DOCUMENT RESUME

ED 328 382 RC 017 974

TITLE Revitalizing the Rural South. Extension's Role in Enhancing the Quality of Life. Proceedings of a Regional Conference (Birmingham, Alabama, January

% 16-18, 1990). INSTITUTION Southern Rural Development Center, Mississippi State, Miss. REPORT NO SRDC-130 PUB DATE Jun 90 NOTE 171p. PUB TYPE Collected Works Conference Proceedings (021)

EDRS PRICE MF01/PC07 Plus Postage. DESCRIPTORS .".:ommunity Development; *Economic Development; Elementary Secondary Education; Extension Education; *Human Capital; Labor Force Development; Postsecondary Education; *Role of Education; Rural Areas; *Rural Development; *Rural Extetsion IDENTIFIERS Cooperative Extension Service; .Infrastructure; Regional History; *United States (South)

ABSTRACT Co7dperative Extension Service personnel from 13 Southern states attended a conference on rural revitalization, focusing on Extension's role in (1) economic development,(2) human capital, and (3) infrastructure; 17 of the 22 papers presentedare divided among those categories. Thrce of the remainingpapers provide respectively, an overview of the South's political and economic history, educational history and trends, and need fornew leadership; suggestions for needed changes in the structure and role of the Cooperative Extension System; and an outline of public policy perspectives on rural revitalizatz 1). Two other papers briefly discus.: Extension's role in enhancing the quality of life andthe foundations and challenges of rural America. Presentationsin the economic development section discuss Extension education'srole in rural economic development and entrepreneurship, major trendsshaping the business environment in the 1990s, recent federal legislation related to rural development, paradigms for building community leadership programs, value-added activities, threecase studies of rural industrial development, and three case studies ofhome-based or small business development. Papers in the human capital section discuss education as empowerment; job and labor force trendsin the 1990s; a resource development approach to community healthissues; a community program to develop decision-making skillsin adolescents; and combatting the problems of adult illiteracy andhigh school dropouts through a p:Irtnership of family, school,and community. Papers in the Infrastructure section discuss the relationshipbetween infrastructure and economic development, the need for strategic capital improvement planning, local infrastructureneeds in the rural South, strategies for improving housing at the communitylevel, wastewater management, and Extension's role in strengthening Georgia's community health infrastructure. 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. 0"*...4:)..'4..**4...... 4..'4.4.0...... ft 4 Otf...... o . 4 , 4 a . . . 4 0 0 0 0 or 4 41,0.. 0 * ,4.tlit0 0 0 0 Exten&on's Role in Enhancing the Quality of Life January 16-18,1990 ITrmingham, Alabama Proceedings

REVITALIZING THE RURAL SOUTH

Birmingham, Alabama January 16-18, 1990

Published by

SOUTHERN RURAL DEVELOPMENT CENTER Post Office Box 5446 Mississippi State, MS 39762

SROC Publication No. 130 June 1930 TABLE OF CONTENTS

Extension's Role in Enhancing the Quality of life T. Roy Bogle 1

Social and Economic Impacts of Rural Revitalization Robert R. Soileau 3

Land-Grant Perspective for Revitalizing the Rural South Max Lennon 13

Policy Perspective for Rural Revitalization Ronald D. Knutscn and Dennis U. Fisher 19

Rural America: Foundation of the Past; Challenge for the Future Heather Johnson 23

ECONOMIC DEVELOPMENT

Setting the Stage Doris A. Tichenor 27

Rural Development Legislative Update Fred Woods 33

Rural Business Development and Entrepreneurship Challenges:Is Extension At& and/or Willing? Thomas G. Johnson and Dennus U. Fisher 37 Kimber J. Reda-Wilson 43 Gary F. Faircnild 49

Evanding Leadership Programs for Economic Development Verne W. House and Loretta A. Singletary 53 Mark Peterson 61

Economic Development Through Value Added Joe H. McGilberry 75

Industrial DevelopmentCase Studies Lowell Wagner 81 Logan B. Barbee 83 Larry L Mc Peters 87 Homebased or Small Business Development -Case Studies Georgia Aycock and Evelyn Bran Ion 91 Chine lla Henderson 97 Bill Edwards 101

HUMAN CAPITAL

Education: The Empowerment of People William F. Winter 107

Job Trends in the Future of the South Oliver C. Johnson, Jr. 111

Community Wellness: A Resource Development Approach to Health Ism= Susan Jenkins, Rich Reinheimer and Lonnie Varnedoe 119

Free to Face the Future Joseph A. Weber, Sheila Forbes and Sandra Gilliland 127

Building Palizerships for People: Address the Rural South's Human Capital Needs Lionel J. Beaulieu 129

INFRASTRUCTURE

Overview of Infrastructure and Economic Development Gerald W. Doeksen and Claude W. Allen, Jr. 153

What are the Local Infrastructure Needs in the Rural South? 0. H. "Buddy" Sharp less 163

Strategies for Jmproving Housing at the Ccommunity Level: Results of a Seven State Research Ptoject Jacytelyn W. Mc Cray and Margaret Weber 167

Wastewater Management and Local Infrastructure Needs F. J. Humenik and M. P. Levi 183

Extension's Role in Strengthening the Community Health Infrastructure Susan Jenkins, Rich Reinheimer and Lonnie Varneloe 187

5 EXTENSION'S ROLE IN ENHANCING THE QUALITY OF LIFE

1'. Roy Bogle, Director Oklahoma Cooperative Extension Service Oklahoma State University

It is refreshing to once again realize that the or timber are the major source of support; the challenges facing people in rural America--and part-time farmers who derive the major share of particularly the rural South--are surfacing at the their income from off-farm work; and the people federal, state, and local levels.Those of you in who have chosen the lifestyle advantages of living the delightful early years of your czreer, however, in the country." should not be misled into thinking that this is the The report went further to identify a number firsttime that concerns and major program of challenges including: emphasis for rural areas have surfaced. A quarter of a century ago, when I was in the 1. Maintaining and enhancing the early years of my career and a county agent in competitivenessoffarmsandrural Ohio, I can remember emphasis being placed on business. community development and the hiring of area 2.Diversifying the rural economic base. community development specialists to help us 3.Findingalternative uses for rural develop programs atthe county level geared resources. toward economic development th rural areas. 4. Easing the transition for farm families In1986,ES/USDA andtheExtension and youth. Committee on Organization and Policy (ECOP) 5.Providingtechnicalandeducational appointed a task force to look at the question of assistance to local units of government. "revitalizing rural America." A report published 6.Helping communities identify and in November of 1986 looked into the challenges implement policy options designedto ofruralAmericaanddelineatedsome of increase jobs and income. Extension's responses to the changing scene in 7.Assistingwiththeconservationand rural America. management of natural resources. The report points out, am', I quote:"Rural America is home to 63 million Americans and The timing of this document coincided with steward of nearly 90 percent of the country's the beginning of the development of our national natural resources.It mcludes the famIlies !King initiatives. By early 1989, nine national initiatives in the natien's 14,000 small towns and cities; the had been identified as a result of a massive effort wmrr...scial farmer who has stabilized the family on the part of Extension staff around this nation. income with non-farm incoTe sottices; the peopk Many of you participated directly and indirectly in whose homesareclustqredabouthighway the development of these nationalinitiatives. intersections or strung along a county road; thc Revitalizing rural America became one of the nine individuals living in villages where fishing, mining national initiatives. In June 1989, a task force appointed by specialists, as well as district and county staff. Secretary Yeutter looked carefully at USDA's A special feature includes exhibits and poster rural development programs. The smions which can allow you to broaden your recommendations of this task force fall into four knowledge of what is going on by colleagues in major themes: other states within the Southern 7egion. Ihope each of you has an outstanding 1.Clarifying USD l.'s commitment to rural educational experience, and that you will obtain development as a priority mission. many good ideas--some of which you will be able 2.Strengthening coordination among USDA's to take home and use in your efforts toward rural programs. revitalizing the rural South. My time is up; thank 3.Enhancing USDA's capacity for strategic you for yours. action on rural issues. 4.Improving USDA's ability to implement its rural programs.

Morespecifically,theyrecommendeda strongerland-grantuniversityroleinrural economicdevelopment. Specifically,they suggested that the Secretary should encourage the land-grant universities to increase their research and Extension commitment to rural economie development issues including rural community leadership. About one year ago, the Southern Region Rural Development program specialists developed a proposal and submittedit to the Southern Extension Directors.This proposal, in essence, suggested a program-wide regional confe!ence to address the topic "Revitalizing the Rural South." As a result, a planning committee representing the 13 states including both 1862 and 1890 institutions developedthe program which we are now beginning. As a result of some very thorough but efficient discussion, they recommended that three major topics be covered forthis conference: economicdevelopment, humancapital,and infrastructure. This planning committee should be complimented on their many efforts to compile a quality inservice training program and to identify some outstanding speakersfortheirvarious sessions. Each major topic includes a general smsion to set the stage and then includes workshops and case studies for your learning experiences.The planning committee designed the program to attract Extension personnel from all four program areas: agricultureandnaturalresources, community development, home economics, and 4-H. They also wanted to encourage participation by staff fromallfacetsof Extension work including administrators, program directors, and

2 7 SOCIAL AND ECONOMIC IMPACTS OF RURAL REVITALIZATION

Re)ert it Soileau, Rural Sociologist Cooperative Extension Service Louisiana State University

Because the Civil War ended as it did, most In1886, Henry W. Grady, editor of the of America did not have to reconstruct. Because Atlanta Constitution, delivered his famous speech they did not have a morbid sense of the past, they on "The New South." The occasion was a banquet could dwell on the future. T1South, however, of the New England Society, New York City.In had a past and was acquainted with failure. From this emotional speech, Grady described the Civil the dark recesses of our minds, failurehas War's end and the Rebel soldies long walk emergedtosly pebehaviorandoutlook. home. He wrote, "He turned his face southward Revitalization gives the South another chance to from Appomauox in April, 1865.Think of him put aside thpast and think about the future. as ragged, half-starved, heavy-hearted, enfeebled by Paradoxically, we cannot think about a revitalized want and wounds, baying fought to exhaustion, he future without relating it to the past. surrenders his gun, wrings the hands of the Our present is tied up with the past, and part comrades in silence, and lifting his tear-stained of that past is agriculture.Cotton was king.It and paled face for the last time to the graves that was not grown everywhere, but its economic and dot Old Virginia hills, pulls his gray cap over his social impact permeated the region,brought brow and begins the stow and painful jcurney. wealth and substance, shaped values, dictated style, "What does he find when he reaches the home and left a trail of poverty in the antebellum he left so prosperous and beautiful? He finds his South. As Billy Sherrell mourned in The South home in ruins, his farm devastated, his slaves free, Is Gonna Rise Again, his stock killed, his barns empty, his trade de- stroyed, his money worthless, his social system-- Mama never had a flower garden; feudal ip its magnificence--swept away, his people Cotton grew up to our front door. without law or legal status, his comrades slain, and the burdens of others heavy on his shoulders. Cotton in the South dates to 1786, when it Crushed by defeat, his very traditions are gone. was first grown commercially on the sea islands of Without money, credit, employment, material or Georgia. A few years later Eli Whitney's cotton training; and besides all this, confronted with the gin led to the commercialization of cotton and left gravest problem that ever met human intelli- the region largely dependent on one crop, *Inch gence--the establishment of a status for the vast enriched a few and kept millions in poverty and body of his liberated slaves."1 ignorance. One hundred years later, cotton would Grady reflected on the "New South" and said play a major role in dragging the South into a sanguinely, "The old South rested evelything on wrenching Civil War from which we would suffer slavery and agriculture, unconscious that these for decades. could neither give nor maintain healthy growth. The "New South" presents a perfect democracy, Inthereconstructionyears,South...rn the oligarchs leading in the popular movement; a agriculture was controlled by large sharecropper socialsystem compact and closelyknit,less land owners and merchants whose policies of splendid on the surface, but stronger at the core; crop-liens and high interestrates contributed a hundred farms for every plantation, fifty homes directly to the population of a white and black for every palace; and a diversified industry that underclass.By 1941 sharecroppers in the South meets the complex age."2 numbered nine million. Their debts bound them Grady's new South was not to emerge in the to the crops and the land.5Poverty and disease pristine manner he so eloquently described in his prevailed through a diet of fat back, corn bread, 1886 speech.Smionalism would arise, and the sorghum molasses, and "taters" in season. A can South would suffer through years of parochialism, of sardines or salmon was adelicacyina fatalism, authoritarianism, ethnocentricism, and sharecropper's cabin. categorical resistance to innovation.3 The hopelessness poverty cast over Once again we need to plan for a "New sharecroppers' lives created afskeptical reverence. South." But, rural revitalization must enable the Their primitive religious convictions tied them to rural South to confront the future. As a means a cautiout belief in God.Yet they sometimes of getting each of us into this subject, I address wondered whether they were not now in Hell. fou: criticalareas: rurallifestyles, colonial Heaven was to them a distant vision. Out of his economy, human capital, and leaiership.These intuitive wisdom, one poor Southerner said, "Who are not new ideas, nor do they exhaust the sources can ever think he's got God's design figured out of our problems. They can, however, contribute but a fool?" A similar view vas echoed by a to the understanding of our subject. tenant farmer's wife: "You know, don't you, that God has his own purpose.It's a design, like you hear in church, and it's not for us to figure out. RURAL LIFE STYLES But there's one think I know after all this living, and that's how foolish you are if you start the day, Rural life styles have been shaped by four or the year even, waiting for the good Lord to forces: agriculture, family, race, and religion. come into the State of Alabama and straighten Time will permit only a discussion of agriculture everything out and make us all to be good to each and family.You will have to fillin the gaps other. True, later on we are going to be judged, relative to race and religion. yes sir, we are, but that's not going to take place William Faulkner had the genius to weave in A1abama.H6 Southern life styles into biblical parables. In Becausetheeouthwasnotonlyan Absalom, Absalom, Faulkner skillfully develops a agricultural region, but a poor agriculturaLr.gion, plot of avarice, greed, and racial pride around the it reflected poverty in its life style with all that cultural practices of the old South.His story impliedforastandard of living,qualityof focuses on a landed gentry dependent on cotton education, public health, and general wellness. and slaves.Faulkner's message is pointed: God The South's low self-esteem and weak institutions presented the Southerner with a kingdom rich and did not always encourage individual desire fot beautiful, but greed for power and wealth led to self-advancement.The "significant others" were acallousexploitationof theland and the often either nonexistent or not sufficiently visible denigration of its human and natural resources.4 in the South's institutiols to encourage translation In too many instances, Faulkner's parable has of &cams into human achievement. been lived out in the South.Agriculture was Today the picture is different. Sharecropping central to the rurallife style.It produced a is largely behind us. We have seen the growth of stratified society with large land owners, smaller midsize family farms withrelativeprosperity. farms and sharecroppers. Overall the South Agricultureis a major economic force in the remained weighted down by a backward economic economy in every state in the region. But we still system based on regional commodities such as export more of our resources than we process, and cotton and tobacco. These were for the most part rural areas are still falling behind. exporteu ow of the region for processing. Paradoxically, this modest rise in economic

4 gain has brought a different poverty to the South', or consumers and environment. The questions we life style.Mechanized agriculture has left many have to answer are:what is th e.relationship with only seasonal work or no work and has between those involved in agriculture and other heightened the drift into poverty. "By 1986, one people, and what is the relationship between those out of every four children in rural America was involvedinagriculture and nature? Social living in poverty, unemployment in rural areas was responsibility will force the farmer to think about 26 percent higher than in urban areas, and the the quality of the product he sells. He must ask, escalating population movement out of small at what levels will pesticides produce various towns and the surrounding hinterlands...was being effects? Moreover, the same care must be taken led by the young and better educated."7 with the soil.Agriculture isessaitial to the What willagriculture'srole beinrural survivalof the human race, and the soilis revitalization? We cannot depend on production essential to the survival of agriculture. The land agriculture as the sole economic base for a is a sacred trust, and agriculture is its keeper and revitalized rural South, but the rural South cannot primarily responsible for its fate.It must express revive without agricuPure. As a primary resource that degree of stewardship. it will play a vital role in rural recovery.The Traditionally agriculture and the family have Department of Commerce reports ;here are 1,061 been revered in the South.Together they have nonmetro counties in the Southeast.Of that helped to shaN the Southern style.Every stud) number, 235 arelistedasfarm dependent. I have examined, in recent years, on quality of life However, those data reflect net farm income and in rural areas, shows the rural family as the only do not capture the full impact of agriculture on positive indicator. Other indicators, such as rural economies. income and education, fall below urban standards. However, fullruralrecovery waits on a As fundamental primary social systems, the family diversified economy.To achieve a diversified and the farm have been among the major circles economy, resources must be available, education in which individual personalities were formed and mustimprove,relevantjobskillsmustbe values shaped. David Goldfield wrote perceptively developed, and leadership must come to the fore about the Southern family: "Listen to the country with informed objectives. songs ot domesticity, family pride, and 'mama'...the Other voices are complicating the picture for strength of family ties meant tht weakness of the agriculture. Advocacy groups outside agriculture community or collective ethic; kinship patterns are organized, well financed, and will have a determined social standing, and tradition counted strong voice in how agriculture functions in the more thannovelty. Honor, vengeance, and decade to come. Our role in rural rcvitalization pride...were, above all, family values, and they willrequire usto work with agriculturein governed behavior outside the home as well as addressing the changes demanded by within it."8 environmentalists and consumers. But who in the South has not noticed that Today society demands a standard of measure family life has changed radically over the past beyondefficiency. Societydemandssocial three decades? What we took for granted in the responsibility. Tobesociallyresponsible, 40s, 50s, line early 60s is under assault. The agriculture must be answerable through obligations misery of divorce, drugs, alcoholism, and teenage that are governed by thoughtful, societal value pregnancies have all come torestin varying concepts. Value questionsaredifficultfor degrees on rural family doorsteps. The traditional agriculture. Ithas been taught to idy on American family, one adult man and one adult scientific fact.Facts are arduously discovered; woman bonding for life and rearing children from they are objective and uninfluenced by opinion or birth to emancipation, is not what it was 25 years preference. Conversely, values are seen as elusive, ago. How many traditionalfamilies can you variable,andunverifiable. Becauseofthis number among your acquaintances?For better, uncertainty, agriculture tends to look to science to and most assuredly for the worst, the American solve problems and in the process often side-steps family and the Southern family have changed. value questions. Yet, two value questions cannot Today more than l'alf of all mothers work be side-stepped. They concern people and nature outside the home.Millions of children are

5 growing up in one-parent homes as the more The drug cultureis peer driven with its own traditional two-parent households diminish. The values and rewards. Those values an A rewards are riseof illegitimacyintheSouthhas been radically different from our own. staggering.Most of these children live in one- The two-career family has made daycare an parent homes, and many are homeless.Usually issue. Daycare centers are on the national agenda. the resident parent is the motber. MO often she The only question to be decided is who will pay is cchabitingwithseveralresidentmales for them. Advocates of rural revitalization must sequentially during the child's formative years. be involNed. Decisions need to be made based on The results are more likely than not to produce what is best for the preservation of the family and confusedchildren. Inthatsituationthe the welfare of children.For each of us, the developing child is faced with the unenviable task prevailing question is not how to supplant the of relating to a series of maladjusted adults Valle family but how to support it.Sc meone has said, struggling toward maturity. Why are we surprised the family isthe worst possible social system, that they are confused, abused, and troubled? except for all alternatives. Social agencies have taken on the role of a wrecker service for the modern family. Daily they are dispatched onto the social highways to bring COLONIAL ECONOMY inbatteredchildrenormothers,unwanted children, homeless children, and addicted children. IftheSouthhasbeendominatedby The resulting human junkpile may soon grow agriculture,ithas also been burdened bya beyond society's capacity to cope. regional economy.From the mid-19th century, Rural revitalization will need to address two the national economy has been centered in the problems facing the family: its dysfunction of the Northeast. The South was staked out asa family is not unrelated to the social changes that regional supply base for Eastern industries. The have gripped the modern family. As a society, we South was the producer of basic raw materials and havelostfaithintheinstitutionsthat have occasionally a minor prJcessor.This left the historically bolstered the family. Pronouncements South economically subservient to the Eastern of state, school, and church are no longer believed regionformanufacturedproducts,financial by many. The cult of me-ism has engulfed services, credit, and accounting. David Goldfield modern man, and joining cults of absurdity has writes, "The regional role of the Southern cities become a popular fad. was as collection points awl funnels to northern The two-career family is not a passing fad.It centers and as distribution points for the return is here to stay.However, it has not come to us flow. This system limited capital accumulation in without pain. Its demands are at times wrenching. theregion, whichlimitedinvestment,which We have not come to terms with the interpersonal reducedtheopportunitiesfortheregionto relations resulting from this advent. Women still develop beyond its colonial economy...The Civil carry a disproportionate burden in two-career War andtheGreatDepressionwere two families. Equalitarianism has not yet settled into devastating events that revealed the region as an the male psyche. In the midst of this change and economic minority and as an American mutation: adjustmenttwo family problems cry out, for a region that lost in a nation that knew only solutions:youth at risk and daycare.Teenage victory, region that was poor in a country of pregnancies, alcoholism, and drugs are threatening wealth. The South and the Southerner have been the future of society. We are dangerously close different from the rest of the nation, and the to losing a generation of kids to unconsciousness. colonialeconomywasthemostoutward Their minds are so scrambled by drugs they will manifestation of that minority status."9 The South remain wards cf the state.Youth at risk is a has continued to suffer aie fate of minority status compelling concern, and we cannot pass it off as and has been viewed often as a region apart. a ghetto problem for the federal government to Leaders in the South knew the region was worry about. Just how we attack this problem is being exploited, but stating the problem was easier open to discussion.T am certain in my own mind than posing a solution.In 1850, at a meeting of that a few well written pamphlets will not do. merchants and planters in New Orleans, Albert

