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Strong, diverse, local economies are the backbone of a livable community. In today's global marketplace
and growing e-business sector, it is imperative to focus on nurturing community-supportive local
businesses that provide a stable tax base.
Across the nation, many communities are engaged in the battle against "big-box" retail.
These superstores do not typically support the kinds of pedestrian-oriented, place-enhancing
design that is central to a sense of community or livability. Furthermore, most superstores are
located on the periphery of town and are a threat to downtown businesses and vitality. In many
smaller towns, freeway-oriented superstore development has put locally-owned businesses out of
business and has contributed to a deteriorating central district. Adherence to proactive zoning
regulation and design guidelines can help to eliminate this and can produce attractive, downtown
retail establishments that are built to the sidewalk, creating safer pedestrian environments
and "Main Street" appeal. However, if not properly balanced with local business, and
sensitive to community design, superstores will continue to penalize the locality. Local entrepreneurs
nourish the community, link commerce to place, and minimize the leakage of money from the local
economy.
One of the biggest myths is that in order to foster economic development, a community must
accept growth. The truth is that growth must be distinguished from development: Growth means
to get bigger, development means to get better - an increase in quality and diversity. As is
often the case, local governments will subsidize superstore development through infrastructure
expansion in the name of economic development, only to facilitate more sprawl and municipal debt.
The Rocky Mountain Institute suggests two alternatives for development without growth: supporting
existing businesses and increasing the number of times a dollar is spent in the community. Local
purchasing is the primary means of accomplishing this, and the result is a more efficient, self-reliant,
economically resilient community.
In 1998, the LGC released "The Ahwahnee Principles for Smart Economic Development: An
Implementation Guidebook." The principles promote economic prosperity for the 21st Century,
recognizing that economic development no longer works as an end in itself. Prosperity and vitality
must be based on the creation of a sustainable standard of living, high quality of life, and
recognition of the economic value of natural and human capital. In the New Economy, a fresh approach
to the pursuit of jobs, revenue, and long-term regional prosperity is needed. An integrated approach
promotes regional economic health through a broader emphasis on community and human development.
Based on livable communities, corporate responsibility, environmental quality, and regional collaboration,
the Ahwahnee Principles for Smart Economic Development provide a new model which promotes industry
clusters and concentrations of interconnected businesses that can be the engines for global competitiveness.
Economists focused on the impact of the New Economy make the same point. In 1998, the Silicon
Valley firm Collaborative Economics published a document called "Linking the New Economy
to the Livable Community" which emphasizes that livability and quality of life will determine
the economic future of communities.
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