1 Surviving On Their Own: How Leaders In Apalachia’s Remote Rural Communities Make Economic Development Policy Stefanie Grimes Feldman Sanford School of Public Policy Undergraduate Honors Thesis December 4, 2009 I offer special thanks to my advisors Jenni Owen and Ken Rogerson, both at the Sanford School of Public Policy at Duke University, for their guidance, encouragement, and motivation. The friendship and advice offered by Teresa Collins, De Davis (Center for Rural Strategies; Whitesburg, Kentucky), and Bil Bishop (the Daily Yonder) were fundamental to the conception of this thesis. ii “Smal towns like [mine] frequently get bypased in favor of larger metropolitan areas with higher population density. That is to be understood, but the result is that the metro areas grow larger while the smaler communities are left to survive on their own.” - Director, County Economic Development Authority, Kentucky iii Table of Contents I. Rural Communities in a Metropolitan America 1 I. Rural Economic Development: Theory and Practice 3 II. Methodology 12 IV. Economic Development Insight From Local Leaders 18 V. Making Rural Policy 34 VI. Appendices A: Criteria Counties 41 B: Local Leaders Survey 43 C: Selected Survey Responses 54 VI. References 57 1 I. Rural Communities in a Metropolitan America There is growing support for metropolitan-focused economic development policy in the United States. The Brookings Institution’s Metropolitan Policy Program, located in Washington D.C., is a driving force behind this strategy. The Metro Program’s advocates argue that the United States is a metropolitan nation – not a collection of fifty states but an agglomeration of metropolitan areas that are the engines of the nation’s economy – and our policies and dollars should reflect this spatial reality (Katz, 2008). In The New Republic, Brookings’ scholars wrote that “metros, not smal towns, are where our economy is, where our population is, and where our country's future is” (Bradley & Katz, 2008). Whether intentional or not, this discourse has set up a batle betwen rural and urban America as they compete for scarce financial resources. Defenders of this metropolitan agenda push aside concerns regarding whether rural communities are left out of this framework by pointing out that over half of rural residents live within metropolitan areas. Additional rural areas that are outside of metropolitan boundaries are stil interconnected with metropolitan areas through the exchange of goods and people. Hence, the argument goes, when metropolitan economies grow, benefits spil into rural communities. In July 2009, President Barack Obama echoed this sentiment when he told the Urban and Metropolitan Policy Roundtable that investment in beter transportation in metropolitan areas “boosts rural areas that harnes that energy.” “Our urban and rural communities are not independent; they are interdependent,” President Obama stated (Obama, 2009). But arguments that rural and metropolitan areas are not so diferent leave the most remote rural areas out of economic development discussions. Historical disadvantages created persistent poverty in remote areas: a lack of aces to urban markets, poor infrastructure and underinvestment, and policies that have pulled human capital out of the rural communities and into distant urban centers. Unfortunately, there is no clear strategy for how to help these 2 communities thrive and there is a void in academic literature that aseses development from the perspective of remotenes. This thesis offers an analysis of economic opportunities for the most remote rural communities in the United States. Given that there has been so litle focus on economic development opportunities in remote rural areas, what economic development programs are being implemented at the community level today in remote rural counties? To what extent do local leaders play a proactive role in creating the economic development strategy compared to implemented state and federal mandates? What information and resources do these local leaders depend on to shape economic development policy? A survey was used to gather information from local leaders regarding development strategies in remote counties in Appalachia. Analysis finds a great deal of variance across the selected remote rural counties and justification for local-specific development policies. The insight from local leaders offers a starting point for pushing toward economic policy that takes into acount the unique hurdles and opportunities of remotenes and begins by focusing on post- secondary education and leadership development. 3 I. Rural Economic Development: Theory and Practice After disentangling various definitions of rural, this review of literature justifies the study of local leadership in remote rural communities by summarizing evidence that metropolitan economic development is not enough to spur remote rural growth. Given that growth impacting remote rural communities must to some extent originate within their boundaries, previous frameworks for understanding the hurdles and opportunities for economic development in remote rural communities are explored. Finaly, an asesment of what we do know about rural economies and a review previous case studies regarding leadership in economic development policy provide background for further research into remote rural development. Distiling the Definitions Debate Analysis of rural development must begin with a clarification of what is meant by “rural,” as various colloquial and statutory definitions permeate research and policy. In this thesis, rural refers to the U.S. Census definition of rural. Urban and rural communities are defined based on population density. Acording to the 2000 United States Census, urban teritories are comprised of core areas with a population greater or equal to 1,000 people per square mile plus any adjacent areas with density of greater than or equal to 500 people per square mile. Teritories outside of these urban areas are defined as rural (Census Bureau, 2002). Metropolitan Statistical Areas, in contrast, contain an urban core with a population of at least 50,000 and “adjacent teritory that has a high degre of social and economic integration with the core as measured by commuting ties.” There are several additional complications to this definition, including the fact that public opinion regarding whether a community is sufficiently connected to the urban core is sometimes considered (Nussle, 2008). Non-metropolitan areas lie 4 outside of the boundaries of Metropolitan Statistical Areas. Academic literature and policymakers often refer use “non-metropolitan” as a synonym for “rural.” Importantly, definitions of rural and non-metropolitan do not precisely overlap even though they are often used interchangeably. Acording to U.S. Census Bureau definitions, it is true that the majority of rural America lives within metropolitan statistical areas. Further, 65.5 percent of residents in non-metro counties live adjacent to metro areas ("What is Rural?," 2007). But not al rural communities are included in a metropolitan area. Remote communities, distinguished from rural communities adjacent to metropolitan areas, are left out of advocacy for metropolitan development. A Case for Rural-Centered Economic Development Policy At its most basic level, economic development here refers to increased wages and lower unemployment. Literature advocating for a more comprehensive model of development including quality of life provide valuable criteria for analysis to be considered in later studies. However, a baseline definition is useful here for first-cut analysis. Economic development eforts invest in infrastructure and human capital in order to promote higher wages and lower unemployment. 1 The argument for the importance of rural economic development policy relies on evidence that not al rural areas share in the gains of metropolitan areas. Some rural areas lie outside of the range of metropolitan economic spilover. Wood (1999) analyzed the extent to which the benefits from development in Appalachia’s growth centers flowed into other parts of the region. He found that betwen 1960 and 1990 progres in Appalachian growth centers, or urban areas, did not spil over far beyond the center boundaries. 1 For the purpose of this thesis, direct provision such as providing emergency food and housing, is not considered an economic development efort because the interest here is in strategic and long-term eforts to advance rural economies. 5 The spatial distribution of poverty in the United States places the rural-metro interdependence argument into further doubt. Poverty in rural counties increases with increasing spatial distance from a metropolitan area. Partridge and Rickman (2008) performed a multiple regresion that finds a strong correlation betwen spatial proximity to an urban area and poverty rates for non-metropolitan counties in year 1999. This correlation persists as statisticaly significant even when potential confounding factors such as the natural amenities, demographic characteristics, and population of a rural county. Some rural communities are more remote than other rural communities, and the most remote rural communities in the United States confront relatively higher levels of poverty. The Partridge and Rickman (2008) analysis, evidence that proximity to a metropolitan area is an indicator of poverty, thus opens the door for an expansion of research into the isue of remotenes. Given evidence that remote communities wil not benefit from purely metropolitan- focused development, an understanding of what economic development does occur in remote rural areas is critical for the formulation of remote economic development strategies. Hurdles for Remote Economic Development There are several explanations for why remote rural communities fare particularly poorly in the national economy. Several scholars explain the correlation betwen poverty and remotenes by suggesting that remotenes creates a “rural spatial mismatch” betwen labor supply and wel-suited labor demand (Partridge & Rickman, 2008; Wood, 1999). Acording to Partridge and Rickman (2008), the demand for labor in remote rural communities is low because geographic hurdles to seling goods in urban markets where demand is located and a lack of services compared to urban areas makes locating in rural communities les atractive to companies than locating in metropolitan areas. Because long distances to metro areas makes commuting more chalenging, rural workers cannot overcome this geographic hurdle by filing 6 urban jobs. Further, high relocating and communicating costs in remote areas means that labor supply in such communities is relatively inelastic, and hence when jobs are available it is les likely that enough individuals with the specified skil set wil have the mobility necesary to travel to the positions (Partridge & Rickman, 2008). Thus, rural workers are dependent on job creation in a smal geographic area, but jobs are centralized in urban areas. Another explanation considers the acumulated decisions that have placed remote rural areas in a disadvantage. Bird et al. take a more proces-oriented approach to explaining why remote rural areas 2 fal in “spatial poverty traps” (p2) and propose that chronic poverty in these areas is a result of “state failure,” “market failure,” and “social failure”. In terms of “state failure,” these areas lack the same infrastructure and social services as other areas due to failed public policy or government officials. “Market failure” results in extraction of environmental resources and subsequent lack of reinvestment, halting growth. “Social failure” creates exclusion and discrimination within the communities and expands inequality (p15). Oportunities for Remote Economic Development Most theories regarding economic development among rural areas do not distinguish betwen varying levels of remotenes. Because remote rural areas face distinct and perhaps more extreme disadvantages compared to rural areas adjacent to urban centers, the applicability of these theories to remote economic development is questionable. Nevertheles, they do provide a starting point for analyzing the types of economic development eforts that could be occurring in remote rural communities. 