Rio
Anderson
Diane
Dobbs
Phyllis
Kellogg
The Prosperity Network consists of 19 different agencies and
organizations, many of which are funded in part by different aspects of
government: local, state, and federal.
Some of the organizations have a self-funded component, whereby they
earn interest through their loan assistance programs. Each has its own area of expertise and operations. Representatives of each group meet regularly
to brainstorm, analyze, and strategize.
The overriding goal of the Prosperity Network is to guide the North
Coast toward a path that will “maximize [the] region’s economic competitiveness
without sacrificing our quality of life.”[1] After reading the prosperity strategy for
the North Coast, written in 1998 and updated in 2003, comparing it with two
other economic strategies for Massachusetts and the South Hams District of
England, and attending a meeting of the roundtable, the following strengths,
weaknesses, opportunities and threats have been observed.
The qualifications, experience, enthusiasm,
and commitment of the participating members may be one of the greatest
strengths of the Prosperity Network.
They share a combination of education, work experience in economics and
planning, and knowledge of the local area, which enables them to carry out
their duties. Members come from a
variety of departments from local city and county governments, nongovernmental
organizations, and educational institutions.
Because of this variety, the members have a wide-reach into the
community.
The local prosperity strategy is based on an
economic development model that uses “industry clusters.” Locally, nine base industries have been
defined. Lumber & Wood Products,
Dairy & Dairy Processing, Tourism, and Arts & Culture are examples. These industries export goods out of
Humboldt County, bringing in new money.
In addition, ten major support clusters have been identified that are
expected to grow and provide more economic opportunities in the area. The support businesses help keep money
circulating locally. A few examples include Real Estate, Financial/Insurance,
Retail and Restaurants, and Construction.
By separating business and industry into
these various categories, Prosperity Network members can tailor their support
and guidance as needed. For example, a
group of dairy farmers complained about complex and conflicting regulations for
environmentally sound dairy waste disposal methods. In response, Jacqueline Debets, a member of the network, brought
together representatives of the many government agencies that control dairy
waste disposal to develop a plan to make it easier for dairy farmers to
understand and work within the law.
There is now a “one stop shop” for dairy farmers who want to create an
environmentally sound waste disposal system.[2] It is no small feat to be able to respond to
an industry need by bringing different levels of government together to
streamline regulations.
The Prosperity Network has successfully
responded to other business needs.
Members of the hospitality industry, including retail and restaurants,
acknowledged a lack of workers with specific skills, such as hotel security, as
well as general customer service skills.
To respond to this need, College of the Redwoods developed a hospitality
curriculum in conjunction with national associations. Employees can take individual classes in customer service and
safe food handling, for example, or become certified in tourism and
hospitality.
The industry cluster model provides
businesses with other advantages.
Within each cluster, business owners have the opportunity to gain
expertise from each other. They also
have the opportunity to patrol their own industries, using peer pressure to
curtail activities that could result in more regulatory scrutiny. In Humboldt County, culturally and
historically businesses haven’t always trusted government agencies. The Prosperity Network is bridging the gap
between the private sector and local public agencies. In this collaborative role, the Network is developing trust and
instilling their stated values into the private sector; values like developing
democratic and diverse communities, environmental stewardship,
and meeting the basic needs of people by reducing poverty through
promoting jobs suitable for local residents.
At a time when the environmental community
and some of the large industrial institutions of Humboldt County are very
polarized, Prosperity is situated to play a leadership role in local economic
development. While they embody the
principles of weak-form sustainability, the Network’s largest challenge may be
their ability to facilitate an economic growth strategy that is economically
viable, yet takes clear measures to protect Humboldt County’s ecological
integrity.
Though the plan speaks strongly about
cluster industries, it lacks mention or clarity about distinct economic regions
within Humboldt County. The Prosperity
Network apparently does offer services to areas outside the Eureka/Arcata area,
but with 52% of the county’s population living in unincorporated areas, it is
certainly inadequate. In 1998 when the
first strategy was written, the Network analyzed the needs of the whole
region. Transportation and fiber optics
were among the list of issues that needed to be addressed. The 2000 - 2001 progress report has little
to say about transportation and nothing to say about fiber optics.
The website, although beautiful with blue
skies and soft wispy clouds, is outdated and incomplete. One cannot easily find a description of the
roles of the various agencies. Funding
for each group is nowhere to be found.[3] This could be of interest because a funding
source can influence actions and strategies.
