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There is no room for Politics in Economic Development by Robert Harrington MPA MEDP – August 2, 2023


Economic development plays a critical role in shaping the prosperity and growth of communities across America. However, one of the biggest challenges faced by economic developers today is keeping politics at bay while ensuring the success of their projects. As the nation's political landscape becomes increasingly polarized, striking a delicate balance between engaging elected officials and avoiding undue influence can be daunting. In this article, we explore ideas on how economic developers can keep elected officials engaged but at a distance to safeguard the integrity and effectiveness of economic development initiatives.

In my time as an economic development professional, I can count on one hand how many times politicians helped win a project for me. Now don't get me wrong; the incentives that many of these politicians pass through their respective legislative bodies are how many of us finalize the deals, but this has nothing to do with politics as much as it does with finances. So, how do we minimize the problems that these elected individuals can bring to a project and yet make them feel as part of the team as they should?


Transparency is the cornerstone of separating politics from economic development. I was taught at an early age that being open with people is the road to solving many problems, and I believe it is just as important in these situations. Economic developers must proactively communicate project goals, plans, and progress to both elected officials and the public. Relaying information to both when appropriate is not a bad thing. Now we all know that confidentiality is paramount when it comes to winning these projects; however, making sure that there is a direct line of communication from the individuals within the community and the site selector or company is not a bad thing. If the community is having problems with housing, let them know. If there is a labor shortage or water issues, communicate with them. If the company needs a certain amount of electricity or water, make sure the right people know and relay any concerns back to them. By maintaining open lines of communication and being accountable for their actions, economic developers can build trust and minimize the chances of political interference later in the process.


Establishing clear, objective criteria for project evaluation and selection is essential. Economic developers should rely on data-driven analysis and sound economic principles to make decisions, removing any room for subjective political influence. This is the data that a site selection firm such as ours would be able to provide to you. The company knows how many jobs or gallons of water they need daily to produce their product. Use their numbers to create a model to show to your elected officials. The data that these organizations provide to you as an economic developer is your best weapon against political interference. What I have found in my time is that it is very hard to argue with facts. The adage that you're entitled to your own opinions but not your own facts could never be truer than in economic development. You don't win a project because your labor numbers show them. The company needed X; we were only able to provide Y, and so we couldn't compete. The company was concerned with your school ratings, so they chose somewhere else. Be truthful and show them the numbers. The only way communities will ever get better is by showing them why they failed. Studies performed by companies like Rural Growth Strategies, such as Labor Studies, Housing Studies, and Community Assessments, can be vital when your community is competing for any type of project. A transparent and standardized evaluation process ensures that projects are chosen based on merit rather than political affiliations.


A chain is only as strong as its weakest link, and when a community is competing for a project, this is also true. That is why it is imperative that economic developers build a strong team beforehand. Involving diverse stakeholders, including business leaders, community members, and subject matter experts, is critical. By soliciting input from a broad spectrum of individuals and organizations, economic developers can gather valuable insights and ensure a balanced perspective. This approach fosters inclusivity and reduces the potential for political bias. You as an economic developer can't and, in all reality, are not an expert in everything. That is why bringing those types of individuals into a team is important. Business leaders can give vital insight on current workforce struggles. School administrators, both secondary and post-secondary, can provide important information on training opportunities, costs, and potential locations for new companies. Government administrators and officials can help guide you through the political process that most of the time becomes tricky at the end. This team is crucial to your project's success, and it is a small group of people that you trust to remain confidential while helping guide you and your organization to the finish line.

However, having these types of groups is not only important to have during a project, but also throughout the year. That is why making sure that your organization has active advisory boards is crucial. Forming non-partisan advisory boards can serve as a buffer between elected officials and economic development projects. They provide a sounding board that allows for transparency while keeping the confidentiality of the project intact. These boards, composed of professionals from various fields, can provide independent recommendations and guidance, shielding initiatives from undue political influence. You are only as successful as your board and ensuring that these boards are active and relaying information back to the rest of their organizations is imperative to your growth as a community.


