Cincinnati Touts ED Results

The Partnership for Greater Cincinnati attracted 33 new-to-the-region businesses during 2002, according to the partnership's 2002 Cincinnati USA Growth Report released earlier this week. The 33 projects represented $153.2 million in capital investment, created nearly 1,100 new jobs and retained nearly 700 existing jobs. Overall, the region retained or added more than 12,500 jobs and attracted nearly $914 million in capital investment, the report said.

Go here to read more.

Greensboro ED Efforts Get Funding Boost

Attracting its first major corporate contribution in more than a year, Action Greensboro will receive $1 million from Charlotte-based Bank of America over three years to support economic development initiatives. Of that amount, $600,000 will go to Forward Greensboro to assist with job retention and creation; $250,000 will go to the $12 million center city park planned for North Elm Street; and $150,000 will go to the Piedmont Triad Partnership to assist with regional marketing efforts.

Action Greensboro has now raised more than $33 million toward its three-year plan of $37 million worth of initiatives and projects; Bank of America is the sixth corporate gift and the third at $1 million or more

Go here to read more.

Kansas Increasing Financing Capacity for Boeing Deal

Officials of Boeing's Wichita plant approached Kansas legislators last week seeking money for research and development costs on the next-generation 7E7 jetliner. Boeing is studying which of its plants and suppliers will develop and build the fuel-efficient midsize jet that the company wants to begin selling in 2004.

A bill allowing Kansas to issue $500 million in bonds to help Boeing Wichita secure work on the company's proposed new 7E7 jetliner won the endorsement of a state Senate committee yesterday. The full Senate won't act on the measure until legislators return April 30 from a recess that starts Saturday. But proponents said it was important to get moving on the legislation, which provides that The Boeing Co. -- not the state -- would repay the bonds.

Go here to read more.

Arkansas Moving Toward Mega-Deal Fund

Legislation that would give a state development agency the authority to issue bonds for “superprojects” passed the House on Friday. The measure by Rep. Sid Rosenbaum, R-Little Rock, would authorize the Arkansas Development Finance Authority to issue bonds benefiting companies investing at least $400 million and creating 400 jobs. Economic development officials cited Arkansas’ recently losing out on a Toyota plant to San Antonio to illustrate why such authority was needed, saying the state can’t move quickly enough under current law.

Go here to read more.

Viet Nam Steps Up ED Efforts

Viet Nam plans to increase its incentives to business investors and is also working to strengthen the brand identity of Vietnamese products in world markets. The VN Ministry of Trade Promotion Department has launched a national program, known as "Vietnam Value Inside" to improve competitiveness of Vietnamese trademarks in both domestic and major international markets.

Go here to read more.

Greater Washington Initiative Gets New Lease on Life

The Greater Washington Board of Trade has extended the life of the Greater Washington Initiative GWI), its economic development and marketing affiliate, for another five years. The 9-year-old group acts as a central point of contact for companies interested in moving to or expanding in the D.C. region, which has 21 jurisdictions all vying for investment. The next step will be to raise the funds from GWI's investors.

Go here to read more.

Athersys Update

The race for Athersys, the Cleveland-based bioscience company, is heating up. News reports from Pittsburgh, Cleveland, Phoenix and Minneapolis paint the picture that the company is still dealing and that it's decision had not been made yet. A recent article in the Twin Cities Newspaper identifies some of the incentives proposed by competing cities. Go here to read more.

New Mexico's ED Efforts Get More Aggressive

Recent reports point to a more aggressive economic development strategy being set in motion by New Mexico officials. Compared to most states, New Mexico's state budget is in pretty good shape. That could be an advantage in the current deal-making environment. Cash-strapped Arizona is taking note of New Mexico's new power plays in the economic development arena.

Go here to read more.

Finding Real Solutions to State Economic and Fiscal Problems

This article offers some ideas about how the states can approach a solution to their current fiscal and economic problems. It was prompted by the less than creative or effective thinking we are seeing right now about how to fix state budgets and put state and local economies back on a realistic path to recovery.

