By Tony Ditta
The opening panel of Reimagining the Economy’s event on place-based policy was a look back. We asked development leaders from around the country to reflect on their many years of experience for a panel titled “Taking Stock: What do we know about place-based policy?”. The panelists were Rebecca Gandour, Executive Vice President for the Buffalo Urban Development Corporation (BUDC); Jen Giovannitti, President of the Claude Worthington Benedum Foundation; and Stewart Sarkozy-Banoczy, Vice Chairperson on the Board of Directors for the Four Bands Community Fund. Collectively, they have decades of experience in the economic development of their communities. Here are some of the key takeaways from their conversation.
Collaboration is key
The panelists each emphasized the need to collaborate with different organizations in the community. Gandour stressed the importance of public-private collaboration. The board of BUDC includes people from the public and private sector — including the mayor of Buffalo. Similarly, the Regional Economic Development Councils started in 2011 in New York are chaired by the private sector with public sector input.
Giovannitti spoke about collaboration among nonprofit organizations with related goals. Especially important is the role of established organizations in helping new ones figure out “what they want to be when they grow up”: providing mentoring, guidance, and funding to turn good, new ideas into stable, effective organizations.
In the large but sparsely populated Cheyenne River Sioux Reservation, Sarkozy-Banoczy sees the need for collaboration among businesses. In order to create a circular economy, which keeps money circulating on the reservation instead of leaving to nearby cities, the community needs a variety of small businesses which can work with each other in addition to serving the needs of customers.
Federal programs like the Build Back Better Regional Challenge and the Recompete Pilot Program were able to provide the impetus for regional collaboration. In West Virginia, the coal community had consistent funding for many years, but programs were divided: workforce development, social enterprise, civic engagement, small business loans, and CDFIs each worked in their own domains. The BBBRC application brought these groups together and became a tipping point — moving from small, independent projects to a larger, unified movement to transform the region. Even places that did not win any federal money benefited from the communication and cooperation in the process of applying.
All development is local
Not surprisingly, place-based policy works best when the particular needs and resources of the place are put at the forefront. For example, Buffalo and West Virginia face many of the same problems: the decline of manufacturing, disinvestment, low rates of education, and high poverty. However, the capacities and constraints in urban Buffalo are very different from those in less urbanized and rural West Virginia. Even within specific areas like infrastructure, there are important differences — public transit within one city can massively help Buffalo, but makes less of a difference in West Virginia. In Sarkozy-Banoczy’s community, even a $1,000 loan to a mom-and-pop store can make a big difference. Investments in Buffalo measure in the millions (and require the organizational capacity to handle that kind of budget).
Sometimes maintaining a local orientation means turning down offers. Giovannitti said that she often hears pitches from national organizations and has to say “no” because they aren’t tailored to local needs.
Doing what you can when you can
Policies and public funding of place-based programs have been inconsistent over the years. However, practitioners remain optimistic and committed to the cause. In their years of service, they have seen funding come and go, but there is plenty of good work to be done — even with less money.
Organizations can continue to build relationships with other organizations and the people they serve. They can encourage civic engagement and train the next generation of leaders. They can build capacity to be ready for the next time big funding opportunities arrive.
As Sarkozy-Banoczy said, communities don’t need to be stuck on a “recovery treadmill.” They can go beyond just surviving and adapting, and instead begin to thrive.
