![The Legacy of Dr. King
“The time has come for us to
civilize ourselves by the total,
direct and immediate abolition of
poverty.”
“ At no time has a total,
coordinated and fully adequate
program [for eradicating poverty]
been conceived. As a
consequence, fragmentary and
spasmodic reforms have failed to
reach down to the profoundest
needs of the poor.”
Photo from the Associated Press](https://image.slidesharecdn.com/portlandpresentationfinal121-170105153639/85/Metro-Economics-Towards-a-Unified-Field-Theory-2-320.jpg)
"Metro-Economics": Towards a "Unified Field Theory"
- 1. ROBERT WEISSBOURD, RW VENTURES, LLC
- 2. The Legacy of Dr. King “The time has come for us to civilize ourselves by the total, direct and immediate abolition of poverty.” “ At no time has a total, coordinated and fully adequate program [for eradicating poverty] been conceived. As a consequence, fragmentary and spasmodic reforms have failed to reach down to the profoundest needs of the poor.” Photo from the Associated Press
- 3. Economic Development: Markets Empowerment Origins: From “Equity” to … “Equity” Economic Development: Assets Civil Rights Putting the Economics in Economic Development
- 4. Poverty and Economic Development “… poverty has no causes. Only prosperity has causes. Analogically, heat is a result of active processes; it has causes. But cold is not the result of any processes; it is only the absence of heat. Just so, the great cold of poverty and economic stagnation is merely the absence of economic development. It can be overcome only if the relevant economic processes are in motion.” -- Jane Jacobs Photo from Shelf-Basin Interactions
- 5. Market Failure in Lower Income Communities •Employment networks •Entrepreneurial opportunities •Business, real estate investment •Expanded products and services •Competitive, healthy communities •Undervalued, underutilized assets Poverty Productivity Connectedness Isolation
- 6. Equity and Opportunity are Good for Business Inequality has a negative effect on income growth. -.20.2.4.6 WageGrowth(1990-2000) 0 .1 .2 .3 .4 Poverty Rate (1990)
- 7. 7 Productivity Inclusiveness Sustainability “I N C L U S I V E G R O W T H” Constructive Government Innovation Asset Development Economics & Markets
- 8. Amartya Sen: “… human beings are not merely the means of production, but also the ends of the exercise.” Social Political Economic
- 12. ServiceExports75% U.S.AirCargoWeight 79% AirlineBoardings 92% Population 66% GraduateDegrees 75% VentureCapitalFunding 94% Patents 78% Wind+SolarEnergyEmployment 76% Top 100 Metros Share of U.S. Total Sources: Brookings analysis of US Census Bureau, FAA, BLS, NIH, NSF, and BEA data; Brookings, ExportNation, 2010 (2008 data); Forthcoming research from Brookings and Battelle GrossProduct 73% Source: Brookings Institution
- 13. The Goal is Economic Growth Economic Growth Flows from Market Activity Major Market Systems Operate at the Metro Level Improving Metro Economic Performance Entails Customized Analysis and Deliberate Activity Why Metros? Economic Geography and Place-Based Development
- 14. Cities Are the Critical Core of Metros - 10,000 20,000 30,000 40,000 50,000 60,000 0 10,000 20,000 30,000 40,000 50,000 60,000 WagesMoveinTandem Correlation= 0.77, significant City Suburbs 0% 20% 40% 60% 80% 100% Museums,botanical,… Educationalservices LegalServices Health Services Depositoryinstitutions InsuranceCarriers Communication Air Transportation Hub Functions of Cities Suburban % of total MSA employment City % of total MSA employment
- 15. Neighborhoods are Nested in Larger Systems Which Drive the Flows of People and Capital Neighborhoods arise from the interaction of regional economic, social and political systems with characteristics of place.
- 16. Local (Regional) Enabling Environment (Government regulation, taxation and public goods, including particularly infrastructure and education; civic institutions; qualities of place, including the natural environment; etc.) Transformative Systems (Market processes – housing, labor, business; production dynamics – clusters, value chains, etc.; innovation dynamics - knowledge creation, networks, commercialization, entrepreneurship, etc.) Inputs to Production (Human capital; real estate; capital; natural and knowledge resources; etc.) Economic Outputs (Businesses – gross regional product, profits; households – wages, other income, etc.) Macro/Global Context & Trends What Drives Inclusive and Sustainable Economic Growth?