This is not an article just about Pennsylvania and Ohio, but it uses some recent developments in each state as a way to illustrate the problem all state leaders are having in coping with their very serious fiscal and economic problems.

Remember the 1980's TV commercial that asks "Where's the beef?" That very question popped into my mind as I read about the latest leg of Pennsylvania's new economic development strategy, which basically says that all technology and entrepreneurship-focused groups in the Commonwealth should work together to get Federal money. Go here to read more.

Don't get me wrong. Pennsylvania and other states should go after Federal money that helps achieve their economic development goals, but there isn't much new in this idea. This idea hardly constitutes the central focus of an innovative state economic development plan.

As I look across the economic development landscape nationally, it reminds me that economic development boils down to two things: 1) political economy, with a greater emphasis on the first of the two words; and 2) drama, or at least that is how things appear as you watch our political, business, educational and community leaders dance in circles during this time of great risk and uncertainty.

Every state is trying to do two things right now: 1) make financial ends meet in the short term; and 2) determine whether to make major structural changes in their tax and fiscal policies to solve their current financial problems. Many ideas in the second category are being disguised as economic development proposals, which they are not. Folks, this is sheer political drama. I want to know where's the beef, or the economics, in our thinking? Economic development must be about more than political survival! All governors and state legislatures need to understand this point.

Running state governments has never been easy. This job became exponentially harder in the past three years. Public policy today is all about "taking away" from everyone you can, including other levels of government, to survive in the short term. More and more, it is about less and less. The merry-go-round had to stop at some point. It started to slow down in March 2000, was slowed even more by the events of 9/11, and has now come to a screeching halt with the War in Iraq, forcing everyone to get off the merry-go-round.

Our nation and its member states face enormous challenges at this moment. These are challenges that test the stuff we are really made of. We are pretty good at "easy street economics," that is getting along when times are good. Do we have the stuff to survive a real major crisis? I think we do, but we are not showing our best stuff right now. Economic development was boosted by easy street economics throughout most of the 1990's. We could afford to worry less about risk, work in a fragmented way, and fly by the seat of our pants. The current environment does not permit us this luxury. We need knowledge-based plans that are flexible and allow us to adjust to future change.

So, what should the states be doing at this time? I offer the following action plan to those state leaders who are willing to listen:

1. Adopt an integrated framework for thinking through your current challenges, which allows us to examine possible future scenarios and adopt short, intermediate and long-term plans. Create an "economic leadership team" that is able to think flexibility about a wide-range of solutions. At all cost, avoid short-term political expediency. This is not the time for another mammoth economic study, rather it is a time to shift our style of thinking from "one-way political strategy" to "multiple-path network strategy." Economic development occurs in and through local, state, national and global networks. We need to make local and state fiscal and economic decisions with this understanding in mind. If we don't, we will continue to be blind-sided by surrounding events and developments.

2. Make no sudden moves or sweeping changes in tax or fiscal policies until we shake-out more risk and uncertainty from the economic skies. This is a bad time to make risky policy decisions. Nor is this the time for backroom political schemes to "shift and shaft" constituencies through budget politics. This is exactly what is happening in most states, including Ohio, where a proposal has been forwarded to make dramatic changes in state tax policies and axe various economic development programs. We do not know enough about Ohio House Bill 58 to act upon it. Issues of this magnitude should not be dealt with in the context of a biennial budget vote. By the way, this bill does contain some worthwhile proposals, such as doing away with the state's tangible personal property tax, which could help Ohio economic development over the long term. The bill's proposal to haphazardly dismantle Ohio's economic development incentives is not a welcome thought, given the state's weak competitive position and the current economic environment. Changes to the state's economic development strategy should occur in the context of an overall planning and decision-making context and not during an eleventh hour budget decision.

