A Look at the Economic Development Field's Professional Status

I. Is Economic Development a Profession?

I get this question often from young people who are giving consideration to economic development as a field of endeavor for themselves. It is a very fair question. If you were asked this question, could you answer it with any degree of confidence?

My answer to them is that economic development is an emerging profession with considerable work ahead in solidifying its knowledge, practice and ethical bases. A few have asked me the question: How long will it take for economic development to reach a full professional status? My response has been: 1) it will take as long as it takes to solidify our base; and 2) we need to think of professionalization as a process with stages. This means we need to look at the history of the field and how it has evolved.

II. Short History of Economic Development

The economic development field started in the 1920s and 1930s as "industrial development," which was all about recruiting industry, mostly manufacturing companies. In its early years, the "business" largely consisted of a focus on real estate (industrial parks), site location, labor force, transportation, utilities, some incentives, and area promotion activities. It stayed that way until the mid-1970s, which is when I happened to enter the field.

Stage 1 covered the 1920's/1930s through the mid-1970s. Stage 1 drivers were: building upon manufacturing's rapid growth, and stimulating growth based upon the agglomeration economics of the major Northeast and Midwest urban markets. Starting in the 1960s, considerable attention was given to industry relocation to the low-cost rural South. The interstate highway system was a major driver in opening up new areas for growth. The model of the economic development practitioner during those days was the "industrial developer."

The business began to steadily broaden its focus beyond industrial development in the late 1970s and early 1980s to include other economic sectors (the service side of the economy) and other economic development functions (existing business retention and expansion, a broader approach to marketing, international recruitment and international trade, workforce development, urban redevelopment, rural development, economic development finance, business climate, early stage target industry development, and an initial focus on small business and entrepreneurship.)

Stage 2 covered the late 1970s through the 1980s. The primary drivers for Stage 2 was early-stage globalization, combating rising cost economics, and changing demographics. The model of the economic development practitioner during this stage was the "diversified economic developer," with a broader focus on developing places and economic sectors.

In the early years of the 1990s, economic development shifted again. This time the direction was driven largely by technology and globalization, although the new demographics was also a major influence. IT was the biggest technology driver in the 1990s with growing help from biotech and the life sciences. On top of those new activities spawned in the 1980s, a new set of activities developed, including entrepreneurship, technological innovation, tech business startup, foreign business recruitment, international trade, sustainable development, seed and venture capital, technology and business parks, workforce development, regional cooperation, new approaches to existing business development, industry targeting, industry clusters, a major build-up of incentives, and new strategies for workforce development. The model of the economic development practitioner in this third stage was the "technology-oriented economic developer."

The world changed after 9/11, and so did economic development. Security concerns and terrorism made all of us much more aware of the our "global connectivity and interdependence." The field began its 4th generation (stage) with the turn of the century. While technology, globalization, and demographic factors continued to act as underlying drivers, these factors have morphed and accelerated. Global demographics, the modernization of the emerging nation-states (China, India, Vietnam, etc.), next-generation life science and IT technology, rising energy challenges, accelerated globalization of most all industries, and network economics are the drivers for the newest stage of economic development's evolution. How long will this stage last? That remains to be seen. A lot depends upon the curve that technology and human values follow in the future. My hope is that this new stage will give greater attention to: sustainability, realizing the full potential of human beings, place and people connectivity and networks, and an emphasis on meaningful work across the world. The model of the economic development practitioner in this 4th stage is the "globally-conscious sustainable economic developer."

III. Perceptions of Professionalism in Economic Development

My impression is that most people working in economic development (economic developers) do not spend a great deal of time thinking in-depth about whether they are a professional. My experience indicates that most "assume" they are a professional in a general sense. That is, they believe they "conduct themselves in a professional manner," drawing upon whatever skills and knowledge that are at their disposal. But does that mean economic developers are professionals in a true sense? While I would agree that most economic developers conduct themselves in a professional manner, I would argue that is not the same thing as "being a professional in a demonstrable sense."

The professional status of economic development is a cyclical issue in the field. I believe we are about to revisit this vitally important question in the not too distant future because: 1) a growing number of geographic places and people are jumping into the economic development game worldwide; 2) competition for economic development opportunities, especially the "good stuff," has grown very intense; and 3) we to continue to struggle with the nettlesome questions of "what really works," and "can we confidently predict results and outcomes under various defined courses of action." The third issue is perhaps the most important. And no, simply jumping to performance measures and mimicking the Business field's Balanced Scoreboard approach is not enough. There are tougher underlying issues we must address that relate not only to knowledge and skills, but also to professional conduct in a ethical sense.

