policies should reflect the area's most important economic development priorities. It does not make sense to have a policy that focuses on anything but that.

2. Economic development priorities should be reviewed regularly to ensure that efforts are focused on what is most important. If adjustments are made to your priorities, then your incentive policy should also be adjusted to reflect the priority shift. In other words, don't be afraid to change your policy. Too many communities believe they should set their policy once and stick with it forever. That is a mistake. You must remain in alignment with the marketplace.

3. Incentive policies should be implemented on four levels: a) final decision-makers, for example City Council; b) economic development management; c) businesses; and d) citizens. All four stakeholders must understand the policy and how it works. In these tough economic times, everybody must understand how the policy impacts them.

4. These policies should be performance-based. An ongoing monitoring and analysis capability should be implemented to provide reliable data and information about the performance of deals/investments.

5. As a related component of the performance assessment system, the local and national economic outlooks should be reflected. This provides a context for understanding possible risks to deal/project success at any given time. Right now, everything is more risky than it would normally be, which is why most businesses have delayed investments until the uncertainty level in the world drops.

6. As part of your annual work program, you should include objectives and strategies defining how your incentives will be used in the coming year. Reasonable and appropriate expectations should be set in this regard. Define risks to your investments at least on an annual basis. As we have said before, economic risk management is one of your new roles.

7. Finally, think of your incentive deals as an "investment portfolio." Set annual objectives for your overall portfolio in terms of job development, tax revenue growth, capital investment, etc. Everyone tries to avoid making bad deals, but even good deals can head south on you. For this reason, the overall portfolio's performance is most important.

The good news in the Kansas City situation is that they have a very experienced and savvy economic developer, Andi Udris, who really understands economic development finance. Andi was the former development chief in Cleveland and Cincinnati.

Go here to read more about the Kansas City incentive policy debate.

Effective Use of the Web in
ED Strategy Development

Looking for a good example of how to use the Internet during the economic development planning process? Check out what the 12-county Forward Future Initiative in the Piedmont and Mountain regions of North Carolina is doing. Regional strategies are not easy, as the leaders of the 13-county initiative are finding. In my assessment, North Carolina has done a better job in creating regional collaboration than most states. Get out your pencil and paper and take a few notes.

Go here to visit the Forward Future website.

Fairfax County, VA ED Authority Trying to
Avoid Budget Cuts

Why shouldn't the Fairfax County, VA Economic Development Authority take a budget cut from county government just us all other departments have? That is the question posed to the EDA as it presented its 2002 accomplishments and 2003 plans to the county commission. So far, the Authority has dodged the bullet, although it's not clear for how long.

Go here to read the article, which contains details on the EDA's budget, its accomplishments and future plans. This is a worthwhile read for those preparing to make the case to keep their budgets in tact.

China Opens Market to Its North Asian Neighbors

A recent analysis by Economist Corporate Network in Hong Kong says that China now buys 2.5 times more from its neighbors, especially South Korea, than it did a decade ago. The analysis also indicates that South Korean and Japanese companies have greatly increased their investments in China. Plans are for greater investment in production capacity in China during the next two years.

Go here to read more about these economic developments in China.

Big Places to Do Small Things Ranking

Small Times magazine has identified the top 10 U.S. states leading the race to become the economic center of small tech, which includes nanotechnology, MEMS and microsystems.

Which states found their way into the top ten rankings? Here they are:

1. California. Topping the Small Times magazine list, California has the critical mass to attract researchers, companies and VC cash, even in rough economic times.
2. Massachusetts. This state’s deep talent pool propelled Massachusetts into second place.
3. New Mexico. The Land of Enchantment’s efforts to wean the state from the federal bankroll are paying off here.
4. Arizona. Although coming in fourth on the list, years of financial losses are taking a toll on Arizona’s corporate R & D programs.
5. Texas. The Lone Star State’s big guns are leading the charge to make the state No. 1, and they could succeed.
6. Maryland. Maryland’s location gives it easy access to the nation’s key funding sources.
7. New York has the Big Apple’s brains and bucks and upstate’s innovation and enterprise.
8. Illinois. Things are looking up in Chicago, where researchers, business leaders and policy-makers appear ready to cash in on the state’s impressive intellectual capital.
9. Michigan shoulders its way into the Big 10 with some smart initiatives and cooperative partners.
10. Pennsylvania plays nice with its neighbors to the west and southeast, with impressive results.