2 Bird et al. analyze rural areas in an international context, but the elements of isolation and exclusion can be applied here. 7 Rural development strategies can be grouped acording to what extent the rural community is dependent on outsiders (Daniels, 1991). Daniels (1991) explains the categorization as follows: There are four kinds of external dependency that are found in rural communities: 1) direct dependency, when outside owners control key sectors of the local economy; 2) trade dependency, when localy produced goods and services are exported to distant markets where demand and prices may fluctuate considerably; 3) financial dependency, when a community needs to import capital to stimulate economic development; and 4) technical dependency, when a community needs to import trained personnel and technology in order to improve productivity, develop new products and proceses, and thus achieve economic growth. (p2) Acording to Daniels, dependency can be detrimental for economic growth because it makes a rural community vulnerable to “exploitation” and leads to large fluctuations in economic boom and bust periods (p2). The benefit of dependency, however, is that it provides the potential for economic growth beyond the resources within the town (Daniels, 1991). When selecting an economic development policy, the tradeoff for rural communities is thus be to find the right amount of dependency so as to have external resources to expand but not lose autonomy over the local economy. A strategy with maximal dependency is busines recruitment. Busineses could benefit from locating in rural areas if they are able to capitalize on lower labor and land costs. Recognizing this opportunity, much of rural economic development has focused on ofering incentives for outside busineses to relocate or create satelite branches in rural communities. A variety of criticisms of this model note, however, the limited local economic benefit of companies that export to an urban market and are managed externaly. Acording to the Daniels 8 (1991) framework, the external dependency established when a rural community’s economy is based on busineses that are managed and owned by individuals outside of the community make the community vulnerable to exploitation. An alternative to offering incentives for corporate relocation is a more internaly focused entrepreneurship initiative. Unlike corporate relocation, entrepreneurship is based on utilizing resources already within a community and entails local ownership, although products may or may not stil be primarily consumed by outsiders. Entrepreneurship alows for the unique cultural characteristics of rural regions to be transformed into commodities that have value in the economy. Anderson studied entrepreneurs in rural areas, which he cals the “periphery,” of Scotland to understand how normative perceptions of the periphery as “other” as having unique “non-material values” create an opportunity for entrepreneurs (Anderson, 2000). Acording to Anderson, the value of the perception of othernes imposed on rural communities can be capitalized into opportunities for commodification. Entrepreneurial succes requires a skil set that alows for individuals to become aware of the opportunities for commodification (Anderson, 2000). Rural clusters lie somewhere in betwen corporate recruitment and entrepreneurship in terms of dependency on outsiders. Clusters combine the various components of one particular industry in a geographicaly connected area (Porter, 2004). The benefit of clusters is that the system of linkages and specialization alows for a community to develop a competitive advantage for a product that they can sel globaly and, in return, increase wages (Cortright, 2003). While Porter (2004), one of the major proponents of the clusters model, primarily focuses on metropolitan areas, rural clusters do exist. Rural clusters are smaler and thus harder to recognize (Cortright, 2003). Gibbs & Bernat (1996) have found that rural clusters succesfully increase wages. The dificulty with rural clusters, however, is determining how much they are 9 dependent on manufacturing and whether they can realy be succesful in rural areas due to transportation costs. Technological innovations are clearly changing the definitions of periphery and development opportunities for these areas. Copus (2001) argues that in Europe spatial location is no longer, or at least for not much longer, a key influence on economic activity because of infrastructure improvements from national highways to information technology. There is a new patern of “aspatial peripherality,” based not on location but the prevalence and strength of several factors: information technology infrastructure, human capital, networks betwen busineses, “civic society,” and institutions (Copus, 2001). Similarly technological improvements are reshaping the United States economy. Investments in these factors can erase the disadvantage faced by the more remote rural areas. Information technology could create the opportunity for service industries in Appalachia to develop where they were previously thwarted by lack of proximity to areas were services are consumed. During the 1960s, the Appalachian Regional Commision (ARC) focused on regional growth as the means through which to promote economic development throughout the region (Wood, 1999). This strategy centers investments in areas with high population density in hopes that the surrounding regions wil benefit as wel. However, Wood (1999) analyzed the ARC regional growth model and found no spilover of benefits into more remote areas. Wood argues that “a growth center strategy was not only an unsuitable solution to Appalachia’s most presing problems, but is potentialy an unsuitable policy for regional development elsewhere as wel” (Wood, 1999). Rural Policymakers and a Community-Based Aproach While there is some analysis of the theoretical potential of economic development initiatives in rural areas, there has been litle efort to se what realy works in practice. Graham, 10 Healy, and Byrne (2002) used the method of community surveys to understand rural economic proceses and undercover alternative market activities. While this thesis is evaluating more traditional economic forms, using a community survey as the method alows for the researcher to uncover local knowledge that may esential for discovering innovative approaches to overcoming the spatial disadvantage. A report by the N.C. Rural Economic Development Center and the University of North Carolina School of Government legitimates the value of local leaders’ insights. This report is comprised of case studies of economic development strategies in smal towns with populations smaler than 10,000 individuals. Lambe interviewed leaders in forty-five diferent communities in order to create qualitative naratives of the strategies these communities pursue in order to thrive economicaly. Lambe then categorizes the communities into four types: towns that benefit form tourism from natural amenities, recreation, and retirement; towns that have cultural and historical benefits; towns that are located in close proximity to college campuses; and towns with proximity to metropolitan areas or highway systems. By focusing on communities defined as succesful, the commonalities betwen the communities were determined to be qualities of succes. These characteristics include risk-taking communities, communal planning leading to widespread support of development strategies, maximizing on unique resources that offer a competitive advantage, innovative development strategies, short-term goal seting and measurement; and comprehensive approaches (Lambe, 2008). “Smal” does not equate to “rural,” but the method and succes characteristics here are useful for an efort to understand remote strategies. The idea that community leaders can provide the guide for good policy is not new. Further, these case studies bolster the rationale for further case studies by reporting that community leaders found value in hearing naratives regarding other communities that have been succesful (Lambe, 2008). 11 The case study of Pike County, Kentucky, is one of only a few comprehensive analyses of remote rural economies. This study is part of the report “Case Studies of Local Economic Development Growth Proceses,” prepared on behalf of the Appalachian Regional Commision (Economic Development Research Group, 2007). Pike County, located in Eastern Kentucky, has a history of coal mining and the industry is stil dominant in the local economy. However, this report finds that the arival human and financial capital into the county has led to economic growth exceding that of many surrounding counties. Several asets located within the county offer reasons for this, such as good as aces to highway system, a nearby federal prison system, and a Kelogg Company plant “recruited by former Kentucky Governor Paul Paton when he was Pike County Judge Executive,” employing 400 people, and an “innovative telecommunications company, and a “partnership betwen Pikevile College and Pikevile Medical Center” (Economic Development Research Group, 2007, p54). Most importantly, this report credits a large amount of the growth in Pike County to political leadership. This finding suggests a great deal may be learned from local leaders in remote rural communities regarding their understanding of economic development programs in their community. What models are remote rural communities pursuing today to encourage economic development? Is it the case that local leaders are key figures in economic development in many rural counties? If these leaders are an integral part of formulating remote rural economies, what do they view as succesful economic development programs and what information, resources, or people do they rely on to make development decisions? 