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Lionel J. “Bo” Beaulieu Southern Rural Development Center Mississippi State University

It’s Not Your Daddy’s Rural Economy . . . Building Vibrant Economies and Communities in Rural America. Lionel J. “Bo” Beaulieu Southern Rural Development Center Mississippi State University. Introduction. The 1990s appeared to be good to rural America Over 3.8 millions jobs created

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Lionel J. “Bo” Beaulieu Southern Rural Development Center Mississippi State University

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  1. It’s Not Your Daddy’s Rural Economy . . .Building Vibrant Economies and Communities in Rural America Lionel J. “Bo” Beaulieu Southern Rural Development Center Mississippi State University

  2. Introduction • The 1990s appeared to be good to rural America • Over 3.8 millions jobs created • But recent events suggest that the economic health of rural America is fragile • Many states are facing significant declines in jobs due to layoffs and business closures.

  3. A vibrant Rural America will depend depend on . . . • Quality human capital resources • An entrepreneurial spirit that supports internal economic development • A rural area with excellent digital infrastructure • Broad-based civic engagement

  4. It’s Not Your Daddy’s Rural Economy

  5. Employment Composition in the Nonmetro U.S., 1990 and 2000 11.1

  6. Percent of Jobs Generated by Each Sectorin the Nonmetro U.S.,1990-2000 10.1% 89.9%

  7. Average Earnings Per Job in the Goods Producing Sector NM: 60.8% of Metro NM: 66.5% of Metro Metro Metro NM NM 1990 2000

  8. Average Earnings Per Job in the Service Producing Sector NM: 65% of Metro NM: 70.7% of Metro Metro Metro NM NM 1990 2000

  9. NM Industry Type No. Employed 1990 No. Employed 2000 2000 Ave. Earnings Manufacturing 4,206,182 4,324,057 $35,184 Retail Trade 3,959,799 4,828,513 $15,427 Services 5,164,340 7,067,417 $21,167 Why the Increasing Gap in Average Earnings? 60% of employment growth in the nonmetro U.S. between 1990-2000 was linked to the Retail Trade and Services industries

  10. Human Capital Resources in Nonmetro America

  11. Educational Attainment, 1990-2000 (25+ years old) 2000 1990 1994

  12. Nonmetro Educational Attainment, by Race and Ethnicity 1990-2000 African Americans Latinos

  13. Ranking of Graduation Rates by State State Ranking Graduation Rate, 1998 Georgia 51 57% Tennessee 50 59% Mississippi 49 60% District of Columbia 48 60% Arizona 47 60% Alabama 46 62% Vermont 6 85% Pennsylvania 5 85% Nebraska 4 85% North Dakota 3 87% Wisconsin 2 87% Iowa 1 93% Source: High School Graduation Rates in the United States (November 2001),

  14. Strategies for Strengthening the Viability of Rural America

  15. Enhance the community’s human capital resources • Great strides have been over the past decade • But additional enhancements are needed. The question is how? • Traditional method has been to focus on improving the performance of schools • These plans place too much burden on schools alone

  16. No Child Left Behind Act of 2001

  17. What we should do . . . • Start with the very youth who live in rural America today • Work to ensure that the homes and communities in which youth are embedded recognize the key roles they must play in helping shape the educational success of these young individuals

  18. Factors Explaining Standardized Composite Test Scores of 8th Graders (n=8,756)

  19. How to promote educational advancement of youth • Help equip parents/guardians with knowledge and tools that promote the educational progress of their children • Build positive teacher/student and teacher/parent relationships • Build youth supportive communities • Community Youth Scholarship Program

  20. Create an entrepreneurial spirit in Rural America • Capturing the “big” plant still a dominant strategy in rural areas • As a result, approaches that build on local talents and resources are often overlooked

  21. Some strategies . . . • Address the needs of existing firms and help them expand and become stronger • Uncover and invest in the talents existing in the community already – these are entrepreneurial opportunities • Reduce imports by producing appropriate products locally • Bottom line . . . Help create and strengthen internally grown small businesses

  22. Businesses with payrolls . . . • Nearly 64 percent of all establishments in the U.S. employ less than 10 persons (as of 1998)

  23. National Commission on Entrepreneurship Study • Four key ingredients for spurring entrepreneurial activities: • Access to quality workers • A community that embraces and nurtures entrepreneurs • Local governments that enact supportive public policies • Local economic development officials who see it as a legitimate strategy for creating local jobs

  24. Build the digital capacity of rural communities • Recent U.S. Commerce has upbeat picture about advances in the adoption and use of computers and the Internet • Digital inclusion is important given that a majority of current jobs now require some skill in the use of technology • Major efforts are needed to help rural America become fully engaged in the global marketplace via the use of IT • Special attention will be needed in certain regions of the U.S.

  25. Computer Access in Metro andNonmetro Homes,by U.S. Regions,2001

  26. Internet Users in Metro and Nonmetro Areas, by U.S. Regions, 2001

  27. Expand civic engagement in rural communities • Rural communities must commit themselves to rebuilding a corps of civically-minded citizens • It will require: • All segments of the community be involved in guiding the future of the community • New and expanded leadership development opportunities be provided • Leadership responsibilities to be shared; this will help build trust • Support for the establishment of local-oriented small and entrepreneurial businesses

  28. Communities that subscribe to these principles . . . "will find themselves alive and vibrant, positioned to address the challenges that await them."

  29. Concluding comments • Have outlined some key components that can help place rural communities on the path to social and economic progress • These efforts are consistent with the work of the RCCI, especially those aspects dealing with economic development and civic engagement. • It is important that the efforts designed to build vibrant communities be undertaken as a partnership, one that is dedicated to creating coordinated working relationships among Extension educators, community/tribal college faculty/staff, and other public and private sector entities concerned about the well-being of rural people and places.

  30. Thank You ! !

  31. Small Group Discussion • To what extent are the trends described in this report similar/dis-similar to the conditions that exist in your communities? • Rate your communities on the following: • Quality of its human resources • Entrepreneurial spirit • Digital infrastructure • Civic engagement • Outline 3-5 strategies that your group believes may be worth considering in an effort to create vibrant communities and economies?

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