6 Pipe,atransplantedBostonian,excitedhis prepared educationally to meet the challenge. audience with an emotional analysis of the South's Most of these will be outside the South." The economic problems: "From the rattle with which challenge at present may be beyond the capacity the nurse tickles the ear of the child born in the of most ruraibusinessintereststorespcnd. South to the shroud which covers the cold form However,itisnot beyond their potential to of the dead, everything comes to us from the respond. We cannotaffordtoabandon North.We rise from between sheets made in international marketing to urban centers. northern looms, and pillows of northern feathers, to wash in basins made in the north, dry our beards on northern towels; and dress ourselves in HUMAN CAPITAL garments made in northe-n looms; we eat from northern plates and dishes; our rooms are swept An agricultural Souih did not put pressure on with northern brooms; our gardens are dug with itseducationalsystemtoproduceeducated northern spades and our bread kneaded in trays students.Its technology did not require educated or dishes of northern wood or tin; and the very workers. Consequently, the region has been wood which feeds our fires is cut with northern plagued by poverty, an anti-booklearning attitude, axes, halvedwith hickorybrought from and a general disregard for education.For the Connecticut or New Yoik; and when we die our rural South, education has been more ceremonial bodies are wrapped in shrouds manufactured in than substantive. New England, put in coffins made in the north. LionelJ.Beaulieu,sociologistwiththe We have our graves filled with Southern soil but University of Florida, asks how rural communities it is pulled in by northern spades and shovels."I° measure up to the new growth indicators of Southerners thought the solution to the problem economic capacity being formulatedfor high wastodevelopcitiesanda systemof growth industries of the future.His answer is transportation as the north had done. In this way that data show rural Southern communities are they felt they could become full members in the highly deficient.He writes, "The fundamental national tconomy.For an extended time their problem thatislikely to impede realization of illusionwas great,andtheirrewardwas measured improvements in the economic climate disappointment. of rural Southern communities is the state of the The rise of cities and metropolitan centers region's human capital resources."12A casual helped to reverse the colonial economy for much glance at the data tells us that in terms of human of the South.Industrialization came to many capital we are doing miserably.Consequently, Southern cities Unfortunately the gainsthat rural areas are not only poor, but poorly prepared came to cities rebounded to the disadvantage of to meet the demands of the job market today, and many rural communities. Colonialism was pushed certainly not prepared for the demands of the one step down.Rural areas were the resource coming decades. The experts say the dividing line base for urban industries. Those who owned the in the 90s will not be between the rich and the resourcesprofited;those who laboredoften poor but between those who haw. learned how to enjoyed extended poverty.Moreover, the wealth learn and those who have not.13 created by an expanued industrialized South was Beaulieu tells us that seven of the 10 states not shared :tquitably with rural folks. with the highest percentagc of high school drop- Now theSouthmustfaceaneraof outs are in the Southern region.This fact not international marketing. Nearly every business in onlyportendseconomichardshipforthe America will he competing in some way in the individuals involved, but the experience tends to global marketplace. To survive, representatives of beperpetuatedthroughtheir ownfamilies. business and industry must be fluentinthe Moreover, Beaulieu points out that high school languages and cultures of countries involved. How drop-outs and illiteracy are companion problems. well are we prepared to meet this competition? One in four Southerners is illiterate.The effect The Ford Foundation predicted that snore than in the workplace isreflected in low economic half of all new jobs in the next century will be returns, low productivity, and high absenteeism. concentrated in 30 metropolitan areas, whicit are As Beaulieu correctly obscrves, the solution is a

7 1 2 partnership between family, school, and The impact of rural revitalization will be tied community. not merely to natual resources, as important as If these problems are to be solved, rural they are, but to human capital. Education is the revitalization must assist rural leaders with three basic prerequisite to the good life.Educated criticaleducational needs: teacim shortages, People are less likely to be poor. David Goldfield restricted curriculum, an C. limhed factinim has coined the phrase the "Brain Belt." This will Several factors are involved with the teacher be the only worthy successor to the "Sun Belt." shortage in rural areas.Salaries are often lower Educa..ion and economic growth will reinforce than trace in urban centers.Rural life styles do each other.As former Tennessee Governor not attract the young as readily as do those in Lamar Alexander has said, "If 90 percent of the urban areas.Consequently, as older teatlers peoplehavea highschooleducationin retire,itisdifficult to find young competent Minneapolis and 67 percent in Tennessee, we are replacements.Moreover, teachers of academic not ping to be able to keep up, much less catch . specialty subjects often cannot be hired in rural up. r.viT4dence mounts that education is a word schools. Trigonometry,calculus,chemistry, in vogue in the SouthEvery state talking physics, foreign language, and computer science abouteducationalretbrm. We mustwait, teachers areinshort supply throughout the however, to see if the South recognize.. 'he real nation. connection between educational excellence And There is also a :eacher shortage for many economic progress. elective courses such as band, orchestra, fine arts appreciation, art, drafting, drama, public speaking, debate, and advanced placement courses, which in LEADERSHIP some cases are taught on the level of freshman college courses. In James MacGregor Burn's brilliant book on Teacher shortages restrict school curriculum. leadership, he writes, "Leadership rarely rises to Another factor that limits the curriculum often the full need for it."15Rural America has relied affects small rural schools.Small numbers of on local leaders whose vision was limited to their studentstakingadvancedelectivesmakeit rural experience. They were schooled in political impossible from a financial standpoint to offer a favors rather than public needs. William Faulkner wide curriculum even if teachers can be hired.In wrote, "Chicamauga and Franklin, Vicksburg and a rural high school with a small studer it CorinthandAtlanta--battleslostnotalone is entirely possible that only five or r_indents becauseofsuperiornumbersandfailing would elect to take physics, calculi... or foreign ammunition and stores, but because of generals languages beyond the beginning level. This would who should not have been generals, who were limit a given number of teachers for an entire year generals not through training in contemporary to a smaller teaching load and strain budgets. methods or aptitude for learning them, but by the Besides,culturalexpectationsinsome rural ine right to say 'Go there' conferred upon them communitfr e,.. do not value the academic quality by anabsolute castesystem."16 Conferring needed to allow young people to succeed in our leadershipontheincompetenthasbeena technological world. Southernproclivity. Leadershiphasbeen As a result of limited tax revenue, restricted transactional, not transforming. expectations and visions, past practicesi limited Transactional leadershipisa form of the curricula, and scarcity of specialty teachers, rural exchange theory. Transactional leaders exchange facilities often are inadequate. Today, all courses, gratificationsintne marketplace. They are basic and elective, require upgradedfacilities. barterers taking advantage of every opportunity to Computers are used from le,:ndmgarten through maximizetheirpoliticaland psychicprofits. high school as instructional h..'n classrooms. Transactionalleadershiphasbe- iaprime '-iudiovisual equipment is expensiand is often contributor to a malnourished South. The late last on the rural school system's spending list. political analyst V. 0. Key described the results Yet, equipment of this nztnre is the state of the of transactional leadership in the South as social art in efficient educational systems. disorganization, popular apathy, political

8 13 ignorance, and electoral disarray. He documented dreams and who never allows his dreams to be a state by state pattern of one party domination; tested in the arena of thought, never transforms; political fragmentation; issueless conflicts; he is forever locked into today.Visions are the statewide county demagogucry; Dixie-style magnets that pull people outf tradition and personalism; andfirst,last,and always,the indifference.They energize a cause.Effective exclusion from vowel of the poor.17 leadership will be driven by a vision. Transactional leadeLhip has ooduced many a It would communicate the vision by allowing spellbinder who said nothing'WThile saying it well. followers to become co-cremors of the dream. It is the king of leadership that has brought the Southern transactional leadership has never been rural South to this ignominious hour. inclusive.Its selfish interest often saw leadership "Cliff Davis the Little: senator from Arkansas, roles as divine rights of a privileged few. At the unhappy with his reception in Washington, took Epcot Center in Orlando, Florida, there is a sign on the press in the interest of the folks back that reads, "If you can dream it, you an do it." home. Listen to this Southern demagogue pander The slogan is inspiring but incomplete. Believing to the past and ignorant in exchange for votes in in one's dream is not enough.Success requires a speech in1930in the U.S. Senate: "Mr. that dreams be practical and clearly focused. President, insignificant as I am, let them sharpen Leaders capture other people's imaginations by their blade, for I will be here at the appointed communicating their vision so that it becomes the hour and while here on:y God can stay my voice attainable focused vision of their followers. inbehalf of organized uh:oed labor and the It would generate self-respect. Leadership can yeomanry of America...Let scavengers of plutocracy inspire self-respect in others. Rural Southern self- howl! Go! damnable imps of pelf and greed, I respect is low, the results of years of living on the defy your torments! Teat.ofragments my margins of life. Charles Horton Cooley was right; political career, if it compact with your execrable there is an interdependence between seif and will; stifle and distort my ever) utterance; not society. The emotional feeling of self is defined satisfied if such be your brutal frenzy, lash my and developed by experience.The attitude one poor form into insensibility; then if it be your takes toward one's own self worth is influenced by further pleasure, gnaw from my stiffening limbs the attitudes of others.Cooley called this the every vestige of quivering flesh; howl in wretched looking glass self.28Others are the mirrors bestiality through my own innocent blood as it throughwhichweseeourselves. Rural drips from your fiendish visages; drag then if you Southerners have been looking into a negative want what remains into the filth and vermin of mirror. From the attitudes and behavior of your foul den and burn it upon the alter of Baal, others, rural Southerners have constructed their or scattet it before the friendly winds to your own lowselfimage. Onetaskofrural betters, the Carrion Crows of the field.All that revitalizationis to alter that image in positive they may do and more if there yet be open turther ways. For only as we elevate self image will rural depths of infamy to a polluted besotten press."18 Sot herners believe in and demand the right to The leadership essential to the revitalization dignity. of rural America cannot come from that "good 'ol boy transactional network. There is an urgent need for !eldership that rises to the need for it; CONCLUSION that is, fol transforming leadership. What would that leadership offer?18 It would have a vision for Itisnot clear that ruraltevitalizationis rural America. That vision would not see snacks solidly on the national agenda. Intermittent without heat, neighborhoods without clean air or statements of alarm do not constitute ampassion running water, towns without sewers, communities forruraldecay. Butletusassumethat and country sides without parks and recreation. compassion is evident at the national level and Vision means the ability to chart a reasonable, focus on our own attitude and responsibility. attainable long-range course for the future, the Have we asked ourselves whether we believe rural ability to dream. Dreams are an important part revitalizationis possible?Are we here at this of a vision of the future. The leader who never meeting to engage in self delusion? Cal. he rural

9 South be revitalized, or is it destined to repeat the in the larger economy.Its leadership came ii-om experiences of the Old West and clutter the rural agriculture and was successful and satisfied. The countryside with ghost towns?Allow me to leadership must take on a broader base if we are explore,by way of conclusion,twopossible to succeed.If we fail this time to use all of our scenarios for the rural South. resources, natural and human, in the development The worst possible scenario:farm numbers of a sustainable rural economy, there is a strong ll continue to decline, and by the year 2000 will possibility that rural America will be abandoned number approximately one million.Small part- as a failed social experience. time farms will account for approximately 51 Rural folk are the abandoned people who pass percent of all farms.Large and very large farms in dim review behind the glittering personalities will account for 15 percent of all farms with 90 of the chief architects of urban life and their percent of net farm income earned by farms with protecting legislators.The time has come for sales over $200,000. The percent of moderate size each of us to commit c interests, talents, and farms will continue to decline. The fundamental resources to help bring rural folk front and center. economic and demographic changes resulting will cause ruralareastobe composed of large corporate producers and isolated communities of REFERENCES the old and poor.You recognize this as the model presented by the Office of Technology 1 Grady, lknry W., The Complete Orations and Speeches Assessment. of Henry W. Grady, New York:Hinds, Noble, and Eldredgy, 1910, pp 12-13. In my judgment that modelisnot well researched, but it has the ear of influentials in 2. Ibid., p 19. high plac-:s. What happens to the rural South in this model? Rural areas traditionally structured 3. Reed, Iohn Shelton, One South, Baton Rouge, I oin...iana around agricultural production will be adversely Louisiahl State Universily Press, 1982, p 170. impacted. Large farms will not 'ikely buy locally. 4. Faulkner, William, Absalom, Absalom New York: The economic effect on rural towns and villages Vintage Books, 1936. is likely to be adverse. The census report argues 5. Larsen. Lawrence H., The Rise of the Urban South, that povertyinrural areasis pervasive now. Lexington, Kentucky: The University Prtms, 1985, pp 78- Without some economic infusion, conditions will 79. likely worsen. Those centers of poverty will become locations for one-parent families, drug 6 Cüles. Robert. "God and the Rural Poor," Psychology abuse, and crime.The result will be two rural Today, January 1972, pi 37-38 cultures glaring at each other--one poor, the other 7. "Me Rise of Poverty in Rural Amenca: Population free.Senator Patrick Leahy recently wrote: "We Reference Bureau, Inc.. No 15, July 1988. cannothavetwo America'sonealandof opportunity and a second, left behind."21 8 Goldfield, David , Cotton Fields and Skyscrapers, Baton Rouge, Louisiana: Louisiana State University Press. 1982, The best possible scenario: rural revitalization pp 4-5. will succeed. The need will grow on the national conscience, and itspriority will rise.We will 9. Ibid , p 89. work with agriculture to struslure the family farm. 10 IN('p 61. We will use our natural resources and develop our human capital to build a diversified rural economy 11 "Education, Emironment and CultureThe Quality of that can sustain communities.For years cheap Life in the South:Southern Growth Poimies Board, resources harvesteti, logged, mined, and extracted Research Mangle Park, North Carolina, 1986, pp 14 15 by low wages became the means of wealth for 12. Beaulieu, Liond J.Building Partnerships tor People others. Much of our natural wealth is gone, and Addressint the Rural South's Human Capital Needs we must ask what we are to do with what remaim. Southern Rural Development Center, August 1989. pp 6 7 Rural revitalizationisour besthope, andit deserves our best shot. The rural South's .uccess 13. Ibid., pp 7-8. in agricultural production may explain its failure

I C 15 14.Southern Growth Policies Board, Loc.Cit. 19.Bennis, Warren and Bert Nanus. Lzaders, New York: Harper and Row, 1985, p 220. 15.Burns, James MacGregor,Leadership, New York: Harper Colophon Books, 1978, p 1. 20.Cooky, Charles Horton. Human Nature nd the Social Order. New York: Scribners, 1902, p 152. 16.Faulkner, William, Loc. Cit 21.Leahy, Senator Patrick, "Rural Health Care Rising as 17.Key, V. 0. Jr., Southern Politics, New York.Knopf, Priority," Baton Rouge Morning Advocate, November 27, 1949, pp 146 ff. 1989.

18.Vance, Rupert, Reelrmalism and the South, Chapel Hill: University of North Carolina Press, 1982, p 40. LAND-GRANT PERSPECTkVE FOR REVITALIZING THE RURAL SOUTH

Max Lennon, President Clemson University

"Our condition is wretched in the extreme. South Carolina's land-grant mission: Everyone is in trouble, many ruined, and others are quitting the country in despair. There is, in An agricultural college which will afford my opinion, no hope for the South short of useful information to the farmers and widespread scientific education." mechanics,thereforeitshouldafford Sound fam .ar?It should not.That's a thorough '-struction in agriculture and the quotation from Thomas Green Clemson, the natural sciences connected therewith.It founder of South Carolina's land-grant university should combine, if practicable, physical and son-in-law of statesman John C. Calhoun. and intellectual education, and should be Clemson made the remark over 100 years ago. a high seminary of learning in which the Clemson wasn't as negative about our nation graduate of the common schools can as that quotation might lead you to believe. He commence, pursue and finish the course envisioned a model for scientific research and ofstudiesterminatinginthorough, education in agriculture and the mechanical aris theoretic and practical instruction in those that was remarkably similar to the Cooperative sciences and arts which bear directly upon Extension Service and the Agricultural Experiment agriculture. Station that grew out of the Smith-Lever Act and the Hatch Act, respectively. Then, as now, the department structure of a universitytendstoimpedeawell-rounded education. Duane Acker of the U.S. Agency for r :MILAK PROBLEMS, DIFFERENT ERA International Development and former president of Kansas State University, echoed Clemson's My message today is simple. Yes, agriculture thoughts in a talk to Extension directors earlier and Extension have problems. "Wisdom comes by this year in Washington. He told of an Extension disillusionment," George Santayana 'Aid.But a colleague, frustrated by the formidable boundaries quality Extension Service has never been needed separatingtalented facultymembers,who more by society. No, we don't need a new model; observed, "Universities have departments,but we just need to modernize the one that Seaman farmers have problems." Knapp, Thomas Clemson, Frank Lever, Hoke We must draw an important distinction here. Smith,andothers provided us. That While Clemson and Acker may be saying the same modernization will require bold leadership, fresh things a century apart, and I would ask you tu perspectives, and creativity. heed both of them,I am not advocating a In his 1886 will, Clemson drew a blueprint for traditional approach. The transition of agriculture the school that would bear his name and deliver in the 1980s creates an agenda that is not unlike

1 7 that of the 1880sthe *wretched" mess Clems:m UK: problems. What a tragedy if other agencies observed.That means we need to ask the same or institutions assume the role Dr. Knapp and his questions that were asked then, but we need to contemporariesenvisionedforusandour seek contemporary solutions. efficacious model. In the 1983 Seaman Knapp Memorial Lecture, CriticssayExtensionhasoutlivedits Russ Mawby, Chairman of the 12thard and Chief usefulness.It's in a tug-of-war. Tne rtcessionary ExecutiveOfficerofthe W.T.Kellogg years,droughts,andespeciallythecurrent Foundation, profiled Dr. Knapp as "a pragmatic administration's effort early in 1986 to drasticalli dreamer...adept at analyzing the constraints or reduce federal support have left Extension leaders roblems, determining the research knowledge "hearing footsteps." appropriate to their solution, and mobilizing the Naive "education experts" are writing critical resources necessary to the task." reports about us, postulating that Extension agents Let it not be said that Dr. Knapp, the father should be catalysts for quick and far-reaching of the Cooperative Extension concept, did not reforms dictated from Washington, state provideboldleadership. We, theleaders government, and perhaps even Extension d:rectors. confronting the issues of today, however, deserve In reality there are political forces at the counu; mixed reviews for our boldness, as well as our regional, and state levels that these report writers effectiveness and the way we function don't understand, but that fact does not make us collaboratively. any less vulnerable. We must meet the people In the USDA, for example, we need new where they are.But change we must! boldness in the plant sciences, animal sciences, My colleague Dale Lick, President of the social sciences, environmental sciences, Universityof Maine, bemoanstheendemic biotechnology and wood chemistry, to name just Extensionmindsetofsurvivalratherthan a few areas. If we don't move inabold, potential--management rather than leadership. deliberate manner, itis likely that new agencies will be formed and further diminish the role of agriculture in the alleviation of problems that are A TIME FOR CHANGE the keys to the future welfare of our scciety. Those of us in the system don't want to change, the evidence shows. But change is A PERFECT MODEL indicated at every level.In 1925, Sir Alfred Whitehead wrote, "It is the business of the future Asnationalagricultu,allyrelatedissues to be dangerous." emerge, agencies other than USDA are initiating Let's look at an Extension Utopia, concen- larger and larger roles. Look, for example, at the trating on just three key players in the giant waterqualityissueand EPA'sresponse. game: theSecretary ofAgriculture,State Extension administrators in Washington and on I .xtension Director, and County Agent. Extension's the land-grant campuses must acknowledge the tentialExtension's future--lies in their thr,:at of a diminished role and be aggressive with preparation, performance, and attitude. bold solutions.These issues, which include not First is the Secretary of Agriculture.Some only traditional agriculture-related issues but also say the Secretary should be a farmer. Some say economic development, emerging technologies, the Secretary should be an educator.Others erosion of the family unit, drug abuse, and teen argue for a business person.Still others suggest pregnancy,willrequirealltheresources of the Secretary should have extensive international universities. Theperfectmodel for usto experience. successfej address these problems is our time- A recent study of Fortune 500 about-to-retire testedCooperativeExtcnsionServiceand CEOs andtheirheirs-apparent showedthat Agricultural Experiment Station.However, it is without exception, the emerging leaders had imperative that all the persons in Extension and extensive international experience.I agree.It is the Experiment Station leverage all the resources an essential ingredient. of the lana-grant universities to successfully solve There:0-e, the next Secretary of Agriculture