It would be appropriate if an analysis of the progress and work were
visible on the web site. Graphs could
then be displayed showing the data in a more understandable way. In contrast, the South Hams District
prosperity strategy includes a list of ten indicators that will be monitored,
including the percent of local unemployment and the average gross earnings
compared to other areas.[4] While this type of information for Humboldt
County might be available somewhere, it should be easily accessible from the
Network’s web site.
During
the group interview, it became apparent that these agencies did not have the
power to change policies, though they work hard at influencing it. In the example mentioned earlier with the
dairies, the Coastal Commission was able to block implementation of the waste
disposal plan in the geographic area it controls. Without being able to effect policy changes at a higher level, the
Prosperity Network will be limited in fully addressing the needs of the
community.
Affordable
housing is a critical need in the community.
The strategy states that development should focus “on compact,
multi-dimensional land use” but fails to address how the Network will put that
value into action. Does the Network
depend on a given city’s General Plan to address the issue, or do they have a
strategy to discourage sprawl?
During the meeting, the topic of
sustainability was raised. Individual
opinion aside, the official policy of the Network is not to judge any given
business or industry as to its environmental sustainability. The group applies the “carrot” method of
trying to encourage businesses to perform in an environmentally friendly
manner. Utilizing marketing tools like
eco-labels and sustainably harvested wood products, Prosperity seeks market
driven solutions to socio/environmental problems by seeking access to niche
markets for local businesses.
Unfortunately, Prosperity lacks specific (strong-form sustainability)
guidelines for industries that wish to meet these specifications.
Currently we see the network’s values as
more of a vision for development than a strategy to provide leadership on these
issues, in spite of the specific cases in which they have succeeded in a
leadership role. While excluding
businesses is not in their interest, Prosperity could adopt some strong-form
indicators, like the Natural Step (see appendix “A”), which are not used to
regulate industry, but rather to clarify sustainability and inspire industries to
develop their own vision, strategies, and tactical goals in becoming
ecologically sensitive. This may be an
effective manner of marketing Humboldt County as a place for value-added,
environmentally safe products.
Given Prosperity’s focus to vitalize the
business community by providing assistance with permitting and regulation,
important common pool resources may be overlooked. For Instance, the county recently offered funding ($6,000 from
Real Estate associations and $10,000 from the Headwaters fund), to develop a
study on Humboldt County land available for development. Yet there has been no strategy proposed to
monitor available open-space or land conservation of ecologically sensitive
areas like watersheds and estuaries.[5] Our fear is that common pool resources
depict a market failure and their value won’t be assessed unless there is some
form of indicator that expresses a need to protect these resources.
With an ever-expanding Internet,
opportunities exist for rural communities.
Exponential growth in the demand for knowledge-based industries may pose
the most lucrative, environmentally friendly, and risk free opportunity. Because the knowledge-based industry does
not depend on transportation to export its services, it is not hindered by the
North Coast’s problem of limited road, ocean, and air access. The primary focus of the Network is on the
nine base industries, because they bring capital into the area. Yet it is possible that some of the support
industries could become base industries if resources were to funnel in that
direction. Examples are Redding’s Heart
Care Facility and the Merchant Bank division of Humboldt Bank.
One opportunity discussed at the group
meeting was the marijuana growing industry.
Sidestepping the fact that it is illegal, there is a tremendous amount
of cash that flows into and around Humboldt County from this invisible base
industry. Members of the Network
acknowledged that marijuana growers often want to channel their cash into
legal, entrepreneurial activities that help create jobs in the county.
There are also opportunities of tapping into
the positive aspects of the “counter culture,” like appropriate technology,
organics, permaculture, and international music festivals. Businesses like “Music for Little People,”
Summer Arts Fair, and alternative healing centers may provide benefits to the
tourism cluster.
Another potential opportunity is to embrace
further the image of an eco-friendly niche market, much like the organic dairy
industry. The opportunity exists to
create a strong regional image focused on the environment and become a model
for the rest of the United States. The
North Coast already has a global reputation for the Arcata Marsh. While logging concerns have brought much
negative attention to the county, that focus could be channeled into a
community working to implement sustainable practices in all industries. The idea of the niche market is not new, but
it works. Organic and sustainably
created products cost more because they usually take longer and are more
expensive to produce. The producers of
these products are rewarded for their extra effort, and thus do not have to
produce as much. Humboldt County could
develop its own eco-label. The Humboldt
Visitor’s Bureau could tout the eco-friendly, sustainable image.
