Viewpoint

Aliceann Wolhbruck, Executive Director, NADO Research Foundation

“Federal leverage can also help regions overcome the fundamental fragmentation so they can take collaborative action at the regional level.”
- Dr. David Sampson U.S. Assistant Secretary for Economic Development, US Dept. of Commerce, EDA Denver Regional Forum, June 10, 2002.

Collaborative action at the regional level is essential to economic development, particularly in small metropolitan and rural areas. At the sub-state level, economic development districts supported by the Economic Development Administration facilitate regional cooperation. Today a multi-state regional approach to development is attracting renewed interest at the federal level as the map on page three illustrates.

Currently, two multi-state regional authorities are in operation: the Appalachian Regional Commission(ARC) (www.arc.gov) and the Delta Regional Authority (DRA) (www.dra.gov). The Denali Commission (www.denali.gov) provides a regional organization for the state of Alaska. The Northern Great Plains Authority was authorized in the 2002 Farm Bill (P.L. 107-171, Sec. 6028) but no funds have been appropriated for its operation at this time. Two additional multi-state regions are proposed in pending legislation: the Southwest Border Authority ( S.2522, H.R. 4847) and the Southeast Crescent Authority (H.R. 3618). All of these regional bodies are built on the principle of federal-state-regional-local partnerships. They are targeted on the most distressed regions that need additional assistance to achieve long-term economic success. Click here to view map of regional commissions.

Both ARC and DRA build on the capacity of existing sub-state multi-county regional development organizations. Grassroots participation is provided through these local development districts with boards composed of elected officials, businesspeople and other local leaders.

Distress takes many forms: low educational levels, poverty, unemployment, isolation, out-migration, lack of infrastructure, poor health and inadequate housing. These regional authorities provide flexible matching funds for programs and projects targeted on helping the most distressed communities and individuals. Studies of the Appalachian Regional Commission, created in 1965, found that ARC investments have played a critical role in reducing poverty and generating economic activity in their 13 states.

“It is in those regions or communities experiencing chronic economic distress or structural economic change caused by trade patterns, industry decline, a shift from resource based economies, or closure of government facilities where EDA finds its niche among government agencies facilitating and accelerating economic development,” Dr. Sampson noted. The multi-state regional agencies can play a supporting role for EDA as the agency seeks to encourage private sector investment in distressed communities.