14 101" mustbeaseasonedveteranintraditional issues. agriculture,socialsciences,education,the The third key position is the County Agent. international marketplace, as well aspoli:ical I view County Agents as faculty members. That science. This is quite a different set of credentials gives rise to some interesting issues.If they are than we might have seen a a few years ago. facultymembers,whataretheirareasof The Secretary also must have such skills as professionalism and academic excellence? leadership, the ability to work with a diverse Commercial agriculture might leadus toward constituency from the world population and the having an agent with a doctorate in agronomy for U.S. population to the Cabinet.The Secretary a county with njor field crops. Sinceit's must also have vision. Part of the problem in the impossible to be all things toall people, the recent past is that agricultural policy was shaped County Agent must rely heavily on expertise from more by other Cabinet members than by the campus and at the same time be viewed as an Secretary of Agriculture.Thus, the Secretary of educator by constituents in the county. Agriculture must bring to the office the credibility Furthermore, the county faculty member must and respect the position deserves.Furthermore, have a program advisory committee that includes the USDA must embrace the issues confronting the county's 10 most important leaders. agriculture. It's one thing for a County Agent to do what The next key position is the State Extension he or she does as a routine, even though it's done Director, in my opinion the most difficult job in well. But it's something else for the County Extension or a land-grant university. The Director Agent to introduce new concepts each year. The must work with a traditional constituency:the county fair can have educational value, but we agriculture faculty and administration, commercial have to admit in Cooperative Extension that we agricultural interests, agricultural organizations, allowed the science fairto steal our thunder small commodity groups such as beekeepers, and actdemically. That could have been ours, but we urbanitesin 4-H and home gardening. The were caught up in tradition. Director must also interact with other colleges I can remember a number of years ago when within the land-grant university plus other schools personal computers were just coming into use. inthestateandregion,convincingthose Some County 4-H Agents whose budgets couldn't disciplieesnottrad;tionallyassociatedwith handle computer purchases convinced companies Extension that they should help solve real world to donate computers and time.If we want to be problems that previously have bcen considered creative, the list of opportunities is never-ending. beneath them.And then there's the politral The ultimate goal or measure of success for system intertwining federal, state, county, and a County Agent is not the number of meetings municipal elected and appointed officials, each held, pamphlets produced, or radio interviews, but with a separate agenda. rather the substantive changes to which the agent When we add to that melange the rules and contributed.Faculty members, including County regulations of the university and USDA, the job Agents, are motivated to be effective and dynamic takes on incredible dimension. in three predominant ways:doing their own To succeed, the State Extension Director, in scholarshipandresearchtodiscovernew addition to juggling all the elements above (and knowledge,consultingtostayabreastof again I'm harmonizing with Duane Acker), must contemporary needs in a discipline, or reading focus on the future.The Director also must extensively about others' work The latter option, motivate the Extension administration and faculty with very few exceptions, can only keep a faculty to look forwardAlternative crops, value-added member relevant to a degree. Therefore, the first processing, and mternational marketing strategy twobecomeextremelyimportaotforany may be vital elements in Extension of the 'Ws, professionaleducatorandinparticularfor but the Extension Director must encourage visions someone in Extension. of Extension's role in 2015. The Director must This may be a radical thought, but we might focus on issues and comprehensive educational look at 10-month appointments rather than a 12- programs. We must stop talking about vacancies. montn appointment with a vacation.It's not that We must develop programs that address the I'm trying to take benefits away.I'm suggesting

15 that a month's study leave and a vacation, to recognition:a bank account, a savings program, enable a enunty faculty member to be fresh and and landscaping. creative, could be important.Can you imagine the benefits that would accrue if all of our county facuk were rotated through some of our cutting ENCOURAGING PROGRESS edge research programs, whether the research were in school dropout prevention, teenage pregnancy, I am impressed whh the results thus far in the or biotechnology? The resources are here, but emerging effort to modernize Extension.In its we're so caught up in our traditions that we're not mission statement, Extension says it *helps people exploring the possibilities. improve their lives through an educational process The concept of county Extensionfaculty which uses scientific knowledge focused on issues servingaspaidconsultantstocommercial and needs." agriculture raises some intere,ting questions. I am Extension amplifies this mission statement and not saying consultanta are bad--I welcome them. givesitspecificity by dest:ribingitsessential Buttheuniversitycannot be putindirect characteristics: competition with private consultants, and clearly commercial agriculture cannot be c'iminated as an The Cooperative Extension System: Extension constituency.If Extension offered the same services available through private *isafuture oriented, self-renewing, consultants, Extension's budget support would national educational network providing vanish. AndifExtensionstoppedserving excellenceinprograms focused on commercial agriculture, Extension would dig its contemporaryissuesandneedsof own grave. Thus, it is clear that Extension faculty people; must stay ahead of the private consultants. * employs an interactive education process Each county faculty member I know has a with state-of-the-art technology; which program advisory committee. Are the eight or 10 is anticipatory and capitalizes on the most influential leaders on the committee? They synergism of coalitions and team effort; must be if we are to be successful. and which involves the people in issue So there are some clues to the key characters identification, priority setting, program in Extension Utopia, or at least an Extension delivery, and impact assessment; equipped to serve in a noble, effective way for a * creatively delivers programs that are at long time to come. thecuttingedge of criticalissues, Years ago after my mother died, my father reflectingexcellence,areinterdisci- and I were cleaning out an old trunk. We came plinaryinnature,havea strong upon a certificate he had received in the 1930s disciplinary base, and make a difference from Extension.It was part of the balanced in the lives of people; farming concept, and my father qualified for the * includesfacultyandstaff who are certificateby meeting allthe diverse criteria sensitive,creative,flexible,forward includinghavingabank account,asavings looking, risk taking, and professionally program, landscaping at home, fences that were in competent, serving a diverse clientele good repair, crop and livestock records, and soil who relate to the issues identified; and conservation measures. Perl ps the challenge of which appreciates and recovizes the Extension is as simple as modernizing the concept strong contributions of volunteers. of balanced farming. In addition to the crop records then and now, The issues developed by those involved in the we recognize the importance of emerging issues Cooperative Extension System National Initiatives relatingtosustained economic development. PlanningPromsconstituteanimpressive, Today those issues include erosion of the family, contemporarylist: alternativeagriculture teenage pregnancy, drug abuse, and rroblems of opport 'n:7ies, human capital development, the singlefamily. What a change from the competitiveness and profitability of kherican nonfarming requirements for that 1930s agriculture,conservation and management of

16 20 natural resources, family and economic wellbeing, nutritional improvement, diet and health, and revitalization categories of issues, but selectivity and focus are essential at the grassroots level to ensure that programs meet the needs of local constituents. Please do not be deceived. Bold, courageous, persistent leadership will be required if this new Extensionisto become a reality.Make no mistake about it:if the land-grant partnership doesn'trespondtotoday'sandespecially tomorrow's--needs, someone else will.Seaman Knapp, Thomas Green Clemson, Frank Lever, and Hoke Smith had faith in our ability to keep their work viable.Let's hold our heads high and not disappoint them or ourselves. Tal')uVall,who retiredrecentlyas Cooperat;ye hAtension Service Director at the University of Georgia and now isExecutive Director of the Georgia Agribusiness Council, champions this opportunity and maintains a strong faith.In the September 1988 issue of Progressive Farmer, he wrote:

The challenge for Extension seems clear. It must remain strongly linked toits traditional agricultural support base.It must remain the statewide conduit for knowledge generated byland-grant universities. At the same time, Extension mustadapttoanewroleasan educational agency dealing with community issues. And it will have to do all of this with less money.

This is the dilemma Extension faces, but there is no real question about whether it will survive. After all, adapting to change is what the Extension system does best.

17 21 POLICY PERSPECTIVEON RURAL REVITALIZATION

Ronald D. Knutson, Extension Economist Dennis U. Fisher, Extension Economist Texas Agricultural Extension Service Texas A&M University

If no policy is a policy, then the United States DIME.NSIONS OF RURAL DEVELOPMENT has a rural policy advocating no policy.While POLICY this statement is a bit of an exaggeration, it also contains several elements of truth.The United The current policy debate marks a turning States certainly has no comprehensive rural policy. point in the mix of policies considered to be rural Forthisreason,rural economic decline has development. become characteristic of most rural communities. Likewise, rural revitalization has not accompanied urban revitalization nor has rural revitalization Traditional Perspective accompanied agricultural revitalization. The lack of a direct,positive, functional Traditionally rural development policy has relationship among the rural, urban, and agri- been viewed as ihose economic activities directly cultural economics is instructional in designing related to attracting new business into rural areas. rural development policy.It means thai we can Industrial recruiting and infrastructure were the depend on neither macroeconomic policy nor farm buzzwords of rural development. As a part ot the policy to solve rural problems. This, hopefully,is package, workers were trained or retrained for the the origin of contemporary federalinitiatives jobs provided by new industry, and low-interest regarding rural policy. loans and tax breaks were provided.In other The purpose of this paper is to provide an words, rural development was viewed as a turnkey educational framework for thinking about rural for increased rural employmeut built around new development policy issues.It initially piovides a industry. taxonomy of the types of rural development poli- cies that exist and the levels of government at which such policies are imp'emented. Next, this Human Capital Perspective paper comments on the uniquenessof rural developmentintheSouth,discussesrural During the1980s,the concept of rural d-velopment policy options and consequences, and development policy began to broaden to include basic drawsimplicationsforExtensioneducation a significant new human capital thrust. The programs. idea was one of increasing the capacity of rural

22 other in terms of the level at which it is initiated levels.For example, perhaps the most prcssing and/or implemented. needofruralbusinessesisforimproved management capacity.This requires intensive efforts in management training. Substantive Options and Consequences The results of investments in human capital are less immediate and visible.Yet, the effects Many different taxonomies can be developed are clearly longer lasting as the labor force is for the substance of rural development policy more productive and flexible.Less training is options. The national workshops utilized six retittiredin movingfrom one occupation to options.-income and employment, natural another. resources, health, education, poverty, and rural Over time investments in humal capital have services financing (Knutson and Fisher).These become more important to maintaining workshops werecriticizedfornotexplicitly competitiveness.Technological change requires separa ting out infrastructure, business development higher levels of work force skill.For example, (industrial recruiting), and job training,all of computer skills are now essential to efficiently which were treated as being part of income and perform secretarial services.As the pace of employment. As a result of the workshops and technological change continues to accelerate, a subsequent discussions wilh policymakers, the serious danger exists that Southern youth will fall significantdistinctionseemstobebetween further behind in competing for high-pay, high- traditional development strategies emphasizing demand jobs. infrastructure andstrategies emphasizing the building of human capital.In other words, are programs bu.lding bridges (something physical) or hnplcmcntation Options and Cousequences minds (human capital)? The choice of initiation and implementation TraditionalInfrastructure. Asindicated level may be as important in the success of a previously, the traditional appioach to program as the type of program.Each level of development has been to develop jobs by building government has a specific optimal role to play in infrastructure and attracting new industry.Job development policy.This is particularly true of traininghastypicallybeenprovidedasan rural development policy because, for example, the additional service to new industry and the related population is highly mobile.As a resu't, local work force.This policy has been implemented and state taxpayers are less likely to realize the through a system of loans and grants. benefits of education because rural youth have There is considerabledebateoverthe greater pit....nsity to move to urban citiesin effectiveness of this traditional approach.Hite, search of jobs.This is a logical rationale for for example, is quite critical in that competitive federal investment in education as opposed to the industrial recruitingiswasteful, dependent on more traditional approach of state and local subsidies, and, at best, a short-run solution. The funding.Likewise, it is not just the residents of resulting industries are often not competitive in the local hospital district that benefit from rural the long run because they were built on subsidies hospitals. and tax breaks. Such spillover benefits are a primary reason On the positive side, infrastructure grams and forstate and/or federalinvolvementinrural low-interest loans have provided tax relief to local developmentpolicy. Likewise,asindicated communities and may have resulted in increased previJusly, some state or local government units expenditures for human capital building may simply not have the resources to satisfy basic enteerprises such as education and health. service needs.This is particularly true of rural areas where cost per unit results largely from Human Capital.Investing in health, educa- greater distances and the inability of rural areas tion, and the elimination of poverty builds the to realize economies of size.Yt.t, our public capacity of peopie to solve their own problems. policies seldom iecognize these higher unit costs. Such investments can be designed to cover all age

20 people to be productive and solve problems. For As a resalt of pinpointing these prioritics, example, the Southern Growth Policies Board several facto s are unique to the South: identified education as one of the major problems of therural South. Likewise, development As one looks to the future, education is an economists began to give greater atteation to ovawhelming concernforthe South. The improving management's capacity to retain and industrial base of the South was built on a expand existing rural businesses as a potentially plentiful, low-skill, low-cost labor supply. more effective strategy than industrial recruiting. When combined with discrimination against Added dimensions of :mproving human capital minorities, poverty became the rule in many rural involved improving rural health and reducing rural areas.The vast majority of persistent poverty poverty. counties are located in the rural South. The problems of ruraleducation and poverty are not likelyto be solved without FOCAL POINT FOR POLICY substantialfederalassistance. Sincethis IMPLEMENTATION combination of conditions is unique, there is need for 4 targetedfederal-state-localpolicythat Muchofthegovernment policythat blankets the South. economists deal with is initiated by the federal Suchaninitiativeshouldnotover- government. Thisistrueof farmpolicy, emphasize the importance of agriculture. international trade policy, macroeconomic policy, There is an unfortunate tendency to equate and food policy.In contrast, rural development rural with agriculture.When this is done, the policy can be initiated and/or implemented by the solution to rural economic problems then becvmes federal, state, or local government. In fact, there increased farm subsidies and attraction of farm- is insufficient attention given to the question of related value-added industries. While value-added what level of government may more appropriately industries may provide opportunities in the South, initiate a particular policy, while the state or local they are limited and certainly are not of the government is responsible for implementation. magnitude to offer long-run solutions tothe Eachlevolof governmenthascomparative region's problems. The Southern states are doing advantages in performing specific functions. This comparatively well in terms of economic growth ,...ill be summarized subsequently. (Florida, North Carolina, Georgia, Virginia, and Texas) and certainly have not staked their future on agticulture-related industries.For each of UNIQUENESS OF THE SOUTH thesestates,passive income andretirement indumries hold considerably greater potential than Ruralischaracterizedbydiversity,not agriculture. The point in these comments is not homogeneity. Each rural area has its own unique toundercutorstifleagriculturalgrowth characteristics from a development perspective. opportunities, but only to encourage balance in From anationalperspective,substantial representing the relative magnitude of differences exist in the priority of rural problems. opportunities to solve problems. The rural development policy workshops identified the perceived priority of rural problems for each region of the UnitedStates. The priority OPTIONS AND CONSEQUENCES problems in the South include: Because initiativeand implementation Education opportunities exist in rural development at the Economic opportunities federal, state, and local levels, two different cuts Health at the options and consequences become essential- -one in terms of the substance of poiicy and the

? 1 There is an assumption (myth) that because it is federal rural development policy education. Much rural, it costs less. of the work that is done with local government New federalismpoliciesshiftedgreater reallyinvolvespolicydecisions. Extension responsibility for development to the state an1 educators avd administrators neel to recognize local government because it was felt that it was this fact in designing programs and allocating desirable to have decisions made ctoser to the resources. people. This may be true. However, local control does not mean optimal investments.Spillovers andexternalitiesmaystillrequirefederal REFERENCES assistance in assuring equity of treatment. Ronald D. Knutson and Dennis U. Fisher, Focus on the Future, (College Station: Texas Agricultural Extension Service, IMPLICATIONS May 1989). James Hite, "Rural Development Policy Issues in the South," Extension has a very important role to play in Focus on the Future, (College Station: Texas Agicultural rural development policy education. While policy Extension Service, May 1989). educationfrequentlyis treatedas being synonymous with farm policy, this is unfortunate. In addition, policy education regarding local and state decisions is perhaps more important than

22 25 RURAL AMERICA: FOUNDATION OF THE PAST; CHALLENGE FGR '1; ii,r1 vUTURE

Heather Johnson, State 4-H Speech Contest Winner Forsythe County, Georgia

It's early morning, and the sun is just now important activities.For thousands of years he beginning to color the eastern sky.This little has been supplying himself with food, clothing, country road that you and I are riding upon is so and shelter.However, the rewards of over 90 beautiful this time of day, with the golden wheat percent of our natural resources seem to have ripe for harvest, the leaves overhead casting a been forgotten, neglected in the great scheme of reddish glow on the world, and the green earth economic development. unveiling Nature's beauty.There on our leftis Ase look back upon the past years in rural the Harris farm. Be suze to roll down the window America, we can see the elements of a pending so we can smell Mrs. Harris' fresh hcanegrown disaster.Encouraged by the worldwide demand sausage flying and her homemade biscuits in the for agricultural products in the mid-70s, farmers oven. Did you know that 63 million people live and manufacturers alike expanded and produced here?No, not on the Harris farm, but in ie more and more.However, the recession of the 14,000 small towns and cities of rural America. early 1980s brought the loss of manufacturing Up ahead a few miles is the Smith farm. The jobs, decline in land values, and instability of total Smith children should be up by now. Listen farm income. These created a daily drain on the carefully, and we can hear the chickens greedily rural areas, which heavily rely on farming and pecking for the food that the children scattered. agricultural manufacturing for economic survival. The sun issteadily climbing as we reach the Unlike other occupations, one plus one does intersection and turn onto Main Street. The Post not equal two.Even haru work and effective Office is opening, while across the street the bank management ofresourcesdonotguarantee manager unlocks the front door for another day success. With the economic future of many areas of business. looking bleak, people are leaving as fast as their WELCOME TO RURAL AMERICA, home dollars. Then factories and farms are threatened; of the commercial farmer, small business owner, the service industry diminishes and suffers also. mining and timber industry, part-time farmer, and The decline of rural America is not just a millions of individuals who have chosen the farm problem; it is an American problem. In the advantages of living in the country. This is where early days of!'nrvC.;,wagons, and mule-powered the foundations of our nation were laid.Our plows, the connection between farming and the beautiful American continent depends on the economic plight of the nation was simple. Local spacious skies and amber waves of grain for our farmers grew what they could for their families future, our survival, and even our existence. and sold any surplus to the buyer as a raw Farmingisone of man'soldestand most commodity.However, today this 7elationship is

0 not quite so simple.Because most consumers can have the benefit of the latest technology buy their food from the supermarket already available. processed, it is easy to forget the intricate web of In addition, new sources of income must be. individuals, nearly 13 million, who work in the found to supplement that of the farming, mining, U.S farmandfoodsector. Inarecent and timber industries that compose the backbone publication, one lady was asked to voice her of many small towns.An article in Successful solution to the farm crisis.She replied, "The Farming proposes tha: "personal initiative--the plight of the farmers does not concern me; I buy kind you apply every day around the farm--can my corn in a can." work in confrontingproblems of rural This echoes popular American sentiment. But communities, too." such naive iRople fail to realize that one farmer There are success stories.In Green, Iowa, creates 5.2 non-farm jobs and feeds 93 people. talk of economic development started in a small They also fail to understand that agriculture and cafe. When one man proposed a paddleboat, itsrelated agribusinesses comprise the largest everyone laughed, but that same paddleboat has industry in Georgia and the nation.There are attracted so many tourists that a htel and other 24,000 agribusinesses in Georgia alone, but this popular main street shops now boost the local number is fast fading. We know the problem: economy. Then there were the Chugwater Chili farm families who put together a recipe and have Farming, timber, and related industries are made quite a name for Chugwater, Wyoming, and on the downslope. not to mention, kept the town aliveinthe process. Allittakesis an idea, a spirit of The towns id cities which depend on optimism, and enthusiasm about the future of these sectors of the economy arein rt. -al communities. jeopardy. TWenty years from now, what willhave become of that little country road?Will the Each day, human and financial resources Harris farm still be the cheerful place tl...:' Ai ut,ce leave these areas in search of a brighter was, full of the sights and smells of farm life? Or future. will a dilapidated building remind us of what rural America once was?If wa pass on by the Smith --Rural America is losing the foundations farm, will we hear Mr. Smith's grandchildren on winch our very country is based. feeding the chickens, or will they have moved to a more stable economic area? Will the post office So if we have long known the problem, why and bank have any reason for staying in business? are there no :Answers? Why haven't we all done What about the rest of the 14,000 small towns something? and cities.'What about Amerim? We atedoingsomething,andthatis We stand on the threshold of a new century, education.The Cooperative Extension Service, determining curselves what our future will bring. ince 1914, has been teaching and guiding the Most of us say that we are too busy to devote agricultural world to better methods of rural ourselves to this cause. But do we really have a planning and development.The youth of the choice in the matter? As Daniel Webster once nation are the future. Without a new generation said, "Let us not forget that the cultivation of the growing up in rural Atlerica, where will we be? earthisthe most important Lbor of nan." However, education and youth-baceAl programs RURAL AMERICA NEEDS YOU. have had little effect on curbing th. .,xodus out of the many rural areas of Georgia. What else can be done? Even though natural resources seem to be abundant, only through the careful conservation and management of these can the maximum productivity be reached. Technical assistance can also be used on a large scale so that each farmer

24 27 ECONOMIC DEVELOPMENT SETTING TI-IE STAGE

Doris A. Ttchenor, DirectorHome Economia Programs a:operative Extension Service University of Florida