12 II. Methodology In this study, a survey of county leaders in a selection of Appalachian counties was used to ases the characteristics of economic development programs and policymaking in remote rural counties in the United States. The focus of the survey was to understand the proces by which economic development eforts are shaped in remote rural communities. Focus on Apalachia The United States Congres pased the Appalachian Redevelopment Act in 1965 to foster economic development in a region of the country that was facing significantly levels of poverty. This legislation established the boundaries of the Appalachian region based on unemployment and poverty indicators. This same legislation established the Appalachian Regional Commision as an agency to work to improve the economic conditions in these counties (Eler, 2008). Image 1: Map of Apalachia Source: Apalachian Regional Comision, http:/ww.arc.gov. 13 Today, the Appalachian region contains 420 counties in thirten states: Alabama, Georgia, Kentucky, Maryland, Misisippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennese, Virginia, and West Virginia. Counties in Appalachia share several characteristics that make the region an ideal pool for analysis. This region, due to a history of natural resource exploitation and minimal investments in infrastructure, is chronicaly poor. One third of Appalachians lived under the poverty line in 1965. In the past several decades, the region as a whole has largely caught up to the rest of the United States in terms of key economic indicators. In 1990, poverty rate in Appalachia was only fifty percent of what it was in 1965. Many rural counties in the region, however, have not followed suit. The poverty rate in rural counties in central Appalachia, the portion of the region with the highest poverty rate, was stil almost twenty-seven percent in 1990 ("Economic Overview: Appalachian Region"). And rural economies are important for the health of Appalachia, since forty-two percent of Appalachians live in rural areas. Comparatively, only twenty percent of the United States’ population lives in rural areas ("The Appalachian Region"). There are, indeed, many other remote rural communities across the United States. It is plausible that some facets of the particular chalenges and opportunities created by remotenes are universal regardles of the remote area’s location. However, the unique characteristics of each location mean that findings regarding development eforts in Appalachia are not necesarily applicable elsewhere. Counties Within Apalachia Counties to be targeted by the survey were selected based on two indicators. First, the counties selected for this analysis place in the botom ten percent of al counties in the United States in terms of economic performance. This ranking is based on data released yearly by the Appalachian Regional Commision (ARC). These yearly County Economic Status (CES) data 14 clasify counties acording to per capita market income, thre-year average unemployment rate, and poverty rate. The ARC then uses these values to formulate a composite index for counties, which are used to create a national ranking. Al counties analyzed here were categorized as distresed in fiscal year 2002, the first year for which comprehensive CES data is available ("County Economic Status in Appalachia, FY 2002"). They are, acording to ARC, “the most economicaly depresed counties” ("Source and Methodology: Distresed Designation and County Economic Status Clasification System"). This indicator is not a comprehensive picture of economic development levels, but provides a simplified baseline that reflects the basic definition of economic development as increased wages and employment used in this research’s survey. Second, the United States Department of Agriculture’s Rural-Urban Continuum Codes (RUC) further refines the list of counties to only those that are remote and rural. The most recent RUC were released in 2003, based on data from the 2000 Census ("Measuring Rurality," 2008). The RUC separate al counties in the United States into nine categories based on the size of the urban population in each county and adjacency to a metropolitan area. Six of these categories are clasified as non-metropolitan. Of the six non-metropolitan groups, thre are nonadjacent to metropolitan areas, which wil be used as the standard for remotenes from metropolitan areas. In order to minimize the amount of urban population in each county, counties with urban populations greater than 20,000 individuals were also excluded. 3 The resulting list of survey targets (se Appendix A) contains forty-six counties from six diferent states: Kentucky, Misisippi, North Carolina, Ohio, Virginia, and West Virginia. None 3 Rural is defined on a tract level, not a county level, meaning that very few counties are actualy completely rural. However, county level analysis is valuable because it is often the level at which local development policy is made. This thesis is hence stil drawing an ambiguous line betwen rural and non-rural, but the criteria counties selected are some of the most remote and most rural counties in the nation. 15 of these counties contain urban populations above 20,000 individuals. By 2009, thirty-one of the counties remained distresed. Thirten counties that were categorized by CES as Distresed in 2002 were considered At-Risk in 2009, an improvement in performance ("Couunty Economic Status in Appalachia, FY 2009; Source and Methodology: Distresed Designation and County Economic Status Clasification System," 2009). Only one county Distresed in 2002 advanced to the level of Transitional, a label asociated with counties performing in the middle fifty percent of national counties. No counties progresed to Competitive or Atainment levels. Table 1: Criteria Counties and County Economic Status County Economic Status Level 4 Category Description: Composite index performance compared to counties nationwide 5 Number of Criteria Counties in this Category in 202 Number of Criteria Counties in this Category by 209 Distresed Botom 10 percent 45 31 At-Risk Boto 10 to 25 percent 0 13 Transitional Middle 50 percent 0 1 Competitive Top 25 percent, but below top 10 percent 0 0 Attainment Top 10 percent 0 0 The examples of economic development strategies found in these criteria counties is hence only a picture eforts occurring in the worst performing counties as of 2002. Focusing on succes stories as those iluminated by Lambe (2008) provides unique policy recommendations, but it is unclear what constitutes a remote rural succes story, an isue analyzed in the conclusion. The value of focusing on the worst performing counties is that insight into their economic development strategies has the potential of offering an explanation of which types of 4 Appalachian Regional Commision, “County Economic Status in Appalachia, FY 2002, from http:/ww.arc.gov/index.do?nodeId=941. 5 Appalachian Regional Commision, “Source and Methodology: Distresed Designation and County Economic Status Clasification System,” from http:/ww.arc.gov/images/maps/cty_econ09.html. 16 development eforts the counties with the most limited resources and greatest hurdles are pursuing. The counties that did improve by 2009, although they did not progres to Competitive or Atainment levels, can provide an initial basis for developing strategies for the most struggling, most remote rural communities that do not yet have an answer as to what is the path to succes. Survey Targets Within Counties The analysis is based on a survey of multiple leaders per each criteria county. Each leader represents a diferent role in promoting economic development within the community. The intended result of surveying more than one individual per county was to gather a more comprehensive and diverse perspective. Contact information for each of these individuals was collected over the internet and follow-up phone cals. Some roles were not applicable to a county or contact information was unavailable. When contact information was available, the survey was sent to the following leaders 6 within each criteria county: • County elected chief executive or administrator • Chamber of commerce president or executive • Industrial development authority president or executive Several organizations that could be potentialy considered as afiliated with economic development were not included in this list. Tourism boards are active in almost every rural community, but the specific focus on tourism as the economic development model evaded the atempt of this survey to understand a diversity of approaches. Organizations that distribute welfare funds, such as Community Action Agencies, and do not engage in development 6 Additional contacts recommended by survey respondents and city mayors were originaly targeted as potential respondents, but null responses led to a narower target of leaders. 17 programs were also not included. Although they do provide valuable resources, they do not encourage long-term development, which is the area this analysis is studying. Finaly, non-profit organizations are an important mising link in the list compared to a traditional list of players in economic development. No list or variety of local non-profits in these communities was found. 7 Survey and Disemination The survey (se Appendix B) contains 35 questions regarding the types of economic development eforts occurring and the influences on what types of economic development eforts are occurring in the respondents’ communities. Economic development eforts that have occurred from 2003 to the present are specificaly evaluated given the CES data used to clasify development in the criteria counties. There are both open-ended questions and questions in which potential choices are specified. The survey was emailed to each respondent and then a series of follow-up emails and phone cals were placed to each respondent as wel. 7 Se conclusion for a discussion of why this may be the case. 18 IV. Economic Development Insight From Local Leaders Survey responses from local leaders offer insight into which types of economic development eforts are occurring in their communities and why communities are pursuing these types of eforts. After describing demographic characteristics of survey respondents, this section analyzes survey responses in thre key categories. First, leaders’ responses regarding the hurdles and eforts occurring in their communities provide a basis for understanding what economic development in remote rural communities has looked like since 2003. Second, responses explore which organizations are responsible for the selection and succes of economic development eforts in these communities, providing context for the role of the respondents’ organizations among many organizations making economic development policy at the local level. Finaly, the focus is narowed down to analyze the influences on the choice of economic development efort types by the respondents’ organizations. Survey Response Demographics A total of twenty 8 survey responses were submited betwen August and November of 2009. Respondents represent seventen diferent counties, one-third of the original criteria counties. 9 Reflecting the composition of the larger set of criteria counties, the majority 8 The response rate among the thre major categories of leaders outlined in the methodology section is 17.7 percent. The proces of requesting responses provided two pieces of information that may explain the relatively low response rate. First, community leaders in thre counties reported that the community’s Chamber of Commerce was no longer operating; perhaps, this is also the case in other counties. Second, responders who submited answers after second or third contact continuously reported computer trouble or poor internet connection as reasons why their responses were delayed. These comments raise the possibility that acesibility was an isue in terms of gathering responses. 