Over time, the “carrot” may become more
attractive and the lines of communication between disparaged sectors of this
community may become more open. As
ecological constraints become more obvious, policies like Pigouvian tax reform
or “right to extraction” could be explored to offset negative
externalities. The long-term benefits
of complying may prove economical for local industries.
An indirect benefit of sustainable
development is an increase in tourism.
Professional and business conferences can be more enticing in regions
that embrace sustainable development.
Private individuals and families may be drawn to areas that are actively
working to address environmental challenges.
Prosperity is well aware of this, as they list eco-tourism, festivals,
educational programs, and industrial tours as opportunities for tourism in the
region.
The
foundation for sustainable development has been established by institutions
like Humboldt State University, which has a strong focus in environmental
studies; Alternative Energy in Redway, on the forefront of wholesalers
distributing appropriate technology; and the organic farm movement, which has a
strong presence throughout Humboldt County.
In light of this established counter culture, the transition to
Conservation Based Development practices may prove less of a hardship here than
in other American communities that have a stronger path dependence on
specialization and international free trade.
The threats are many, not only to the
prosperity of the North Coast in general, but also to the operations of the
Prosperity Network and the idea of sustainability. For the community, the greatest threat is being disconnected. Highways are narrow and windy. The airport is small and limited. The harbor lacks needed rail service. It is difficult to manufacture here and
export products because of the elevated cost of transportation. The extra cost of being disconnected makes
it such that products cannot compete in the market place.
Not only is the North Coast disconnected in
a physical sense, but also in a virtual way.
The lack of fiber-optic communications and services in this area puts
the North Coast at a great disadvantage.
The rest of the world is racing at lightning speed in communication and
information access. If the North Coast
is to compete in the knowledge/service-based industries, this issue needs to be
addressed.
Another threat is the continual merging of
big business conglomerates. As
efficiency improves and prices drop, it will become increasingly important for
the North Coast to create a focused image and reputation. It is possible for high-priced, high-quality
items to compete against cheap, low-quality goods, but the demand must be
encouraged and supported.
Competition with other communities to
attract quality people is a threat.
Getting back to the illegal nature of the marijuana industry, Humboldt
County’s reputation for illegal drugs, including methamphetamine labs, could have
a negative impact on economic development.
It could cause some residents to leave and deter others from
coming. The costs for police and other
enforcement measures detract from funds available for other more valuable
economic pursuits. Additionally, the
secretive nature of the marijuana industry makes it difficult to assess if
environmentally sustainable growing practices are being followed. In all likelihood, a large number of acres
are being used for this agricultural product, and poor growing methods could be
causing environmental degradation.
Methamphetamine labs contain hazardous wastes, which could contaminate
waterways and ecosystems. Alternative
Dispute Resolution and building social capital in that community may be a more
beneficial use of public money.
The long-standing conflict between environmental groups and the timber
industry in Humboldt County is a real threat to economic development. One group’s ethics lie in the Limits to
Growth arena where belief systems, like deep ecology, encourage an almost
religious campaign to protect the environment, and the other is more in line
with the Technological/Industrial Optimist, which relies on the given
infrastructure for their livelihood.
This polarization threatens quality of life, the local niche market for
value added goods, and buy-in and support from these communities in a new
economic growth strategy.
In pursuing market driven solutions to our
communities’ concerns, Prosperity encourages economies of scale to stay
competitive in the global market place, many of which rely on high discount
rate strategies for the harvesting of local resources. This leads to over harvesting of
forestlands, which creates more conflict in our community, and a tragedy of the
commons scenario for future generations of Humboldt County residents. The long-term opportunity cost of these
industries may be higher than the financial costs of strong-form regulations
that protect the sustainability of Humboldt County forests.
In conclusion, the threats to the Prosperity Network in no manner outweigh the opportunities, and the weaknesses are just small hurdles compared to their strengths. The fact that these community leaders are reaching out to their neighbors in a supportive manner, wanting to help inspire entrepreneurs to develop local businesses, and building social capital across our cultural gaps in a democratic and transparent manner, deserves our praise. Thank You!
[1] Prosperity! The North Coast Strategy. <<http://copia2.copia.net/cgi-bin/Bulletin.mcgi?
UF.profile=ncpn1&UF.username=&UF.password=&BU>>
[2] Prosperity Network meeting. 27 Mar 2003.
[3] Funding information was readily provided at the meeting on 27 Mar 2003.
[4] South Hams District Council. Prosperity Strategy: 2002 to 2007. <<http//:www. south-hams-dc.gov.uk >>
[5] Ryan, Lynn. Sierra Club. Interview 7 Apr 2003.