Good morning and welcome to the program thank these colleagues for helping bring me up- segment on economic development, one of three to-speed in an area where I was knowledgeable topics selected by your program committee for during the years thatI was a state leader of emphasis at this conference. community development programs, but where I Indiscussionswithprogramcommittee have not kept up with the literatuie for the past members it became clear to me that this hasn't fiy_ years. been the easiest program in the world to put As I began to scan the ctdrent literature, it together, because of the diverse interests among seemed to me that a lot of different experts are those expected to attend and because of some writing about some of the same ideas concerning uncertainty about Extension's role and rural revitalization, and I'm sure that most of you responsibilities with regard to rural revitalization. are familiar with these major ideas and have very It also became clear that the planners of this likely applied them to your local situations.But conference intended it to be action-oriented. To it also seemed to me that there are some other put itin p;ain words, you are expected to go potentially useful ideas that aren't being discussed home and do something--either to get programs very much or aren't being considered to have a going in the field or to accelerate the process if bearing onExtension'sapproachestorural programs are already underway. This conference economic developmer t. isdesignedtoofferideas,innovations and So I decided that my best co9,1ribution to this program strategies. My job is to help you derive program might be to stinrilate your thinking, maximum benefit from the presentations that maybe to raise ycur hackles just a bit by making follow. assertions or proposals that you don't agree with, Since the stage-setting assignment given to me and--pleasedon'tgroan out loud when I say by the program committee could be interpreted this--to change your paradigms. in any number of different ways, as I began to To these ends I'm going to make some think about how I would structure my remarks, I observations about rural economic development asked several of my colleagues for their ideas as and how Extension's role might be viewed. Then to what I should say that would help you get the I want to discuss a f.w., business predictions that most out of the more substantive discussions that you may or may not feel are worth considering in are to follow. Among those I talked with were relation to rural economic development Jim App, Bo Beaulieu, and Larry Libby, as well approaches.And finally,I want to raise the as Karen Behm inLouisiana. All of them question of why it matters whether Extension is contributed useful ideas, and Larry and Bo loaned involved in rural revitalization or not. me a variety of materia.: which included some of A former colleague of mine used to say Plat the most significant writings of the past few years rural community development was never going to on the topic of rural revitalization.I want to get anywhere as a public issue because it was

2 9 "lovedto aeath."He said every government communitydevelopment,ruraldevelopment, agency wants a piece of the rural development economic development, or whatever we choose to action, and therefore it's doomed to be fragmented call it, has had no organized support group or at with little bits and pieces tuc' ed into every Jgency least no unified and vocal group clamoring for it. in the books. As aconsequence, we have seenasteady This observation was borne out as I examined dwindling of the level of resources dedicated to A Report on Rural America'sRevitalization rural development across the land-grant system Efforts, compiled by USDA and issued in January over the past 10 to 15 years.This has obviously 1989. Thereportsummarizestherural impaired ourcapacitytobe a strongand development initiatives of 12 federal government recognizable force in rural economic development departments,rangingfrom agricultureto in most areas. transportation, as well as six independent federal Concurrently we have seen a decline in rural agencies. If I counted correctly, the total number sociology as a significant and viable force in ofinitiativesnamed in the report was colleges of agricultureacrosstheland-grant approximately 143--give or take a couple dozen system.Only a few land-grant universities are programs,depending on yourclassifications. sustainingstronginstructionalandresearch Accordhig to the report, the non-defense federal programs in rural sociology. There is an initiative spending in rural America amounted to $2,175 per underway to get new federal funds for rural social person in the most recent fiscal year for which scienceresearch. Most ExperimentStation figures were available. Giventhislevelof directors are not very excited about it, not nearly expenditure some supply-side cynics may wonder as excited as they are about the prospect of ifit wouldn't be cheaper to shut down rural getting half a billion dollars in new money for America completely and move the people to the biotech-related research, which is to be expected. cities.Seriously, during the 80swe have all However, we must continue to push hard for heard some ideas that were only slightlyless strengthening our research basein the social bizarre than this one!The catch isthat the sciences as a foundation for allof our rural corresponding figure for metropolitan spending revitalintion programs. was $2,181. Another reality that must be faced is the lack Interestingly enough, the reportidentified of interest in rural revitalization efforts other than three alms in which rural America has a resource in agriculture among most of our state Extension base and has needs related to the resource base. specialist faculty.I don't know about your states, Thesemaincategoriesarc: a)financial, but in Florida we have not exactly had people representing the capital resources and monetary flocking to march under the banner of rural needs; b) physical, representing infrastructure revitalimion. resources; andc) human, which are the people An analysisofdaysexpendedbystate resources. Not coincidentally, these are the same specialists on our Revitalization Rural Florida three categories that your program committee has program in FY 88 revealed that half of the total selected for your program today. days expended were by home economics specialists. One might well ask where is Extension's role Agricultural economics specialists accounted for in this intense competition to do marvelous and about a quarter of the days, and the combined 4- wonderful works for rural communities?I would H and meal development faculty contributed most like to discuss this question in light of some past of the remainder.If these statistics are any and presentrealitiesthatimpact upon our indication, in oar state we need a broader array organization's ability and commitment to revitalize ofexpertiseapplied torural economic the rural South through economic development. development.Maybe your state is doing better Extension's performance in the past has been along this line. closely related to the existence of support groups, If we assert that we need to be doing more in and its programs havebeengearedto rural revitalization and especiallyin economic responsiveness to their demands.Examples of development, the next logical question might be these supporters are commodity groups, 4-H "More of what?"Brucc Weber of Oregon State councils, and P.:mension home:makers. By contrast, University has identified four major roles for

28 3 0 Extension:(1) to provide perspective by helping oversaturation of shopping malls that have dried communities understand how local trends mesh up small town main street business. MaybeTV with national and international changes; (2) to merchandising will give us the next generation of increase the knowledge base by accessing both the Ace Hardware and Western Auto stores. university anti other knowledge bases outside the 2) Growing appeal of homework. Up to this university; (3) to teach tusiness management skills time the growth in high tech versions of "cottage as well as provide leadership training; and (4) to industry" has not been spectacular to say the least. helpshapetheinstitutionalstructureof a But that may change as PC and telecommunica- community, its laws, and organizations that affect tion technologies get smaller and more portable, economic development. and as traffic gridlock gets worse in an ever- Anotherviewofappropriaterolesfor widening ring of urban sprawl aroundrnriai Extension in addressing the issue of viable rural metropolitan areas.The appeal of a relatively communities is provided by the November 1989 hassle-freerurallifestylecombinedwitha report of the Futuring Panel which was established maturinginformationeconomywillprovide by ECOP as part of its recent reorganization. powerful incentives for people to work at home. The panelconcludedthatExtension'smost And "home" way increasingly be a small Southern promising roles are in the areas of leadership town or rural area. development training a d what the panel describes 3) Older Americans--the next entrepreneurs. aswelopment of community service, meaning the I was surprised to see the Futuring Panel's report idea of an organized enlistment of all community say that mai communities are "burdened" with an members into community service beyond the aging population.In fact, the degree to which concept of individual volunteerism.This idea elder people are a "burden" to their communities reminded me of the community development clubs is directly related to the extent to which they are organizedandmaintainedbyExtensionin poor and sick, and the current trend is for older Kentucky in the 70s still active in a few peopleto be bothhealthier and wealthier. counties. Everything that goes around comes Research in Florida has shown that the elderly are around, I suppose. net contributors to local economies, even when Another stated objective of this conference is the extraservicesthey need are takeninto to provide understanding of current trends and account. Roper says that tomorrow's older people their implicationsfor ruralrevitalization. will have the motivation, the resources and the Statistics regarding demographics, education, and energ to start and run their own businesses. economic change are known to all of you and wi!: Moreover, most rural communities where retirees be referenced by others in the program segments congregate willcontinue to derive economic to follow, so I won't recite them. Instead I would growth and prosperity from their presence. like to look at a different set of trends--a few of 4) Growth of environmentalism. Roper states the 31 major trends that the Roper organization flatly that attention to environmental issues has predictswillshapetheAmericanbusiness not peaked butisstillgaining momentum. environment in the 90s. Roper says these are the Furthermore, Roper asserts that environmental harbingers of the emerging business and economic concerns are both broad and deep--profoundly landscapeinwhichAmericanbusinesswill hjd beliefs by a broad cross-section of American operate.I've selected five of the 31 that seem to society.What this suggests to me is that rural me to have a direct bearing on the economic counties will have to be I./ell-organized and on health of at leaq some rural communities: guard to keep from being dumped onliterally and 1) Home shopping will grow dramatically. figurativelyby metropolitan areas that will try to People will seek more control over their time by use them as a quick fix for locating a waste changing their shopping habits. Beyonu " disposal site or adding to a dwindling water ordering,the most promising area of home supply. They will need state-of-the-art information shopping is television.Local merchants will get al, d well-developed leadership skills in order to intotheact,maybethroughcooperative know how to demand and negotiate for a fair arrangements with local TV stations. We may be price for these facilities and resources. reaching a turning point with regard to the 5) The nation's mood: "New Reality." As the

29 31 American public comes down from the euphoria contain groups that are likely to include the and boosterism of the Reagan era, there is amore persistent poor:non-whites, disabled, female- sober and realistic view of the countiy's economic headed iamilies, and undereducated.It can be prospects and a renewed national determination argued that local economic development efforts to make things work. Roper says this mood will won't help these people, but I would take the restrain the level of consumer confidence, but he opposing argument that 40 years of transfer sees an encouraging challenge for business to play payments haven't substantially improved their lot an aggressive role in attempting to correct the either. Abandonment of effortstoprovide nation's economic problems. economic opportunity to the persistent poor is I findthislastpredictionparticularly simply not an acceptable option. interesting becauseitisthe only on( among Beyond the questions of poverty and social Roper's 31 trends that even indirectly anudes to costs as they relate to economic development, I economic problems.Issues such as poverty and would like to briefly address a very different disease and lack of education are simply not element that I think has an important bearingon addressed, even though the quality of tue labor rural viability--the element of small farms, which fo ce that will be required for the operation of make A 72 percent of all U.S. farms but account American business depends mightily upon these for less than 11 percent of the market value of all very issues. agricultural products sold. In the Southern states Some experts are saying succinctly thatif ofTexas,Kentucky,Tennessee,Oklahoma, business can't fill its needs for workers from local Virginia, and the Carolinas we have/numerous populations, it will either import the workers or counties in which small farms make up 90 percent export the jobs. Both of these scenarios will have of all farms.Except for those who are retired, adverse consequences for the rural communities the majority of these small farmers and/or their that are the major focus of this conference. spouses work hill-time or part-time off the farm. For the final portion of my remarks I want I would assert that a second compelling answerto turn to the question of "Why does it::::.;.er?" the question of "Why does rural viability matter?" Whyshouldwebe concernedwith the is in the importance of maintaining the economic revitalization of rural communities if they aren't and social stability that these small farms and economically feasible? We are coming to the end their families provide to their communities. Many of a decade where the bottom line was the big of them enjoy a quality of life far higher bysome thing, and some of our Southern counties have standards than their relatively modest incomes not contributed to a positive bottom line for the would suggest. These people tend to perpetuate past 100 years, if they ever did. the fundamental values ofresponsibility and This brings me to the first response I would productivity that have made them the mainstay of offer to the question of "Why does it matter?" nany rural communities. Their interests sho ild The initial report of the Lower Mississippi Delta not be overlookedasExtensiontargetsits Development Commission, released last October, economic development efforts. estimated that 47 of tlx 214 counes in itstarget At the risk of strair.ing the limits of your area have poverty rates exceeding 30 percent. and paradigm-changing capacity,Iwouldliketo many othershaveratesabove20percent. remind you that the way thingsare tolay isn't Government transfer payments are among thetop necessarily the way they were yesteriay or theway sources of income in these counties.Another they will be tomorrow.For example, it hasn't recent report estimates that more than one fifth been so long ago that Orlando, Florida,was a of the people in the Central Appalachian portions sleepy mid-size Southern town surrounded by of West Virginia,Kentucky,Virginia, North more or less underutilized rural lands.Or look Carolina, and Tennessee continue to live below at Gatlinburg, Tennessee, or Helen, Georgia,or, federally defined levels of poverty. A 1985 ERS for that matter, Williamsburg, Virginia.Until study identified 231 counties that have hada low fairly recently, old farm houseswere seen merely per capita income since the 1950's.All except as obstacles to be bulldozed out of the way of 18 of these counties were located in the South. fencerow-to-fencerow plowing. Abandoned one- Predictably, these low income counties tendedto room schoolhouses were vandalized and left to

30 3 2 decay until their roofs fell in. But we are now in being extremely applicable tothis conference. an era where historic aesthetic and cultural values Here it is: of the rural landscape are increasingly regarded as worth saving. 'Though less tangible than a specific It was exprused that rural community industry, these values may become increasingly leadership needs to develop contingency important economic development assets in the plans for the future.In addition, these future. Let us be mincliiil of these potential assets communities needtorecognizetheir as we proceed with our short-term economic strength and build on the robustness development efforts, and try to keep our options provided by their traditions. Bob Rodale open by protecting them as much as possible. said, "The best approach is to look for In these stage-setting remarks I have tried to 'islands of success.' In any situation, some draw your thinking toward some alternative views people are getting along okay, even in a ofExtension'srolein ruralrevitalization, bad social (and economic) situation. Ask especially the economic development aspects. I how they are doing it.Then expand the have suggested only a few of the less obvious islands of success.It takes less resources trends that may have an impact on the business to expand the islands of success than to environment in rural areas, and I have proposed try to contract an island of failure. And some answers to the question of why Extension if you don't balance an island of failure needs to be concerned about rural viability at a with success, you aren't going to get time when there is increasingly tough competition anywhere anyway. The universities are full for allocation of our diminishing resources. I of people who know how to look for hope the dpproachI have taken will help to failure. You nerd a new university that broaden your background for thinking about the knows how to look for succrss.' topics of the workshops and case studies that make up the remainder of this session. Thank you very much. in closing I minttld like to quote a paragraph from the Futuring Panel report that struck me as

31 33 RURAL DEVELOPMENTLEGISLATIVE UPDATE

Fred Woods, Policy Specialist Extension Service ES-USDA

A rural economic and business development One week ;V, I thought I would tell you that program would be established inExtension to the laislative update for rural development could work with individuals, businesses, and community be summarized in a good news-bad news context. leaders through the employment of state or county I was going to tell you about the Senate-passed specialists. Federal funds would be made available Rural Partnership Act and the ready-for-House- on a 60-40 matchiag basis (the 1890schools would committee-action Rural Economic Development be exempt from matching provisicns) to pay Act (the good news) but then give rny opinion salaries. The billauthorizesa$5 that the coalition of support for the bill in the appropriation thefirst year, increasing by $5 House had broken down and that time had run million a year to ultimately a S20 million annual out due to the need to get on with hearings and level ($20 million in 1992 and thereafter). debate over the 1990 Farm Bill (the bad news). The Rural Partnerships Act doesn't provide a But I'm no longer sure that is the proper lot of new money, nor does it reallocate existing scenario. In fact, I'm not even sure what is good funds to rural needs or make more than a cursory news and what is bad newsSo let me just lay effort at coordinating the various non-USDA out for you the collection of facts and op;nionsI federal agency programs that impact on rural have gathered together and let you decide which areas.But given the congressional committee is good and which is bad. structure, concern about the federal budget, and The Senate has passed S.1036, the Leahy Bill, our collective inability to articulate a a somewhat comprehensive, but nevertheless comprehensive national rural policy that can be traditional,approachtoruraldevelopment. supported by a majority of rural interest groups, Adding some new provisions and modifications to it may be the most pragmatic and politically existing program structures, the Rural Partnerships sensible approach possible at this time. Act can be viewed as proposing changes at the Then there isthe House bill,the Rural margin. Nevertheless, the legislation contains Economic Development Act (H.R. 3581), spon- provisions to: (1) assist in establishing, expanding sored by Congressmen English, Coleman, and and improving management of rural businesses Gunderson.Since this bill has not yet cleared (includingverysmallruralbusinesses);(2) the House Agriculture Committee, much less improveinfrastructure;(3)provide technical passed the House of Representatives, you must assistance; (4) improve educational opportunity; understand itis a little risky to talk about its and (5) expand the information base of rutal contents. However, it has received Administration America. TheSenate bill authorizes endorsement, was unopposed in the subcommittee, approximately $1.5 billion in new funds over a five and reportedly has strong support from House year period to accomplish its objectives. Agriculture Committee Chairman de la Garza. Unlike the Senate bill, H. R. 3581 is definitely leadership. This program also requires each state nota traditionalbill. Ratherthanthe ExtensionServicetodevelop,maintain, and conventionalapproachofdevelopingnew provide to each community a catalog of relevant programs and integrating them intoexisting state, federal, or private programs. No new funds programstructures,theHousebillwould are authorized for these responsibilities. significantly reorganize rural development activities Although the USDA surprisingly (at le st to and, most importantly, proposes a major change me) endorsed the reorganization provisions of H. in the way federal (at least federal-USDA) funds R. 3581, itis not at all clear that the various are allocated. national rural development interest groups will At the local level, rural communities would support the changes, which may be viewed by have to develop a detailed overall economic plan some of them as a diminution of their power. ana have it approved by a state review board. If H. R. 3581 fails to pass the House it will Communities would then submit project proposals in all 1;1,elihood mean the end for significant rural to the review board which would rank these developmentlegislation,particularlyforthis proposals and recommend to the Secretary of session of Congress.Will it pass?I frankly see Agriculture which projects should be funded. it as too close to call.A week ago I was 75 Each state would be allocated a block of funds percent certain that it wouldn't. Now I just don't based on appropriationsforthose programs know. What if it does? The House supporters included in a rural development insurance fund believe H. R. 3581 is highly "conferenceable" with portfolio (basically those current FmHA loan, loan the Senate bill.Certainly there is no conflict guarantee, and grant programs that relrte to rural between the two bills in either their basic intent development). These funds could be allocated to or their major provisions. And there are a any type of project that meets the criteria spelled number of minor provisions which are either ou, tit inc. legislation. identical or very similar. While the House bill is definitely radical in its David Freshwater, Joint Economic Committee reorganization and fund allocation provisions, it staffer, argued at the recent Agricultural Outlook is even less comprehensive in terms of scope of Conference for basically combining the two bills rural proble- is addressed than the Senate bill. if they get to conference.He pointed out a This (for both bills) is a function of time and the number of ways in which provisions of one bill committee structure of Congress. To fully address would supplement or even strengthen provisions the problems of education, pos arty, health, and of the other.However, any discussion of what jobtraining/retrainingwouldinvolveseveral might come out of a conference committee is even crmittees of each house, a welt nigh impossible more tenuous than discussinga House bill job, given the time available for congress to work currently residing in a subcommittee. on this legislation. What if H. R. 3581 doesn't pass? Then we The House bill also took as given that no are left with the 1990 Farm Bill.And although significant increases in appropriated funds for these may bebitsandpiecescalledrural rural de.dopment would occur, either through development, these are highly likely to be farm new appropriations or through allocations from legislation masquerading as rural development. other programs.This means that any change in Rer :tedly the Senate supporters of S.1036 have allocation of funds has to come by redirecting discussed the possibility of inserting its bnguage existingprograms,andtheredirection is as a rural development title of the Farm Bill, but substantial. Essentially existing project-specific historically we have not had much in the way of FmHA programs would be converted to state real rural development legislation in a farm bill. block grants. The only mention of new monies ir, On the o'her hand, S.1036 did pass the Senate the bill is an authorization for rura' technology without a dissenting vote, and a very similar bill grants of Sf3 million for each of fiscal years 1990, was introduced in the House with at least 100 co- 1991, and 1992. sponsors, so we shouldn't write off ;his possible Extension is specifically require.' to establish outcome. a national training, technical and management For the rest of the Farm Bill, the USDA will assistanceprogramforruralbusinessand proposearuraldevelopmentresearchand

34 educationsubtitleunderTitleXIV, the if not the key, actor in this bill. One source flat- Agricultural Research, Extension, and Higher ly said, "If Extension does not step up and take Education title.With all due respect to the advantage of this opportunity, then don't count Extension Service and NASULGC staff members on me for any further support of Extension." Are who have worked on this laaguage, these will we really ready for this kind of challenge?I be- largely bc a collection of well-intentioned and nice lieve there are a lot of influential people at all soLndlng but largely empty words in the absence levelsfederal, state, and localwho are watching of support from ECOP, ESCOP, and the land- Extension closely and trying to decide if we are grant community.Here, I mean support to the still worthy of their support.Are we ready to extent of saying funding for rural development meet the challenge of major resource shifts oven research and education is more important than in the absence of added funds? additional increases for such things as As I said in the beginning, I'm really not sure biotechnology and traditional commercial what is good news and what is bad news.Can agriculture research and Extension programs. you decide? What about other areas of concern to rural areas, for example, rural health? A number of congressionalbillsaddressingruralMedicare reimbursementinequitiesandruralhospital closings were introduced early last year, but the best betis that no action will occur. Budget implicatich.s are the reason. M,rny other national level issuesgill impact on rural America.The education problem in rural areas always surfaces as a critical problem, but historically this is seen as a state and local issue, not a federal cne.But the education problemismost criticalinthose states and localities which are least able to address it, from a fiscal standpoint. What is the answer? There is a lot of talk about a so-called peace dividendinconnection withdetente anda supposed decline in the defense budget. Not only is it not clear that a "peace dividend" will in fact develop, but it is a distinct possibility that such a dividend would adversely affectrural areasif military bases in rural c"...11s are closed. Rthal poverty generally and the increasingly serious problem of children in poverty isnot addressed directly by any existing proposal of which I am aware. Where does allthis leave us?Have you decr.led what of this "news" is good and what is bad?Let me give you one last tidbit to think about. If H. R. 3581 should pass, Extension wouldhavetoplaya largerolein its implzmentation and effective operation. Not only isExtension assigned a specific new program withoutaddedfunding,butimplicitinthe required long range rural development plan for each local area is a vital role for Extension.In fact, the House sponsors see Extension as a key,

35 fTh l;..) RURAL BUSINESS DEVELOPMENT AND ENTREPRENEURSHIP CHALLENGES: IS EXTENSION ABLE AND/OR WILLING?