Where did Ohio come in? It landed 17th.

Go here to read the full report, including the methodology used to rank the states.

New Minnesota Reports Find Stronger
Business Optimism About the Economy

According to recent survey reports released by the Minnesota Dept. of Trade and Economic Development, Minnesota businesses are more optimistic about 2003 that: 1) their orders will grow; 2) layoffs will slow; and 3) profits will improve. Hopefully this news is true not only for Minnesota, but for the nation as a whole.

My commentary is that once we know what kind of war we will be fighting with Iraq, we will have a better sense of whether this optimism is well-founded. We need to clear some of the risk and uncertainty out of the air to get a good read on how much business investment levels will resume and the economy will gain greater momentum. Nevertheless, it is good to hear an optimistic outlook for a change.

Go here to read the survey reports.

What is the Newly Released Census Data
on Worker Commuting Patterns Showing Us?

Recently, the U.S. Census Bureau released the 2000 workforce commuting patterns data. What does the data show? In St. Louis, it says that more jobs worth commuting to are outside the central city. It shows a reversal of driving habits from several decades ago. Now the majority of cross-county commuting is done away from the inner city and into the suburbs. In 1990, about 170,000 motorists commuted each workday from the city to county jobs and more than 200,000 did the reverse. New stats show today the numbers are the exact opposite. Go here to read about St. Louis area commuting patterns.

In Pittsburgh, according to a Pittsburgh Post-Gazette study, Allegheny County and the City of Pittsburgh remain the dominant providers of jobs in southwestern Pennsylvania, but more and more of the workforce lives at a far distance from the area, some living in Ohio. Go here to read more.

The data show In Louisville, Kentucky that more people are driving longer distances for jobs in Louisville and Jefferson County than they did in 1990. The number of people coming into Jefferson County on a daily basis jumped 37 percent during the 1990s, up 98,700 from about 72,100. Go here to read more.

Just the opposite was found in Winchester, Virginia, where more workers are staying close to home. Go here for the details.

The Census point to more inter-county commuting by workers in Palm Beach, Florida where about one out of every 13 workers who lived in Palm Beach County went to work in adjacent Broward County, up from about one in 15 in 1990. Go here for more information.

One clear implication of the 2000 commuting patterns data is that the majority of labor markets are becoming more regional in nature as more inter-county commuting occurs. What is the economic development strategy implication of these commuting trends? It suggests that communities and counties within the same substate region should cooperate even more on economic development activities. In other words, regional approaches will be more effective in the future than strictly localized economic strategies.

You can download the Census data for your area here.

Casinos as Economic Catalysts:
Lessons from Omaha

Those of you looking at casino gambling as a local economic catalyst may find the current debate about this issue in Omaha, Nebraska to be worth listening to. The Nebraska Legislature is debating a constitutional amendment that, pending voter approval, would authorize up to eight casinos, not including Indian casinos.

Go here to hear the gambling industry's view and go here to hear the local economic development perspective of the issue.

BIO Mid-America Venture Forum

Looking for a window on possible rising bioscience stars in the Midwest? The Biotechnology Industry Organization (BIO) will hold its first midwestern venture forum in Chicago on April 3-4. About 70 companies from an 8-state Midwest region are expected to show and make their pitch for venture financing. Similar conferences sponsored by BIO on the East and West Coasts have been very successful.

Go here to read more about the conference plans, and go here to learn more about BIO. You will find lots of useful information about biotech, biosciences and life sciences on the BIO website.

New Definition of High-Tech Industry Released

Looking for the latest definition of which industries comprise the growing and changing high technology sector? Look no further. The American Electronics Association (AeA) recently released a report with its approach to classifying high tech industries using the new North American Industry Classification System (NAICS).

You can get the report here. For those still using the old Standard Industrial Classification Code System (SIC), you can find AeA's SIC-based definition at the same source. Thanks to George Harben, Research Director for the SC Department of Commerce, for the tip on this new release.

European Union Strengthens Economic
Development Ties with Cuba

Eventually, Cuba will turnover and join the democratic world. When that happens, where will U.S. trade and economic relations be? The EU recently announced the opening of its first diplomatic office in Cuba, which will give major attention to trade and economic development issues. Which economic horse is Cuba betting on at this point? Some think that just might be Europe.