For some time I have said, that as a body of practitioners serving society, we (economic developers) should be confronting head-on the challenges associated with making economic development a true profession. We have made some progress in raising skill and ethical standards in the field. The Certified Economic Developer (CEcD) designation is a step in the right direction, but it remains more a practice of artists judging artists than scientists judging scientists. The CEcD process is practice-driven, which is what most economic developers want; at least for now. I have a suspicion that many economic developers are looking for something more, something deeper, and something that equips them with much more powerful analytical, decision-making, management, and leadership competencies. Right now, they will not find these deeper competencies in the CEcD certification process.

My bias is that I believe, as important as practice-based training is, theoretically-based education has a greater long-term impact on a person's overall personal and professional development. In reality, a new, better integrated mix of training and education is needed in the economic development field.

The Basic Economic Development Courses, the Economic Development Institute (EDI), and various training programs offered directly by the International Economic Development Council (IEDC) are valuable learning experiences for people working in economic development, but they do not fill the deeper knowledge and educational needs of people working in the economic development. Furthermore, I am not sure they even should. As I discuss later, that may well be the role of university educators, with considerable help from practitioners.

I would be the first to admit that we have made considerable progress, but we have so much further to go. As I look back over my past 30 years in the business, my assessment is that what we have really accomplished is two things: 1) advanced our practical skill base in many new and valuable directions; and 2) made the practice of economic development more "professional-looking." In my opinion, that is not enough to make economic development a real profession. Later I will provide a litmus test we might consider using to determine where we are on the "professionalization curve."

Several years ago, I wrote a article that predicted that at some point in time economic developers would need to be licensed, much like the licensing of practitioners in other fields considered to be professions. We have dodged that bullet for now, but it is still out there. Will we be required to hold legal licenses to practice some day? As we advance into becoming a full-fledged profession, I believe we will.

As I look ahead, I believe concerns over the accountability of economic development practitioners to the public will be a greater issue in the years ahead. When the consequences of our policies, strategies, and actions impact the lives of large numbers of people in society, it is not enough for professionals to simply be accountable to themselves. They must demonstrate that their actions are truly in the best interests of the public. The use of public dollars to fund business incentives is perhaps one of our largest challenges in this regard.

Let me ask you this question: Should economic developers be accountable to society? If so, what are your ideas on how they might best accomplish this objective? My position is that we should be. Nearing the completion of my new book on leadership in economic development, I have formed the impression that we need to think much deeper about the issue of our professional responsibility to society. It is not enough for us to think about our accountability solely in terms of the governing boards we work for.

IV. Possible "Litmus Test" for Professional Development

When I look at medicine, law, accounting, engineering, architecture, psychology, real estate, and other well-established and well-recognized "practicing" professions, I see five defining characteristics common to all of them. Put them together and they could provide us with a "litmus test" to assess where we are on the professional development curve. The five characteristics are:

1. Specialized knowledge, which can be clearly documented and tested for its validity. Knowledge derived from theoretically-based research is badly needed in our field.

2. Specialized skills, which can be clearly documented and certified in terms of their presence. We need to go beyond self-proclaimed professionalism.

3. The ability and right to make (professional) judgments about truly important issues to society at large. Do we have the true abilities needed to perform our jobs effectively? By what right do we practice economic development on behalf of society?

4. Responsibility to perform critical activities within known limits of success. In other words, do we know our probabilities of success when we act. Greater reliance on statistical analysis and logical reasoning could help here.

5. Professional ethics, which reflect the best interests of society at large, and embody the recognized standards of practice and conduct suitable to the profession. We have at present a well-regarded code of practice, but is it an highly agreed upon code of ethics with society's interests evident in our work nationally and internationally?

We must confront the complex philosophical issues underlying economic development. For one, should economic development blindly serve as a hidden arm of unfettered consumerism? Another is our most fundamental view of nature and life, and how the business of economic development impacts upon the natural environment and human life. Some might say these are remote issues of no concern to practicing economic developers. I would argue they are core unconscious motivations inside all of us that drive our consciousness about what we do and how that relates to the whole of life. Virtually no attention is being given to these issues by any of us.

While there are continuing efforts by our national associations and other groups to come to grips with aspects of professionalizing the field, we have not committed ourselves to a systematic assessment of the extent of our professionalism in the field in light of the five defining criteria listed above.