9 Nineten surveys were from leaders in individual counties, and one response was from the leader of a multi-county development organization. The responses from the later were left out of most of the analysis in order to isolate perspectives from county-level leaders. The responses from the multi-county leader were confounded by the fact that he works with diferent 19 (fourten) of respondents’ counties are located in Kentucky. Most of the respondents’ counties remained Distresed, as categorized by the 2009 County Economic Status, but there are also responses from leaders in counties that improved their economic status from 2002 to 2009. The respondents themselves fil a variety of roles within their communities. Table 2 categorizes the primary leadership positions of respondents. Al but two respondents have worked at their organization for more than thre years, and the majority of respondents have worked at the organization for more than six years. Several respondents hold multiple leadership positions within their communities, including positions on their local Tourism Board. Table 2: Primary Leadership Positions of Respondents Respondents represent communities that, while al clasified as not adjacent to a metropolitan area by the USDA ERS, vary in terms of the reported driving distance to the nearest metropolitan area (Graph 1). It takes longer than one hour for more than two-thirds of the respondents to drive to the nearest reported metropolitan area. However, when asked which metropolitan area is closest to their community, respondents did not always report communities that are in fact Metropolitan Statistical Areas. Several respondents named micropolitan areas or county seats. It is unclear what these non-metropolitan areas indicate regarding how respondents perceive metropolitan communities, but the implication is that these communities are in fact even further away from metropolitan areas than reported. organizations that the local leaders. However, multi-county leaders can provide valuable insight into the varying types of eforts occurring in these counties. Organization Position Number of Respondents County Government Elected Oficial 3 County Government Administrator/Clerk 2 Chamber of Commerce President or Executive Director 7 Economic or Industrial Development Authority Director or Administrator 7 20 Graph 1: Reported Driving Distance to Nearest Metropolitan Area More teling of the degre of remotenes in these communities is that, when asked how much the long distance to metropolitan areas afects economic development in their counties, every respondent acknowledged proximity was a factor afecting development. The extent to which proximity to a metropolitan area is considered a factor afecting development relative to other factors if further explored in the next section. Economic Development, 2003 to 2009 Factors Afecting Economic Development Respondents were asked how much eleven diferent factors impact economic development eforts in their communities (see Appendix C for factors and complete responses). The decision as to whether the factor is a positive or negative influence on economic development was left to the respondent in order to minimize built-in asumptions. Thus, responses merely reflect the degre of impact each factors has on economic development in respondents’ jurisdictions. Results were first analyzed by asigning numerical values to responses and comparing the average perceived impact of each factor on economic development (se Appendix C). The 21 results show on average which factors on average are more influential on economic development in remote rural communities the respondents represent. The average perceived impact of each of these factors does not vary greatly, but there are some noticeable diferences. As would be expected given previous literature regarding the hurdles faced by rural communities, these respondents from remote rural communities perceive out-migration of young people, natural beauty, and limited entertainment for young people as the factors with the greatest impact on economic development eforts in their respective jurisdictions. More interesting is the distribution of responses within each factor. Several factors have mostly homogenous responses. Community leaders in various counties have similar perceptions as to how much the out-migration of young people, natural beauty, limited entertainment for young people, culture and history, and an aging population afect economic development in their communities. For example, al respondents except for one saw their community’s culture and history as having some or very much impact on local eforts, as previous literature predicts. Later questions about types of economic development eforts ilustrate that leaders are spending a great deal of time atempting to capitalize on these cultural and historical asets. These results suggest that these factors are a commonality among the criteria counties. Contrarily, the responses for other factors were heterogeneous. The absence of a community college or university within the home county of six respondents led this factor to have the lowest average impact value, although those respondents who do have a community college or university in their community reported that the educational presence does have an impact on development eforts. While five respondents think the lack of broadband internet aces had a high degre of impact on local eforts, thre respondents report that this factor does not apply to their communities. Similarly, seven respondents report that aging roads have a large impact on economic development eforts, while four respondents do not think aging roads is a 22 factor applicable to their towns. These results suggest where some of the variance and unique aspects of county-level economic development may emerge. The long distance from these communities to a metropolitan area is a factor of particular interest in this analysis. Al responses indicate that the local leaders believe that long distance to a metropolitan area is a factor applicable to their communities. More than two-thirds of respondents respond that the long distance to a metropolitan area afects economic development in their communities “very much” or “somewhat.” However, four of the respondents do not think this factor has an impact on economic development eforts in their community. Graph 2: Reported Impact of Long Distance to Metropolitan Area on Economic Developent Eforts in Respondents’ Jurisdictions There are no clear correlations betwen responses to this question and distance to the nearest metropolitan area or 2009 County Economic Status. It is unclear whether the responses reflect that individuals perceive remotenes diferently or if remotenes is truly afecting economic development in some communities more than others. These responses, combined with perceptions of the influence of other factors and the types of eforts pursued, ilustrate what the situational context for economic development looks like in these remote rural counties. 23 Types of Economic Development Eforts Ocurring Within Criteria Counties Respondents were next asked to report how much emphasis their jurisdiction as a whole has placed on various types of economic development eforts since 2003. The results suggest that these communities do, on average, place greater emphasis on some types of eforts that make them les dependent on outside influences than other types of eforts with higher dependency levels. When numerical values are atributed to responses and averaged, leaders report that their communities place great emphasis on maintaining busineses already located in their jurisdictions and supporting localy owned busineses and entrepreneurs that. In contrast, leaders atribute much lower levels of emphasis to recruiting new busineses into the jurisdiction and improving products exported to metropolitan areas. Tourism, both for natural asets and cultural asets, perform in the median range as wel, which means these eforts are stil prominent but perhaps not as emphasized as suggested in other literature. Encouraging enrollment in post secondary education, improving kindergarten and primary education received median average emphasis scores. In contrast, leaders atributed some of the lowest emphasis values to support for worker retraining programs and community college programs that train workers, which are fundamental components of cluster models for development (Porter, 2004). An open-ended question asked community leaders to list additional economic development eforts occurring in their community. Responses largely fal into the previous categories, but provide ilustrations of the kinds of projects that are occurring in the communities. Many of the eforts are fostering strategic development. At least one county is currently working on constructing a vision statement and new, writen strategic plan. Another county has developed a Community Fund “to help support local community development eforts 24 by providing a source of grant funds. “ 10 One response demonstrates that a community is prioritizing what they view as their greatest weaknes, their lack of sufficient highways. Several of the responses suggest that leaders view part of community development eforts as framing their community’s role in the economy. One respondent says his county is “Seling ourselves as the regional hub that we are. We service the 7 rural counties bordering our county. “ Another respondent wrote, “We tel of the beauty of the area. We also stres the work ethic of the local population.” To promote tourism, one respondents says that her community is “continuing improvements to local [Agricultural]/Expo Center and event bookings.” In another county, the Tourism Commision is “in the early stages of building a regional tourism center,” reports a local leader. As a demonstration of how a community can take a unique resource in their community can capitalize on it to make it an asets, one county has redeveloping a former rail yard and Brownfield site and used “downtown revitalization and mixed use commercial development” to create a “tourism agnet […] through the atraction of a scenic train/short line railroad operation and a live performance music theater that promotes it shows to bus groups and motor coach operations,” said a represent from the county’s Development Authority. Evidence of Porter’s (2004) clusters model was found in the response of another local leader, who wrote that his “[…] community is known as the houseboat manufacturing capital of the world. We have six houseboat manufacturing plants and one pontoon boat manufacturing plant. In short, we have developed a cluster of houseboat manufacturers employing some 700 workers.” 10 Quotations in this section are direct survey responses by community leaders. They are minimaly atributed in compliance with Institutional Review Board protocol to protect the privacy of community leaders. This privacy was protected in hopes of alowing community leaders to speak frely about their perspectives. 25 Organizations That Shape Economic Development in Remote Counties Beyond merely what types of eforts are occurring in these communities, an understanding of how economic development occurs requires a grasp of which individuals and organizations are shaping economic development policy. The survey asked respondents how much several categories of organizations afect the types of economic development eforts pursued and contribute to the succes of these eforts in the region. The definition of succes was left up to the respondents. Each potential response was asigned a number such that responses correlated with greater impact and succes received greater values. A ranking system of averages is used to ases the relative level of various organizations’ impact and succes (se Table 3). Table 3: Organization Impact and Suces Rankings 11 11 A ranking of “1” signifies that the organization had the greatest average impact or succes value Type of Organization Impact Rank Succes Rank One or more county or local government agency 1 2 One or more state government agency 2 1 Multi-county (regional) task force (area development district) or quasi-governmental agency 3 3 Appalachian Regional Comision 4 7 Federal/national government organization besides USDA Rural Dev 5 4 USDA Rural Development 5 5 Local chamber of comerce/local businesses 7 6 County-wide or local non- profit(s) 8 9 Multi-county (regionaly) based non-profits 9 8 Nation-wide non-profit(s) 10 11 State-wide non-profit(s) 10 10 State-wide for-profit(s) 12 12 26 When organizations had an identical average value, organizations with a distribution more clustered around higher impact and succes values were ranked higher than organizations with more heterogeneous responses. The rankings of types of organizations acording to their succes and impact rankings are almost identical. However, average succes rankings were uniformly lower than average impact rankings, with the exception of multi-county task forces, which performed slightly beter in the succes category. Respondents selected from the same scale for both questions. Hence, this trend highlights the diference betwen an organization playing an influential role in the community and actualy contributing to what the respondents perceive as positive economic development results. An analysis of rankings shows that perceived importance of local level government organizations. Government or quasi-governmental groups comprise the top five organizations when ranked acording to the reported impact on which types of economic development eforts are pursued in