It's All on the Table

Joanna Hanks and Fred Williamson


 

Williamson

Hanks

Conundrum or Comedy?

 

Virginia is subsidizing rural economic development in a big way. But until rural inhabitants change fundamental values and priorities, the investment may be a waste of money.


 

Although we haven’t done a line-by-line analysis, we are told from several sources that in his budget submission to the General Assembly, Gov. Mark R. Warner has been forced to make a number of cuts in economic development programs. The major exception 

has been to save funding for rural economic development activities.

 

This may be part of the Governor’s general infatuation with things agricultural, which, as has been ably pointed out in this publication, does not seem to make a lot of sense from an economic return on investment perspective. Or it could spring from that deep sense of obligation to the noble farmer that is a recurrent theme in American politics.

 

Or, perhaps the governor is a close student of World War II and realizes that the United States was not only the “Arsenal of Democracy” but the “Breadbasket of Democracy” during that great national trial. Indeed, there is a school of thought that says that if a nation can produce enough foodstuffs to feed its populace and enough goods to allow its economy to operate with perhaps a small surplus for trading, said nation is “good to go.” In a way, this is the old colonial Virginia plantation model of self-sufficiency carried to the national level but, unfortunately, some economic realities have inserted themselves into this cozy equation over the intervening years.

 

Agriculture has become a victim of its own tremendous productivity growth. Despite some creative attempts in Washington to prop up prices either directly or through contrived scarcities, the number of individuals who can make a decent living for their families from the farm steadily declined throughout the 20th century.

 

Manufacturing, the other great economic pillar of the rural economy, has become a victim of the globalization of research and development, labor markets, technical expertise, and production know-how. U.S. jobs have steadily moved overseas, especially in labor-intensive manufacturing segments, such as textiles, located in rural regions of the country and the Commonwealth.


Governors all over the country, not just here in
Virginia, have attempted to offset these losses by attracting new jobs to rural areas. For the most part, the strategy hasn’t worked. There may be a surprising reason: Rural residents don’t want new jobs -- they want the ones they had. 

 

As a generality, these are socially conservative regions. Inhabitants very clearly want to stay within their comfort zone – which isn’t especially extensive. They tend to greet the dazzling brain bubbles floating up from the state capitals with suspicion and fear – suspicion that new industries will exploit their land, and fear that they will lead to pollution and congestion, negatively impacting their “way of life.”

 

In the final analysis, their way of life is more important to rural communities than jobs. They can figure out how to get by without jobs; they can always commute out of the area to work. But they fear that once development comes, they will lose attributes that can never be reclaimed.


We are not making this stuff up. In our extended families, we have two successful local politicians in rural areas of
Virginia. One is a sitting county supervisor and the other is preparing his campaign for supervisor, having been recruited to run by the majority party in the county. Both were born and bred of farm families but had successful non-agricultural careers that took them elsewhere before they returned to the land.

 

Although their respective counties are far apart, they sing very much the same song. Their voters fear economic development worse than the plague. In fact, they are pretty well convinced that development is the plague, and they want no part of it. 

 

This may sound strange in light of the carefully coordinated caterwauling that has erupted in the past and will, no doubt, break out again during the 2003 session of the General Assembly. The (you fill in the blank) area of the state is hurting and the final budget needs to ensure funding for programs that will lift it from the doldrums.

 

We would argue that the real aim of these protestations is not to develop a new, more competitive basis for rural economies but to ensure a sufficient flow of the Commonwealth’s money to ease the pain of a long, slow death -- all the while, of course avoiding the perceived social dislocations and other aggravations associated with development.

 

If our conclusions are true, then rural economic development is a poor investment, indeed. It may have been an acceptable investment when state coffers were running over with revenues from a booming economy, but it isn’t now, when every dollar has to show an explicit ROI. Metro Virginians need some assurances that rural Virginians are prepared to make the changes that are necessary for economic development to take place.

 

Proposing “solutions” to this tough issue doesn’t have to be done with a wink and a nod. In the incredibly diverse economy that will characterize the 21st Century, it is possible to find industries and jobs that will fit into rural areas in such a way that the residents don’t have to give up their legitimate environmental and quality of life concerns. 

 

State leaders, however, are going to have to provide some real vision and assistance. Just as it doesn’t do a blind person much good to install a higher wattage light bulb, it doesn’t help rural areas to set aside funds to recruit industries they are unfamiliar with and have no cultural basis for reaching out to. We learned that lesson in our foreign aid programs over a quarter century ago. Isn’t it time to apply the lesson domestically?

 

So, rather than have another round of wasted oxygen and ink over coalfields, tobacco farms, and sock factories, let’s start a real dialogue designed to have us all meet in the middle on this tough, but important issue. In these times and for the foreseeable future, we need a contribution from everyone.

 

-- January 13, 2003

   

 

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Contact Information

Hanks-Williamson & Associates
P.O. Box 9637
Richmond, VA 23228

Joanna D. Hanks
(804) 512-4652
jdh@hwagroup.com

Fred Williamson
(804) 512-4653
fhw@hwagroup.com

Website: Hanks-Williamson & Associates