Admittedly, this is no simple job, but it is an important one we must go to work on, and not in a piecemeal unconscious fashion. How might we tackle this job? I suggest approaching it from the standpoint of "gap analysis," which would allow us to assess where we are now in relation to a clearly articulated and performance-based vision of what constitutes a "true economic development profession." What is an appropriate vision of economic development as a well-grounded and ethically-sound profession? How does our work compare to that vision?

I would like to know where we are on the curve of professionalizing economic development and what issues we must tackle to move us further along that curve. Wouldn't you?

One key issue I mentioned earlier and would like to add to here is professional education. I know of no true profession that does not have recognized and approved university-based education programs (accredited degrees) for those with a desire to work in the field. (And yes, there are a few masters degree programs across the world.) As a body of practitioners, we should be working openly with the academic community nationally and globally to advance the quality of professional education offered to economic developers. (As a matter of information, I am well-aware of what is offered now by universities, professional associations and various other groups.) My assessment is we need to take the next step beyond today's "training offerings."

I believe we could be on the threshold of significant progress in advancing economic development as a profession, if we pursue honest answers to the questions raised in this article.

V. Starting Recommendation

So, what action steps should be taken to advance economic development as a profession? Here is where I suggest we begin.

State of Economic Development Assessment Project

Initiate a 2-year process to systematically examine the economic development field in its major applications, and assess where the field is currently located on the professional development curve. Beyond the assessment, a recommended action plan should be developed outlining the vital steps required to advance economic development over time as a full-blown profession. And yes, I believe we should be looking for some fast-tracking strategies to move us along.

I suggest a $2 million grant be sought from two leading national foundations and the Economic Development Administration (U.S. Dept. of Commerce) to finance this project. The process should include all the key stakeholders to this process, including the practitioner organizations, the university community, key economic development funding sources, business, government, education, citizens, and other key actors in the local economic development process. A carefully selected leadership group should be created to guide the project.

Should the project have an international focus? This is an important design question. If an international focus is considered, should it be restricted to North America or broaden to include any country anywhere?

I suggest some international focus, but to keep the scope manageable it may be best to focus mostly on the U.S. Perhaps parallel projects in other countries would make some sense. While there are similarities in economic development practice globally, there are also major differences grounded in economic structure, government, human values and culture. These should not be ignored.

One thing we should not be doing is blinding selling largely untested U.S.-based local economic development policies and practices abroad. That is a serious mistake since we (U.S. economic developers) still are unable to define with confidence that what we do really works in terms of predictable outcomes. Where is the proof? In this case, I am from Missouri, so show me! Am I saying we should not be sharing our ideas about economic development idea with our counterparts abroad. Not at all. Clearly, this dialogue is important to improving all of us in the field.

If Canada and Mexico wish to participate, they should be asked to contribute financially and provide leadership representation. I'm sure our colleagues in these countries would agree. The practice of economic development should be examined in a global context since that is clearly where we are headed in the future. But in my estimation, the scope of the project then grows to a project that is closer to $4 million in budget and might take 3 years or more to complete.

There are many important design issues that need to be considered. I would be quite happy to discuss these issues with anyone wishing to engage in a dialogue about this idea.

I invite your comments and questions. Thank you.

Don Iannone can be contacted by email at: dtia@don-iannone.com and by phone at: 440.449.0753.

Download this article in PDF format.

Jacksonville's New Blueprint for Prosperity

Blueprint for Prosperity is a partnership among the City of Jacksonville, the Jacksonville Regional Chamber of Commerce and WorkSource designed to raise per capita income for Jacksonville residents through a strategic planning process focused on at least six community foundation areas: economic development, education, racial opportunity and harmony, infrastructure, leadership and quality of life.

Here are the conditions the plan hopes to take aim at:

1. The Duval County “per capita income as a percentage of the US per capita income has declined from 98% in 1986 to 96% in 2003.”

2. In 2003, the Duval County average earnings per job was 97% of the US average and for 13 years had increased at an annual rate below the US.

3. From 1990 to 2000 the number of Duval County workers living outside of the county increased 45%. Most of these new commuters were high income workers.

4. There is a 47% gap between White and Black “per capita income as a percentage of the US per capita income.”

5. In 2003, the Black population, with this large income gap, made up 30% of the population. At current growth rates this population will reach 35% in 2015 and 40% in 2027.

6. At these growth rates, the total racial and ethnic minority population will exceed 50% of Duval County’s population before 2030, meaning, that if the income gaps continue, Duval’s relative per capita income decline will accelerate.