the respondents’ counties. Potentialy reflecting the bias of the local-level respondent population, it is in fact the local government that respondents rank as most influential, and the subsequent ranking of government organizations correlate with increasing jurisdiction levels. Rankings show that government organizations categoricaly outperform for-profit and non-profit organizations. Non-profit and for-profit organizations fal to the bottom of the impact rank list. This could signal that these organizations are not very active in remote rural communities in Appalachia, which would explain the dificulty of finding contact information for such organizations in the region. Alternatively, the fact that non-profits were not surveyed may bias perspectives as to which organizations are most efective. The survey responses could 27 capture a larger disconnect betwen the non-profit organizations and government and Chamber of Commerce representatives. Surprisingly, the Chamber of Commerce and local busineses performed relatively poorly compared to government agencies in both impact and succes rankings. Although over half of the respondents represent a local Chamber of Commerce, Chambers of Commerce have an average impact ranking in the botom half of the organization list. Hence, the respondents did not merely rank their respective organizations as having the greatest impact. But the respondents do stil consider their organizations as having an impact on economic development in their communities. Respondents’ Organizations: Impact, Eforts, and Influences Given that their organizations do play a role in economic development proceses in these communities, analysis of the decision-making proces regarding which economic development strategies to pursue within respondents’ own organizations can offer insight into how decisions are made on the local level. Overal, respondents indicate that their organizations do impact the types of development eforts occurring in their jurisdictions. Graph 3: Responses to Statement That Respondent’s Organization Impacts Types of Development Eforts Ocuring in The Jurisdiction 28 This result suggests that their organizations’ decision-making proceses are relevant to an understanding of how economic development eforts occur in their communities at large. Generaly, the types of economic development strategies the respondents’ organizations are pursuing align with the reported types of eforts occurring in the jurisdictions at large. Diferences reflect delegation in responsibilities. For example, we would not expect nor do we se that Chambers of Commerce spend much time working to improve roads in their jurisdictions, as this responsibility is delegated to the government. Factors That Influence Decision-Making At Respondents’ Organizations Leaders base decisions as to which types of eforts to pursue based on a variety of influences. Personal knowledge and requests or stated priorities of other community members and constituents are the primary influences on the respondents’ organization priorities as to which types of economic development eforts to pursue. Previous organization priorities and Graph 4: How Much Factors Influence Respondents’ Organizations Selection of Efort Types (3=very much) economic development plans have some of the least influence on organization priorities, indicating that any extent to which the priorities of the organization are fixed is likely due to litle turnover of leaders as opposed to strategic decisions that have long-term implications. Like 29 many of the other responses to questions in this survey, there is great variation among responses to influences except for in the case of personal and constituent knowledge, which responses almost uniformly report as having the maximum influence. The higher influence values of personal and local level sources compared to federal and state level grants suggests that it is important to understand what local leaders are experiencing in their own communities in order to understand how economic development policy is made. Information Used To Make Decisions When respondents were asked what information the their organizations depend on to make decisions as to which types of economic development eforts to pursue, some similar trends appear. On average, leaders depend on personal and community knowledge more than any other resource. Responses regarding the influence of personal and community knowledge are also highly consistent across respondents. Again, when organizations are ranked acording to average influence, non-profits and busineses are ranked on average near the bottom of information sources. Graph 5: How Much Respondents’ Organizations Depend on Various Information (3=Very much) 30 The prioritized dependence on local versus national resources paralels previous responses regarding which types of organizations are influencing the types of eforts occurring in a community. In addition to personal and community knowledge, collaboration with neighboring communities, information from the state government, information from local busineses, and information from regional agencies have much higher average dependency values than the Appalachian Regional Commision and the USDA Rural Development program. These later two organizations, the two traditional national-level rural development programs, are clearly overshadowed by local influences on the types of economic developments being pursued in the region. When asked whether there is any information that their communities need to make economic development decisions but are currently not receiving, four respondents offered suggestions. Two respondents noted that they have dificulty gathering information regarding available grant money. One respondent particularly noted that by the time his community receives information regarding national programs and funding opportunities “it is usualy to late to get applications and apply.” These responses suggest there is a potential disconnect betwen development eforts promoted by state and national level organizations and local leaders because information is not sufficiently transfered betwen government organizations. A need for more localized information was also reported as important, as one leader requested information regarding education in his county, citing high dropout rates, and another leader requested analysis of the economic impact of busineses located in his community. Models for Succes Based on the trend in previous research to create naratives regarding succesful community development, this survey asked whether local leaders could point to any communities that their jurisdiction could be like after undergoing succesful economic 31 development. Five local leaders ofered suggestions. While some of the counties are in Appalachia or non-adjacent to metropolitan areas, no reported succes story is located in a county that shares both of the characteristics that were used to select the survey pool for this study. The responses and reasons for considering these areas as models for succes are summarized in Table 4. Acording to one respondent, her community is indeed atempting to learn from what they se as a succes story. Her Economic Development Authority has been visiting with the leaders that have made succes happen in Alen County. She writes, “Alen County is a rural county, in a rather remote area. This is why it is so impresive to se what they have done and their leadership in action.” This fedback suggests that leadership, as in rural development literature, is in practice viewed as fundamental to the community’s economic development succes. There are thre important factors to consider when analyzing model communities, however. The first is that the model cities and counties that fal within Appalachia are not achieving improved economic status. The reported succes is either not captured by the CES categorization, respondents perceive succes in terms of diferent indicators than used in the CES categorization, or the definition of succes used by respondents is on a more marginal scale than captured by the discrete CES categorizations. Second, the models are demographicaly quite diferent from the respondents’ communities. Mt. Dora, Florida, for example, lies within a Metropolitan Statistical Area. Most of the counties have much larger population sizes and are adjacent to metropolitan areas. These diferences bring into question the appropriatenes of using these communities as models for remote rural development succes. Third, many of the factors admired by respondents are not within their control. While one model county reportedly benefited a great deal from congresional representation, there is litle remote rural counties can 32 Table 4: Reported Comunity Suces Stories 12 Comunity Name Reason Ofered By Respondent County RUCC 13 2003 Adjac ent to Metro In Appalachia County Economic Status (ARC) FY 2006 Mt. Dora, Florida A “town in the midle of nowhere” that has “sucesfully transformed their downtown into a day-trip destination aimed at a mature demographic” 1 (“County in metro area with 1 milion population or more”) - No - Boone, North Carolina (Watauga County) “I am told Bone […] but I have never been there.” 6 (“Nonmetro county with urban population of 2,500-19,999, adjacent to a metro area”) Yes Yes Transitional Pulaski County/Somerset Congresional representation - “They have ben sucesful largely in part because the Congresman for this Congresional District is from that city/county. It sems to surounding counties in this region that al development takes place there because they are always getting additional jobs, many of which are government contracted jobs.” 5 (“Nonmetro county with urban population of 20,000 or more, not adjacent to a metro area) No Yes At-Risk (Transitional in 2002) City of Scotsvile, Kentucky (Allen County) “The City of Scotsvile, Kentucky (Allen County) has renovated al the old buildings in their entire down-town, complete renovation of streets, parking lots, lighting and landscaping. Several of the old buildings in the downtown have beautiful "roof" apartments. One huge buildings has been renovated and made into smal shops for entrepreneurs. (arts, crafts, and al types of busineses. (incubator) for entrepreneurs. They pay very little rent for the first 3 years in operation. By that time most are able to move out and into their own or rented building. A waiting list of entrepreneurs are waiting to move in where the others had vacated. A real sucessful program.” 6 (“Nonmetro county with urban population of 2,500-19,999, adjacent to a metro area) Yes No - Lewisburg (Grenbrier County), West Virginia “Lewisburg has revitalized their downtown, restored their historic sites and made the town a true cultural, heritage, and historic destination for al people.” 7 (“Nonmetro county with urban population of 2,500-19,999, not adjacent to a metro area”) No Yes At-Risk 12 Eight respondents replied that there is no model succes story. Six respondents did not reply to this question. 13 Source: USDA Economic Research Service (ERS). 33 do to advance their own congresional representation. These isues provide support for Daniel’s (1991) claims that models are perhaps not a succesful method of creating economic development policy, but they do show that local leaders in these remote areas are taking part in a discourse regarding what economic development they desire for their communities. 