Month: December 2013

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trust, confidence, and cooperative development

a great read–looking at the fundamental loss of trust in society. The article points out both the steps that have led to the lack of trust–both economic and social–as well as historical and recent theory that might explain some of the behavior.  The author points to how this decline of trust has led to the increase of inequality–and the social attitudinal mindset that has a systemic hard-to-reverse momentum.

In considering how this might actually be also affecting our efforts at economic development, it seems to resonate quite well.  Cities internally with more trust (institutions that are working), confidence, and leadership ‘seem’ to be doing better than those that have lack of leadership, broken and non trustworthy institutions, and no confidence (signs) that things will change.  And, in order to build trust between cities–that now compete for scarce resources–we need to engage in collective dependency and a conversation about how systems we rely on work across our boundaries, and not just within.

The system of incentives described in the article comes to bear very directly in the practice of city/state/federal Economic Development policy.  It’s become such a necessary element in conversations about growth and expansion, but these opportunities seem to be thrown at a very  specific subset of actors (the most visible, desirable, and the ones that seek it out), a corporate 1%, and those investments/resources not more equitably distributed to those that could be better supported for growth locally.   Do incentives really generate growth in the economy or do they just provide an ‘icing on the cake’ to help catalyze (or rationalize) a decision….?
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I don’t actually agree with the final conclusion, as I think that regulations create too many hurdles and keep the majority of people from engaging in systems (and letting their voices be heard). Regulations are not in and of themselves ‘the bad guy’ but they are often written by those that do not fundamentally understand how complex industries work–an exclusive group of self interested parties.  Transparency and more models that encourage institutional dependencies, and cooperative learning are necessary, and people need to build trust through iterative and dynamic cooperative projects.  People doing things together, learning things, and creating real things,  build the collective neural pathways necessary for society.

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npr platform pilot–from geo- to person-based broadcasts

http://philanthropy.com/article/NPR-Gets-17-Million-for/143639/?cid=pw&utm_source=pw&utm_medium=en

in a new pilot broadcasting platform, NPR will be experimenting with developing user-focused broadcasting channels–more like pandora meets spoken word and news.  This is an interesting shift as people become more mobile and perhaps tune into either different NPR stations, or lifestream their home station to get news.

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Similar to other ‘systems’ that are now stretching with people across state lines and broadcast areas, this new feature by npr shows how even conventional systems can look at new ways to reach their audience.  economic development infrastructure may also want to take heed– i.e. business financing tools that follow the company across a few jurisdictions, allowing them to connect more directly to each place.  Perhaps spousal support mechanisms (day care/school information, civic notifications and reminders, neighborhood updates) to better support people in multi-place households with more efficient and productive civic engagement….

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A Real Example of Connective Development!

Mexico City & Chicago–Redefining Sister City relationships for a multi-locational, global age:

As this article points out, two cities have found that recognizing their linkages, and relationships, make both cities stronger.   Identifying both existing ties (multi-locational corporations and supply chains, university programs, cultural collaborations) and outlining future mutually beneficial cooperative activities will certainly grow both economies more productively.

Not mentioned in the article, but equally as critical are other benefits that this agreement might catalyze in both cities–increased level of visibility of opportunities, new relationships between entrepreneurs and co-founders,  insights gleaned for new markets for companies in both cities, as well as expanded knowledge networks into both countries through these portals. These relationships will be the key conduits for a ripple effect in the innovation economy.

Additionally–if these relationships and programs by the two cities became test beds for additional economic development policies, it would be a great example for other cities.

How about a few pilots to test policies that could have impact at the national level in the future:

  • Evaluating immigration programs that also help increase connectivity, and decrease jurisdictional ‘friction,’
  • Experimenting with tax reform proposals on foreign earnings
  • Developing new financing tools to support business and physical development –leveraging resources, expertise, and cost- and seasonal benefits in either place to support growth in both places.
  • Creating incentives to identifying ‘shared’ resources in both cities (co-working/car-sharing & housing ‘shares) in both places that might benefit frequent travelers between places, allowing them to ‘connect’ into the local environment more quickly.

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Although this particular strategy of the Global Cities Initiative  was not something I was aware of during my original research for my thesis, it is one of the best and most concrete examples of  progressive economic development–considering the whole of the greater economic system and not limiting efforts to purely what is ‘within the lines.’  These cooperative attitudes can be employed in networks large and small cities alike. Congratulations Chicago and Mexico City, and thanks to the Brookings Institution for pushing this concept forward!

http://www.chicagotribune.com/business/ct-biz-1114-chicago-mexico-20131114,0,2647877.story