Fourth Economy congratulates the Indiana Economic Development Corporation for their Excellence in Economic Development Award from the International Economic Development Council on September 19th, 2017. The Indiana Economic Development Corporation won the award for the state’s efforts related to quality of life investments designed to support the retention and attraction of talent through the Indiana Regional Cities Initiative.
“Fourth Economy supported our vision with a creative and engaged planning process that allowed us to launch the Regional Cities Initiative on solid footing and achieve quick success.” –Eric Doden former CEO for the Indiana Economic Development Corporation.
In two short years since implementation, the Indiana Economic Development Corporation has approved $80.6 million in state funding for 41 projects, with a total of $903.0 million investment leveraged, which is a 10.2-to-1 ratio. Over 60% of the committed funds are coming from private sector investments with the balance coming from local resources.
“We are very proud to have been a part of the initiative that is fostering regional collaboration, cross-sector partnerships, bold planning, and quality of place investments for businesses and communities in Indiana.” –Rich Overmoyer CEO of Fourth Economy
Mr. Overmoyer went on to add, “These investments made in a region’s core city and in surrounding communities through an investment portfolio approach is demonstrating a new model of civic collaboration and direct focus on economic growth and prosperity.”
The Indiana Regional Cities Initiative, overseen by the Indiana Economic Development Corporation, sets a framework for communities to come together to develop long-term visions and actionable plans. The Initiative is a Silver Award recipient for the Regionalism & Cross-Border Collaboration, Population Greater Than 500,000 category. The Indiana Regional Cities program was originally passed with bipartisan support in 2015 by the Indiana General Assembly.
Fourth Economy cites the Indiana Regional Cities development process as being a critical experience for the firm as they work in communities throughout the country seeking to create a new model for quality of place investment.
Resilience is a word that you may be hearing more of lately. While it has its roots in environmentalism, the Rockefeller Foundation’s 100 Resilient Cities initiative defines resilience, in particular for cities, as…
“The capacity of cities to function, so that the people living and working in cities – particularly the poor and vulnerable – survive and thrive no matter what stresses or shocks they encounter.”
After attending the 100 Resilient Cities Urban Resilience Summit, among the 100 cities across the globe who are developing resilience strategies, one theme is clear: while they are confident in their ability to help their cities respond to natural shocks (such as floods) and stresses (such as antiquated infrastructure), they are less confident in how to create a resilient community and economic development system. With complex stresses such as economic inequality plaguing so many cities and the threat of shocks such as automation-driven industry collapse, the task of creating a resilient community and economic development system is not an easy one.
It may help to start with a clearer picture of what a resilient community and economic development system looks like. According to 100 Resilient Cities, there are 12 goals that articulate what a resilient city looks like. Six of these relate to community and economic development:
- Minimal human vulnerability Indicated by the extent to which everyone’s basic needs are met.
For community and economic development practitioners, this means access to affordable housing, food, and resources, such as energy and water.
- Diverse livelihoods and employment Facilitated by access to finance, ability to accrue savings, skills training, business support, and social welfare.
More than just a job, this requires a holistic approach to individual wealth building.
- Collective identity and community support Observed as active community engagement, strong social networks, and social integration.
We can always be doing more to embed this goal into our various planning and outreach processes.
- Sustainable economy Observed as sound financial management, diverse revenue streams, the ability to attract business investment, adequate investment, and emergency funds.
This is the heart of economic development; but doing it through a resilience framework means that we are considering a city and its private sector’s ability to respond emergencies – natural, economic, and social.
- Effective leadership and management Involving government, business, and civil society, and indicated by trusted individuals; multi-stakeholder consultation; and evidence-based decision-making. The more we can build cross-sector collaboration, the stronger our leadership and the more resilient our cities are.
- Integrated development planning Indicated by the presence of a city vision; an integrated development strategy; and plans that are regularly reviewed and updated by cross-departmental working groups.
As more cities are looking to address community and economic development challenges, it becomes increasingly critical to ensure that land use and development planning processes are informed by and addressing those challenges.
While resilience professionals are trying to understand how to address community and economic development shocks and stresses through their work, we could benefit from doing our work in a way that also creates a more resilient community. We need to find a way to work together. At Fourth Economy, we think there are two important first steps.
First, we need to rethink the most basic analysis that informs our work. Instead of a SWOT, we propose a new framework that includes analysis of Shocks, Stresses, Assets and Capacity (S2AC). This process will prepare communities to identify the issues that matter most and build a resilience agenda for their communities that is based on their ability to take action.