The growth of your community is also based on the ability of the boards you have and the leaders you have to frame a long-term strategic plan for your community. Economic developers should adopt long-term strategic planning that spans beyond the typical political cycles. Your community should never base its growth on election cycles. Communities should be growing no matter who is in office and who holds certain seats of power. Groups like ours can help you with this process by engaging with the community and your business partners. By having those heart-to-heart conversations with your local and regional governments and organizations, you can create a shared vision for the future. Strategic planning doesn't have to be an excruciating process, but it does need to be thorough and in-depth. The planning that takes place over multiple months sets your community up for success long past the five years you are planning for. Make sure that the people around the table understand that this plan is not based on their term on the board or in their current role. The plan is based on the data and goals of the community. If the current Mayor wants the community to be a tourism hub, that's fine, but the community must have the infrastructure and resources to support that vision. By focusing on sustainable, transformative projects with lasting impacts, the development process becomes less susceptible to short-term political interests.


The same thing can be said about actual projects that you are working on. It is essential to consider whether a project is a great fit for your community and whether it will bring the right kind of growth. I have seen communities put all their eggs in large projects because of the number of jobs it would bring, only to find out later that the strain it puts on childcare facilities is overwhelming, causing a childcare problem. Thousands of jobs aren't always a great thing if your community cannot handle the results of such rapid growth. Your infrastructure and community services must be able to continue providing the same, if not better, services as they did before the project was won. That is why understanding the outcomes before the final signature happens is critical. Clearly defining the objectives and expected outcomes of economic development projects is crucial. This ensures that stakeholders, including elected officials, have a shared understanding of the project's purpose and stay focused on the common goal rather than pursuing political gains. Remember, reelection cannot be the reason you are pursuing these types of projects; it must be for the betterment of your community. Elected officials come and go, and too often their terms are short-lived, but economic development projects can have a lasting impact that outlives most elected offices.


That is also why you should remember that your integrity should never be for sale. As a leader in your community, you must always remain professional. It is easy to be caught up in the comments and offers you receive, but you cannot let a part-time politician dictate your full-time values. Economic developers must uphold the highest standards of professionalism and ethical conduct. This includes refraining from engaging in favoritism, nepotism, or any activity that could be perceived as politically motivated. Demonstrating integrity and dedication to the public interest fosters trust and credibility. Now, there will be naysayers who claim you are unethical no matter what you do, but as long as you are not doing anything wrong, those accusations will fade away as quickly as they came. At the end of the day, your integrity will remain intact. I was always told that no matter who you upset, always tell the truth; they may not like you afterward, but they will never be able to call you a liar. Your values and integrity will follow you throughout your career, and giving in to short-term political victories will not change how you are viewed 20 years from now.


Finally, educating the public about the economic development process, its importance, and the potential impacts of political interference can garner support and understanding. That is why our company provides classes for elected officials and the public called Economic Development 101. These classes walk people through the process that professionals like yourself must navigate to win a project. The time we spend in these classes is fruitful because we can show community leaders exactly how tough it is to be in your shoes. The economic development process is always under fire from the media and politicians who use it to try and get re-elected or elected for the first time. That is why these educational sessions are so important. Making sure that your leaders know why we use incentives and why there are times that projects cannot be discussed is crucial. Engaging in advocacy efforts to promote the value of unbiased economic development can help mitigate external political pressures.


As economic developers, we must continue to fight the good fight and grow our communities. However, we all know the pain and grief that politics can bring into our profession. These are just a few tips that I believe can alleviate the pressures we all face. Will they make politics go away for good? Of course not, but they do give you the ammunition you need to fight against it. As a profession, our job is to make our community better every day. We don't seek to take a curtain call or gratify ourselves in the local paper. That's the job of the politicians, and we should let them keep it. President Harry Truman said it best when he said, "It's amazing what you can accomplish when you don't care who gets the credit." I live by this motto, and I think, in the end, it's the easiest way to ensure politics doesn't derail the economic development growth we all strive for. Let us continue our mission to foster prosperity and unity, free from the distractions of short-term political influences.

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