Inclusive and Equitable Economic Development

In this module, we will be introduced to and explore the interrelationships of housing and economic development and their importance for improving a community's well-being. We will first discuss the meaning behind economic development, then explore affordable housing strategies, and then end this module with a discussion of how we, as planners, can promote equitable economic development and inclusive growth. Economic development can include a wide range of planning activities, such as business incentives, workforce development, land-use and zoning policy, infrastructure, community and business development, and so much more!Communities may have economic developers and even economic development organizations (EDOs), which work with public, private, and non-profit sectors to support economic development activities. Please watch the video below to learn more about the profession of economic development and to hear an example of the work performed by economic developers.

https://youtu.be/C8yU8X1o7GM

Lecture # 1: Economic Development

To begin - what is economic development? Economic development practice is grounded in the field of economics, which in turn is concerned with the allocation of resources through regulated market systems for the production and distribution of goods and services. The main goal of economic development is to create and maintain a strong local economy. In order to achieve this, urban planners must understand and support their local economy in a regional context, which may include considering:

· What is made in the place/region? Ex. what industries exist

· What do workers do? Ex. what are the occupations of the place/region? People are an essential component for economic development. This is often referred to as "knowledge economy", or "human capital".  

As a part of a city's comprehensive plan, or serving as an individual plan, an economic development plan includes an overview of the economy, both local and regional, policy directions for economic growth, as well as strategies, programs, and projects for how to improve the economy (MRSC, n.d). What else do you think influences economic well-being for all residents? In planning for local economic development, Blakely & Leigh (2013) argue that there should be new concepts surrounding multiple components of a local economy. As seen in the graphic below, components such as locality, business and economic base, employment resources, and community resources require new concepts for how they contribute to local economic development (Blakely & Leigh, 2013, p. 92-95)

1.Locality - location alone is not the only pull factors for local economic development. We must also consider the building of social and institutional networks that create an inviting environment.

2.Business & Economic Base - rather than focusing on incentivizing individual forms, local economic develop now considers how firms and sectors can work together and benefit from each other in a more sustainable way.

3.Employment Resources - the goal of economic development should focus on enhancing the value of people and places, therefore shifting from an emphasis on the demand side of the economy, to providing resources and support to the supply and labor side. 

4.Community Resources - classic models highlight the advocacy of business-oriented organizations which promote interests of firms. Yet, economic development includes a wide range of sectors, therefore requiring the collaboration of many organizations and community members. 

A More Comprehensive Definition of Economic Development

"Economic development is the process of improving a community’s well-being through job creation, business growth, and income growth, as well as through improvements to the wider social and natural environment that strengthen the economy" (APA, n.d).

This is a more comprehensive view of economic development than what was common 10 years ago - when the focus was almost exclusively on job growth and business development. Although, job creation and business growth are still primary objectives of economic development efforts, this broader definition acknowledges that:

o    economic development can have effects on other desired public purposes (environmental quality, social justice etc.), 

o    economic development planning must pay attention to those effects and deal with the tradeoffs among competing public objectives

How can economic development expand its purpose beyond economic growth to include a more comprehensive view? Please watch the video below to hear more about considering sustainable economic development approaches.

Kate Raworth - A Healthy Economy Should be Designed to Thrive, Not Grow

Land-Use, Zoning, & Affordable Housing

One way that planners look to control and influence growth is through land-use planning and zoning. As we learned previously, policies in the United States have been used to create and perpetuate racial and economic segregation. Today, restrictive zoning such as single-family housing restrict the type of housing that is able to be developed in certain areas. These restrictions can limit the availability and affordability of housing - while also continuing segregation. 

Please watch the video below to learn more about why zoning is important when considering housing.

Urban Land Institute - Zoning Matters: How Land-Use Policies Shape Our Lives

https://youtu.be/aLMsI92crZw

Example Policies: APA 2019 Housing Policy Guide

To address issues related to affordable housing in the United States, there are many approaches and policies that can be used to ensure that housing affordability is considered when planning for economic growth in cities. In 2019, the American Planning Association (APA) developed a Housing Policy Guide, which supports the organization as it "advocates for public policies that create just, healthy, and prosperous communities that expand opportunity for all through good planning. APA’s advocacy is based on adopted positions and principles contained in policy guides. These guides address the critical policy issues confronting planners and communities by identifying solutions for local, state, and federal policy makers."

The Housing Policy GuideLinks to an external site. provides a resource for planners and policy-makers for promoting strategies that:

1.Modernize state and local laws to ensure housing opportunities are available, accessible, and affordable to all.

2.Preserve existing housing to maintain the quality and overall supply of affordable housing.  

3.Encourage environmental sustainability and resiliency as critical elements of housing availability and affordability

4.Ensure that public and private finance keeps pace and innovates to support increased housing availability and affordability.

5.Support funding and program flexibility to provide services, shelters, and permanent supportive housing for people experiencing homelessness, veterans, immigrants, and the formerly incarcerated. 