3. Remind yourself that you are about service to the public. People need service, especially those that depend the most on government for assistance. We have a tough economy out there and lots of people are getting hurt. Even the rich are feeling lots of pain right now. Decide how your state is going to ensure acceptable service quality outcomes during these meager times and beyond. Innovate with new models of service delivery that allow the business and nonprofit sectors to play greater roles.

4. Work on building people's confidence that they can survive and they can do the tough job they must perform. The public is afraid, angry and frustrated with the way the world is and the impact it is having on their lives. Help them to see that we are all in the same boat and all of us need to do our fair share of rowing.

5. Once acceptable short-term economic survival plans are in hand, go to work on bolder solutions that can realistically improve your state's long-term competitive advantages for economic development. Many states are waving around schemes they call economic stimulus plans. In my review, none deserve this name. In most cases, they are a hodge podge of proposals and ideas without any real analytic foundation or central strategy ideas. Cutting taxes is a popular idea, but everyone knows that every tax cut relieves pressure on one group and adds a greater burden on others. This will always be the case since government budgets are designed to grow larger and not smaller.

Once all of us are safely on the other side of the Iraqi War, I recommend that the Federal Government, the states and a representative sample of local governments go to work on a coordinated inter-governmental plan to address our major public financial problems, which will include paying for the Iraqi war, balancing budgets, and creating a better approach to financing government in the future. The intergovernmental finance system that we have now is not sustainable. Our current crisis has proved this point.

Businesses and industries reorganize themselves everyday to adjust to market and public policy shifts. Government must be prepared to do the same. I cannot help but think that a significant consolidation and re-alignment of governmental entities will be necessary as we move forward. Also, significant changes in where government gets its money and how it spends it will be needed. This means that: 1) local governments within states should be exploring how they will work together to solve their problems; 2) how states and local governments will work more effectively; 3) how states will collaborate with each other to achieve their interrelated goals; 4) how states and local governments will work better with the Federal Government in future; and 5) how all levels of government will work in closer cooperation with the business and the private nonprofit sector.

If we truly use our collaborative advantage, we can create "win-win" solutions for both government and economic development in the future.

Debate Over Indiana ED Plan Continues

Will Indiana Gov. Frank O'Bannon's aggressive ED proposal survive? The governor's 10-year, $1.25 billion economic development plan is on the ropes. And Republican lawmakers may deliver the knockout punch today.The Senate Finance Committee will strip most of O'Bannon's Energize Indiana initiatives from House Bill 2008. It will substitute a two-year, $68.1 million plan that doesn't rely on the sale of tobacco bonds to generate up-front cash, a key component of O'Bannon's proposal.

Go here to read more.

Maine Debates Tax-Free Business Zones

Hungry for new business investment, Maine is considering new tax-free zones to encourage increased investment and jobs in the state's distressed communities and regions.

Maine Gov. John Baldacci wants to give additional tax breaks to businesses that move to Maine's economically struggling regions. The governor's proposal to establish "Pine Tree Development Zones" that create tax-free zones in many regions across the state. The proposal has appears to have strong political support in the Legislature. Some people however say the Governor's proposal could amount to a corporate windfall and shift the state's tax burden to residents and existing businesses.

Stay tuned. Go here to read more.

Welch Business Leaders Say the Country Needs a New ED Strategy

Business leaders in Wales believe their country needs a new economic development strategy that works to make the Welch economy more entrepreneurial.

Have you noticed that business leaders in many areas are urging greater attention to economic development? Maybe this urging is telling us something--like the fact that our existing strategies have run out of steam?

Go here to read more.

Lansing, Michigan: Is a Labor Shortage in the Making?

A looming retirement boom and population flight are pushing the Lansing, Michigan area toward a "severe" labor shortage, says a recent report. "A lack of workers over time can cut into economic growth,"said Douglas Stites, chief executive officer of Capital Area Michigan Works, which produced the report jointly with the area's Regional Economic Development Team.

