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Economic Development Perspective and City Leadership

DOI: 10.1155/2011/436290

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Abstract:

The viability of traditional economic development strategies has long been questioned by urban policy scholars; yet traditional strategies remain the norm among city leaders. Traditional concerns emphasize economic and business considerations at the expense of nontraditional community considerations such as quality of life. In this paper, we examine the conditions under which city leaders give weight to nontraditional community concerns when making economic development decisions. Our analysis of the results of a survey conducted of more than 200 leaders in over 150 Texas cities indicates that although traditional economic development concerns remain dominant, certain conditions may exist that allow or compel city leaders to give increased weight to non-traditional community considerations. Conditions revealed by our study include the socioeconomic status of Texas cities and the relative differences in leadership positions and professionalism among city leaders. The paper concludes with a discussion of how our study contributes to the literature about economic development policy and points to avenues for future research on the conditions under which decision-making strategies are pursued by city leaders. 1. Local Economic Development: Traditional and Nontraditional Thinking Economic growth is a primary responsibility for city leaders in the United States. Efforts to achieve economic growth—whether pursued because of the structural placement of cities in the US federal system [1], the interests of developers [2], the electoral benefits to city leaders [3, 4], or lack of state or federal financial assistance—are paramount to city leaders. Exploration into why city leaders pursue economic growth is much less informative to contemporary urban policy studies than analyzing the strategies leaders employ to reach the goal of economic growth. A study of the strategies used for achieving economic growth is particularly relevant in times of severe economic downturn when city budgets are stretched to capacity and traditional economic development strategies may not be sufficient to address a wide range of economic problems. Economic development in the United States has traditionally involved a process by which local governments use their resources to stimulate private investment [5]. Numerous studies throughout the years have showcased the types of city activities that characterize economic development policy. To retain or attract business, local leaders have pursued strategies that include tax abatements, land clearance, the use of public money to provide

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