- 17. Local (Regional) Enabling Environment (Government regulation, taxation and public goods, including particularly infrastructure and education; civic institutions; qualities of place, including the natural environment; etc.)
- 18. Inputs to Production (Human capital; real estate; capital; natural and knowledge resources; etc.)
- 19. Economic Outputs (Businesses – gross regional product, profits; households – wages, other income, etc.) Transformative Systems (Market processes – housing, labor, business; production dynamics – clusters, value chains, etc.; innovation dynamics - knowledge creation, networks, commercialization, entrepreneurship, etc.)
- 20. Lead to New Drivers of Productivity which Favor Cities •Dense knowledge networks •Functional specialization •Innovative capacity %Change Gross Domestic Product % Growth over last 50 years Increased Value of Knowledge Factors… •High skilled labor force •Intellectual property •Product innovation; flexible customization •Customer networks The Knowledge Economy
- 22. 18.3% US Global GDP 2015 25.8% BIC Countries Source: Brookings Institution Exports make up 25% of Portland’s GMP 20.2% US 21.4% BIC Countries Global GDP 2010
- 23. 18.3% US Global GDP 2015 25.8% BIC Countries Source: Brookings Institution 20.2% US 21.4% BIC Countries Global GDP 2010Portland ranks 3rd in exports (as % of GMP)
- 24. 18.3% US Global GDP 2015 25.8% BIC Countries Source: Brookings Institution 20.2% US 21.4% BIC Countries Global GDP 20102002-2008 GMP Growth = 144.5%
- 25. Demand for clean energy generation Demand for products that reduce energy consumption Demand for products that reduce pollution
- 27. Portland is the 24th least segregated metro Source: Brookings Institution
- 28. 11.3% of Portlanders live in poverty Source: Brookings Institution
- 29. Enhance Regional Concentrations Deploy Human Capital Aligned with Job Pools Increase Spatial Efficiency Create Effective Public & Civic Culture & Institutions Develop Innovation- Enabling Infrastructure Leverage Points These Five Key Leverage Points Take Us from Theory to Practice
- 30. Enhance Regional Concentrations: Industries, Occupations and Functions Portland Plan Clusters Athletic and Outdoor Industry Cleantech Software Advanced Manufacturing Cluster Map Source: Bo Heiden, Strategic Uses of the Global Patent System
- 31. Portland has the 19th most educated population, 1/3 have at least a bachelor’s degree Deploy High Human Capital Aligned with Job Pools
- 32. 24.1% establishment births and deaths as % of total Develop Innovation- Enabling Infrastructure Innovation Ecosystem Market Research Marketing Manufac- turing Finance R&D Research Partners Image based on material from Land O’ Lakes Inc.
- 33. 16.7 patents per 10,000 employees Develop Innovation- Enabling Infrastructure Innovation Ecosystem Market Research Marketing Manufac- turing Finance R&D Research Partners Image based on material from Land O’ Lakes Inc.
- 34. 19th most high impact firms – 7.5 mid-size firm births per 10,000 employees Develop Innovation- Enabling Infrastructure Innovation Ecosystem Market Research Marketing Manufac- turing Finance R&D Research Partners Image based on material from Land O’ Lakes Inc.
- 35. 56th in business churn; 22.3% firm births and deaths as % of total Develop Innovation- Enabling Infrastructure Innovation Ecosystem Market Research Marketing Manufac- turing Finance R&D Research Partners Image based on material from Land O’ Lakes Inc.
