Framework

A Solid Foundation

The foundation for economic development is made up of education, health and safety, physical and technological infrastructure, arts and culture, university research, clean air and water, housing, recreation and more. Public investments in the foundation create the conditions for economic development by building a skilled and able population, a higher quality of life, strong social and community ties and the ideas necessary for growth.

Increasingly, economic development is dependent on the skills of the workforce, the quality of local amenities and the condition of natural systems. A good place to live is also a good place to do business. Investment in the foundation leads to innovation and creativity, attracts people to our state, and builds the basic capacity of all workers and citizens to participate fully in the economy.

An Effective and Accountable Economic Development System

The economic development system is the way development activities are governed, structured and managed. An effective system is forward thinking; it develops a vision for the future and designs targeted strategies that have long-term potential. A High Road system assures coordination, transparency and accountability in the use of economic development resources across government agencies. And a reformed system evaluates the success of individual programs, and of the approach itself, against improvements in the quality of life.

Economic development processes should be democratic. A High Road system includes Kentuckians from all walks of life in planning the state’s economic future. It also devolves more of the planning, participation and staffing to regional and local levels in recognition of the unique assets and challenges of the state’s diverse regions. Increased regional participation, transparency and evaluation make for more strategic and responsible spending.

Smart Economic Development Strategies

Strategies refer to targeted programs, policies and investments aimed at creating jobs and improving job quality and enterprise viability. Government must invest in strategies that make sense. While recruitment of outside industry will continue to play a role, a High Road approach means increased emphasis on entrepreneurship, small and existing business development and workforce training. It also means strategies around promising sectors and clusters of the Kentucky economy, including energy alternatives, sustainable forestry and agriculture, motor vehicle manufacturing and metalworking, transportation and logistics, arts and cultural enterprises and community services.

The market tends to under-invest in new ideas and in people with little collateral or experience. High quality technical assistance can be hard to come by. And cooperation and information-sharing within sectors is often lacking. The state can help in these areas by identifying needs and supporting efforts to fill them. Directly and through private entities, the state should help businesses and emerging sectors access capital and assistance in management, marketing, finance, networking, product development and technology.

Fair and Appropriate Standards

Standards are the basic rules and underlying incentives that govern and guide economic behavior. Many standards are already in place, and extend to protection of health and the environment, fair wages and labor practices, product safety, responsible lending and other areas essential to strong communities. Good standards help ensure fair market competition that does not undermine local quality of life. The state must set and enforce standards through appropriate regulations, taxes and policies.

The conventional approach to economic development in Kentucky lowers standards to reduce the cost of doing business in Kentucky. Instead of eliminating costs, this approach simply shifts the burden to communities and future generations, which pay the price in degraded living conditions. This harms local economies as communities become less desirable places to live and work. In addition, the playing field becomes tilted against responsible local businesses, hindering their ability to succeed. Higher standards encourage all businesses to upgrade, which improves their long-term competitiveness and job quality, and builds better communities.