7. Duval County’s public school four-year gradation rate was 67.2%. Only 32% of 10th grade students read at grade level. Educational success relates to increased per capita income and quality of life.

Download the draft plan here.

What Is Biotechnology?

Break biotechnology into its root words and you have:

---bio—the use of biological processes; and
---technology—to solve problems or make useful products.

Using biological processes is hardly a noteworthy event. We began growing crops and raising animals 10,000 years ago to provide a stable supply of food and clothing. We have used the biological processes of microorganisms for 6,000 years to make useful food products, such as bread and cheese, and to preserve dairy products. Why is biotechnology suddenly receiving so much attention?

During the 1960s and ’70s our understanding of biology reached a point where we could begin to use the smallest parts of organisms—their biological molecules—in addition to using whole organisms.

A more appropriate definition in the new sense of the word is this:

"New" Biotechnology—the use of cellular and biomolecular processes to solve problems or make useful products.

We can get a better handle on the meaning of the word biotechnology by simply changing the singular noun to its plural form, biotechnologies.

Biotechnology is a collection of technologies that capitalize on the attributes of cells, such as their manufacturing capabilities, and put biological molecules, such as DNA and proteins, to work for us.

Read more here.

Global Biotech Crop Report

Global biotech crop acreage grew to 222 million acres in 2005, according to the International Service for the Acquisition of Agri-biotech Applications (ISAAA). In 1996, when the first biotech crops were commercially grown, 7 million acres of biotech crops were grown worldwide.

In 2004, a total of 222 million acres of biotech crops were planted in 21 countries by 8.5 million farmers. Of the 8.5 million farmers, 90 percent are resource-poor farmers in developing countries; developing countries account for more than one-third of the global biotech crop acreage.

Of the 21 countries growing biotech crops, five are in the European Union. Additionally, the one billionth cumulative acre of biotech crops was planted in 2005.

Read more here.

BIO 2006 in Chicago

Here is one you don't want to miss from a business development standpoint.

As farmers enter the second decade of commercial plantings of biotech crops, the BIO 2006 Annual International Convention will highlight the future of agricultural biotechnology. Conference attendees will learn how new applications of biotechnology will increase food production, improve plant and animal health, and provide consumers with healthier foods during the 14th annual international convention, April 9-12, 2006 at McCormick Place in Chicago, which is sponsored by the Biotechnology Industry Organization (BIO).

“In the ten years since biotech crops have first been grown, the environment, farmers, and consumers worldwide have enjoyed many new benefits,” said Jim Greenwood, president and CEO of BIO. “Biotech crops are widely accepted by farmers in 21 countries, and have had an enormous global economic impact. Few technologies have had the extraordinary acceptance and growth rate that biotech crops have enjoyed.

“Agricultural biotechnology has changed the way farmers grow crops, and raise and breed livestock and poultry. The next generation of biotech products will offer consumers increased nutrition and health benefits, such as cereals and corns with improved protein quality, and soybeans that produce healthier oils with reduced saturated fat and trans fats.”

The Food and Agriculture track at BIO 2006 is the largest and most comprehensive agricultural biotechnology track ever in BIO’s history. The program features 17 sessions within the four subtracks: Plant Biotechnology, Animal Biotechnology, Emerging Technologies, and Second Generation Products and Consumer Benefits.

Read more here.

Future Trends in Economic Development Speech

Click here to see a video of my recent speech on Future Trends in Economic Development (presented in Halton, Canada, Greater Toronto area).

Click here to download a PDF version of the speech.

Questions of comments? Contact Don Iannone by email at: dtia@don-iannone.com or by telephone at: 440.449.0753.

Regional Cooperation: Missouri and Kansas Working Together

Two-state teamwork gets boost
By Tom Bowser
Special to The Kansas City Star

Regional cooperation took a significant step forward last month with the convening of the first Governors’ Summit on Regional Growth.

Held at the Sprint Nextel campus in Overland Park, with the telecom company’s Gary Forsee and the Greater Kansas City Chamber of Commerce as hosts, the summit focused on the economic growth of our two-state community.

As chief executive and president of the area’s largest employer, Forsee used his influence and strong civic commitment to bring Govs. Kathleen Sebelius of Kansas and Matt Blunt of Missouri together with nearly 200 area civic leaders, elected officials and business executives. The focus for the summit, Forsee said, was “net new growth” and economic development initiatives that attract new businesses and jobs to the area from outside the region, rather than back and forth across the state line.