34 V. Making Rural Policy During a United States Senate hearing in July 2009, Secretary of Agriculture Tom Vilsack stated that he thinks “we are just on the cusp of a revitalized rural America” (Moving America Toward A Clean Energy Economy And Reducing Global Warming Pollution: Legislative Tools, 2009). It is unclear, however, whether a revitalized rural America includes remote rural communities that have historical faced the greatest economic struggles and an additional set of hurdles for development. Some local leaders in remote area explicitly report a bias by the state or national government toward more populated areas. At the conclusion of her response to survey used in this analysis, the Director of a county Economic Development Authority in Kentucky wrote that communities like hers “frequently get bypased in favor of larger metropolitan areas with higher population density. That is to be understood, but the result is that the metro areas grow larger while the smaler communities are left to survive on their own.” Reflecting a similar sentiment, a Judge-Executive in Kentucky wrote, “Our state only sems to want to help the more populated areas with more voters in them.” A discourse regarding unequal treatment based on remotenes, in addition to density, is not yet found in writen viewpoints from remote leaders, just as it is a les common frame used in academic literature. Yet difering economic outcomes for rural areas suggests remotenes is an important factor to consider. Community leaders in remote rural communities do sem to suggest that they fel they are “left to survive on their own.” The responses to this rural leaders survey do not prove that federal policy is leaving out rural communities, but they do show that community leaders in these counties fel that local eforts and local information are the primary influences on economic development. Respondents consider more local government agencies to be the most 35 influential policymaker in terms of economic development eforts in their counties, and local knowledge is the greatest influence on which types of eforts leaders pursue. Given the importance of local eforts and information for the economic development eforts in remote rural communities, understanding the local perspective is a valuable step toward understanding how to foster beneficial remote rural development policy. The State of Remote Rural Development Understanding the local perspective is dificult, however, because there is a large amount of variation among remote rural communities. Several examples clearly ilustrate the prevalence of variation. While one respondent considers his county to be the regional hub of commerce, suggesting excelent transportation infrastructure, another respondent claims that his community is focusing on improving the highway system because his county lacks a four-lane highway. Another leader, when asked to name other economic development contacts in his community, replied “I’m prety much the guy. We are spread thin on personnel.” While this one individual fils multiple leadership roles in his community, another respondent reported that her county has a ten-person board working on promoting planned development. Finaly, while some respondents report that there is not a community college in their county, those that do have a community college report that it has a high impact on local economic development. Even though the criteria counties share similar population sizes, regional location, and metropolitan proximity, leaders from diferent counties have diferent responses to questions regarding local economic development. There are surely lesons to be learned from studying this specific subgroup of remote rural counties in Appalachia, but the results are not necesarily applicable to remote rural communities elsewhere. Policymakers thus need further research regarding why these diferences among remote rural counties exist. The diferences could be the 36 result of varying priorities across communities or unequal opportunities, and these explanations would lead to diferent policy recommendations. Determining What Works The variation across remote rural communities in this study supports previous research suggesting that determining an economic development strategy that can be generaly applied is dificult and possibly inefective. But ascertaining what types of eforts are succesful in remote rural communities would be valuable in order to create policy that improves the economic status of counties like those that are the focus of this study. The models that respondents say reflect what they would like their community to look like after succesful economic development, while not clearly applicable to the uniquenes of remote rural communities, highlight types of eforts perceived as succesful. The communities of Mt. Dora, Florida and Lewisburg, West Virginia were cited as succes stories because of their eforts to promote tourism in their communities. Alen County, Kentucky succeded in revitalizing the community’s downtown and fostering entrepreneurship. Both of these types of endeavors are considered prominent by rural economic development writings, and are listed when respondents were asked which types of economic development eforts they think are succesful. If these are prominent eforts occurring in remote rural communities, analysis of their costs and benefits is important. Research needs to further explore the potential pitfals of a tourism based economy, which makes the community very dependent on outsiders for economic growth and vulnerable to seasonal change. Entrepreneurship creates les dependency but, as proposed by Daniels (1991), perhaps slower growth results. Analysis the survey data for counties that had no improved in their CES by 2009 compared to responses from leaders in counties that did improve offers promising economic development ideas for further research. When responses are grouped acording to whether the 37 county underwent economic improvement, several trends emerge. Two organizations reportedly have more of an impact on economic development eforts in improvement counties compared to non-improvement counties: Chambers of Commerce and state-level for-profits. Interestingly, counties that improved their economic development status reported that the federal government impacts economic development eforts in their communities far les than reported by non-improvement counties. Exploring this trend further could be a fruitful endeavor. Is this finding reflecting that federal policies are inefective because they are designed poorly on the federal level or implemented poorly on the local level? One local leader wrote that he Would like to have more information on what the Cabinets for Economic Development on the National level has regarding the projects, money available and data and research done on the projects. If Counties had this information would be of tremendous help. Usualy do not know about them until it is to late to get applications and apply. (Rural Leaders Survey) This response suggests that perhaps there is a mising link translating federal programs to individuals who need to implement the program on the ground. Thorough analysis of the eficacy of federal programs to promote rural development would help policymakers understand where the failure in federal policy is occurring. Respondents from improvement counties cited the presence of a community college or university in their county as impacting economic development to a much greater extent than reported by respondents from non-improvement counties. The presence of a community college is far more common in counties with improved CES than those that did not advance. Investment in transportation infrastructure and the presence of a community college or university in a nearby county also had prominently greater impact values, on average, for improvement county respondents than non-improvement county respondents. 38 Hence, the diversity among criteria counties makes a policy prescription dificult, but focusing on education might be a good place to begin. A specific emphasis on post-secondary education appears to be a particularly important characteristic of counties that improved their economic status over the past six years. The development of community college programs that directly collaborate with busineses to create specialized skil-training programs is a fundamental characteristic of rural clusters models, as advocated by Porter (2004). It is unclear, however, how the idea that post-secondary education a key for remote rural economic development aligns with the labor supply-demand mismatch model. Increasing post-secondary education does not sem like it would create economic growth for a remote community unles there are jobs within the county that require the unique set of skils developed in the education program. Given that there is no clear path for remote economic development but local knowledge and leadership plays an important role in creating the path for each community, investing in efective leaders could be a first step to promote remote rural economic development. Rural development literature and the responses in this survey both acknowledge that local leadership is important for remote rural economic development. The dilema thus becomes how to create the type of local leadership that can have a positive impact. Funding larger county-level stafs working on economic development or strategic planning training could provide remote rural counties with greater opportunities to develop strong economic development eforts in their communities. Rethinking Rural Rural leaders make it clear that remotenes is a factor afecting economic development in their communities, but it is not clear how this factor does or should alter economic development eforts. The long distance to a metropolitan area is reported to be an important factor afecting economic development, but it is by no means the most important factor. There were no specific 39 types of economic development eforts that were revealed in this survey that suggest unique approaches being taken in these communities, as we perhaps would expect. However, remote rural communities continue to be some of the worst performing counties in the United States in terms of economic indicators, and solving this problem ay require a first step of rethinking “rural.” The dichotomy betwen “rural” and “urban” alows for remote rural areas to be silently pushed aside in economic development discourse. The collective results of the rural leaders survey suggest that the types of economic development eforts occurring in remote rural areas largely miror those reported as rural development strategies more generaly. There are key diferences betwen a rural town on the outskirts of metropolitan Atlanta and the most remote towns in eastern Kentucky, however. Perhaps diferent economic development strategies need to be pursued in metro-adjacent and remote rural communities. The insight offered by local leaders in Appalachia’s remote rural counties suggest that policymakers might need to redefine economic development eforts based on a spectrum of geographic proximity. It could be that part of the isue of developing good economic policies for remote rural communities is the dificulty in defining succes. The definition used for economic development in the survey was simply increased wages and employment levels. A healthy and succesful community clearly needs much more than money. A clean environment, a sense of place, community interaction, and quality schools are several of many diferent factors that can be valued as necesary for succes. Further, an underlying question in a discussion of remote rural development is to what extent succesful economic development for these communities equates to urbanization or integration into a Metropolitan Statistical Area. Whether the needs of a community can be met without changing the fundamentaly rural characteristics is unknown. 