Topics to be Covered
The first lecture in this module, “Local Economic Development,” introduces the central and underappreciated role of local economic development in furthering the economic stability and prosperity of local communities across the country. As it stands now in the US, almost none of the local savings of most communities is directed to local businesses. The speaker presents a model guiding local economic efforts called LOIS, which stands for “locally owned and import-substituting” business development. Areas that adopt LOIS business development encourage the formation of local businesses that produce goods and services that the community would otherwise find from nonlocal sources. Since consumer spending at local businesses generates, on average, two to three times the revenue within a community, as compared to equivalent consumer spending at nonlocal businesses, communities that implement LOIS business development enjoy a dramatic boost to their local economies. It has been shown that local unemployment can be eased substantially by adopting these initiatives. Stronger local consumer spending will keep money in the community, stimulate the formation of new businesses as well as the expansion of existing businesses. The strategy that is designed to stem flows of money out of the community, or what the speaker calls “leakages,” can therefore improve the community’s economic situation. In order to make these initiatives happen, it is important to gain an understanding of the local economy, support local entrepreneurs, build relationships among existing businesses, and get consumers to purchase local products in favor of nonlocal ones. It is also critical to find ways of channeling the savings of local residents, including their pension funds, into local businesses. The next lecture in this module, entitled “Rebuilding Local Communities,” elaborates on the same theme. Here the speaker explains the benefits of local businesses for business-owners, employees, local consumers, and communities. He also discusses the ways in which federal, state, and local governments systematically disadvantage local businesses with various subsidies and other policies that favor large businesses not rooted in any community. The next two presentations, “The 2014 Bush Prize Winner,” and “Rural Economic Development Comes from Within,” deal with concrete examples of community development in and outside Indian Country. The first of these two presentations surveys the guiding principles behind the Minneapolis-based Native American Community Development Institute, an institute built by and for Native American community members living and working in the area. The second of these two lectures looks at the development experiences of a rural town in Alberta, Canada. Through a combination of tourism and local industry initiatives, this town has managed to encourage entrepreneurship and business development, which has improved the quality of life for community residents. The final presentation in this module, “Kevin Washburn Explains the Land Buy-Back Program,” introduces a program, run by the US federal government, aimed at returning small pieces of privately owned land on Native American territory to tribal governments so that they can consolidate the land holdings and make use of them for economic development. Under the terms of the program, the US government will buy back these land holdings at fair market value and give them to the appropriate tribal government.
Learning Outcomes
Students taking this module will gain familiarity with the often overlooked benefits of local economic development for communities suffering from economic ills. Students should be able to explain effective strategies for local economic development in general. They should also understand how Native American communities can take advantage of some of their own resources to spur economic development.