“When we are not careful,” Forsee accurately warned, “this line can pit Kansas against Missouri and downtown against the suburbs.”

Three specific initiatives were discussed: higher education, life sciences and public transit. Though our region has many needs, those three issues were chosen because strategic plans are in place and moving forward. Each requires support from the state level.

-Higher education: the Greater Kansas City Community Foundation’s Blue Ribbon Task Force report.
-Life sciences: the Kansas City Area Life Sciences Institute’s Roadmap and the chamber’s animal health initiative.
-Public transit: the Mid-America Regional Council’s Smart Moves plan.

At the close of the summit, a letter of “Commitment to Regional Growth” was signed by Sebelius, Blunt, Forsee and me. We agreed to meet again in a year to review progress and announced a chamber task force, with chamber board member Roshann Parris of Parris Communications as chairwoman.

The task force will monitor developments in the key areas and report back to the second summit.

We are indeed one KC — and the Regional Governors’ Summit bodes well for regional cooperation.

Tom Bowser is chairman of the board for the Greater Kansas City Chamber of Commerce, and president and chief executive officer of Blue Cross and Blue Shield of Kansas City.

Final Decision for Kia: West Point, Georgia

Kia Motors Corp. announced it will set up a $1.2 billion manufacturing plant in west Georgia, creating nearly 5,500 jobs for the Peach State and cementing hopes for continuing economic growth 80 miles away in Montgomery.

Industry recruiting officials in the Capital City remained upbeat about Kia's plans for West Point, Ga., and believe they eventually will generate jobs for Alabama automotive suppliers.

Georgia's incentive package includes $75.9 million in job tax credits over five years, $20.2 million for a job training center on the site and $60.5 million to purchase and prepare the site. West Point and Troup County are offering up $130 million in property tax abatements over 15 years.

The plant will hire 2,893 workers when it opens at an average annual salary of $50,000. Another 2,600 employees are expected to work at five supply companies, which have committed to place plants in Georgia near West Point to feed parts and materials to the plant.

Kia President and chief executive officer E.S. Chung said the company, which produces budget sedans and sports utility vehicles, "has entered an aggressive growth phase in the U.S." The Georgia plant is expected to produce 300,000 to 400,000 vehicles annually.

Read more here.

ED Futures Newsletter

Dear ED Futures Subscriber:

Welcome to the latest issue of the ED Futures Newsletter. There are many interesting articles posted to the website in the past week. You may find the summaries of the two new Census reports to be enlightening. Here are a few you might want to browse:

New Study on Aging Population Out
Sunday, March 12, 2006

Chinese Devise Plan for Development in Environmentally Sensitive Regions
Sunday, March 12, 2006

National Economic Zones Working in China
Sunday, March 12, 2006

Census Releases New Business Capital Spending Survey Results
Saturday, March 11, 2006

Fort Wayne Area Forms New Economic Growth Partnership
Saturday, March 11, 2006

Interview with Louisiana Dept. of Economic Development Head, Michael Olivier
Friday, March 10, 2006

Experts: Blame the Growing Trade Gap on Income-Strapped Consumers
Friday, March 10, 2006

More Billionaires
Friday, March 10, 2006

A Short Look at Econometrics
Thursday, March 09, 2006

Oregon Bioscience Companies Gather
Thursday, March 09, 2006

Biodiesel Capacity Grows in Indiana
Thursday, March 09, 2006

New Kia Plant Expected in Georgia
Wednesday, March 08, 2006

Team NEO Gets New CEO
Wednesday, March 08, 2006

Greater Cleveland Partnership Gets New Leader
Wednesday, March 08, 2006

May we ask your help in updating our subscriber database? At the very bottom of this newsletter, you will find a link labeled "To Unsubscribe/Change Profile." (Scroll all the way down.) Please click on that link and answer the questions you find on that page. Please note there are some required and optional questions you will asked to answer.

By updating your profile, you will help us better serve you in the future. Thank you very much.

Best wishes,

Don Iannone
ED Futures Publisher
Email: dtia@don-iannone.com
Telephone: 440.449.0753

New Study on Aging Population Out

The face of aging in the United States is changing dramatically — and rapidly, according to a new report from the U.S. Census Bureau. Today’s older Americans are very different from their predecessors, living longer, having lower rates of disability, achieving higher levels of education and less often living in poverty. And the baby boomers, the first of whom celebrated their 60th birthdays in 2006, promise to redefine further what it means to grow older in America.