40 The argument for why consolidation of America’s population into metropolitan areas is bad for not only rural Americans but the country as a whole thus needs to be outlined in order for rural economic development to become a national priority. In the end, the sentiment that metropolitan America is our nation’s future and corelated disregard for rural communities thwarts any atempt for comprehensive rural policy. A belief in the value of rural America may be mostly personal. Rural advocates cite the important ecological role of healthy rural communities, the right to live where one wishes to live, the generational ties to one’s land that is common in rural areas, plus the importance of rural America as a symbol of American. The rural advocate’s first step is to share these arguments with Americans from al types of communities. When policymakers begin to rethink rural and acknowledge that remote communities require unique development policy, local leaders wil have the insight needed to make policy as varied as the counties in rural America. 41 VI. Appendices Apendix A: Criteria Counties FIPS State County Rural Urban Continum Code (203) ARC ounty Economic Status (209) 21013 Kentucky Bell 7 Distresed 21025 Kentucky Breathit 7 Distresed 21045 Kentucky Casey 9 Distresed 21051 Kentucky Clay 7 Distresed 21053 Kentucky Clinton 9 Distresed 21057 Kentucky Cumberland 9 Distresed 21063 Kentucky Elliot 9 Distresed 21071 Kentucky Floyd 7 Distresed 21095 Kentucky Harlan 7 Distresed 21109 Kentucky Jackson 9 Distresed 21115 Kentucky Johnson 7 Distresed 21119 Kentucky Knot 9 Distresed 21121 Kentucky Knox 7 Distresed 21129 Kentucky Lee 9 Distresed 21131 Kentucky Leslie 9 Distresed 21133 Kentucky Letcher 9 Distresed 21137 Kentucky Lincoln 7 Distresed 21153 Kentucky Magofin 9 Distresed 21147 Kentucky McCreary 9 Distresed 21165 Kentucky Menife 9 Distresed 21171 Kentucky Monroe 9 Distresed 21175 Kentucky Morgan 7 Distresed 21189 Kentucky Owsley 9 Distresed 21193 Kentucky Pery 7 Distresed 21203 Kentucky Rockcastle 7 Distresed 21207 Kentucky Rusel 9 Distresed 21231 Kentucky Wayne 7 Distresed 21235 Kentucky Whitley 7 Distresed 21237 Kentucky Wolfe 9 Distresed 54089 West Virginia Sumers 7 Distresed 54101 West Virginia Webster 9 Distresed 42 21001 Kentucky Adair 7 At-Risk 21195 Kentucky Pike 7 At-Risk 21205 Kentucky Rowan 7 At-Risk 28095 Misisipi Monroe 7 At-Risk 28117 Misisipi Prentis 7 At-Risk 37075 North Carolina Graham 9 At-Risk 39079 Ohio Jackson 7 At-Risk 51027 Virginia Buchanan 9 At-Risk 51195 Virginia Wise + Norton city 7 At-Risk 54021 West Virginia Gilmer 9 At-Risk 54041 West Virginia Lewis 7 At-Risk 54075 West Virginia Pocahontas 9 At-Risk 54097 West Virginia Upshur 7 At-Risk 54083 West Virginia Randolph 7 Transitional 43 Apendix B: Survey LOCAL INSIGHT INTO RURAL ECONOMIC DEVELOPMENT PART I – General: This section asks about background regarding your work and overal economic development perspectives. Your responses to the following questions (1-12) may be paired with your name or other identifiers in my report of this research. 1. Your name: 2. The jurisdiction I serve is: a. a county b. a city or town c. other: ___________ 3. The name of my jurisdiction is (please include county name(s): _______________ 4. My jurisdiction is located in a. Kentucky b. Misisippi c. North Carolina d. Ohio e. Virginia f. West Virginia 5. I serve my jurisdiction as (please select al that apply): a. elected official b. county executive c. city or town executive d. appointed official e. chair or President of Chamber of Commerce's Board of Directors f. director or executive director of Chamber of Commerce g. member of Chamber of Commerce h. member, Tourism Board or Commision i. president or chair, Tourism Board or Commision j. member, leadership, or staf of Industrial Development Authority k. other economic development role – please specify: ________________ 6. The name of my organization or office is: ________________ 7. I have been a part of this organization for a. les than 1 year b. 1-2 years c. 3-5 years d. 6-10 years 44 e. more than 10 years 8. My official title in this organization is: ______________ 9. I have held this position for a. les than 1 year b. 1-2 years c. 3-5 years d. 6-10 years e. more than 10 years 10. I have lived in the jurisdiction I serve for a. I do not live in this jurisdiction b. les than 1 year c. 1-2 years d. 3-5 years e. 6-10 years f. more than 10 years 11. Name of metropolitan area closest to downtown in your jurisdiction: ________ 12. On average, how long does it take to drive from your jurisdiction’s downtown to the nearest metropolitan area named in the previous question? a. Under 30 minutes b. 30 minutes to an hour c. 1-2 hours d. 2-3 hours e. 3-4 hours f. 4-5 hours g. more than 5 hours Economic development is defined in many ways. For all of the remaining questions, please answer with the following basic definition of economic development in mind: economic development is a proces that leads to job creation and increased wages. PART I – Current Eforts: This section asks about types of economic development eforts occurring in your jurisdiction since 2003 in order to create a comprehensive picture of what economic development strategies local leaders are pursuing in your region. Your responses to the following questions (1-3) are confidential. Your name or other identifiers wil not be paired with your responses 45 1. How much does each of the following factors impact economic development in your jurisdiction? Please select one response for each factor. Very much Somewhat A litle Applies to my town but no impact Does not apply to my town Natural beauty 1 2 3 4 5 Aging roads 1 2 3 4 5 Long distance to metropolitan area 1 2 3 4 5 Community college or university in county 1 2 3 4 5 Community college or university in nearby county 1 2 3 4 5 Aging population 1 2 3 4 5 Aging water and sewer facilities 1 2 3 4 5 Lack of broadband internet aces 1 2 3 4 5 Culture and history 1 2 3 4 5 Limited entertainment for young people 1 2 3 4 5 Out-migration of young people 1 2 3 4 5 2. In your opinion, how much emphasis has your jurisdiction as a whole placed on each of the following types of eforts from 2003 to the present? Please select one response for each efort. Very much Somewhat A litle Not at al Investments in roads and transportation 1 2 3 4 Investments in broadband internet 1 2 3 4 Supporting localy owned busineses and entrepreneurs 1 2 3 4 Maintaining busineses already located in your jurisdiction 1 2 3 4 Recruiting new busineses to come to your jurisdiction 1 2 3 4 Supporting community college training programs that train workers for a specific busines 1 2 3 4 Supporting worker retraining programs 1 2 3 4 46 Promoting tourism for environment/natural asets 1 2 3 4 Promoting tourism for cultural asets/crafts/arts 1 2 3 4 Encouraging residents to buy local or support local busineses first 1 2 3 4 Improving K-12 education 1 2 3 4 Encouraging enrollment in post-secondary education (college or community college) 1 2 3 4 Increasing products exported to metropolitan area(s) 1 2 3 4 3. Please list and describe in as much detail as possible AL OTHER types of economic development eforts currently occurring or that have occurred in since 2003 in your jurisdiction (but not mentioned in question 14). In particular, mention unique or inovative eforts your county is pursuing that you think decision makers in other counties or regions might not know about. PART II – Decision-making: This section asks about the decision-making behind economic development eforts in your jurisdiction in order to understand why certain strategies are pursued. Your responses to the following questions (1-15) are confidential. Your name or other identifiers wil not be paired with your responses. 1. Does your jurisdiction have writen economic development plan(s)? a. Yes - Please continue to the next question. b. No - Please skip to question 3 2. Please submit al writen economic development plans or other materials/decision making tools that have at any time betwen 2003 and the present guided your organization’s economic development decisions. Your organization and/or another organization may have writen the plan(s). These materials could include strategic plans, comprehensive development plans, and any regional or multi-county economic development plans that may be pertinent to your jurisdiction. For each document, please provide a weblink below if available or submit an electronic copy of the document to sgf3@duke.edu. 47 3. Are there formal goals or benchmarks for economic development in your jurisdiction? a. Yes - Please continue to the next question. b. No - Please skip to question 9 in this section c. Unsure - Please continue to the next question and provide as much information as possible. 4. If yes, are these goals or benchmarks writen in any plan listed in question 2? a. Yes b. No c. Unsure 5. Please write name of document(s) that contain the goals or benchmarks in the comment box below. 6. I fel that to date, my jurisdiction has achieved the following percent of goals/benchmarks set up by the plan named in response to question 15 (please select percentage closest to your opinion): a. 100% b. 75% c. 50% d. 25% e. 0% 7. Is there a formal proces for evaluating your county’s progres towards achieving the strategic goals/benchmarks in this plan? a. Yes b. No 8. If yes, when did this evaluation proces most recently occur? a. before 2003 b. 2004 c. 2005 d. 2006 e. 2007 f. 2008 g. 2009 48 9. How much have each of the following organizations impacted what types of economic eforts have taken place in your jurisdiction since 2003? Very much Somewhat A litle Not at al One or more state government agency 1 2 3 4 One or more county or local government agency 1 2 3 4 Local Chamber of Commerce/county busineses 1 2 3 4 Multi-county (regional) task force (Area Development District) or quasi- governmental agency 1 2 3 4 Appalachian Regional Commision 1 2 3 4 United States Department of Agriculture Rural Development 1 2 3 4 Federal/national government (besides USDA Rural Development) 1 2 3 4 State-wide non-profit(s) 1 2 3 4 County-wide or local non- profit(s) 1 2 3 4 Multi-county (regionaly) based non-profit(s) 1 2 3 4 State-wide for-profit(s) 1 2 3 4 Nation-wide non-profit(s) 1 2 3 4 10. How much have each of the following organizations contributed to the sucess of economic development in your jurisdiction since 2003? Very much Somewhat A litle Not at al One or more state government agency 1 2 3 4 One or more county or local government agency 1 2 3 4 Local Chamber of Commerce/county busineses 1 2 3 4 Multi-county (regional) task force (Area Development District) or quasi- governmental agency 1 2 3 4 Appalachian Regional Commision 1 2 3 4 United States Department of Agriculture Rural Development 1 2 3 4 49 Federal/national government (besides USDA Rural Development) 1 2 3 4 State-wide non-profit(s) 1 2 3 4 County-wide or local non- profit(s) 1 2 3 4 Multi-county (regionaly) based non-profit(s) 1 2 3 4 State-wide for-profit(s) 1 2 3 4 Nation-wide non-profit(s) 1 2 3 4 11. My organization impacts what types economic development eforts take place in my jurisdiction. a. Strongly agre b. Agre c. Disagre d. Strongly disagre 12. In your opinion, how much emphasis has your organization placed on each of the following eforts from 2003 to the present? Please select one response for each efort. Very much Some A litle Not at al Investments in roads and transportation 1 2 3 4 Investments in broadband internet 1 2 3 4 Supporting localy owned busineses and entrepreneurs 1 2 3 4 Maintaining busineses already located in your jurisdiction 1 2 3 4 Recruiting new busineses to come to your jurisdiction 1 2 3 4 Supporting community college programs that train workers for a specific busines/corporation 1 2 3 4 Supporting worker retraining programs 1 2 3 4 Promoting tourism for environment/natural asets 1 2 3 4 Promoting tourism for cultural asets/crafts/arts 1 2 3 4 Encouraging residents to buy local or support local busineses first 1 2 3 4 Improving K-12 education 1 2 3 4 Encouraging enrollment in 1 2 3 4 50 post-secondary education (college or community college) Increasing products exported to metropolitan area(s) 1 2 3 4 13. How much has each of the following influenced which types of economic development eforts your organization has prioritized since 2003? Very much Some A litle Not at al Previous policy priorities of your organization 1 2 3 4 State mandates and grants 1 2 3 4 Grants and objectives of the Appalachian Regional Commision 1 2 3 4 Federal mandates and grants 1 2 3 4 Personal knowledge from living in the community 1 2 3 4 Requests or stated priorities of local community members/constituents 1 2 3 4 Faith or spirituality 1 2 3 4 Your Jurisdiction’s strategic or comprehensive economic development plan 1 2 3 4 14. Please list and briefly describe al other influences on your organization’s prioritization of types of economic development eforts besides those listed in the previous question. 