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Economic Development in the Lower Rio Grande Valley

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Economic Development in the Lower Rio Grande Valley Cameron County/Matamoros at the Crossroads: Assets and Challenges for Accelerated Regional and Binational Development By: David V. Gibson, Pablo Rhi-Perez, Margaret Cotrofeld, Oralia De Los Reyes, and Mark Gipson Date: 2003 Abstract: Study of assets and challenges for knowledge-based economic development in the Lower Rio Grande Valley. Includes demographic, economic, and education data for the region, as well as results of a survey of government and business leaders concerning economic development strategy. Keywords: economic development; Cameron County, Texas; Hidalgo County, Texas; Matamoros, Mexico; Mexico; Texas © IC² Institute, The University of Texas at Austin http://ic2.utexas.edu CAMERON COUNTY/MATAMOROS AT THE CROSSROADS ASSETS AND CHALLENGES FOR ACCELERATED REGIONAL & BINATIONAL DEVELOPMENT A CBIRD (Cross Border Institute for Regional Development) The University of Texas at Brownsville/Texas Southmost College Report By Dr. David V. Gibson and Dr. Pablo Rhi-Perez And Margaret Cotrofeld, Oralia De Los Reyes, Mark Gipson, Richard J. Rodarte, and Ignacio Rodriguez With Alan Cox, Matt Cunningham, and Dan Houston CivicEconomics, Austin, Texas CAMERON COUNTY/MATAMOROS AT THE CROSSROADS ASSETS AND CHALLENGES FOR ACCELERATED REGIONAL & BINATIONAL DEVELOPMENT [http://unix.utb.edu/~vpea/utbtsccbird.htm] A CBIRD (Cross Border Institute for Regional Development) The University of Texas at Brownsville/Texas Southmost College Report By Dr. David V. Gibson* and Dr. Pablo Rhi-Perez** And Margaret Cotrofeld*, Oralia De Los Reyes**, Mark Gipson*, Richard J. Rodarte*, and Ignacio Rodriguez** With Alan Cox, Matt Cunningham, and Dan Houston CivicEconomics, Austin, Texas [www.CivicEconomics.com] This research and report is part of a core program implemented under a partnership agreement between CBIRD-TRAC (Texas Region Action Council) [www.cbird.org] and IC2 Institute, The University of Texas at Austin [www.ic2.org; www.utexas.edu] and is partially funded by CBIRD-TRAC. *IC² Institute, The University of Texas at Austin **Cross-Border Institute for Regional Development, The University of Texas at Brownsville/Texas Southmost College Copyright © 2003 by UTB-CBIRD and IC² Institute. All Rights Reserved. I. For George and Ronya Kozmetsky Dedicated visionaries and entrepreneurial champions for an improved quality of life for all residents of the Lower Rio Grande Valley, of Texas, of the Nation, and of the world. Thank you for your valued insights and contributions that continue to grow and multiply. II. The global to-do list has never been more daunting. New arteries for transport, trade, finance, and communications require constantly updated rules. Freer, faster movement across borders necessitates filters to separate terrorists from traders and levees to contain infectious disease, pollution, invasive species, and financial disruption. Technologies of literally world-shaking power… create a set of truly global issues… The information revolution has expanded the opportunities for citizens, experts, nongovernmental organizations, businesses, and foundations to work with governments and with each other to solve problems… Ignoring demands for transparency broader participation in today’s world is a sure recipe for eventual failure. P.J. Simmons Carnegie Endowment for International Peace August 17, 2002 Explaining South Texas has always been a challenge: Where others see lines on a map, we see a limitless horizon of opportunity. Where others see two cultures, side-by-side, we recognize our home: bicultural, bilingual, a combination of the best, transformed into one. Mary Rose Cardenas, Chairman Texas Southmost College Board of Trustees 2002 III. There is no choice in whether this region will grow or not. If we closed the border tomorrow - every bridge in South Texas and all the way to El Paso, and if we stopped migration from the North – we would still have 230% growth in 30 years. That is the nature of the current demographics. The only choice we have is whether we will be proactive or reactive to these changes. The Coordinating Board, The Texas Board of Regents, and the Governor’s Business Council have embraced the premise that we need to do a better job of educating this population. If we don’t, The Great State of Texas will be in a steady demise – economically, socially, and politically. Juliet Garcia, President The University of Texas at Brownsville/Texas Southmost College Interview, August 28, 2002 Through technology-, civic-, and social-entrepreneurship, I envision a Binational Border Region that is dedicated to utilizing 21st century know-how, technology, policies, and initiatives for tomorrow’s knowledge society. A region that is dedicated to wealth