Go here to read more.

Urban-Rural Division in Oregon Needs Healing

Competition for scarce business investment and government resources has increased in every state. It is no surprise that these issues have re-appeared in Oregon, heightening rivalry between metro Portland and the rest of the state.

For some insight into the issues facing Oregon, go here.

This is a very worthwhile read for those of you facing similar issues.

Grand Junction, Colorado Clears Way for
400 New Jobs

There may be some very good economic development news in Grand Junction and Mesa County, Colorado. An incentive package has been approved for Adam Aircraft of Denver, an aircraft manufacturing company, which is considering a move to Grand Junction, bringing 400 jobs with it. A creative financing package was developed by the Grand Junction Economic Partnership in working with Mesa County and the City of Grand Junction.

There are some signs in several states that the business investment environment may be improving some.

Go here to read more about the Grand Junction project.

More Good News for the San Antonio Area

In addition to getting the new Toyota plant, San Antonio economic development officials got word recently that Infonxx, a call center operator flush with several major new contracts, is looking to hire 2,000 workers in San Antonio by year's end. How much will the jobs pay? Starting wages for its customer service representatives range from $9 to $12 an hour, not including incentives and bonuses. Infonxx, which provides directory assistance services, set up a call center in San Antonio in 1999 with no more than 300 employees.

Go here to read more about this development.

Colorado Passes New Economic Stimulus Package

Colorado Gov. Bill Owens on Monday signed a $23 million economic-stimulus package into law that he hoped would boost the state’s economy by promoting its tourism and agriculture products. The bill will:

- Add $10 million for tourism on top of the $5.6 million already being spent.

- Allocate $7 million to fund the Colorado Workforce Center, a re-employment assistance program in Durango.

- Allocate $4.4 million for various programs operated by the governor’s Economic Development Commission.

- Spend $2 million to expand markets for Colorado’s $16 billion agriculture industry, which employs about 105,000 people.

Go here to red more about the economic stimulus package.

Enterprise Florida Loses Portion of Funding
Due to Slack Car Rentals in Florida

The economy continues to force budget reductions in economic development. The latest victim is Enterprise Florida, one of the nation's most innovative statewide economic development organizations. A part of Enterprise Florida's budget comes from rental car charges collected by the state. Car rental activity has been reduced significantly because of tourism's decline in Florida since 9/11. In January, Enterprise Florida lost $1.6 million of its current $14.4 million budget due to a shortfall in dollar-a-day surcharges collected on rental cars.

Go here to read more about this unfortunate situation.

Austin Chamber ED Chief Moves on

Here is another casualty within the ED executive ranks. John Breier, vice president for economic development at the Greater Austin Chamber of Commerce, has resigned to pursue other interests. According to Chamber president Mike Rollins, a search for Breier's replacement will begin immediately.

Go here to read more about this development.

Take Heed: Virginia-Based Economic Development Authority Sued for Failed ED Deal

Here is one to heed and learn from. The Alleghany Highlands Economic Development Authority in Virginia has been sued by SunTrust Bank for failing to make payments on bonds issued for a Massachusetts manufacturer that never moved to Alleghany County.

While this situation is the exception to the rule in the economic development incentives arena, it is clearly one to consider, especially as the economy continues to erode the profitability of companies and many earlier economic development deals.

Go here to read the details.

ED Via the Net

The Internet is a powerful tool for economic development and we are not making enough use of it. For some insights into how geographic information system (GIS) technology can be used to support business recruitment and expansion, go here to read a recent article in the San Mateo County, California Times. The best part is that it captures the debate about what is needed and what actually works.

An Entrepreneurial Battle Cry from Papua, New Guinea

For an economic developer in Cleveland, Ohio, Papua, New Guinea is a long way from home. I have been preaching the gospel according to globally-linked economic development for sometime. A recent article in the The National of Papua, New Guinea drives home the point that economic development is truly a global phenomenon. The article says that coffee growers in New Guinea need to think and act more entrepreneurially; that is more rural entrepreneurship is needed in New Guinea. As I sipped my coffee this morning I thought, who is more entrepreneurial than Starbucks? The entrepreneurial elements of the coffee industry exist, but they are being pursued by everybody except the growers.