51 15. When making decisions as to which types of economic development eforts to pursue, how much does your organization currently depend on the following sources of information (data, research, or other)? Very much Somewhat A litle Not at al Personal knowledge from living in the community 1 2 3 4 Knowledge from local community members 1 2 3 4 Collaboration with/knowledge gained from neighboring counties 1 2 3 4 Information from federal government 1 2 3 4 Information from national non-profits 1 2 3 4 Information from national for-profit busineses 1 2 3 4 Information from state government 1 2 3 4 Information from state-wide non-profits 1 2 3 4 Information from state-wide busineses 1 2 3 4 Information from local busineses 1 2 3 4 Information from local non- profits 1 2 3 4 Information from regional (multi-county) agencies 1 2 3 4 Information from the Appalachian Regional Commision 1 2 3 4 Information from USDA Rural Development 1 2 3 4 Information from local or regional college or university 1 2 3 4 52 PART IV – Vision: This section asks about which counties exemplify succesful economic development to you and offers you a chance to provide any information or fedback that could be constructive for local leaders like yourself in other counties. Your responses to the following questions (1-5) may be paired with your name or other identifiers in my report of this research. This is the final section. 1. Are there specific pieces of data and research that you currently do not have aces to but that would help economic development eforts in your jurisdiction? Please describe this data or research. 2. Is there a county or city/town that you think models what your jurisdiction could be like if it undergoes succesful economic development? If yes, please give the name of that county and briefly explain why it is an example of succes. If no, please explain. a. Yes b. No If you responded yes to question 2, please give the name of that county or city/town and briefly explain why it is an example of succes. If you responded no to question 2, please briefly explain why you do not think there is an example of succes. 3. Do you know of any types of economic development eforts that work in remote rural jurisdictions but have not yet been mentioned in this survey? These could be eforts that your jurisdiction pursues, is interested in pursuing, or that you are aware of other jurisdictions pursuing. 4. Please name and provide contact info for up to thre additional people, either in your organization or elsewhere in your jurisdiction, to whom you think it would be most valuable for me to talk. 53 5. Is there anything else that you think would be helpful for me to know about economic development in your community or rural areas? If you would like to add comments in response to any of the above questions, please note the survey part(s) and question number(s). As mentioned in part II, Please submit al writen economic development plans or other materials/decision making tools that have at any time betwen 2003 and the present guided your organization’s economic development decisions. For each document, please provide a weblink in part I or submit an electronic copy of the document to sgf3@duke.edu. Thank you so much for your candor, time, and responsivenes. If you have any questions, fel fre to contact me at sgf3@duke.edu or (678) 471-1535. 54 Apendix C: Selected Survey Responses Part I 1. How much does each of the folowing factors impact economic development in your jurisdiction? Please select one response for each factor. Out- migration of young people Natural beauty Limited entertainment for young people Comunity colege or university in nearby county Culture and history Long distance to metropolitan area Aging population Aging roads Very Much (=4) 12 10 9 8 2 7 3 7 Somewhat (=3) 4 6 8 6 15 6 12 5 A litle (=2) 2 2 1 3 1 2 2 3 Applies to my town but no impact (=1) 0 1 0 1 1 4 2 0 Does not aply to my town (=0) 1 0 1 1 0 0 0 4 Average 3.37 3.32 3.26 3.00 2.95 2.84 2.84 2.58 (cont.) Aging water and sewer facilities Lack of broadband internet aces Comunity colege or university in your county Very Much (=4) 8 5 5 Somewhat (=3) 4 5 5 A litle (=2) 2 4 3 Applies to my town but no impact (=1) 0 2 0 Does not aply to my town (=0) 5 3 6 Average 2.53 2.50 2.16 2. In your opinion, how much emphasis has your jurisdiction as a whole placed on each of the following types of eforts since 2003? Please select one response for each effort. Maintaining busineses already located in your jurisdiction Suporting locally owned busineses and entrepreneurs Promoting tourism for environment/ natural asets Improving K-12 education Encouraging enrolment in post-sec. ed. Promoting tourism for cultural assets Encouraging residents to suport local busineses first Recruiting new busineses to your jurisd. Very much (=3) 13 12 11 11 11 9 9 9 Some (=2) 3 5 6 6 5 8 8 6 A litle (=1) 3 2 2 1 2 2 2 4 None at al (=0) 0 0 0 1 1 0 0 0 Average 2.53 2.53 2.47 2.42 2.37 2.37 2.37 2.26 (cont.) Investing in roads and transportation Suporting worker retraining programs Investing in broadband internet Suporting comunity colege programs that train workers for a specific busines Improving products exported to metropolitan area(s) Very much (=3) 8 7 5 3 3 Some (=2) 8 7 9 10 3 A litle (=1) 2 3 4 3 10 None at al (=0) 1 2 1 3 3 Average 2.21 2.00 1.95 1.68 1.32 55 Part II 9. How much have each of the following organizations impacted what types of economic eforts have taken place in your jurisdiction since 203? One or more county or local government agency One or more state government agency Multi-county (regional) task force or quasi- governmental agency ARC National government organization (besides USDA Rural Dev) USDA Rural Dev Local chamber of comerce/ local busineses County-wide or local non- profit(s) Very much (=3) 10 9 5 7 5 4 3 3 Somewhat (=2) 7 6 7 3 5 6 8 5 A litle (=1) 1 2 5 4 4 5 5 6 Not at al (=0) 0 1 0 2 3 2 2 3 Average 2.50 2.28 2.00 1.94 1.71 1.71 1.67 1.47 (cont.) Multi-county (regionaly) based non- profits Nation- wide non- profit(s) State- wide non- profit(s) State- wide for- profit(s) Very much (=3) 2 1 0 0 Somewhat (=2) 6 3 3 4 A litle (=1) 4 8 10 7 Not at al (=0) 4 5 4 6 Average 1.38 1.00 0.94 0.88 10. How much have each of the folowing organizations contributed to the suces of economic development efforts in your jurisdiction since 203? One or more state government agency One or more county government agency Multi-county (regional) task force or quasi- governmental agency National government organization (besides USDA Rural Dev) USDA Rural Dev Local chamber of comerce/ county busineses ARC Multi- county (regionaly) based non- profit(s) Very much (=3) 9 7 7 4 4 3 2 1 Somewhat (=2) 6 8 8 5 4 6 7 7 A litle (=1) 2 2 2 4 6 5 6 6 Not at al/No response (=0) 1 1 1 5 4 4 3 4 Average 2.28 2.17 2.17 1.44 1.44 1.44 1.44 1.28 (cont.) Countywide non- profit(s) State- wide non- profit(s) Nation-wide non-profit(s) State-wide for-profit(s) Very much (=3) 2 0 0 0 Somewhat (=2) 3 4 3 3 A litle (=1) 9 9 9 8 Not at al/No response (=0) 4 5 6 7 Average 1.17 0.94 0.83 0.78 56 12. In your opinion, how much emphasis has your organization placed on each of the folowing efforts from 2003 to the present? Please select one response for each efort. Maintaining busineses already located in your jurisdiction Suporting locally owned busineses and entrepreneurs Encouraging residents to buy local first Promoting tourism for environment/ natural asets Recruiting new busineses to locate in your jurisdiction Encouraging enrolment in post-sec. education Promoting tourism for cultural assets Improvi ng K-12 edu. A lot (=4) 13 12 11 12 9 11 10 10 Some (=3) 5 6 5 5 8 4 7 2 A litle (=2) 0 0 2 1 1 2 2 5 None at al (=1) 0 0 0 1 0 1 0 1 Average 2.72 2.67 2.50 2.47 2.44 2.39 2.42 2.17 (cont.) Suporting worker retraining programs Investing in roads and transportation Suporting comunity colege programs that train workers for a specific business Investing in broadband internet A lot (=4) 8 9 9 4 Some (=3) 6 3 2 8 A litle (=2) 2 3 5 4 None at al (=1) 2 3 2 2 Average 2.11 2.00 2.00 1.78 57 VII. References Anderson, A. R. (2000). Paradox in the periphery: an entrepreneurial reconstruction? Entrepreneurship & Regional Development 12(2), 18. Bradley, J., & Katz, B. (2008). Vilage Idiocy: Enough with smal-town triumphalism. The New Republic. Census Bureau, U. S. C. (2002, December 30, 2008). Census 2000 Urban and Rural Clasification from http:/ww.census.gov/geo/ww/ua/ua_2k.html. Copus, A. K. (2001). From Core-periphery to Polycentric Development: Concepts of Spatial and Aspatial Peripherality. European Planning Studies, 9(4), 13. Cortright, J. e. a. (2003). Developing Rural Knowledge Indicators. Washington, D.C.: U.S. Department of Agriculture. County Economic Status in Appalachia, FY 2002. from http:/ww.arc.gov/index.do?nodeId=941. County Economic Status in Appalachia, FY 2009. from http:/ww.arc.gov/index.do?nodeId=3304. Daniels, T. L. (1991). The Goals and Values of Local Economic Development Strategies in Rural America. Agriculture and Human Values(Sumer), 7. Economic Development Research Group, I. a. R. T. S., Inc. (2007). Case Studies of Local Economic Development Growth Proceses: Appalachian Regional Commision. Economic Overview: Appalachian Region. from http:/ww.arc.gov/index.do?nodeId=26. Eler, R. D. (2008). Uneven Ground: Appalachia since 1945. Lexinton: The University Pres of Kentucky. 58 Gibbs, R. M., & Bernat, G. A. (1996). Rural Industry Clusters Raise Local Earnings. Rural Development Perspectives 12(3), 8. Graham, J., Healy, S., & Byrne, K. (2002). Constructing the Community Economy: Civic Profesionalism and the Politics of Sustainable Regions. Journal of Appalachian Studies, 8(1), 11. Katz, B. (2008). MetroPolicy: A New Partnership for a Metropolitan Nation. Paper presented at the The Sumit for American Prosperity, Washington, D.C. Lambe, W. (2008). Small Towns, Big Ideas: Case Studies in Small Town Community Economic Development. Chapel Hil: UNC School of Government and N.C. Rural Economic Development Center. "Measuring Rurality" (2008). from http:/ww.ers.usda.gov/Briefing/rurality/. Moving America Toward A Clean Energy Economy And Reducing Global Warming Pollution: Legislative Tools, United States Senate (2009). Nussle, J. (2008). Update of Statistical Area Definitions and Guidance on Their Uses . Obama, B. (2009). Remarks By The President At Urban And Metropolitan Policy Roundtable. Partridge, M. D., & Rickman, D. S. (2008). Distance From Urban Agglomeration Economies and Rural Poverty. Journal of Regional Science, 48(2). Porter, M. E. (2004). Competitivenes in Rural U.S. Regions: Learning and Research Agenda. Cambridge: Institute for Strategy and Competitivenes, Harvard Busines School. "Source and Methodology: Distresed Designation and County Economic Status Clasification System." from http:/ww.arc.gov/search/method/cty_econ.jsp. "Source and Methodology: Distresed Designation and County Economic Status Clasification System (2009)." from http:/ww.arc.gov/images/maps/cty_econ09.html. "The Appalachian Region." from http:/ww.arc.gov. 59 "What is Rural?" (2007). Measuring Rurality, from http:/ww.ers.usda.gov/Briefing/Rurality/WhatIsRural/. Wood, L. E. (1999). Spread Efects From Growth Centers in and Around Appalachia: 1960- 1990. Middle States Geographer, 32.