How will the area respond? That's not clear from the report. What do we suggest?

* Work on population retention through an enhanced quality of life strategy.

* Do a better job of engaging local citizens and tell them how important they are. Make them feel valued.

* Explore commuting pattern trends in the regional labor market and develop strategies to increase the in-flow of workers to the area from surrounding communities and counties.

* Assist major employers with their employee recruitment efforts. Link area economic development marketing efforts to major employer workforce retention and attraction efforts.

* Offer longstanding residents and workers "longevity benefits" for sticking it out in the area. What might this include? Offer them discounts on tuition to area colleges and universities, give them greater public recognition for long-term residence and work in the community, provide them with more flexible work schedule benefits, or involve them in the process of recruiting new residents and workers to the area.

The underlying demographic trends causing worker shortages must be addressed if this problem is to be corrected. Many other communities across the country are facing this same issue. Maybe Lansing area leaders should put up a website dedicated to these issues and engage other places with the same problem. An exchange of ideas among these communities could be quite helpful.

Go here to read more.

Project Eden

The Tampa Bay area is hot on the trail of "Project Eden," an unidentified financial institution that reportedly is scoping out the area for a 2,000-employee expansion or relocation, represents a potential boost for the region at a time when many parts of the country are losing employers and jobs. Who is Project Eden? Some have suggested Project Eden might be Deutsche Bank, the financial giant in Frankfurt, Germany, that has purchased two American companies, Bankers Trust and Scudder Funds, since 1999.

Go here to read more.

Follow-On Thoughts on North Carolina's ED System

Earlier this week I reported on a new UNC study assessing North Carolina's economic development delivery system. Here are the major observations that I draw from the report:

* In response to new issues and demands, North Carolina's ED delivery system has evolved in many directions over time.

* The current system is not as strategically focused and coordinated as it needs to be.

* Regions and state government, while still working together, have grown apart in many ways.

* Some believe that the state has too many regions that do not correspond to "real" regional economies.

* Regional partnerships are the best approach to economic development for North Carolina.

* Both the state and its regions may be giving too much attention to business recruitment.

* The state's ED delivery system should strive for better coordination, but not at the expense of regional flexibility.

* Both the state and regional ED delivery systems need to work harder at performance monitoring and assessment.

I am not surprised by these conclusions since the same could be said of the economic development delivery system in most states. Economic development systems are evolutionary constructs that take shape in response to both political and economic issues. While the drama may vary somewhat from state to state, economic development remains "political economy" in the true sense of the word.

As I said in my earlier article, I believe North Carolina has a good economic development system and one that has produced favorable economic development results over the years. North Carolina has a superior system to that found in many other states. For that, North Carolina deserves a lot of credit.

What would I recommend for North Carolina?

* Work on sharpening the opportunity focus on the state and regional economic development efforts. The state has built significant capacity in a wide range of industries over the years, including vehicle and parts manufacturing, furniture, life sciences and biotech, environmental technology, and a host of others. I suggest a "portfolio" approach to developing these opportunities and new ones in the future.

* Work on building innovative state and regional partnerships with national and global resources that could foster increased economic development in the state in the future. Key targets should be the state's technology sector and its university system. Tourism also offers some good partnership opportunities as well.

* Develop coordinated state-regional investment strategies that build regional economic development capacity. Strategies related to infrastructure, education, industry clusters, and urban and rural market-building are most crucial.

* Explore how all state and regional ED programs and initiatives can play a stronger role in stimulating "market responses" to the opportunities and challenges facing North Carolina. Most economic development systems are not capitalizing on their existing market strengths. Growth occurs in and through markets, not economic development delivery systems.

Go here to download the NC ED report.

New Interstate Economic Development Partnership Announced

The states of Mississippi and Alabama, not only longstanding football rivals but also economic development competitors, have launched a new interstate partnership to spark economic development cooperation in landing opportunities to help impoverished rural areas in Eastern Mississippi and Western Alabama.