The New Guinea article is no different than what we hear as we work on economic strategies in rural California, Ohio and other states. Entrepreneurship is an important priority in rural America and rural New Guinea. And it all starts with a shift to more enterprising thinking.

Go here to read the article.

Colleges Take Advantage of Fiber Fire Sale

If you have not noticed, the telecoms are trying desperately to jettison their excess fiber optics capacity. Guess what? This is a great opportunity for colleges and universities to snap up some cheap F/O capacity, and many are, according to a recent Chronicle on Higher Education article. To learn more about this situation, go here.

Perhaps this is an opportunity for your local higher education institution to strengthen its broadband capabilities. This could be a boost for that university research or science park that you want to wire. Think about it.

Smart Growth, or Productive Growth?

Who could be against the concept of growth that is environmentally, fiscally and economically sound? Lots of people. If you attended The Thoreau Institute's "Preserving the American Dream" conference last month, you might have wondered if anyone was really in favor of "smart growth." Conservatives have long taken issue with any policy or action that seeks to place restrictions on personal freedoms, including mobility and the use of private property. Go here to learn more about the conference. Personally, I am not a fan of big government. At the same time, there is little question in my mind that government must play an appropriate role in reminding all of us of the need to grow and develop in way that minimizes harmful impacts on society.

While a significant number of economic developers favor smart growth, many remain suspicious of it, seeing it as a guise for increased government control of economic activities and a clandestine move by environmentalists to restrict growth. I see value in growth that treats the environment with care and deals with the fiscal and economic costs and benefits of growth in an equitable manner. The economic development community has made progress in these areas in the past decade or more. In my strategy work, I think I have just about seen it all in terms of both "smart" growth and "dumb" growth. One thing is for sure. We cannot afford to make any serious environmental mistakes that undermine our future--in an economic sense and otherwise. We have flirted with near tragic environmental disasters in many parts of the country.

I would like to introduce a new idea that might help solidify the tie between economic development and smart growth. Productivity is actually a close cousin to smart growth. Think about it. Few businesses would argue that productivity is not important to them. If they do not make the most productive use of their resources, businesses fail to grow and prosper. There is no profit without productivity, unless you operate in a monopolistic market, which most businesses do not. My view is that American communities need more "productive growth" in the future.

Productive growth at least gives back at least as much as it takes, and in most cases, returns more benefits to the community than the costs it creates. Break-even in most cases is not good enough. Perhaps more economic developers would "buy" the idea of smart growth if it were cast in productivity terms. And maybe the concept of "productivity-based" growth would help more environmentalists see value in economic development.

The concept of productive growth does not take away any respect for the environment in its own right. Economic developers should value the natural environment in its own right; that is beyond its economic utility. Economics is not really an "end-game" consideration in this sense, despite what some might claim at times. Of course, economics is relevant to almost all aspects of our lives, but economics is a means to achieve an improved quality of life. We do not work, start businesses, or earn money simply to create an economy. Instead, we create an economy so meaningful and rewarding work, business and other economic activities can be created and sustained in society. Most economic activity seeks to serve personal or social end-game purposes in life, such as enhancing the standard of living and quality of life of people.

Economics is a power tool that when used properly can help us make the right decisions that reflect our overall interests. Economic thinking is vital to both economic development and environmental improvement. It reminds us that: 1) our actions create both costs and benefits; 2) every opportunity has a cost; 3) many costs also create opportunities; and many other things. In this context, productive growth, in a net sense, should create more social and economic benefits to society than costs.

Truthfully, we really do not know the full range of impacts produced by our actions. Life is full of unintended consequences. Technology, globalization and many other developments have greatly increased the ripple effects of even small actions that we take. This is something we should remain mindful of as we lay our future economic plans. I don't have to tell anybody that life is full of risks and uncertainty, as both are highly elevated across the world at this time. Even our most carefully planned actions embody uncertainty and create risk in the world. Economic developers need to give greater attention to "risk management," which has gained relevance in just about everything we do. Productive growth hinges on risk management. That is an important connection we should be aware of.

In conclusion, I think it is important for our future economic development strategies to be environmentally sustainable and sound in an economic and fiscal sense. Perhaps if we saw the proposition in the context of productivity we would have an easier time understanding why smart growth principles are important to economic development.