Second, our worlds still speak different languages. To effectively engage the private sector and economic development professionals, we need to build the business case for resilience. For instance, in Pittsburgh, climate change and extreme weather is one of our primary potential shocks, and economic and racial inequity is one of our primary stresses. By making the case for addressing those shocks and stresses in terms of lost GDP, decreased tax base, and inability to attract investment, we can start to break down silos and build new partnerships.
This is uncharted territory and no one has the answers. But we’re excited to figure them out. Want to join us? Let’s talk.
At the IEDC Annual Conference, held in Toronto, Fourth Economy was honored to toast representatives from the Great Falls, Liberty, and Topeka communities for making the top 10 of the Fourth Economy Community Index. Our Index highlights counties poised to achieve sustainable growth in a 21st-century economy. At the ceremony, held on September 17th, we heard more about the wonderful work being done by these communities and how the Index was a welcome acknowledgment for all their hard work. In addition, it was just great to meet with individuals engaged in cultivating better economies.
One thing our research did not show is that Great Falls is home to the super fun Sip and Dip lounge. While not a direct factor in our analysis, it does demonstrate the fun side of a terrific community.
Fourth Economy’s Social Innovation Strategist, Chris Ellis, recently had a contribution published in a Robert Wood Johnson Foundation (RWJF) book, Knowledge to Action: Accelerating Progress in Health, Well-Being, and Equity. This book is the inaugural volume of a publication series from the RWJF intended to catalyze discussion, engage new partners, and inspire action to build a Culture of Health in America. Chris’ contributions are included in a chapter that focuses on public, private, and nonprofit partnerships. The chapter examines the impact of these partnerships by highlighting Utah’s Pay for Success transaction that expanded access to high-quality preschool services for low-income children; a program that Chris managed before working at Fourth Economy. More information about the book, including ways to purchase it, can be found here.
Pittsburgh Region Life Sciences Benchmarking & Opportunities Analysis
The Pittsburgh Region Life Sciences Benchmarking & Opportunities Analysis report was prepared for the University of Pittsburgh with financial support from the Richard King Mellon Foundation and Hillman Family Foundation.
Fourth Economy Consulting conducted the analysis and report development in partnership with Warner Advisors during the summer of 2016. This report is meant to inform key Pittsburgh regional stakeholders about the assets and opportunities that exist in the life sciences industry sector and highlight areas of future focus. Read more from the Pittsburgh Post-Gazette here. The complete report is available here.
A core principle at Fourth Economy is that economic development works best when it works at the intersection of environmental, social, and economic issues—a concept referred to as sustainable or triple bottom line economic development. A recent article published in Economic Development Quarterly by one of our Fourth Economy Pioneers gives some background into this concept.
Janet Hammer of The Collaboratory, the lead author of this research, notes that while traditional economic development delivers programs, policies, or activities designed to create or retain jobs and wealth, sustainable economic development does so in ways that also contribute to environmental, social, and economic well-being over time. This triple bottom line approach recognizes that economic development both influences and is influenced by a spectrum of factors like quality of life, fiscal health, resource stewardship, and resilience. Continue reading “Pioneering a New Approach to Economic Development”
Fourth Economy CEO Rich Overmoyer, along with Director, Sustainable Communities, Chelsea Burket were recent guests on “Our Region’s Business” hosted by Bill Flanagan. They discussed Fourth Economy’s role as a platform partner for the Rockefeller Foundation 100 Resilient Cities initiative. Watch their appearance by clicking on the video below.
Fourth Economy’s own Jerry Paytas was interviewed for an article by Julie Grant of West Virginia Public Broadcasting. The article delves into the important role that water plays in regional economic development efforts, especially in the case of the Ohio River watershed.
You can read the complete article here.
Our own Jerry Paytas appeared on the Sunday Business Page recently where he was interviewed by KDKA’s Rick Dayton. Dr. Paytas explained the origin of the Fourth Economy name and provided a brief overview of our philosophy for effective economic and community development. Click here or on the image below to watch the complete interview.
To many Americans, Canada is our friendly neighbor to the north, known for an affable attitude, a passion for pucks and a penchant for strong beer. What is perhaps less known is how critical trade with Canada is to the economy of the United States. Consider:
- Nearly 9 million U.S. jobs depend on trade and investment with Canada
- Canada is the top export destination for 35 states
- Canada is the number one supplier of crude oil, refined petroleum products, natural gas,
and electricity to the U.S. as well as a
leading supplier of uranium
- 400,000 people cross the Canada–U.S. border daily