and opportunity creation for all its citizens, making the Valley a better place to live, work, play, and raise families in harmony, peace, and prosperity. George Kozmetsky Co-Chair CBIRD Advisory Board and Chairman of the Board, IC² Institute, The University of Texas at Austin Interview, January 2003 IV. ACKNOWLEDGEMENTS To research, write, and publish Cameron County/Matamoros at the Crossroads: Assets and Challenges for Accelerated Regional & Binational Development required significant contributions of time, effort, advice, and information from many participants. The authors of this report would like to especially acknowledge the contributions of specific Cameron County and Matamoros community leaders and select participants from the region’s and state’s academic, business, and government sectors including: University of Texas Brownsville/Southmost College (UTB/TSC): Dr. Juliet Garcia, President; Dr. Antonio N. Zavaleta, Vice President for External Affairs; Dr. Baltazar Arispe y Acevedo, Jr., Director, Cross Border Institute for Regional Development (CBIRD) UTB/TSC; and James Holt, Dean, Workforce Training and Continuing Education. University of Texas at Austin: Dr. Juan Sanchez, Vice President for Research; Dr. John S. Butler, Director of IC² Institute; Dr. Alex Cavalli, Deputy Director, IC² Institute. Texas State Technical College (TSTC): Dr. J. Gilbert Leal, President and Vice Chancellor for Border Opportunity Development; Pat Hobbs, Dean, Instruction; and Stephen M. Vassberg, Associate Dean; Ester Bodnar, Senior Secretary. University of Texas-Pan American (UTPA): Roland Arriola, Vice President of External Affairs; Brett L. Mann, Executive Director, Office of Operations and Community Services, Division of External Affairs, and Dr. Gerald D. Brazier, Coordinator, UTPA CBIRD Program. Port of Brownsville: Raul Besteiro, Director, and German Rico, Director of Marketing/Logistics Operations. Economic Development Corporations and Business: John Crutchfield, President and CEO and Nanette Fitch, Director Economic Development, Harlingen Area Chamber of Commerce; Mike Allen, President and CEO, McAllen Economic Development Corporation; Marie McDermott, former President and CEO, Brownsville Economic Development Council; Jason Hilts, CEO, Brownsville Economic Development Council; and Gordon McElvany, President, Rioxpress, Inc. Matamoros: Rolando Gonzalez-Barron, President, GOBAR SYSTEMS and President, Consejo Nacional de Maquiladoras de Exportacion de Mexico (CNM); and Roberto Hernandez, Director and Jose Luis Machuca, Analyst, Matamoros- IMPLAN. CBIRD-Texas Region Action Committee (TRAC): John Crutchfield, President, Harlingen Area, Chamber of Commerce; Frank E. Field, President and CEO, Chamber of Commerce, Brownsville; Patricia G. Bubb, TechPrep of the Rio Grande Valley; Nanette Fitch, Director Economic Development, Harlingen Area, Chamber of Commerce; Patricia C. Fogarty, Strategic Interfaces, McAllen; Dr. George Kozmetsky, Co-Chair, CBIRD Bi-national Advisory Board and Chairman of the Board, IC² Institute, The University of Texas at Austin; and Dr. Abderrahmane Megateli, Executive Director, CBIRD-TRAC and CBIRD Coordinator, IC² Institute, the University of Texas at Austin. CBIRD-TRAC’s Binational Advisory Board and Founding Members including Brownsville Chamber of Commerce; Brownsville Economic Development Council; Harlingen Area Chamber of Commerce; IC² Institute, University of Texas at Austin; Instituto Tecnologico y de Estudios Superiores de Monterey (ITESM); RGK V. Foundation, Austin, Texas; Sandia National Laboratories; South Texas Community College; Tech Prep of the Rio Grande Valley, Inc.; Texas Department of Economic Development; Texas State Technical College-Harlingen; The University of Texas at Brownsville; The University of Texas Pan American; Texas Southmost College; and Wells Fargo Border Banks. CBIRD-TRAC’s Sponsors that provided support for this research and report writing including Japanese External Trade Organization (JETRO), Houston; Strategic Interfaces; Wells Fargo Banks; RGK Foundation, Austin, TX; and James Wittliff, Business Entrepreneur and Consultant. We appreciate the important information and data supplied by Dr. Antonio Furino, Director, Center for Health Economics and Policy, UT Health Science Center, San Antonio and Rob Harrison, Director, Center for Transportation Research, The University of Texas at Austin. We appreciate the contributions of the Border Development Alliance (BDA) and The State of Texas funding for the binational survey, the results of which are included in this report. In this regard, thanks to BDA representatives Mike Acosta, The University of Texas at El Paso; Brett Mann, The University of Texas Pan Am; Michael Patrick, TAMIU-Laredo; and Professor Pablo Rhi-Perez, The University of Texas at Brownsville. Special recognition is due to community
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