While the two states' governors did not identify any specific company that might be targeted by the alliance, they noted that the area is rapidly becoming an automotive corridor. Mississippi Gov. Ronnie Musgrave said "One thing for sure, it will allow us to compete for major projects, such as an automotive manufacturing facility."

Interstate economic agreements and compacts have been tried in many regions over the years. In the 1980s, Great Lakes governors signed a no raiding compact, which promptly fell apart when a large Japanese automaker pitted the states against each other to spark an incentive bidding war. Can Mississippi and Alabama make their new interstate alliance work? Time will tell. I like the concept. It is very consistent with my thinking about innovative collaborative partnerships.

Go here to read more.

Arizona Details Bioscience Plans

Armed with its new bioscience development plan, Arizona is readying for future competition for bioscience business, research and other opportunities. The state plan to move forward on several fronts:

1. Increasing tech transfer.
2. Attracting new bioscience companies.
3. Expanding university and company research.
4. Attracting new talent vital to the industry.
5. Creating more lab space.

Last year, state and local officials invested $120 million to lure TGen, or the Translational Genomics Research Institute, to build a new campus research center in downtown Phoenix. Some hold high expectations for big short-term results. Informed sources caution that the effort may take a decade or more to see really significant results. Phoenix has made a pitch for Athersys, the Cleveland-based bioscience company that is currently exploring its future business location options.

Go here to read more about the Arizona bioscience strategy.

Minnesota Governor: State Needs to Do More for Economic Development

Many states are debating tax increases to balance their ailing budgets. Tax increases are unpopular with citizens and businesses. In selling his no-tax-increase budget plan, Minnesota Gov. Tim Pawlenty often points out that Minnesota's tax burden is higher than other states in the region. But despite the higher taxes, Minnesota also has been more prosperous than those states. Some experts say Minnesota's use of tax dollars has strengthened the state's economy. Others question whether that's still the case.

Pawlenty says "We’ve got to get serious about having an environment here that says to job growers and job providers, this is a place where it's a reasonable business decision to expand and grow your business here. And setting aside China and Mexico and Indonesia and the other places, I don't want to lose any more jobs to Wisconsin, and northern Iowa, and South Dakota, and North Dakota." In the last year, Ford Motor Co., picked Wisconsin over Minnesota for a new parts distribution center. Smaller firms have moved there as well, in some cases attracted by lower property taxes. The head of one small firm says the move saved his company nearly $80,000 in taxes. Others say it's a wash.

Economist Art Rolnick, director of research at the Federal Reserve Bank of Minneapolis, says personal income is a key measure of a state's economic success. "We look at per capita income as probably the measure of how successful our economy is," says Rolnick. Minnesota's personal income has been higher than the border states and the national average since 1981, and in the top ten since 1996. Wisconsin has lagged the national average for more than two decades. Rolnick says that Minnesotans receive considerable payback for their tax dollars in terms of education, quality of life and other public services.

Meanwhile, the Bush Administration is still looking for a way to slash Federal taxes. Many question whether this proposal will be possible due to the rising costs of the Iraqi War effort.

Go here to read more about the Minnesota debate.

Believe It or Not, Some Businesses Will Expand This Year

Recently we reported on some announced business investments that are moving forward this year, despite the economy, war and other key developments. A recent report by RKS Research of NY says that a number of U.S. businesses plan major investments in 2003. More than a quarter of U.S. businesses plan to expand their operations during the next 12 months, according to data from a survey by RKS of 1,304 businesses nationwide.

The Southeast ranked most positively nationwide as a preferred region for corporate expansion or relocation. Within this region, Florida, North Carolina, and Georgia rank highest as potential expansion or relocation communities.

Go here to read more.

New Report Says North Carolina ED Efforts Not Well Coordinated

A new report by the University of North Carolina at Chapel Hill (UNC-CH) concludes that not enough is being done to coordinate economic development by state government and regional economic development groups.