City of Atlanta: City Design Housing

The City of Atlanta has developed proposed policies and strategies for addressing housing affordability concerns in its communities. Please browse and explore the story map below to learn more about these policies in Atlanta:

https://storymaps.arcgis.com/stories/e91c43ad299a4634add2bed4cf2eca9dLinks to an external site. 

Lecture #3: Equitable & Inclusive Growth

At a time when the U.S is facing extreme income inequality; a growing number of urban planners are looking to equitable development strategies as a way to promote development and investment that benefit all the city’s people and neighborhoods. While there are many definitions of "equitable economic development", the fundamental idea behind this relatively new approach is to promote the adoption of projects, programs, and policies that expand opportunities for low-income people and communities of color to benefit from economic growth, social activities, and cultural life in their communities.Similarly, "inclusive growth" can be defined as: "Economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society." 

Consider How this Connects our Previous Modules...

We learned about historic planning practices and ideologies that created and perpetuated inequities. In addition, we learned about the relationship between health and our environments. Addressing systemic racism and other forms of oppressive systems in planning for inclusive and equitable economic develop is yet another essential piece to achieving health equity."When we achieve equitable development, we increase the capacity of people of color to strengthen their communities and determine their own future and that of their neighborhoods. We distribute the benefits and burdens of growth equitably among people of all races, ethnic backgrounds, incomes, and geographies/neighborhoods. We encourage multicultural communities where tenured and newcomer residents can thrive. And we provide meaningful choices for the most impacted people of color to live, work, and define their own culture throughout all neighborhoods" (GARE, 2016). 

Although there are many strategies for promoting equitable economic development & inclusive growth, below are some example strategies. 

Equitable Economic Development Strategies (GARE, 2016):

1. Advance economic opportunity. Promote local economic development and entrepreneur opportunities, enhance community-serving establishments, and increase quality living wage jobs for people in all neighborhoods.

2.Prevent displacement. Develop policies and programs that allow anyone who wants to live in the community to do so, especially current residents, and discourage displacement of viable small businesses that serve community needs.

3.Preserve and expand affordable housing options. Create healthy, safe, and affordable housing for all family sizes and incomes in all neighborhoods.

4.Understand and respond to local context. Respect local community character, cultural diversity, and values. Preserve and strengthen intact neighborhoods, building upon their local assets and resources.

5.Promote broader mobility and connectivity. Prioritize an effective and affordable public transportation network that supports transit-dependent communities and provides equitable access to core services and amenities, including employment, education, and health and social services.

6.Practice meaningful community engagement. Require local community participation and leadership in decision-making to reflect a diversity of voices, including targeted strategies to engage historically marginalized communities. Build cultural competence and responsiveness among all stakeholders, and structure planning processes to be clear, accessible, and engaging.

7.Develop healthy and safe communities. Create built environments that enhance community health through public amenities (schools, parks, open spaces, complete streets, health care, and other services), access to affordable healthy food, improved air quality, and safe and inviting environments.

8.Promote environmental justice. Eliminate disproportionate environmental burdens and ensure an equitable share of environmental benefits for existing communities. Secure resources to mitigate and reverse the effects of environmental hazards past and present.

9. Achieve full accessibility. Ensure any development that results from investments in the built environment is accessible and welcoming to people regardless of age, physical condition, or language.

Inclusive Growth Strategies (OECD, Inclusive Growth, 2016):

1. An inclusive education system, which enables people of all ages and backgrounds to develop their human capital, acquire relevant skills and improve their life chances.

2.An inclusive labor market, which aims to make the most of women, youth, older populations, migrants and immigrants, foreign-born populations, and people of all backgrounds in the labor force. This means policies that promote access to quality jobs and inclusive entrepreneurship.

3.An inclusive housing market and urban environment, which provides quality, affordable housing in safe, healthy neighborhoods for all segments of the population.

4. Inclusive infrastructure and public services, which consists of a transport system that provides access to jobs, services and consumption opportunities for all, as well as affordable, reliable public services, such as water, energy, and waste management andbroadband infrastructure. 

Sources:

· GARE -Government Alliance on Race and Equity. 2016. Equitable Development as a Tool to Advance Racial Equity. GARE. Retrieved on Nov 3, 2020 from: https://www.racialequityalliance.org/wp-content/uploads/2016/11/GARE-Equitable-Development.pdfLinks to an external site. 

·  Stott, Josh. What is inclusive growth and why does it matter? The Joseph Rowntree Foundation. Retrieved on Nov 3, 2020 from: https://www.jrf.org.uk/blog/what-inclusive-growth-and-why-does-it-matterLinks to an external site.

·  OECD. Inclusive Growth. 2016. Retrieved on Nov 3, 2020 from: https://www.oecd.org/inclusive-growth/about/inclusive-cities-campaign/NY%20Proposal%20-%20English.pdfLinks to an external site. 

• Personal Biography
• Water and Heat Management in the Melbourne
• Milton’s Livability
• Urban Planning
• Milton’s Livability
• Inclusive and Equitable Economic Development