- 36. Housing Costs as Percent of Income Housing + Transportation Costs as Percent of Income 6.4% of Portlanders travel to work using public transit, putting Portland in 11th place. Increase Spatial Efficiency Source: Center for Neighborhood Technology
- 37. Housing Costs as Percent of Income Housing + Transportation Costs as Percent of Income Portland ranks 24th in traffic congestion Increase Spatial Efficiency Source: Center for Neighborhood Technology
- 38. Housing Costs as Percent of Income Housing + Transportation Costs as Percent of Income Portland ranks 63rd in average travel time to work at 25.3 minutes Increase Spatial Efficiency Source: Center for Neighborhood Technology
- 39. Housing Costs as Percent of Income Housing + Transportation Costs as Percent of Income Increase Spatial Efficiency 82% of Portlanders live within urbanized areas Source: Center for Neighborhood Technology
- 40. Housing Costs as Percent of Income Housing + Transportation Costs as Percent of Income Increase Spatial Efficiency 24% of jobs are within 3 miles; 29% of jobs are more than 10 miles away from city center Source: Center for Neighborhood Technology
- 41. Portland has .77 special district governments per 10,000 people, putting it in 63rd place Create Effective Public & Civic Culture & Institutions
- 42. Portland has .77 special district governments per 10,000 people, putting it in 63rd place Create Effective Public & Civic Culture & Institutions
- 43. Portland ranks 37th in most governments, with 0.3 governments per 10,000 people Create Effective Public & Civic Culture & Institutions
- 44. A Dynamic Economy The economy is changing rapidly. Source: Newsweek, Manyika, Lund and Auguste, “From the Ashes,” 8.16.2010
- 45. A Dynamic Economy Success depends on open, adaptive, networked governance.
- 46. Summary: Implications for Practice Cities are the Solution High Road Development Intentionality New Governance Metropolitan Business Plans
- 47. Metropolitan Business Plans: A New Way of Doing Business Grounded in Economics and Business: comprehensive, integrated growth strategies based on unique regional strengths Gets the Job Done: not just a plan; cross-sector institutional capacity critical to regional performance Continuous implementation, monitoring, adaptation and further strategy development Demonstrate better ways to invest in metros to strengthen national economy; develop new federal policies and programs. Source: Brookings Institution
- 48. Why “Metropolitan Business Planning”? The steps to analyzing and improving a regional economy lend themselves to the proven discipline of business planning. ECONOMIC DEVELOPMENT PLANNING TRADITIONAL BUSINESS PLANNING Vision for the Regional Economy Business Mission & Vision Status of Economy: Assets, Opportunities, Challenges Market Analysis Goal-Setting & Strategy Identification Analysis of Strategic Alternatives & Risks Identification of Policies, Programs, Products & Interventions Development of Products & Services Operational Planning for Implementation Operational & Management Planning Identification of Funding Needs and Sources Forecasting & Financial Planning Definition of Outcome Measures & Targets Target-Setting & Performance Tracking Source: Brookings Institution
- 49. Northeast Ohio Minneapolis-St. PaulPuget Sound Source: Brookings Institution
- 50. A New Economic Federalism Affordable Housing HUD Section 8 Workforce Training Small Business Assistance Upgrading Roads and Rail Export Strategy Dept. of Labor Workforce Inv. Act Small Business Admin. Loans Dept of Commerce Int’l. Trade Admin. Dept. of Transpo. SAFETEA-LU Programs
- 51. Develop and Deploy Information Resources Develop Innovation- Enabling Infrastructure Create Effective Public & Civic Culture & Institutions Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations Increase Spatial Efficiency A New Economic Federalism HUD Section 8 Dept. of Labor Workforce Inv. Act Small Business Admin. Loans Dept of Commerce Int’l. Trade Admin. Dept. of Transpo. SAFETEA-LU Programs Comprehensive Metropolitan Strategy
- 52. Develop and Deploy Information Resources Develop Innovation- Enabling Infrastructure Create Effective Public & Civic Culture & Institutions Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations Increase Spatial Efficiency Comprehensive Metropolitan Strategy A New Economic Federalism Integrated Federal Investment White House Office of Urban Affairs HUD Section 8 Dept. of Labor Workforce Inv. Act Small Business Administration Loans Department of Transportation SAFETEA-LU Programs Department of Commerce International Trade Administration
- 53. Cross-Agency Regional Teams Pooled and Flexible Funding Support for Regional Capacity Building “New Federalism” Partnership Develop and Deploy Information Resources Develop Innovation- Enabling Infrastructure Create Effective Public & Civic Culture & Institutions Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations Increase Spatial Efficiency Comprehensive Metropolitan Strategy A New Economic Federalism Integrated Federal Investment White House Office of Urban Affairs HUD Section 8 Dept. of Labor Workforce Inv. Act Small Business Administration Loans Department of Transportation SAFETEA- LU Programs Department of Commerce International Trade Administration
- 54. WE’RE ALL IN THIS TOGETHER “We are tied together in the single garment of destiny, caught in an inescapable network of mutuality.“ Photo from the Seattle Times
- 56. ROBERT WEISSBOURD, RW VENTURES, LLC