Thomas G. Johnson, Associate Professor Department of Agricultural Economics Virginia Polytechnic Institute and State University

Dennis U. Fisher, Professor and Economic Development Specialist Tcxas Agricultural extensim Service Texas A & M University

INTRODUCTION under growing pressure to become more relevant, address broader societal issues, and become more In 1985, Dennis Fisher called upon Extension cost-effective. Certainly, one could argue that totakebetteradvantageofthe"untapped Cooperative Emension needs "something like" a audience represented by small rural husiness small business program, as much as small t.usiness (SRBs). The relationship between Extension anC needs "something like" a Cooperative Extension SRBs had many of the elements necessary to be Program. a good one. SRBs had particulat educational and This paper assesses the opportunities, obstacles, information needs; no one else was providing (or andalternativestrategiesfacingCooperative vas in a particularly good position to provide) the Extension in this area.It atZempts to generalize education and information.Extension was an over the circumstances of (at least) the Southern experienced provider of similar programs to farms states, but recognizes that the circumstances often and agribusinesses, and Extension had an existing vary substantially. deliveryinfrastructure. Furthermore,Fisher pointed out that such an activity would support "the stability of the local economy, the quality of THE POTENTIAL FOR RURAL life in tne area, and the availability of off-farm DEVELOPMENT THROUGH SMALL employment for farmers and ranchers." BUSINESS DEVELOPMENT Fiveyearslater,these circumstancesare relatively unchanged except that thelevelof A number of authors have pointed out the interestLiruraldevelorinenthasincreased need for expanded non-farm employment in rural substantially; the economy-wide interest in small areas (Brown, et al.; Knutson and Fisher). Others business and entrepreneurial support may be at an have argued that non-farm employment can be all time high, and there is some reason to be best achievedthrough the support of small optimistic that the level of financial support for businem.especiallyentrepreneurialbusiness such program, from federal and, in many cases, (jolinson; Kraybill and Johnson). Entrepreneurial state sources is rising. Furthermore, Extension is businesses are defined as fast growth, innovative,

37 technoloav-based industries. From the rural community's perspective, the David Birch has referred tothe emerging role of SRBs will be determined by the availability national economic environment asthe "New and quality of certain fundamental ingredients Economy" (Inc. 1987a). This term alludes to the including innovation, entrepreneurship, the pool growth in cconomic activity among small, rapidly of business skills, leadership, infrastructure, and growing technology or service-based businesses and financing.It will be argued in this paper that to the important role played by entrepreneurship, Extension can play a role in each of these areas. innovation, and franchising. The focus of this paper, however, is limited to the The New Economy has significant regional first three. implications.Inc magazine refers to America's Innovation occurs where incovators are, and "two economies" or, more specifically,toits most of these are attracted to urban areas for a "bicoastal" economy (Inc 1987b).To a large varietyofreasons,includingthetraditional extent, the two economies coincide with and location of innovation-spawning firms and the define rural and urban economies. The important superioravailabilityofinfrastructureand commonality among the "other states"istheir agglomerative services in urban areas. greater reliance on agriculture, forestry, mining, Furthermore,innovationisprobablystifled and traditional manufacturing--thatis, on the somewhat in rural areas by the lower levels of typically rural industries. educational attainment. Why have the economic benefits of this New Entrepreneurship isdiffict 'tto define, and Ecoi.omy eluded so much of rural America? To research on the characteristics of entrepreneurs answer this question,itis important that we and entrepreneurshipisvery limited. While understand the nature of the growth in those entrepreneurship may require certain areas that are growing. The basis of much of this predispositions, anectotal evidence suggests that growth is small entrepreneurial firms.Birch has entrepreneurship may be learned by example and pointed out that between 1980 and 1986, Fortune developed through experience. 500 companies laid off a net 2.8 million workers Recent research (Gladwin, et al.) points out while, overall, almost 10 million jobs were added the special needs of small businesses, especially to the U.S. economy. rural small businesses.Findings of importance Which companies were creating these jobs? include: Eighty-three percent of new jobs were created by the fastest growing 5 percent of firms.Sixty-four 1. Ruralbusinesses must become more percent of these firms started with an employment integrated into the community than urban of less than 20 employees and 97 percent started businesses to be successful. with less than 100 employees. Drucker points out that these firms are generally not high-tech firms 2. Rural businesses usually find and fill small as often assumed.High-tech employment barely niches because total sales in any particular offsets the loss of manufacturing employment in market are usually very small in rural the Fortune 500 firms. A majority of the jobs areas. created have been in sectors broadly defined as services (personal and business services, retail, 3. Business growth in rural areas is more wholesale, transportation, hotels and restaurants, likely to come from purchase, or start-up, etc.).In the past, employment growth in the rural ofunrelatedenterprisesrathertnan South has depended on the location of large through increase in marKet share of the goods-producing industries. These firms were current enterprise. locating in response to low labor costs and access to abundant labor.Today, these firms find that 4. The decision to start a business in a rural their costs are often minimized by locating off area is most often based on the existence shore.Rural areas must join the mainstream of ofan opportunity, frequently an the New Economy by shifting the7r emphasis to opportunitythatcanbeinfluenced small business (especially services). How likely is through public policy (financial backing, this to occur? the availability of a buildir etc.).

38 3S 5. Constraints onstarting or buyinga 5. What obstacles must be overcome in order business (lack of a good idea, lack of to be effective--institutional rigidity within capital or credit, lack of management the university and/or at the local level, experience, fear of failure) are frequently resistance from agricultural organizations, opportunitiesforpublicpolicyand turf battles with other institutions? education. 6. What kind of support will be needed from 6. Few small rural entrepreneurs have good the teaching and research components of objectivepicturesofthefinancial our departments and universities? condition of their businesses. 7. What resources (human and financial) will 7. The managerial sophistication of small, be needed and where do we get them-- rural businesspersons varies considerably from new sources or from reallocations among firms. from existing programs?

8. "There is...acritical need to develop a 8. When reallocating human resources, how financial management information system do we make any necessary career shifts that is relevant to small businesses and attractive? useful for training" (Gladwin, et al., p. 16). 9. Whatkindsofprograms(inservice Thepoolofbusinessskills(including training, study leaves, etc.) are needed to management, finance, and marketing) among small expedite the transition? rural businessesisclearly expandable through education programs. Furthermore, the incidence and success of entrepreneurial activities could also DEMAND 'Je influenced through appropriate programs. The number of small businesses is large and growing rapidly, and while larger firms have WHAT ROLE COULD COOPERATIVE professional managers, small firms are usually EXTENSION PLAY managed by hie owner who is rarely trained in all aspects of management.Thus a need for this To evaluate the potential for an expanded role education exists.Whether this is an effective for Cooperative Extension in mall business and demand for the services of the Extension service entrepreneurship education I must address the is dependent on our ability to get the attention of following questions: the SRBs.Fisher distinguishes between three typesofbusinessmanagers--entrepreneurs, 1. What is0.-..potential demand for this managers, and shopkeepers. Entrepreneurs (those education, and how do we getthe who start businesses) are looking for ideas and attention of small businesses? opportunities.This makes them interested and educable in business matters. However, they are 2. How much educational material exists, usually busy with competing activities which makes how much must be adapted, arid how it hard to get and hold their attention. Managers much must be developed? (those who operate businesses for a sustained period of time) are also educable and will examine 3. Is the material in the right form (length, new ideas more thoroughly than entrepreneurs. appearance, format, media, cost) to be It is also easier to get and hold their attention. effective for this audience? Shopkeepers (those who simply operate businesses withoutthe intention of increasing salesor 4. Who arepotentialcollaboratorsand returns) are hard to get interested in new ideas. competition in this process? Extension is familiar with these categories of

39

3 C. cHentsbecausetheyalsodescribefarmers. on "hot" topics. However,entrepreneurialfarmersoftenget Someadditionalmaterialisundoubtedly involved in enterprises which lead us to label needed tosatisfythe wide variety of SRBs. them as non-farm or part-time businesspersons. However,theappliedre,searchnecessaryto Also, like farmers, businesspersons are a diverse develop the material is often missing.Existing lot. Some seek management education but others material must be adapted for use in other states shun it.Many look only to themselves to solve and then made available to atension personnel problems while others consider their problems in other states. beyond their control.Neither of these types is easy to work with. This demand can be captured by Emension COLLABORATORS AND COMPETITORS only if businesspersons identify Extension as a source of help with their problems.First, our ny venture into new areas increases the image is likely to discourage some potential clients ch -s of new "turf battles" even when there are since it is often assumed that we work only with clear gaps to be filled.These potential com- iarms.Second, some tiotential clients will be petitors will generally make better collaborators. discouraged if we do not have relevant programs One clear competitor in this arena is the private and materials for them. sector educators who, in the last few years, have developed a large selection of workshops, training programs, and how-to books on small business and EDUCATIONAL MATERIAL entrepreneurshipinresponsetothe growing interest in small business development. The entire Fisher, in discussing Extension's opportunity to franchise area is based on selling good ideas, and respond to the perceived gap in rural business the training needed to ensure success. education, argues that "the subject matter is not Another source of competition could come new, just the audience." He goes on to discuss from across campus in the business school. Over the availability and characteristics of good small 250 colleges and universities have added entrepre- business edt,cation material and programs. In his neurship courses to their offerings (Entrepreneur). estimatioa, the availability of material is not a A small number of universities have developed major problem. The management concepts programs in entrepreneurship in their business developed for farms and ranches, nurseries, marine schools, although most still have a big business businesse.s, agribusiness firms, and food orientation. distribution businesses can be effectively taught to Most other actors in this arena will make very SRBs. good collaborators if treated appropriately. Banks We muv, however, make our material and and their state and national associations, the Small concepts palatable to this new clientele.As an Business Administration, state and local depart- example, Fisher points out that thetitleof ments of economic development, SCORE, and business education programs can have a large others should appreciate the assistance given to effect on their acceptability to small business- them by Extension if they are given their due persons.The programs must be perceived as recognition. addressing a need of the businessperson.Also, we must develop our programs so that they recognize the diversity of businesspersons--whether OBSTACLES they have entrepreneurs,managers, or shop- keepers, whether they have existing businesses Or Support from within the university and Exten- are potential entrepreneurs, and whether they are sionitself will be essentialto the successful looking for a primary source of employment or for development of programs in this area. Institution- a t;upplementary source of income.Each will al rigidities are an Important obstacle to OV42!"- require different material and different packaging. come. One approach to the easing of these The programs must be the appropriate length, tigiditiesisto appeal tothe administration's they must look professional, anu should capitalize sensitivity to questionz of relevance.It is impor-

44) tant that they are aware of the widespreadneed delivery approach.It is also human nature to for such programs. Another approach is to gain avoid unpleasant experiences, and for many, even the support of those groups most influentialwith those who have an interest in small business and the administration--agricultural organiza tions, local entreprene-rship education, a change of this Some Extension boards, state and local governments, and nature - have unplensant aspects. t;ecialists are more likely to make the field staff. agents Agricultural organizations may see new thrusts .-1,'than others.Home economics, 4-H/ in business and entrepreneurslup education as an youth, s communitydevelopment agents and erosion of resource; Jevoted to their clientele. In specialists are generally accustomed to working a sense, this is true, but they mustbe convinced with a diversity of clients and may find it easier that this is in their interest since it will strengthen to work with small businesses. However,it is the rural economies. Given their great influence with agriculturalagents and specialists--particularly Extension and land-grant administrations, their those in management, marketing, and finance-- suport may be essential. who are familiar with the subject matter areas In.service training provides an opportunity to needed for this audience. develop support from the field staff by creating Reorientation-by-attrition represents one familiarity with the material and with the special- approach to this dilemma but itis not always ist.The field staff will, in turn, help generate possible.Vestal interests develop around job support from local Extension boards andlocal descriptions quite independent of thz. individuals governments. in the positions.This is also a very slow and Another general strateg isto create new inefficient way to achieve reorientation. sources of support. Small businesses represent an ideal type of support for an Extension prograr such asthis--they are numerous, ubiquitous, CONCLUSIONS conspicuous, and influential with state and local governments.Thus, as Extension increases its The obstacles to development aad expansion of programs in this areait can also develop its small business and entrepreneurial Extension support base. programs seem formidable.There are lots of good reasons for leaving our Extension focus alone. But there a.compelling reasons for RESOURCES pressing onward as well. Extensionmastmaintainorincreaseits The addition of new claims on existing re- relevance to s&ciety if itis to expect rontinued sources forces some tough choices.What pro- suprxt. There is growing evidence that members grams are to be eliminated or down-sized?This of society are weighing Extension's relevance with choice assures that not only those who are asked more scru.'ay. Small business and to shift areas but essentially everyone inthis entrepreneurshipprogrammingrepresentsan system becomes involved in this decision.It is opportunity to substantially increase our relevance human nature to feel that the areas that you have and our support.In the end this may enhance investeu human capital inare important and our abilitytoprovidethemoretraditional already under-supported.Thus there is natural programming.If that is our assessment then we opposition to change. mustbe,g!rito decide how to overcome the In this case, the reallocation of human re- obstaclesandtakefulladvantageofall sources represents2particularly critical and thorny opportunities in this area. challenge.What is required in many states is a reorientation of many positions, if not individuals. It is unrealistic, of course, to expect individuals to REFERENCES simply add this area to their already burdensome lists of responsibilities. It will almost always Brown, David L, J. Norman Reid, Herman Bluestone, DPvid A. McGranahan, and Sara M. Mazie (eds.).Rural require a change in priorities and for some a Economic_Development in the 1980s:Prospects for the change in subject matter, clientele, support, and Agriculture andRural Economy Division,

4141 EconomicResearchService,U.S. Departmentof Johnson, Thomas G. "The Role of Entrepreneurship in Rural Miculture. Rural Development Research Report No. 69. Economic Development." Towards Rural Development Policy for the 1990's:Symposium Proceedigp. Joint Drucker, Peter F. Innovation and Entrenreneurship: Practice Economic Committee, Congress of the United States. and Principles. New York: Harper and Row, 1985. Washington: USGPO, September 1989, pp. 156-161.

Enterpreneur. "Phi Beta Business." pp. 91 97, October 1989. Knutson, Ron, and Dennis Fisher.Options in Developing a New National Rural Policy:Rural Development Policy Fisher, U. Dennis. 'The Business AudienceExtension's Workshops. Tccas Agricultural Extension Setvice, Term Untapped Opportunity."Proceedings:CRD Leaders A&M University, College Station, Tctas, May 1989. Workshonommunity Issues and Opportunities, Utah State University, Logan, Utah, September 24-27, 1985. Kraybill, David, S., and Thomas G. Johnson. 'Value-Added Activities as a Rural Development Strategy."Southern Gladwin, C. H , B. L. Long, E. M. Babb, L. J. Beaul:eu, A. Journal of Agricultural Economics 20:1 (July 1989) pp. 21- Moseley,D.Mulkey,andD.J.Zimet."Rural 36. Entrepreneurship: One Key to Rural Revitalization." American Journal of Agricultural Economics 71(1989). lnc. 'The Booming Hidden Market." pp. 15-16, October 1987a. Notc The authors wish to thank Drs. David Kohl and George lnc. "Coast to Coast." pp. 76-77, October 1987b. McDowell for useful criticisms of a previou.s draft.

42 4 2 A NICHE FOR EXTENSION ENTREPRENEURSHIP EDUCATION FOR YOUTH

Kimberly J. Reda-Wilson, Co-Director Center for Economic Education Virginia Polytechnic Institute and State University

INTRODUCTION a literature review which addresses the attributes and predictors of entnpreneurship. As an Extension employee involved with youth education,Iam infullagreement withthe Johnson/Fisher paper which states that, "Extension ATTRIBUTES AND PREDICTORS OF isunder glowing pressureto become more ENTREPRENEURIAL BEHAVIOR relevant, to address broad:r societal issues, and to become more cost-effective."I also adhere to the Ron Lachman, who studied two groups of philosophythatthis is theageofthe managers in Israel, concluded that entrepreneur, and given the economic climate of entrepreneurship can be identified by personality rural America, a focused attention on characteristics(highachievement values and entrepreneurship education would have a definite motivation) as opposed to functional identification positive impact on rural America. (d Tendency need); i.e., people are entrepreneurs kt this point, I would begin to emphasize and becausetheyhaveactedlikeentrepreneurs focus on the "when" and "how" entrepreneurship throughout their lives. education should be taught. Frances W. Rushing Michael Palmer writes abc the problems states,"Asthe acknowledged imporvIce of with measuring entrepreneurial "potential" which entrepreneurshipeducationincreased,some is a necessary condition to providing educators advocated teaching entreprcaeurship in eatrepreneurial "talent" to pographic area, in secondary schools since many potential need of economic development.He concludes entrepreneurs may not go to college."This is a that attitudinal and motivational tests provide highly critical point relativetorural America some measure of an individual's nerception of risk where, even though I can't quote an exact statistic, and his/her ability to handle that risk which are I would estimate there are high percentages of exantifactors keyintheidentificationof youth not attending college. Rushing poses other potential entrepreneurs. fundamental questions: "Can entrepreneurial David McClelland :)elieves that there is little talents or attributes be developi.d, and if so, can pointinproviding additionalentrer-Ineurial thisbe done in a formaleducational opportunitiesforthose withoutachievement environment?" Her answer, "yes," is derived from motivation or a need to seize such opportunities. ,

4 3 Thus, anentrepreneurialprogramneedsto entrepreneurs in the ecoromy and learn about developthepsychologicalcharacteristicsof opportunities that exist within their economic and individuals before they will utilize the pragram. social structures.Grades eight through twelve His studies from india, in which a doubling of wouldcontinuetoaddressenhancementof :.ntrepreneurial activities was observed, indicated entrepreneurial talent and awareness of that motivation can be taught and devei ped opportunity but would begin focuing on the skills regardless of age. necessarytoplan,form,andmanagean The master mind, Dr. Marilyn Kourilsky, entrepreneurial venture.College would entail studied 30 simulated economies in order to isolate more formal and in-depth entrepreneurship and those characteristicsinchildrenthatleadto economics courses. successful entrepreneurial behavior!Kourilsky Let me emphasize the awareness component also points out that learning theory suggests that of entrepreneurial education that could begin in the cognitive element (ability to use information middle-school. Calvin A. Kent has identified two and education) is much more amenable to change important criteria for awareness.The firstis thanisthe motivational element (Olkineura). becoming aware of the role entrepreneurs have Her iesearch revealed that persistence, not risk- played, are playing, and will play in society. He taking, was the most significant predictor of entre- agrees with Murphy that for the high school preneurial success.Further analysis indicated student, the best method of enabling students to that academic ability and initiative were the next become aware of the entrepreneurial role is an two predictors of successful entrepreneurshir for internship which leads to a mentor relationship boys, whiie it was maturity and pereepticu of between student and entrepreneur.The second success for girls.Kourilsky emphasizes that if it form of awareness is allowing students to see that is possible to determine tne relevant characteristics entrepreneurship is a dist:net career possibility. related to entrepreneurial behavior, thenitis Kent has identified six essential economic possible to make a concert-d effort to develop understandings associated with entrepreneurship those traits at an early age, thus increasing the which should be part of an economics education entrepreneurbi talent pool in our society. curriculum:

1.Entrepreneurship is a separate productive ENTREPRENEURIAL EDUC.KT1014 WITHIN resource (factor of production). ECONOMICS INSTRUCTION 2.Entrepreneurship creatcs a disequilibrium whereby new demands and supplies are If we accept as an educational objective to created. incr.tase entrep..crieurial activitie; which discover 3.Entrepreneurship requires profits in the and develop entrepreneurial attributes, thereby long run. Licreasing the pool of entrepreneurial talent, then 4.Entrepreneurshipcreatestechnological we must answer how to accomplish the task. I change. join the forces that advocate for entrepreneurial S.Entrepreneurship generates jobs. education to be part of economics education 6.Entrepreneurship causes economic growth. instruction. The justification is that young people need the basic economic concepts that form a cognitive domain in which entrepreneurship can ENTREPRENEURSHIP EDUCATION AND be developed (Rushing). DISADVANTAGED YOUTH Rushing suggests a comprehensive curriculum which addresses entrepreneurial education Steve Mariotti, director of the South Bronx beginningwithkindergartenthroughseventh Entrepreneurship Education Project in New York, grade, the formative yearsin which a child's maintains that of over 260 studies to improve our personality is still very flexible and receptive to nation's public schools, none have dealt with the new ideas.Perhaps these years are optimal for issue of entrepreneurship.He enumerates the developing entrepreneurial talent. During grades benefits: six through eight, students could study the role of

44 4 I,Again andagain,his lessonson preneurialeducationrequiresthoantithesis: ontrepreneurship appeal strongly to those individual development, fewer 'right' and 'wrong' students viewed by other teachersas answers, and greater tolerance of deviation from undiscipned and low achievers. norms" (Rushing).Many school administrators 2.Perhaps the greatest benefit to and even business educators don't understand the entrepreneurshipeducationisn. an role of entrepreneurship in our society and are economic one, but the nourishment of intimidated by the new skills required to teach it. self-esteem. This is particularly helpful in Yet, Mariotti contends that this phenomenon is areas where the negative self-image of the no different than the decision to teach computer inhabitants may becl,rived from skills ten years ago in which schools have since unemploymentandabeliefinthe become competent. omnipotence of government or other agencies. The vonomic situation can be improvedbecauseeconomiccontrol A NICHE FOR EXTENSION USING (through entrepreneurshiptraining)is VIRGINIA AS A CASE STUDY brought to the people. Most of the work and the people thus far Mariotti attributes his success on courses in quoted are affiliated with the Joint Council on entrepreneurship to the special skills and qualities Economic Education (JCEE), which leads the characteristic of inner-city youth.As these are nation in economic education.The JCEE is a specific, ask yourself about the similaritiesto privately funded organization whose workis rural youth: accomplished through 50 stateCouncilson Ec. siomic Education.The mission of the Joint Mental/emotional strength, resourcefulness, Council "is to increase the quantity and enhance independence, and resilionce.It may be true the quality of economic education in the nation's that every adversity has the seed of equivalent schools."2The JCEE network develops highly or greaterbenefit. Children borninto acclaimed motivational materialsforteaching poverty generally develop certain economics, and it provides training for instructors compensatory skills as listed above. who work with youth. It is my conviction that Extension can provide Challenging life experience.The pain of its existing delivery infrastructure to this economic poverty forms one emotionally and intel- education network andutilizethenetwork's lectually. The hopeof entrepreneurial existing economic education programs/materials, education is to assist students in examining while both organizations benefit tremendously! theirlives for lessons applicable to their Virginia is a case study,One of the pre- future, set short and long-term goals, and to requisitestothissuccessfulscenario wasa realize their potential. university-based Extension specialist who had the opportunityto work with boththeVirginia Natural entrepreneurial ability. Many entre- Council on Economic Education and the Virginia preneurial attributes--i.e., willingness to take Extension youth program, i.e., 4-H. (Inthe risks, assertiveness, persistence--can be traced situationatVirginiaTech,theCenterfor to the necessity to be self-reliant at an early Economic Education director was also the 4-H age associated with an atmosphere of poverty. specialist for business and economics.) Once understanding the economic education network, 4-H was viewed as a golden opportunity to begin PROBLEMS IN INTRODUCING YOUTH implementing some non-traditional programs like ENTREPRENEURSHIP EDUCATION CCOnoilliCS. If 4-H would adopt an economics curriculum, not only could it be promoted in the Overall educational demands appear to be for re traditional 4-H community club setting, but more structure, larger numbers of tests, and more 4-Hcouldpromote economicsinitsever of alock step approach. "However, entre- expanding in-school program delivery system.