The report was prepared for state's General Assembly, which is exploring new avenues for strengthening future economic development efforts.

One source of debate is how much future attention should be given to new business recruitment and existing business assistance. The UNC report recommends greater attention to retention and expansion in the future.

Reaction by regional and local economic developers was not overly positive. They counter that things are not as bad as the university report depicts them. Is there room for improvement? Most say yes.

In perspective, North Carolina has had an effective economic development strategy that has produced tangible results across the state. While poverty and unemployment remain major challenges in many parts of the state, our view is that North Carolina has exercised positive leadership in economic development. Its aggressive approach coupled with strategic investment in its universities, Research Triangle Park and other resources are role models for EDO’s nationally and internationally.

Probably it is time to explore new organizational models to improve the overall delivery system. As we have suggested in earlier ED Futures articles, we think the future push should be to form national and global partnerships that extend our economic development reach. For North Carolina to move to the next level, it needs to do more than simply improve coordination of efforts between the state and the regions.

Go here to read more.

Job Impacts of the Iraqi War

A recent analysis by Economy.com assesses how the war effort is impacting various segments of the labor market.

The most obvious impacts include a:

1. Boost to defense-related employment, especially within larger contractor companies.
2. Boost in security-related businesses in both business and consumer markets.
3. Drop in tourism-related employment, triggered by the decline in business and personal travel since 9/11.
4. Drop in military base communities where troops have been deployed.
5. Declines in airline employment due to post-9/11 business declines.
6. Declines in consumer services, including retail because of slack consumer demand.

Go here to read more.

Business Reaction to Pennsylvania Governor's Economic Stimulus Package Not So Favorable

Pennsylvania Gov. Ed Rendell has gotten good play in the press about his proposed new economic stimulus package, but what do Pennsylvania businesses say about the plan?

Pennsylvania's business leaders raised a skeptical eyebrow last Tuesday at Rendell's ambitious $2 billion bond-financed plan to drive the state's economic revitalization.It would be better if Rendell cut taxes before looking at other solutions, said Jim Panyard, head of the Pennsylvania Manufacturers' Association.

All well and good, were it not for the fact that the average taxpayer will end up paying for the bonds through a 33 percent increase in the personal income tax, said Kevin Shivers, state director of the National Federation of Independent Businesses. ''This proposal breaks the bank, and our members have some serious concerns,'' he said.

The conservative Commonwealth Foundation, long an opponent of government spending, condemned the plan as wasteful of scarce taxpayers' dollars.

What is our view? State and local governments must be cautious with their spending during these tough economic times, but at the same time, they must continue to look at innovative solutions to jumpstarting their ailing economies. Is borrowing $2 billion the answer for Pennsylvania? Probably not. At the same time, some of Rendell's proposals strike us as deserving further investigation and support.

There are no short term fixes for state and local economies. Pennsylvania, like other states, will need to carefully work its way out of these difficult economic times. Ultimately, it is private business investment and consumer spending that will bring about a rebound in state and local economies. Managing costs of doing business remain important for all states, but especially higher cost states like Pennsylvania and Ohio. Pennsylvania officials should give more attention to these issues.

Is a tax cut the answer for Pennsylvania economic development? We don't think that will bring much relief to individuals or businesses in the short or intermediate terms either. What action should be taken? Manufacturers need to give more attention to long term innovation, new product development and global market positioning if they are going to capitalize on new market opportunities related to the emerging knowledge economy. That is where we would suggest giving greater attention in Pennsylvania. Also, that is where state and local economic development organizations should be focusing attention. Recently, we developed a new framework to help manufacturers capitalize on knowledge economy opportunities. Contact us for more information. Send us an email here.

Go here for more details on business reactions to the Pennsylvania economic stimulus proposal.

