Why Economic Development Isn't Working in NE Ohio

The Cleveland Plain Dealer recently ran a story pointing to the inability of Team Northeast (NEO) to make a dent in the region's economic problems. In a related story, the newspaper suggested that other regional economic development efforts weren't doing too much better. Don't get me wrong; accountability is needed in economic development. It is very fair to ask what we're getting for our investments. Click here to read the series.

While the series makes some good points, in an overall sense it really misses the point. What did it miss? It failed to fully acknowledge the real reasons for our economic angst. Sounds like more "Quiet Crisis" stuff to me.

Here is my simple explanation why Northeast Ohio's economic development organizations can't seem to garner greater results:

1. The regional economy is the biggest culprit. It remains in an unraveling mode and will stay there until it finds a new balancing point (a much smaller and focused regional economy) in the global network of regional economies. Frankly, there is little directly that our ED organizations can do about this cause, other than anticipate it, steer around it, and help local communities and people to adjust. From an economic development standpoint, the "location product" is not as attractive as what the domestic and international competition can offer. How do I know? Things are different in Charlotte, Toronto, and Tucson/Southern Arizona where I am currently working. Mind you; there is no perfect economic place.
2. Corporate disinvestment has capsized the NEO economic ship. No major employer call program will fix this. The region's largest manufacturing employers continue to pick offshore locations for their work to remain competitive. Global competition is now applying growing pressure on our advanced service sector, including finance, insurance, healthcare, real estate, business services, and educational sector. If we're not careful, our advanced service sector could fall prey to the same demons.
3. Culture, values, and attitude weigh heavily on regional economic development results. We suffer from a deep-seated defeatist attitude. It becomes an immune system deficiency that undermines everything we do. We doubt ourselves on the deepest level. People here must restore their confidence in their ability to prosper here. Also, our regional economic development culture (that includes everybody and not just the faces and names in the Plain Dealer series) is combative, secretive, blaming, insular, and small-minded. We have to change the ideas we carry around in our heads. One way to make this shift is to stop trying to go it alone and start partnering nationally and globally. See my article from July 22.
4. Team NEO was birthed in the same "top-down corporate culture" that has been undermining the community for several decades. Should we be surprised that the current model isn't working? The GE model for economic development doesn't work anymore! Stop trying to apply outmoded business strategy to economic development. Be the changemaker and stop trying to copy what others are doing.
5. Leadership, collaboration, local community buy-in, and funding are real issues, but they are contributing factors and not driving causes. Team NEO is under-funded by about 33%. That's an easy one to figure out. City, county, and regional development groups should work together more as a richly linked network. We need a fresh approach to leadership that is based in stewardship and service.

Where do we start? Let's start with an examination of our attitudes and intentions. What are we carrying around in our heads that undermines our success? Moreover, what does success mean in the context of the people and place we call Northeast Ohio?

When all else fails, hire a shaman and have him perform a healing ritual for the regional economy. Just make sure the shaman you pick is from out of town and knows nothing about NEO.