4 5 4 r-,(-, .1111111.

A core business and economics curriculum for they are costly. These programs, which enhance reading and math skills, are designed to foster those difficult-to-track ages five through 19 was adopted for Virginia attributes of imagination and foresight. 4-H and subsequent training provided.3 The 4-H curriculum is based on gt neral school curriculum, 2"Excel fence in Economic Education." Joint Council on economic concepts appropriate to age levels, and Economic Education, 432 Park Avenue South, New York, NY Virginia 4-H life skills which are:understanding 10016. self;communicating andrelatingtoothers; 3Virginia 4-H has adoptal a "Cloverbud" program for acquiring,analyzingandusinginformation; youth ages five thtough eight.Of the original Cloverbud problem solving and decisionmaking; managing lessons, there are four economic lessons.Other projects include "Business In My Town:Everybody's Business," for resources; and working with others. The program ages nine through eleven; "Stock Market Gz.n_st,' for ages 12 has met with resounding success in less than its through 14; and "Commodity Challenge," for ages 15 through first year of implementation. Four-H enrollment 19. All projects are products of "other" (non-Extension) in economics projects has increased dramatically, agencies. to a large degree through in-school programs. At the same time,through the programming of BIBLIOGRAPHY trained 4-H agentsand/or volunteerleaders, efforts of the Virginia Council on Amomic Johnson, Thomas G. and Dennis U. Fisher.Rural Business Education have expanded into parts ut Virginia Development and Entrepreneurship Challenges:Is Extension where centers for economic education do not exist. Able and/or Willing? Paper presented for the "Revitalizing the Although a decision was made to limit the Rural South Conference," Birmingham, AL, Jan. 17, 1980. 4-H business and economics curricoum inits Kent,CalvinA. "Integrating Entrepreneurshipinthe initial stages of implementation, the first area of Secondary Curriculum: Economics and Other Courses," expansion will be in entrepreneurship. This Economic _Education in the Pm-collegiate Setting: Ptedings expansion should be more easily facilitated with of the Towbes Conference, Santa Barbara, CA, Aug. 10-13, a business and economics curriculum already in 1968, pp. 75-80. place. Kent, Calvin A.'The Treattl, ntof Entrepreneurship in Pnnciples of Economics Textbooks," Journal of Economic Education 20, No. 2, 1989, pp. 153-164.

CONCLUSION Kounlsky, Marilyn.'Predictors of Entrepreneurship in a Simulated Economy," Journal pf Crea.'''e Behavior, 14, No. 3, Evidenced by what has occurred in Virginia, it 1980, pp. 175-1%. appears that a prim,: opportunity does exist for Lachman, Ron."Towaru Measurement of Entrepreneurial Extension to becomeinvolved inyouth Tendencies," Management International Review 20, 1980, pp. entrepreneurship education on a national level. 108-16. Furthermore, the opportunity exists for 4-H to Mariotti, Stce. "The Teachingaf Entrepreneurship to broaden its traditional type programs and provide Disadvantaged Youth! Economic Educanon in the Precollege programming inthe much neededareas of Setting: Proceedinp of the Towbes Conference, Santa economics and entreprneurship education. Such Barbara, CA, Aug. 10-13, 1988, pp. 82-86. a decision can also be cost-effective for Extension McClelland,David. "AchievementMotivation Can Be since research-based materials for youth economics Developed" Hprvard Business Review 5, No. 6, ;965. educationalreadyexistthroughthepresent economics education network. Murphy, Margaret. "Interns and Mentorships in Entrtr. euearship Education Programs." Paper delivered at the conf.ererce on Entrepreneurship/Economic Education, Widener University, PA, March 11, 1988. ENDNOTES Olkmoura, E. Norm Socialization: The Formation of Personal iMuch of Kourilsky's research is a result of her educational Norms.Jyvaskyla, Finland:University of Jyvaskyla Press, programs called "Mini Society: Experiencing Real-World 1974. Economics intheElementary Classroom" and "Kinder-- Economy! These programs are classified by many economic educators as two of thc bst in the country for teaching lower grades economics and characteristMs of imirepreneurship, yet

46 4 6 Palmer, Michael. "The Application of Psychological Testing to Entreprtneurial Potential, "colifornia Management Review 13, No. 3, 1971, pp. 32-38.

Rushing, Francis W. "Economics and Entrepreneurship Education in Elementary Grades." Economic Education in the Precollete Set tim_k__,x*inasCiliticifenzno, Santa Barbara, CA, Aug. 10-13, 1988, pp. 68-74.

47 4 7 RURAL BUSINESS DEVELOPMENT AND ENTREPRENEURSHIP CHALLENGES: IS EXTENSION ABLE AND/OR WILLING? A RESPONSE

Gary F. Fairchild, Extension Economist Food and Resource Economics, University of Florida (Helpful insights and suggestions were provided by Steve Ford, Rod Clouser, .1t,hn Holt and Lois Libby.)

Inreactingtothe above-titled paper by asual observer. Thomas G. Johnson and Dennis U. Fisher, my The authors note that expanded non-farm charge isto respond from the perspective of employment can beet be achieved through small Extension farm management and marketing econo- businesses.But how many of these businesses mists. This becomes a formidable task given the are there?Is there any way of measuring what diversity among farm management and marketing the employment growth potential is from small specialists in the region.Furthermore, most of businesses? Gladwin, Long, Babb, et al. in their my colleagues would be concerned if they knew paper, 'Rural Entrepreneurship:One Key to that I was attempting to represent them in this Rural Revitalization,' suggest that rural businesses response. My comments will generally be of two may make only modest contributions to employ- types: (1) reactions to and observations on the ment, based on their study of rural entrepreneurs. Johnson-Fisher paper; and (2) comments on rural Johnson and Fisha suggest that the role of business development and Extension stimulated by small businessinrural communities willbe the paper. deter-tined by innovation, entrepreneurship, pool of business skills, leadership, infrastructure, and financing. Perhaps what are needed are simply a REACTIONS AND OBSERVATIONS good highway and an educated, well-trained labor force.Although the authors indicate that they Johnson and Fisher have done an excellent will focus on innovation, entrepreneurship, and job of framing the situation and asking the right the pool of business skills, each is dealt with in an questions with respect to the role of Extension in abbreviated fashion. The suggestion is made that rural business development and entrepreneurship. innovation is primarily an urban function with They begin by noting the "obvious potential" fit relatively low levels of entrepreneurship observed between small rural businesses and Extension. in rural areas due to low levels of education. I However, I am not certain as to the source of am not certain that we can teach innovation. The Leir with respect to increased interest special needs of small business entrepreneurs are rural business development. The authors again well outlined, drawing on the above-noted paper exvess optimism with respect to increased finan- by Gladwin, Long, Babb, et al.Johnson and dal snpport for small rural business programs.I Fisher believe that the pool of business skills wish they had provided measures of this increased among small rural businesses is clearly expandable financiol support, as it may not be obvious to the through eduwional programs.I agree.

4 8 The very best part of the is the list of Is there an abundance of evidence as to admini- 10 questions which Johnson and Fisher suggest strative sensitivity to programs not related to must be addressed in evaluating the potential role commercial agriculture? for Extension in small business and entrepreneur- In attempting to generate support for rural ship education. The questions deal with: demand business programs among farmers and agricultural for educational services; existence of educational organizations,JohnsonandFishercorrectly materials; potential collaborators Ind contributors; identify commercial agriculture's concerns about obstacles; teaching and research support needs; diminished resources devoted to their problems. human and financial resource needs; and human Given constant to decreasing real resources, it may resource allocation questions. be difficult to convince them otherwise. Although The authors do a gene silly adequate job of community viability (including tax support for expanding upon these questions by identifying the education) can be enhanced by rural businesses, key elements involved in each area. With respect as profit maximizers operating in a competitive to the authors' discussion of the demam: for economic environment, farmers are correct in their educational services, it should be noted that there concerns about the impact of decreasec program is a big difference between identifying educational support per f2rmer. needs and creating effective demand for Exten- With respect to Extension Reld staff genera- sion'sinformationandeducationalservices. ting support for small rural business programs, I Sometimes the greatest educational needs produce have serious doubts when it comcs to county the smallest audiences. agricultural agents.I base my concerns on the I am interested in the authors' observation problems faced by many state farm management that some people consider their problems beyond and marketing specialists in generating interest their control and thus do not seek management and support for economic information and pro- education.I would suggest that some managers grams among biologically-based county Extension also simply wish to avoid the thinking and decis- agents.Economists tend to deal with issues in ionmaking requirements of management and which not only the answers but also the questions marketing Extension educational programs. These are constantly changing. Given the time demands programs do not tend to provide easy solutions to from a myriad of sources faced by the county their problems. agricultural Extension agent, economic problems The authors believe that educational materials and issues are often ignored.It may be safe to are available but n -4 to be "packaged" for small say that if agricultural agents like management rural businesses. They also note that "programs and marketing issues, they are going to love small must be the approptiate length, look professional, business management issues.I suspect that home and should capitalize on hot topics."I agree. economics and community development agents will However, these are lessons we have not learned be much more receptive to small rural business very well in providing educational programs for programs and thepotentialcontributionsof the commercial agriculture sector. Therefore, my management and marketing specialists. optimism in this area is somewhat tempered. Traditionally, most farm management, market- Johnson and Fisher correctly note that there ing, and finance economists working in Extension are many competitors in the area of business have viewed rural/community development pro- management, some of which can be converted to grams as being a little spooky.However, rural collaborators.It should be pointed out that many business development may well be the bridge of these crimpetitors may wish to remain com- which can connect these two groups. Given the petitors Its they may not need to collaborate with seriousness of the rural economic conditions, every Extension in order to be successful. effort should be made to address the problems of The discussion of obstacles stimulates several rural America with various combinations of human observations. First, the authors correctly identify capital represented within the land-grant system. institutional rigidities as an important obstacle to The discussion of "resources" by Johnson and successful program development.Second, they Fisher really hits home. Given the current and suggest appealing to "administration's sensitivity to expected funding situation, new or expanded questions of relevance.How does one do this? programs mean tough choices,What programs

50 4 are to be eliminated, reoriented, or downsized? and complex question.Among Extension farm Not mine! What other response would you management and marketing economists, i am not expect? What incentives are available for in- convinced that there is widespread willingness to dividuals to change program focus? Extension and expand applied research and education programs university systems do not tend to be very effective to include non-agricultural rural business develop- in the use of carrots and sticks.But perhaps a ment and entrepreneurship.However, this is no more important issue is the fixed human capital more unexpected than a lack of desire on the part cost already invested in a particular problem area. of community/rural development specialiststo Itis not a simple matter for an individual to become involved in trtdrketing and farm manage- retool, reinvest, and disinvest with respect to his ment issues. Factors affecting this lack of willing- current knowledge base.Furthermore, program ness among farm management and marketing changes, either forced or voluntary, must be specialistsinclude:currentfullemployment; addressed in terms of potential obstacles such as perceived lack of professional payoff; lack of com- tenure, promotion, and career advancement. What plementarity with existing program; perceived lack about dollar resource problems and user fees for of administrative and client support relative to publications and services? Where is USDA in this commercial agriculture; job experience not readily process?They tend to be driven by commodity transferred to small non-agricultural business; lack programs, not rural development programs. I of interest in developing such a program; no clear agree with Ron Knutson (whichisgenerally vision of success associated with such programs; regarded as dangerous to one's career) about current clientele resistance to program expansion administrative leadership being essential to success and thus dilution.It should be noted that some and change with respect to rural development Extension farm management and marketing econo- programs. mists may be willing to consider involvement in small rural business programs subject to clientele, resource, and administrative support. GENERAL REMARKS For a suocesscul shift or expansion into rural busins development and enuepreneurship pro- So, from the perspective of farm management grams, there must be top-down direction and and marketing economists,isExtension able support from administration.If not, I do not and/or willing to become involved in rural busi- foresee major shiftsto or support forrural ness development and entrepreneurship programs? development (small business management) pro- Is Exteusion able?I belitwe that many are grams among marketing and farm management able to contribute to such programs, particularly personnel.I think this is unfortunate, but under- farm management ant; agricultural finance special- standable. We are not necessarily well-prepared ists.Those economists with a firm-level orienta- for a major shift towards small rural business tion may he able to transfer knowledge and skills development/management programs.Significant applied to farms and agribusiness firms to small changes in faculty skills and job descriptions may businesses in both rural and urban settings. Less be required to serve this clientele.Perhaps the able,perhaps,areindustry-levelcorc:todity time and cost involved in retrofitting an institution marketing economists who have developed human to meet theidentifiedneeds (demands?) of capital in addressing industry-wide supply, demand, potential and existing small business managers and and policy issues. While not totally incapable of founders are less titan ve think.Perhaps only making a contribution to small business programs, one or two bus:.ness malagement positions com- considerable teorientation may be required for bined with Nsitions in community and rural commodity marketing specialists in order to focus development, rural sociology, home econcmics, onfirm-levelmarketingproblemsofsmall leadership and 4-H would make all the difference. rural/urban businesses.Those marketing econo- Maybe with the help of business administration, mists who currently focus on firm-level marketing education, and other social science departments we programs should be able to contribute to small could make a significant impact. The exhibits of business prograras. ruralbusiness management programs at'ids Is Ertension willing? This is a more difficult conference highlightedthe potentialfor such

51 5 (1 programs. There have been successes across the have assumed that an educational need exists country. There probably have also been failures. accompanied by an effective demand for educa- It may be instructive to determine the factors as- tional programs. This is a convenient assumption sociated with successful programs.How much given the perceived need to broaden the clientele administrative support have they had? base of the land-grant system. But the question Agricultural marketing and farm management arises as to whether'Extension can become the are based on decisionmaking.The strength of functioning small business administration/manage- these subjects lies iv providing frameworks for ment training provider for rural America. In spite decision and developing the best available infor- oi our survival-motivated search for new clientele, mation for those decisions.This is what Ex- perhaps we need to rephrase the title of the tension farm management and marketing econom- Johnson-Fisher paper to read, "Is Extension Ad- ists do best.It is reasonable to assume that these ministration Able and/or Willing to Provide the subjects can offer positive additions to the rural Financial and Human Resources Needed to economic development effort.However, if an Adequately Address the Issue of Rural Economic analogy can be drawn between small businesses Developmentr Resources always seem to be the and small farms, then it should be noted that limiting factor. But beyond doing more with less, small farmers have not always been overwhelmed can Extension make the choices necessary to by what we have to offer.Sometimes we have enable a significant shift of resources to rural more information and materials to offer than economic development?Is Extension willing to interested clientele to serve.As noted, county acknowledge such a shift? agricultural agents are generally biology/production Recently, the Urban Development League sug- oriented and not particularly t-oncerned about gested a well-funded "Marshall Plan" for urban management and marketing aspects of economics. areas. Can Extension and the land-grant system Given the attitudes of many county agents toward be the vehicle for a possible "Marshall Plan" for economics, wili the responsibility for small rural rural America?If we had a massive increase in business programs fall solely on state specialists resources, could we make a difference in the such as farm management and marketing? I think economic viability of rural America?If the so.However, community and rural development answer is yes, then we need to figure out how to specialists and other state specialists such as home do it without more resources. If the answer is no, economists certainly have significant roles to play then maybe it is time to be more realistic with indevelopingprogramstoaddresslabor respect to our role in rural development. problems/regulations, business red tape, licensn, Rural business development, much like com- permits, and a host of other problems to be munity development, is easier to talk about than con...fronted by a business.There appears tc, be to do something about. This is not a criticism but more than enough for everyone. rather an acknowledgement of the complexities According to Johnson and Fisher, there are and difficulties facing Extension and the land-grant plenty of good materials in the country which system in attempts to revitalize rural America. could be adopted and utilized for small rural But then, I guess that is what this conference is business programs. Given the limited resources all about. Do you think we can do it? (dollars and people) available in each state for such programs, perhapsregionalornational efforts should be made to assemble and package management information for small rural businesses to be used by all states. Rural areas and communities are in trouble. Economic viability and quality of life issues for rural America are of critical importance.Rural areas are the bread and butter support for the land-grant system and the Extension function. Therefore, we have problems. Specifically in the area of rural economic development, we seem to

52 PALMETTO LEADERSHIP AND ECONOMIC DEVELOPMENT

Verne V. House, Professor and Director of Pahnetto Leadership Loretta A Singletary, Doctoral Student and Intern in Palmetto Leadership Clemson University

CAN LEADERSHIP AND ECONOMIC impact" of rural leadership development. DEVELOPMENT BE COMBINED? Howell, Wier and Cook'. in their comparative studyreported at the 1980 Leadership Leadership development focuses not on an Development for Rural America conference, and ig.ue, not on a social problem, but on individuals. Williams and Faulkner2, in their evaluation of It focuses on human development, not community Montana's program, pioneered the path for rural development or economic development. leadership evaluation.Successful programs were Community development focuses on a condition those whose participants increased their activity in that some people want to change. The question economic and political organizations and other is: Can these two types of programs be combined instrumental groups.Also, program success was successfully? Should weexpectleadership judged to have occurred when participants moved development to result in community and economic to higher power levels.In the ensuing dec.^ , development? Although academic literature does there has been little effort to measure economic notsupportthiscausality,sucheffectsare development initiated by these organizations as a possible. Clemson University's new Palmetto result of absorbing newly developed leaders. Leadership program is designed to do both. We Earlier academic work to define leadership think it will work, but because it is experimental, focused on specifying behavioral characteristics we are presenting the design here for critique. and personality traits of leaders."Hierarchical positioning," for example, in the community power structurehas been suggestedasthe primary LEADERSHIP PROGRAM EVALUATION determinant of effective leadership. In this sense LITERATURE information and access to resources are positively relatedtopositioninanactionnetwork. An exhaustive review of the literature on Accordingtootherfindings,age,education, evaluations of leadership development did not occupation and o ther socioeconomic characteristics produce any evidence that leadership development areunimportantindeterminingleadership. hasanimpactoneconomicdevelopment. Instead, itis voluntary involvement that breeds Measurement and specification problems seem to laterpoliticalactivity--irrespectiveofsocio- have precluded isolation of leadership economic status.That is, voluntary associations development as an independent variable.In fact, provide opportunities for development of new nowidelyacceptedorformallyestablished relationships as they attract people into public definitionforleadershipexists. Thus,no affairs organizations which can nurture leadership analytical4efinitionexistsfor the "economic skills and develop other personal resources as wel1.3 Some argue even that gender tends to effective in public affairs.However, there is an follow a predictive pattern of leadership behavior, informal expectation that the project will induce with women belonging to expressive organizations community development. Inourfour pilot and men belonging to instrumental. counties, participants uniformly identified Arguments existstillbetweenthose who economicdevelopment,education,andlocal believe that some men are born great and those government as important concerns. Some counties who believe that great men are made by great also gave priority to water. challenges. Does the key to defining leadership Leaderthip development programs typically then, and its expected economic impact, lie in focus on developing the individual, increasing understanding what traits are necessary to make his/her ability to mobilize resources to work on effective leaders? Or can leadership be thought complex problems. Paimetto Leadership appears of more as a relationship than as an individual to be unique in adding expectations foreconomic ability:arelationshipone develops witha development to its mission. The closest facsimile potential followership? Leadership in this context is Family Community Leadership (FCL) which is defined as first dealing 'with the responsivenf s includes an expectation that learners fulfill their of the group in gaining specifiedgoals," and citizenship roIt.. :hrough work on some issue. Will second, "securing those goals with the greatest Palmetto Leadtrship succeed?No one can be possibleconsideration for the individuals sure;developmentrequiresthatparticipants comprising the group." implement the lessons they have learned in ways In other words, the leader who defines leading thatbringaboutdevelopment. This is as action can allow himself to be influencedby experimental. The literature review gives no others so that followers lead and share in the supporttotheargumentthatleadership problemsolving process. Ronald Feifitz, a Harvard development leads to economic development; yet, professor interviewed recently by Inc.3 magazine, it doesn't say it won't.We are explorIng new asserts that leadership is not authority, not a set territory. of personality characteristics, and not needed for Most leadership development programs equip routine problems.He defines leadership as the the individual. Use of the new knowledge, skills, ability to mobilize resources to deal with difficult and relationships is encouraged but not organized. problems. But the question persists: What Palmetto Leadership intentionally organizes for economic changes might we use to trace ale implementation. A most unique aspect of this effectiveness of leaders in our programs? Most projectisthe formation of a new group of leadership development programs focus on the residentsthathas thepotentialto transcend state level, drawing participants from across a existing policymaking groups.If it works, some state into centralized learning experiences. Let us factional disagreements may become internalized; turn to a specific leadership development program some politics may become inclusive.This may wheie the question lies at a more rudimentary strike you as idealistic, but it is possible. level: Can we induce any development, economic The flow chart attached shows the logic and orotherwise,byoperatinga leadership flow of Palmetto Leadership. The diamonds show development program in a county? Palmetto the three phasesteaching, implementation, and Leadership, Clemson University's unique new emerging leaders.Faculty, both on campus and experiment in leadership development, takes this in the counties, are organized to conduct the approach. program.The pre. ct funds .5 fte of a county agent to coordinate the project.Advisors guide policy and monitor progress. Paricipants are EXPECTATIONS FOR PALMEITO selected in each county.They are chosen to LEADERSHIP represent all interests--economic, ethnic, professional, etcand all parts of the county. 'The The formal objectives of Palmetto Leadership curriculum is taught in the 'ounty as a series of are stated in terms of human development.As seminars: communicationsskillsand group with the programs of the 1970s, participants are dynamics; information on specific topics; and how expected to have an increased capacity to be public policyis made. The breadth of the