The report, 65+ in the United States: 2005 [PDF], was commissioned by the National Institute on Aging (NIA), a component of the National Institutes of Health, to provide a picture of the health and socioeconomic status of the aging population. It highlights striking shifts in aging on a population scale and also describes changes at the local and even family level, examining, for example, changes in family structure as a result of divorce.

Among the trends:

-The U.S. population age 65 and over is expected to double in size within the next 25 years. By 2030, almost 1-out-of-5 Americans — some 72 million people — will be 65 years or older. The age group 85 and older is now the fastest growing segment of the U.S. population.

-The health of older Americans is improving. Still, many are disabled and suffer from chronic conditions. The proportion with a disability fell significantly from 26.2 percent in 1982 to 19.7 percent in 1999. But 14 million people age 65 and older reported some level of disability in Census 2000, mostly linked to a high prevalence of chronic conditions such as heart disease or arthritis.

-The financial circumstances of older people have improved dramatically, although there are wide variations in income and wealth. The proportion of people aged 65 and older in poverty decreased from 35 percent in 1959 to 10 percent in 2003, mostly attributed to the support of Social Security. In 2000, the poorest fifth of senior households had a net worth of $3,500 ($44,346 including home equity) and the wealthiest had $328,432 ($449,800 including home equity).

-Florida (17.6 percent), Pennsylvania (15.6 percent) and West Virginia (15.3 percent) are the “oldest” states, with the highest percentages of people age 65 and older. Charlotte County, Fla., (34.7 percent) has the highest concentration of older residents and McIntosh County, N.D., (34.2 percent) ranks second.

-Higher levels of education, which are linked to better health, higher income, more wealth and a higher standard of living in retirement, will continue to increase among people 65 and older. The proportion of Americans with at least a bachelor’s degree grew five-fold from 1950 to 2003, from 3.4 percent to 17.4 percent; and by 2030, more than one-fourth of the older population is expected to have an undergraduate degree. The percentage completing high school quadrupled from 1950 to 2003, from 17 percent to 71.5 percent.

-As the United States as a whole grows more diverse, so does the population age 65 and older. In 2003, older Americans were 83 percent non-Hispanic white, 8 percent black, 6 percent Hispanic and 3 percent Asian. By 2030, an estimated 72 percent of older Americans will be non-Hispanic white, 11 percent Hispanic, 10 percent black and 5 percent Asian.

-Changes in the American family have significant implications for future aging. Divorce, for example, is on the rise, and some researchers suggest that fewer children and more stepchildren may change the availability of family support in the future for people at older ages. In 1960, only 1.6 percent of older men and 1.5 percent of women age 65 and older were divorced; but by 2003, 7 percent of older men and 8.6 percent of older women were divorced and had not remarried. The trend may be continuing. In 2003, among people in their early 60s, 12.2 percent of men and 15.9 percent of women were divorced.

Chinese Devise Plan for Development in Environmentally Sensitive Regions

To improve living standards of Chinese people in environmentally difficult areas is a major theme of the 11th Five-Year Development Plan for the National Economic and Social Development (2006-2010).The program's draft is expected to be approved by the ongoing Fourth Session of the Tenth National People's Congress.

Under the proposed program, China calls for different economic growth modes for regions based on environmental characteristics rather than on a unitary mode.

According to the draft, China will restrict or forbid exploitation and development in the areas which are listed as environmentally sensitive areas. Development in the areas that are susceptible to wind and sand erosion and wildlife nature reserves will also be restricted or banned.

Read more here.

National Economic Zones Working in China

National economic and technological development zones (NETDZ), which have embodied China's rapid economic development over the past two decades, grew by 20 percent year-on-year in industrial added value in 2005.

Sources attending a national meeting on NETDZs held in Xining, capital of Northwest China's Ningxia Hui Autonomous Region, said that China's 49 NETDZs realized 428.9 billion yuan (53.6 billion US dollars) in industrial added value in 2005.

Statistics from the meeting suggested that NETDZ, which are small districts often located within cities, employ more than 3.4 million people nationwide. Exports from the zones were worth 78.4 billion US dollars in 2005, up 41.6 percent over the previous year and account for 14.35 percent of the national total. They used 9.1 billion US dollars, or 21 percent of foreign investment that flowed into China last year.

NETDZs have become magnets for assimilating highly-educated professionals and skilled workers. So far, They have accommodated 3,200 high-tech companies, which are the backbone of NETDZs. The high-tech companies accounted for 48 percent of NETDZs' total revenue last year.

Read more here.