Manufacturing May See Some Improvement This Year

While the outlook for a strong manufacturing rebound is unlikely, most economists are forecasting some continuing improvement this year in the sector.

Manufacturing industries are poised for a turnaround later this year, though the next several months will be weak as both domestic and global demand conditions remain tenuous amid the current geopolitical situation. Business investment is expected to post nominal and real dollar gains this year, after two years of declines.

The performance of most manufacturing industries improved in recent quarters though few are on a firm path to recovery. Revenues for manufacturing industries increased on average by more than 7% during the fourth quarter of 2002 compared to a year earlier. Leading the way was stronger revenue growth in the vehicle, electrical equipment, textiles and apparel, and semiconductor industries. More importantly, profits turned positive in the fourth quarter for the first time in two years.

Capacity utilization rates typically need to be above 80% before significant investment in new capacity will take place. Manufacturing capacity utilization was below 73% in February, close to the low it reached at the end of 2001. This is one important barometer for when new investments will be made by manufacturers.

Despite the current slow economic environment, some manufacturers are moving ahead with investments, as we reported yesterday in stories about Marzetti opening a new plant in Kentucky, a new Toyota subsidiary opening a new aluminum plant in Tennessee and of course the big news is the new Toyota truck plant starting in the San Antonio area.

In related news, the National Association of Manufacturing (NAM) has embarked on a "Strategy for Growth and Manufacturing Renewal," which was kicked off last month. Go here to learn more.

Stay tuned.

Tribes Look Beyond Gaming

Concerns about the future of gambling and the sustainability of tribal economies are forcing the Umatilla Tribe in Oregon, and dozens of other tribes nationwide to pursue long-term, multimillion-dollar investments in everything from aeronautics to digital mapping.

"There is a sense of urgency in Indian land to diversify tribal economies, which is why we're seeing tribal leaders invest in all forms of enterprises, from airline assembly plants to minimarts to shopping centers," said David Pallermo, spokesman for the California association of Indian gaming operations. "We've had tribes in California buy and take over ownership of banks."

In Banning, CA, the 1,000-member Morongo tribe next month will open a $26 million bottling plant for Arrowhead Mountain Spring Water, a subsidiary of Nestle Waters North America. The plant, which will bottle water from springs on Morongo tribal land, will create about 1,800 local jobs.

One of the first tribes to invest in non-casino projects was the Mississippi Band of Choctaw. The Choctaw own 22 businesses and are the majority owners of three more, including high-tech industries that produce geoimaging devices and a 1,200-employee auto parts plant in Mexico.

While gaming still offers valuable economic opportunities for tribes, they are wise to invest in building more diversified economic bases on their reservations to support tribal members.

Go here to read more.

Emotions Flare About War: ED Impacts in Louisiana

Is the war having an impact on economic development? Yes, on many levels. Probably one of the most dramatic illustrations of this point is in Louisiana, which has historically built upon its French cultural ties to promote trade and reverse investment activities with French businesses.

French businessmen who were considering bringing jobs to Louisiana have canceled a trade mission because of recent French bashing by Louisiana politicians, an economic development official says. The French business delegation was scheduled to visit the state in April, but a decision to cancel was made by the French as a direct result of comments by Louisiana Gov. Foster and other politicians who have said French President Jacques Chirac would not be welcome in Louisiana because of his opposition to the U.S.-led war with Iraq.

A scientific exchange meeting between Louisiana and French cancer research specialists scheduled for July in Lyon, France, also has been put on hold and probably will be canceled. 10 French corporations have recently expressed some interest in locating in Louisiana.

What exactly is at stake here? French companies hold $1.8 billion in business assets and employ 10,000 people in Louisiana, and 75,000 French tourists visit Louisiana annually. The value of U.S. exports that move through the Port of New Orleans to France each year is $277 million. The trade value of exports to France from Louisiana in 2001 was $74 million.

In more than one way, there are economic consequences to pay for the Iraqi War.

Go read more about the Louisiana situation.