54 5 3 curriculumdistinguishes it fromleadership be the recorderkeporter, are assigned to each programs provided by others. Seminar leaders arc group. professors who travel from the ::ampus to the Following is the pattern of a ivity that we counties. The bars marked El, E2, and E3, show want to see.The first stepis.0 define the pre, interim, and post-evaluations. problem. We recommend that the' document the Participants*graduate"aftertheseminar situation (what is) and possible futures (what series.In our first year, 243 leaders from four could be) so that the problem simply becomes counties received certificates of completion; on how to get from what is to what could be.6 This May 3, 1990, the number will grow to about 450 transforms an issue, which isinnately devisive Ladcrs in 10 counties. We are now in the process because itis controversial, into a problem for of trying to induce engagement in local concerns which they can seek solutions. or issues. What do we want to happen? We want our GROUP PROCESS learners to work on task forces on locai issues. Each task force is to: (a) define the issue in terms Define Problem of a problem; (b) set its own schedule; (c) analyze Advisory Review alternative solutions and dtvelop recommenda- Analyze tions; and (d) consult the county advisory/steering Draft Recommendations committee to ensure consisteiv.y. Advisory Review Facilitationisto come from the pool of Meet with Decisionmakers graduates. The organizational structure attached Inform Public. gives a static picture.Suppose a county has 60 graduatesand wantsto work on economic The smaller group isstill part of Palmetto development, education, and the other topics Leadership and Clemson University.Therefore, listed.One county agent (.5 fte actually) it is necessary that it be responsible to the larger obviously could not facilitate all of these groups. group. We wantthePalmettoLeadership Instead,15 of the 60 will be trainedto be Advisory Committee to review the problem before facilitators. The agent is to manage this group of work starts and to review the recominendations facilitators. He/she "coaches' the process, ensuring before they go pubfic. communications among the task forces and with The next steps are to identify alternative the advisory committee. And the agent helps solutionstotheproblem and examinethe locatetheresourcesneededtoanalyzethe consequence.; of each solution. They may choose problem. He/she also must project a constructive bimplytopresentthealternativesorto image for each aspect of the work.If the small :ecommend one. Before they do either, they are groups function as "vigilantes" they may or may to make their case to the Advisory Committee. not succeed in hanging a few villains, but they will When those two bodies come to agreement, the very surely hang the project. group is to present its report to the appropriate The structure is a static view. How z..re we decisionmakers and ask them to join in sponsoring going to make this happen? We can't tell our a public forum or some other means to inform graduates what to do.They will only work on the public. something important to them. Our job is to make This completes the process.Citizens who it easy for them to engage. So, we are offering a want to take the case into the political arena are high quality Tacilitators and Coaches School" encouraged to do so, but not under the flag of This will be done at the beginning of Phase II. Palmetto Leadership or Clemson University. This course will teach a group process and the Will it work? This conference comes just as skills to manage a group through its steps. This we are beginning facilitator training and issue is the dynamic aspect of our plan. identifica'. ,n. What are the strengths of this The process begins when the participants are plan? What are the pitfalls?This presentation clustered' so many in the education group, so solicits your advice. maiiy in the local government group, etc.'No trained facilitators. one to facilitate and one to

55 REFERENCES

IRobertE.Howell,Ivan Lee Wier,and Annabel Kirschner Cook."Public Affairs Leadership Development: Executive Report," Department of Rural Sociology, Washington, State University, 1979, 5 pp.

2Anne S. Williams and Lee G. Faulkner. "The Montana Kellogg-Exier.sich- Education Project,"Bulletin 1213, Departm:mt of So-iologi , Experiment Station and Extension Service Montana state University, Bozeman, MT, Apr 1979.

L Bot:emeir and John L. Tait. "NV(Nen as Power Comparative Study of Rural Connudnities," Rural

5: Avg, Vol. 45. No. 2, 1980, pp. 238-255.

P. Hollander. bradership Dynamic3. New York: 1-'ree Prestr., 1978.

5Ronald Heifetz. "Leadereap Expert,* Inc , Oct 1988, p. 37. 'LT. Wallace. "California's Groups Decision Process," in Verne W. House and Antis A. You,i; Education for Public Decisions, Learner's Packet, North Carolina State University, Raleigh, NC, 1988.

56 .)r ,

Flow Chart Palmetto Leadership

Participants

El

E2 E3

Campus N N mplementatio Faculty Teaching

CommunicationsH Issue ID

Information Facilitators' School Policy Processes

56 Phase II OrganizationalStructure

Palmetto Extension Leadership Admilistration

County Palmetto Leadership PL Agent Advisory Committees

Palmetto Leadership Participants 60

Task Force Resources Facilitators Economic Dev SC Dev Board 15 Clemson Univ Education Dept of Education Water Res Comm Water Advisory Council on lntergov Rel Land Use DHEC Housing Other I Waste Mgmt

[ At Large I

59 57 THREE PARADIGMS FORBUILDING LEADERSHIP PROGRAMS FORECONOMIC DEVELOPMENT

Mark Peterson, Statc Leader, Community Development Cooperative Extension Service University of Arkansas

INTRODUCTION Community spirit Telephone system I appreciate the opportunity to be here and Health system discuss the vital issues of leadership and economic development. As I don't assume that our preseni In this presentation, I am going to present leadershipdevelopmentprogramsadequately three paradigms or work views of how these address economic development, I chose the title ingredients can be organized. The ingredients will of building leadership prog!ams for economic be essentially the same, but the way in which development. these are organized and the underlying premises If we asked a group of community leaders for their organization will make a tremendous what the ingredients are for economic difference in their ultimate result and effect on a development, we might expect them to generate given community. a list such as this:

Industrial park PARADIGMS - THE COLOR OF OUR Organized Charober of Commerce GLASSES Skilled labo, force Sewer systan From Thomas Kuhn's "TheStructure of Good eduaitional system Scientific Revolutions," we learn that paradigm Natural gas comes from the Greek word "paradigma" meaning Rail system pattern. Thus a paradigm is a way of looking at Social amenities things, a mindset, a workview, a set of rules about Supportive city government what is relevant in a given situation, and what is Streets not relevant.In effect, it is the color of glasses Watcr we are wearing. Perhaps the best characterization A marketing plan for the community of paradigm is the statement: "To the guy with a An industrial visitation commitice hammer, everything looks like ,nail." Of course this would apply to economists, sociologists, home economists, community developers, and administrators as well.

5 8 PARADIGM #I: THE MORE JOBS PARADIGM #3: THE TOTAL PARADIGM DEVELOPMENT PARADIGM

Corning out of World War II, the tremendous The Total Development Paradigm is based on pent-up demand for goods and services led to the the premise that everything is connected In the "industrial modcl"--a particular way in which we community--cconomic base, physical infrastructure, organize economic activities.It was based on high support infrastructure, human infrastructure, and N ol u me , standardizedproduction,and the leadership infrastructure. It is driven by the vision underlying belief that bigger is better. The More that the community has of itself, and where it Jobs Paradigm is an expression of this industrial wants to be in the future. The underlying premise model. Itis driven by the desire for MORE is that a community is not merely a place where JOBS, and is based on the pr-mise that if we get work (i.e. jobs) can take place, but that it is first more jobs in our community, our community and of all a human community, within which we share all of Its members will be better off.Everything life functions with other people. is thus in service of getting more jobs, including Thetotaldevelopmentparadigmfurther the physical, support, and human infrastructure. includes human, physical, natural, and man made resources as being available for development in service of the community vision.There .s not a PARADIGM #2: THE DIFFRACIED presumption that the local people will always DEVELOPMENT PARADIGM choose more jobs or more community growth, but an assumption that given the opportunity, people The (hi fracted development paradigm is driven can decide what kind of community they want for by diverse, diffracted agendas of public, private, thc.aselves and their children. and neighborhood/community organizations and institutions.It is marked by the independence of different groups in the community, and in some WEAKNESSES/CHALLENGES casesbyreflbarrierstocooperationand collaborativeefforts. Thustheindustrial More Jobs Paradigm development committee orauthority may be pushafg for industral development (there may Everyone may not accept this agenda. evenbediffraction among variousindustrial May ignore/not support/threaten existing jobs. development groups within the community). Doesn't develop the whole community. The mayor and city council may view their role as providing services (physical infrastructure) Diffracted Development Paradigm to the residents of the community, and may not beparticularlysupportiveoftheindustrial Often leads to conflict; no mechanism for development efforts.The school board, park reconciling differing agendas. board,hospitalboard,andloc.aldowntown Progress may be fragmented; efforts may be merchants each have their particular agendas, and counterproductive. each cuard those agendas and their respective turf accordingly. Total Development Paradigm In the diffracted development paradigm, there is an underlying premise that if everyone pays . Takes more skilled leadership. attention to their rcspectiNe activities and spheres - Not always possible due to personal agendas of influence, somehow it all will work out for the of powerful individuals or groups. best.Itis a variation of Adam Smith's "unseen hand" exceptitis now applied to the entire econom; .-social-political arena, and not just the economic sector.

6? SOME OBSERVATIONS ABOUT: together in an educational effort.

Economic Development Can be done through the total development paradigm.

* The entire resources of the community are most likely to be tapped through thetotal On alocallevel,ishelpfultoinclude development p .adigm. participants/alums from all leadership programs. Economic development is most likely to be * consistentwiththevalues,desires,and On a state level, there is a real advantage to aspirations of the community in the total building a brand coalition of agencies and development paradigm. organizations.

* Is mostlikelytoempowerthelocal Share some common subject matter: community through the total development paradigm. Community entrepreneurship Major forces and tn..!-Js Needs to take into consideration a variety of Local/national/global. economic development strategies, utilizing a positioningstrategtoselectthemost appropriate strategies.

Leadership Development

Is most likely to bear fruit when it includes:

Knowledgeandskillsofleadership development (personal leadership development skills).

Process skills for facilitating a holistic, futuristic, development process.

Issue-based knowledge, such as economic development.

Planned networkir f, opportunities.

Representation from all segments of the community.

Recognition by the community and by existing power structures.

Integrating Leadership Development and Economic Development

Really support each other and are interdependent out in the communities.

Are a powerful combination when joined

63 60 RESULTS OF LEADERSHIPPARADIGMS

Industry Make things MORE happen JOBS Physical Infra. Watch things Support Infra. happen PARADIGM Don't know Human Infra. what happened

DIFFRACTED Physical Supporil Human DEVELOPMENT Infra. Infra. Infra. PARADIGM z

Industry z'------\ TOTAL // \ Act DEVELOPMENT Physical Infra. Watch PARADIGM Support Infra. Human Infra. Don't know

6 2 C'L MORE JOBSPARADIGM

Agriculture INDUSTRY Forestry Tourism Retirement

Water PHYSICAL Sewer Roads INFRASTRUCTURE Streets industrial Park Utilities

Education System The entire system is driven by SUPPORT Recreation & Park the desire for more jobs. Health Care INFRASTRUCTURE Retail Sector Churches

LEADERSHIP HUMAN INFRASTRUCTURE INFRASTRUCTURE Skills Attitudes Families Values Community Spirit Knowledge Vision of Future Work Ethic Honesty

C3 DIFFRACTEDDEVELOPMENTPARADIGM

HUMAN INDUSTRY PHYSICAL SUPPORT !NFRA- INFRA- INFRA- STRUCTURE STRUCTURE STRUCTURE Attitudes Water Education System Agriculture Recreation & Parks Values Forestry Roads Health Care Knowledge Tourism Streets Skills Retirement Sewer Retail Sector Churches Community Spirit Industrial Park Vision of Future Utilities Families

Leadership Leadership Leadership Leadership

The driving force is diverse agendas,spread out through various organizations and institutions inthe cormunity.

64 TOTAL DEVELOPMENTPAR;DIGNA

Agriculture INDUSTRY Forestry Tourism Retirement -cck\l'''\-1,

Water \\41°009 PHYSICAL Sewer Roads INFRASTRUCTURE Streets Industrial Park Utilities

Education System oNA'0'` The driving force is SUPPORT Recreation & Park vol' a shared vision of Health Care the community. INFI,AF,1:WCTURE Retail Sector Churches

LEADERSHIP HUMAN INFRASTRUCTURE ,t,0\4004 INFRASTRUCTURE 00v.0,09 Skills Attitudes 'o\I Families Values Community Spirit Knowledge Vision of Future Work Ethic Honesty

..

65 PC VISION

Community STRENGT CAPACITY Building APPROACH + Approach /STATUS QUO\

_ DEFICIENCY Pothole T Approach APPROACH EXTERNAL i'S,_Oli_R___CEy

+

-D1--=-10BLEMS

(ls W7 ECONOMIC DEVELOPMENT THROUGH VALUE ADDED

Joe H. McGilberry, Manager Food and Fibcr Center, Mississippi Cooperative Extension Service Mississippi State University

There are ..umerous definitions of varying successfully exchanging this value added product lengths for economic development, but for our through mai kering and distribution channels for purposes a simple concise definition will be vat, dollar, from outside the region.This sounds that being the creation of wealth.In a local or simple, but forit to occur several things must regional economy the creation of wealth shoild br.vpen. These can best be described within the not be confused with the transfer of wealth. If w:-.. framework of a concept called "entrepreneurial are transferring dollars within a local market for success" (Figure 1). goods or services, the dollars indeed turn over, and wealth is transferred but not created. We must exchange local or regional goods and serv:ces for dollars from outside the region toc...eate wealth within a given region. Entrepreneurial Success Likewise, there have been many discuss;ons of the concepts related to vIlue added.We will describevalueaddedasanyactivitywhich increases the value of raw materials. Such activity wouldincludeprocessingormanufacturing, packaging, distribution, marketing, etc. When cwaluating value added opportunities, we should Marketable not limit our thinking and consideration to only Idea raw materials--natural resources, raw goods, or materials--indigenous to the region. We need to consider every possible value added alternative that will enh ,nce the development picture of a local or regional economy.There are many innovative and creative peopleentrepreneursall around us with value added ideas. We need to be a support system which helps them mold and strunure their ideas into reality. Therefo.., economic development through

Nglue added would involve increasing the value of raw materialsby some ac:ivityorseriesof Figure 1 activities (processing and manufacturing) and then

6i There are at least three necessary ingredients increasingly critical to national for entrepreneurial success:1) marketable ideas, employment, the inflation rate, and thc includingtheproduc ,marketstrategy,and balance of payments. As we look to the business plan;21 tr.tnagement skills; ability to year 2000 and beyond, there are three manage and control thc operation; and 3) capital, major areas of concern: access to equity capital, venture capital, working capital, etc.For economic development to occur (1) increasing transportation costs, an environment must be established that supports, (2) processing and packaging efficiencies, and encourages, and facilitates entrepreneurial success. (3) storage and handling issues. This environment needs to provide business and technical support in developing and refining Alongwith marketdevelopmentand the product and in structuring the business plan improving the efficiencies of resource utilization, and marketing strategy. Technical and educational these areas are the primary focus of the Food and assistanceisalsonecessarytodevelop and Fiber Center. improve the neededmanagement skills for the The programsoftheCenterfocuson entrepreneur or the management of the operation. providing leadership to decisionmalters in firms And finally, capital formation which lb accessible andindustriesregarding new and expanded to the entrepreneur must occur. processing plants arid markets for Mississippi food, fiber, and forest products, along with identifying resources and raw materials in the state that could THE CONCEPT be used to stimulate economic development in agribusiness industries. An example of a program effort which focuses The Center assists agribusiness industries in on economic development within the agribusiness the state by providing educational and sector through value added is the Food aild Fiher developmentalservicesandtechnicalsupport Center at Mississippi State Universit). The Food through a multidisciplinary task force. The areas and Fiber Center was established as a part of the of specialization include management, business Mississippi Cooperative Extension Service in 1974. analysis, industrial engin-ering, economics, food The goal and mission of the Food and Fiber technology, wood and wood products processing, Centel is to increase value added to the state's marketing, and distribution. Typicalservices economythroughexpandedandimproved offered are listed below: processing and marketingofMississippi's agricultural,marine,aquaculture,andforest Perform economic analysis of production products. processesandmarketingdistribution The significance of the activities of the Food strategies for existing and new products. and Fiber Center and its mission is reflected in a January1984reporttoCongressfromthe Identify new market opportunities and Secretary of Agriculture on the "Needs Assessment assist whh domestic and foreign market for the Food and Agricultural Sciences."In this development. report the Secretary stated that: Educate managers in the planning and The importance of processing, marketing, control of business operations including and distribution is evidenced by the fact qualitycontrolprograms, disposalof that two-thirds of the retail cost of food liquiu and solid waste from processing, is associated with this segment. Itis inventorycontrols,andmanagement expected that roughly three-fourths of the information systems. retail value of food, fiber, and forestry products will be represented by these Perform feasibility studies for new or activities by the beginning of the 21st expanding Mississippi agribusiness Century. The beyond-the-farm-gate sector processing firms. oftheU.S.economywillbecome

76 * Assist with new product development in low linkage multipliers or economic impact on the areas of formulation, processing area or state. procedures,tastetesting,packaging, To realize thefullopportunities in value labeling, and market potential. added processing and marketing within a state or region, we must continue to develop an industrial Perform management audits for base for processing or converting agricultural and agribusiness firms. forestty commodities into consumer-ready products anddistributingthese products intothe * Conduct in-plantanalysistoimprove marketplace. productivity and operating efficiency, and develop facility and process line layouts. THE PLAN * Evaluate economic justification of capital expenditures. An agribusiness development action plan has been formulated by the Food and Fiber Center * Provide information about local, state, that provides direction for achieving the value and federal regulations governing food added opportunities which canbe developed arid wood products processing. within the state. This plan focuses on identifying opportunitiesand objectivesforcontinued * Revic.. researchand technological agribusinessdevelopment intheStateof development for potential application to Mississippiin:1)agribusinessplanning and Mississippi agribusiness processing firms. development; 2) product development; 3) food and fiber processing; and 4) food and fiber marketing. * Evaluate economic trends for Mississippi agribusiness processors. Agribusine-s Planning and Development

The economy of Mississippi is Puked to the THE OPPORTUNI ..'Y agricultural and natural resources in the state.In astudybytheMississippiResearchand For the crop year1988, farm valuefor Development Center, it was stated that, "Food Mississippi agricultural and forestry commodity processing, lumber, and mining which are strongly production was $3.5 billion with an estimaml connected to the state's agricultural resources and consumer retail value of $18.1 billion resulting ia natural resources have comparative advantages in an added value potential of approximatelyS14.6 the state's economic desclopment strategies." The billion.Estimates are that 55 percent of these Opportunityexistsforcontinued growth and agricultural and forestry products were exported expansionintheagribusinessplanning and tootherstatesor countriesforprocessing, development which focuses on the value added resulting in millions of value added dollars being potential of the state's agricultural and natural lost to the state.For tiiose products that were resources.The catfish, poultry, and furniture processed or to which value was added locally, the industries are examples of agribusiness industries economic impact of this activity was significant. that have had exceptional growth and impact on Table I illustrates the impact of value added Mississippi's economy and are taking advantage processing. The farm value of $3.5 billion when of "value added" potential. applyingtotallinkagemultipliebshowsan The objectives of this effort are to: economic impact of S13.4billion, afour-fold increase. A closer look at Table 1 shows that for I. Provide surport information and economic commodities which had value added to them and strategic evaluation in the planning through processing and marketing, higher linkage and development of new or expanded mult!pliers were identified.Those commodities agriousiness ventures. that were exported for processing had relatively

7 7 Table 1. 1988 Farm Market Value, Linkage Multipliers for EachCrop, and Resulting Economic Impact, Mississippi.

Farm1 Total Linkage2 Total Economic Marketing Multipliers Impact

(million dollars) (million dollars)

992.98 Soybeans 379 2.62 Cotton 721 2.65 1,910.65 Forestry 624 2.84 1,772.16 Poultry and Eggs 562 6.29 3,534.98 Meat Animals (feeders) 297 3.30 980.10 Feed Crops 141 2.79 393.39 Dairy (milk) 121 6.25 756.25 Food Grains 236 2.79 68.44 Horticulture Crops 82 2.45 200.90 2 326 73 Catfish 301 7.73

3,464 13,526.58

Source: 1) Mississippi Cooperative Extension Setvice Agricultural Economics. 2) The Mississippi Input-Output Model and Its Multipliers, MississippiBusiness, Vol. 47, No. 1, January, 1988.

78

7°4, r

2. Educate agribusiness managers concerning the 5.Financial,government,andbusiness applicationof new technologyintheir leaders will be better informed about die industry. food processing industry and its economic significance to the state. i 3. Encourage cooperative efforts in the public and private sectors to expand the agribusiness base in Mississippi. Food and Fiber Processing Food ana fiber processing may hold the kty Product Development to Mississippi's economy. Value added potential to agricultural commodities produced in Value added potential'firmMississippi Mississippi in 1988 was estimated at S14.6 billion. agricultural commodities is not being fully realized The food prrzessing industry and the rapidly incertainfoodandfiberproducts. An expanding furniture and fore,: products industry opportunity exists to increase the value added to inMississippi have tremendous potentialfor agricultural food products by developing a larger improving their value added position.Many of number of consumer-ready foods.Retail food these food and fiber processors have industry statistics indicate that over IL' 000 new organizational sr, auras that do not effectively products or line extensions were introduced in use and develop taeir manpower. They often fail 1988.The trends in food consumption provide to perform comprehensive economic and financial fertile grounds for new product development. analyses when evaluating new equipment, process Opportunitiesfornew productdevelopment alternatives,andbuildingand/orexpanding abound in all areas of agribusiness, 'out especially facilities. in catfish, poultry, red meat, undzrutilized marine The objectives or this effort are to: species,feedgrains, and horticultural crops. Mississippifoodandfiberprocessingand 1. Educate the stra's new and existing food marketing firms need to explore these and fiber processors in the application of opportunities for developing new products. technologies ro improve productivity and The objectives of this effort are to provide the increase furthei processing opportunities. following: 2.Train agribusiness managers in 1. Clientele will be provided assistance with organizationalanalysisand manpower new product ideas and formulations, product planning, development, and training. improvement,costanalysisof product ingredients, market analysis and distribution 3.Assess and evaluate economic processing channels for new and improved products. costs and operating margins so that these food and fiber processors can maintain a 2. Food processors will be taught how to competitive status. develop new and improved products from agricultural commodities. 4.Assist in improving quality control and assuranceprograms in agribusiness 3. Processors and marketers will be helped to industries. understandtheeconomicbenefitsof developing and marketing new products. Food and Fiber Marketing 4. Management of new ventures, home growth industrie::, and existing operations will be In1988, the value of farm production in provided with financial and management Mississippi for all food and fiber commodities was controlinformationfornewproduct estimated at S3.5 billion. However, the estimated development. retail valueforthese commodities was S18.1 billion.As products are further processed, the

79 roleof marketing becomes greater. Better 4.Analyze economic advantages/disadvantages marketing channels are needed to move the of various marketing and distribution products to end users.Innovative marketing systems for food and fiber techniques are needed to expand existing markets processors/manufacturers. and to identify new markets. A critical evaluation of marketing margins is needed if Mississippi processors/manufact'ers are to remain CONCLUSION competitive in the market place. The opportunity for economic development The objectives of this effort are to: through value added is real, and the potential is great. We must rememberthateconomic 1. Explore and assessnew andpotential development is not an event such as a meeting markets for existing and proposed products. or a ribbon cutting but is a process of supporting, developing,encouraging,andfacilitatingthe 2. Assist processors/manufacturers in entrepreneur in achieving success. The economic establishing overall marketing strategies. development benefits to the community can be significant whether the entrepreneurislocal, 3. Evaluate direct, ,xoperative, and export national, or international. marketing opportunities for food and fiber processors/manufacturers.

80 7, INDUSTRIAL DEVELOPMENT

Lowell Wagner Jackson County 4-H Extension Agent University of Kentucky

In 1986 a plastic-molding plant located in our marked the beginning of an intense six month county which would ultimately employ 500 people. period of preparation. Immediately a meeting was Its location was the result of many factors:a called of the Development Association to make good site, a great economic development package, plans. Alsoinvitedtothemeeting were luck, and a concentrated and united effort on the consultants from a gas transmission company, the part of a large group of citizens. statecommercecabinet,regionalelectrical Today I would like to discuss very briefly the supplier, the ADD Board, and most important-- last element in that formula--a united effort by a (the company officials later stated) was the UK large group of people. To begin with I'd like to Extension Service's own industrial development economically describe our county, emphasizing specialist.It was decided that a mass meeting or those elements which would probably not attract rally needed to be held to introduce the county to industry.We are located on the edge of the the industry and the industry to the county. A Cumberland Mountains, at least 20 miles from an rally was planned for mid-April. The plan was to interstate connection.Of our population, 39.2 have various segments of the population give their percent falls below the federal poverty line. We welcome and invitation to the company and what have the lowest percentage of high school and their organization could offer to the plant and its college graduates in the state. We are somewhat personnel. These representatives included the isolated from other counticc in the region; one- RECC,phonecompany,countyandcity half to one-third of our land areaisin the governments,fire department,health services, national forest. We have one of the lowest tax schools, youth groups, etc. The company in turn bases in the state.I offer these facts with no would make its presentation and describc what apology, no request for sympathy, and particularly itwouldofferthe community. Therally no desire to stereotype our population, for we do succeeded beyond our wildest dreams. Over 500 have many positive strengths in our community-- people overflowed the building.Our industrial as many or more as the next place. development specialist arrived late, couldn't get in, In the fall of 1984, several citizens approached and had to stay in his car. the Extension staff about starting a Development Thisis when the real work started. As Association.The main item of interest at that Charley Pride said, "The easy part's over, now the time was a lake for recreation and water supply. hard part begins!" A site committee was formed. The group organized and began working on issues Sites were visited, and site owners were negotiated of community importance. with. Meetings were held with gas company In March of 1985, an official of the local officials. Meetings were held with commerce RECC approached officers of the Development cabinet officials, architects, and engineers. We Association about an industry that wanted to test were in constant touch with company officials as the county's interestin plant location. This to what their plant location needed. InJune, we sponsoredaluncheonfor or doesn't work out in one way or another.Ask companyofficialsinwhichwegaveour whatthe company canofferandaskthe preliminaryproposal,unveiledthearchitect's community what it can offer. What are the trade drawings, and visited the site we had selected. offs? How many people really are in the available Officials seemed surprised that we had pulled off labor force? what we had.All along we knew that we were Other questions relate to development. What competing with other countiesfortheplant does development mean to the county?What location.Our position was that we wanted the does thecommunity want in termsof plant location in our county, but if another county developmen t? in the area got it, it would still benefit us all. In July, we made our final presentation which included a thick proposal book, some overheads and presentations by various people.The pitch was made to company officials and tothr.:e industrial location specialists hired by the company to decide which location was the best. The proposal had taken many people and many hours to put together. This was the culmination of our months of iniense work. We were informed about a month later that our county had won the location. I'd like to make a few points in regard to the success of our efforts.I recently talked to one of the plant officials who hati been one of the crime movers and workers in the plant location.I v:,:sed what were the best things that were done that stood out in all of our work. Here were some of the answers: There was 100 percent unity in the community and among governmentofficials; information supplied was very good and accurate; public hearings were on excellent ideas; homework was donewell;sitesoffered were excellent, reasonably priced and competitive, proposal was excellent; and wag' rates were competitive. What could have been improved was public education as to how fast jobs would come available and how quickly Zhe plant could get into production. A few other observations: A vital and functioning Development Association was already in place and continues to be.Luck and circumstance are importar t. Theproperandearlyuseof consultants and specialists is important.It is vital that all citizens be encouraged to be involved in the decision and selection process as much as possible, and the process should be apolitical and non-partisan.Opposition sho»:d be heard and respected. To Extension people especially I say: take credit and give credit as much as possible. In general, I would say be very selective in what businesses you negotiate with.It may be better to have nothing than a plant which leaves quickly

82 7 l.::, CASE STUDY

Logan B. Barbee, Agricultural Agent Cooperative Extension Service Calhoun County, Florida

AGRICULTURE ECONOMIC (MARKETING) market developments, educational programs, and DEVELOPMENT AND CRD a tremendous public relations job.Seeking new markets isthe catalyst to partially achieve the Situation: preservation of rural traditional farms. With this in view, marketing and off-the-farm employment NorthFloridahashis'oricallyreliedon opportunities have been pursued vigorously in an agriculture as an economic base. Development of attempt to make a significant difference in the large farms in south Florida resulted in capturing future of our area with scmc vely positive results. early spring market from north Florida farms for various vegetables and melons. Coupled with the reduction of crop values, small family farms were Methodology: forcedtoseekalternativecrops. Recent production has focused on sqbeans, field corn, Programs, activities, advisory committees, and peanuts, and various row crops. Competition with cooperating agencies were organized and large farms, other states, depressed market prices, developed to accomplish the area development of and rising inflation have increased the difficulty of alternative enterprises and facilities. All initiation, making thefamily farmprofitableinnorth planning, and development of activities mentioned Florida. As a result many family farms lie idle or above was handled by the Extension staff.Other must depend upon supplemental income from agenciescontacted andinvolvedwith these outsideemploymenttokeepthefarmin projects are: ApalacheeRegionalPlanning Operation. Council,FloridaDepartmentofCommerce', Florida Division of Marketing, Florida Farm Bureau (MarketingDivision),Chamber of Objer Commerce infive counties, local civic groups, area finance institutions, state soybean Thefamilyfarmhastraditionallybeen associations, governor'soffice, Department of considered the backbone of our country. In order Corrections, and Department of Commerce. to preserve the integrity of the family farm, new Some projects and programs initiated are: directions have to be explored. One direction is to d.versify production and not try to compete Aquaculture educational program (area) withthelargeproducers. Growing several Contract broiler enterprise (area) different non-traditional crops would result in Local agricultural industrial complex (local, spreading the farmer's labor and cash flow more area) evenly throughout the year. But involvement with Northwest egkmal aquaculture facility other than traditional znterprises requires new (regional)

77 State prison facility b.Project packet initiated, developed, 1. Educational Efforts promoted, d lbuted,and follow-up performed throLL t the Extension office a. Total projects initiated from leadership c.Total county political, civic, and ministerial from local Extension office leaders organized and united in a combined b. Two aquaculture area workshops with project over two hundred (200) in attendance d. Organize.' county public meetings c. Newspaper articles and pamphlets e. Endorsemnts from Ministerial Association, d. Field visits, interagency programs alllawenforcementagencies,judicial e. Advisory Board developed and constituted agencies, Board of County Commissioners, f. Television coverage cityoffices,schooloffices,Cattleman's g. Proposal for aquaculture facility developed Association, and Environmental Protection and proposed Agency. - S206,000 appropriated in 1987 f.$10.5 million correctional facility - planned facility construction completed constructed in Calhoun County which will - acreage for facility donated employ more than 250 persons.

2.Contract Broiler Enterprise Impact a. Totalprojectinitiatedfrom local Extension office As a result of the efforts and time expended b. DistributionofIFASpoultrytape onthisprogram,theBoardofCounty (nationwide) Commissioners, Chamber of Commerce, Division c. Multi-countymeetingsheld infive of Marketing Personnel, Farm Bureau, Apalachee counties Regional Planning Council, as well as other public d. Multi-agencymeetingsheldwith14 officialsandprivatecitizens,haveexpressed agencies gratitude 2nd appreciation for the enterprising and e. News articles, 22 newscasts, and eight leading role that Extension is playing in the future magazine articles of agriculture and economic development of this area. 3.Agricultural Industrial Complex TheAgriculturalComplexhastheland appropriated.The projectis proceeding with a. Total project initiated from local area wells, utilities, fencing, sewage treatment facilities, b. Agricultural economic development etc. A processing plant for catfish is looking to advisory council bethefirstentryintothecomplex,with c. Chamber of Commerce programs construction beginning in November 1989. d.Multi-agency workshops held with six Approximately 18 new fish ponds have been agencies installed in the last 12 months with 60 more in e.Agricultural economic action committee the planning process, accordingtotheSoil f. Governor's Task ForceCommittee ConservationService. Thereistremendous initiated interest in fish production since the first aquatic g. PhaseI and Phase II completed with meeting was held. Expectations of more than 500 construction beginning in November of acres in ponds are reported for the next year or 1989 SO. Approximately 90 persons expressed interest 4.State Correctional Facility (to provide off-farm in a broiler production operation with nearly 200 employment) houses projected.Excellent survey results have been obtained, and endorsements and responses a. Totalproject initiated fromlocal from all agencies and individuals involved have Extension office and leadership provided been expressed.

84 73 officealsoinitiatr.dand Approx.,ately100 localcounty residents ThisExtension enrolled for Correctional Officer School.One coordinated the participation of foulcounties hundred twenty-five localresidents have been from north Florida in organized Farm Bureau employed at the local facility. Aquaculture commitiees.There were only two The opportunitiesfor success are always other Farm Bureau committees in the state (they present; they have only to be pursued. were not organized by the Extension Service),and there had to be six organized counties before the state Farm Bureau couldofficiallyrecognize DEVELOPMENT AND EXPANSION OF aquaculture as part of their farm programs. Tnere AQUACULTURE COOPERATIVE/ is now a very active and functional state Farm LEADERSHIP FOR COUNTY AND REGION Bureau Aquaculture Commodity Council, a public relations program resulting from Calhoun County Extension work. Situation

Because of the tremendous popularity of the Impact aquaculture Extension programs and projects implementedbyCalhounCountyExtension As a result of the efforts of this Extension Processors Service,thereemergedaneedforfurther office,theFloridaAquacultural programming and development in the area of Cooperative, Inc., is actively engaged in marketing beginin leadershipandorganizationforthisrapidly agreements,andconstructionwill expandingilientele.. There were no organizations November with completion expected in April of for aquaculture for this entire area. the state's newest and most modern fresh water processingfacility. The plantisdesigned to process 35,000 pounds of catfish daily.Future Objective planning includes a feed mill also.The Co-op will serve the north Florida, southwest Georgia The cooperative was formed for the purpose and southeast Alabamaareas. The USDA of uniting area farmers engaged in agriculture and Extension Service representatives stated that the aquacultuie production with a goal to assist food leadership and organization of this project were fish farmers in marketing and obtaining services the best they had witnessed in the United States. and supplies -needed to lower costs and increase individual earnings. COOPERATIVE EFFORT MAY HATCH AREA POULTRY PRODUCTION PROGRAM Methodology

Programs, activities, advisory committees, and Situation agency cooperation were organized and developed to accomplishthis programmatic effort. All With farming in the present state of declining initiation, planning, and development of activities distress, alternatives arc not going to drop into was handled by.the Extension staff. our laps. The communities a-e going to have to UponcontactingtheU.S.Agricultural aggressively seek out new better eaterprises. CooperatiService (USDA) in Washington, D.C., this cane.ate entered into a very complicated endeavor. After month., of surveys, meetings, Objcctivc steering committees, workshops, four organizational meetings,etc.,the Florida The contract broiler industry is an attractive Aquaculture Processors Cooperative, Inc. (FAPC) alternative for this area, and we are pursuing the was formed with the leadership from Florida possibilities aggressively. Extension. Theuniversity poultryspecialists,area

85 economistsandExtensiondirectorsinfive A videotape was put together inthe five counties have put together a plan to lure one of county areaby theeditorial crew from the the major poultry operations into this area and University of Florida.The film highlighted the have put it in action. area's historical background, railroad, Interstate 10, labor force, rural agriculture, and people. An all-marketing-agencies meeting has been held including the state Division of Marketing, Farm Bureau Marketing Division, Economists and A multi-county survey has been developed and Area Extension Director. A uniform agreement distributed. The interat level in the counties is has been made to pursue the poultry endeavors very high tor such an operation.Approximately with all resources. The first cooperative effort of 90 interested growers with a projection of close this kind that anyone at the meetings was aware to 200 houses has been reported. of was thus formed. With allthe agencies Endorsements from the following state, area, working together cooperativelyto make this and local agencies have been received: project work, there have not been any negative responses from anyone associated with this project State Soybean Association since its conception, which is amazing. State Farm Bureau/Local Farm Bureau NOTE The cooperative spirit, enthusiasm, Boards of County Commissioners and professionalism that the poultry specialists Chambers of Commerce and the area economists exhibited have been truly Local and area financial institutions exceptional, not to mention the dedication and Commissioner of Agriculture hard work put in by them. This effort is going to Division of Marketing, State of Florida be successful evenifit does not bring in an Florida Poultry Federation industry because of the model that has been set.

86 INDUSTRIAL DEVELOPMENTPRESENTATION

Larry L Mc Peters, Extension Agent, Halifax County Virginia Cooperative Extension Service Virginia Polytechnic Institute and State University

GreetingsfromtheVirginiaCooperative interest and needs; and Extension Service.I am pleased to be invited to Alabama toprovideinformationfroman 2. Industries are interested in people's needs Extension agent's point of view on industrial and want to improve the quality of life for development.At this time I would like to show residents within a community. a video 10 minutes in length which describes the characteristics and background of my working It is also true they want to make a profit: they environment and its association with industrial want free land, local tax breaks, cheap labor, etc., development. but for Extension professionals to be successful, we must approach industry in a very positive and Industrial development must be approached professional manner.To engineer an attractive programmaticallyintwodifferentdirections-- industrialdevelopmentprogram,itmustbe targeting new industry and existingindustry. attractive from a local funding perspective as well Objectivelyspeaking,industrialdevelopment as an overseas industrial prospect. An Extension enriches a community by adding tax base and agent must through the mandate called education, creating jobs. There are other spin .off benefits to develop four personal characteristics: industrial growth, but these are the macro benefits to the community. I.Credibility and rust within the I would like to describe the characteristics community. This process will takt, five-plus years. needed by an Extension agent to be successful in To local taxpayers credibility means that you know the field of industrial developmcut.Degrees do where you are gc'..6; and you are going there for notmatter--beit Ph.D.inpsychologyor the good of the community. For example, when agriculture. Industrial prospects as well as existing afivemillion dollar bond referendumisput industrial administrative personnel are a higher- before the voters, and ycu are educating clientele bredorthoroughbred group of individuals-- on the benefits of the industrial development bond different from our routine Extension clientele. issue, you must have credibility to be successful Therefore, we must geat ourselves op for this You must have money to have an industrial group of clinetele if we plan to be successful. development program. Credibility and trust come Twocharactcristfcswhicharedearand as natural as the air around you if you are actively commontoeveryprospectandlocalplant involved in the community and loing a good job manager with NhomIhave become associated in your profession as an Extension agent, over the past eight years in industrial development are: 2.Motivator--To be an educator you must first be a motivator. Motivation to an Extension 1.Industries are sensitive to agricultural agent means creating excitement amotig local elected government leaders,itmeans showing and on to existing industry and new industrial interest and enthusiasm when a new industrial prospects. prospect shows up on Sunday afternoon to look Manipulation in my terminology means to at your community for location of his new plant. make it happen.As an example, I co-authored Extension's role isalso important to keep thc first grant proposal to thc Private industrial localindustrialcommissions,authorities,and Council to hire an industrial coordinator fifteen committees functional and on track since these :,zarsago. This was thebeginning of our persons are volunteers an t nectI .o feel that what industrial development program. We now have an they are doing is important. Economic Development Commission--"athink tank"--which meets every Tuesday morning for 3.MarketerArt Extension agent must be breakfast, an economic development authority that knowledgeable of the community's resources both handles mnricy mattcrs, and a full time economic with existing industry as well as new prospects. development coordinator. Resources includeeverything from water 1 curiertiy serve as chairman of the Economic resources,treatmentplantcapacities,land Development Commission. As aneducator- availabilityforexpansionornewlocation, manipulator,Ihave assistedinrecruiting four topography, poputation characteristics, industries in the last two years, creating over 1,400 unemployment rate, existing industry, soils, wage jobs.I have traveled on the governor's plane to ratesof otherindustries,railroads,highways, talk with the board of directors of new industrial natural gas lines, schools, churches, hospitals, fire prospects in their home towns.The tasks are protection, etc. Grant money for highway access, many, but our new industrial coordinator has ELA block grants, etc., are also marketing tools decreased my involvement with new prospects. to keep existing industry and to recruit new Existing industry continues to seek Extension's industry. assistance in training programs from management People. however, care for other people. This staff, graduate, or special interest courses via is true at the industrial management level also. satellite or technical assistance. Recently an Since an Extension agent's job is to work with industry wanted to knowifI providedthe people, then he shout(' know the people in his resources to industry thatI provide to farmers. community and sell thc ncw industrial prospect on The industry wanted to know why a S40,000 piccc the people's need for the industry first. This must of metal which was made overseas and WOK five be the priority. months to get kept breaking.The Engineering Knowing oti-t-r existing industries has helped Department at Virginia Tech found the answer. me recruitindustries. For instance, recently Yes, I haveanoutstandingagricultural O'Sullivan,a Tandy Corporation, locatedin Extension program in Halifax. Rural communities Halifax County rather than "The Triangle" in are financially stronger when balanced between North Carolina because I informed the prospect agriculture and industry, anditimproves the that an existing local industry (Georgia Pacific) quality of life of LI, eryone. Remembercredibility, could supply them with the particle-bc.ard which motivation,marketing, andmanipulati nare they needed and that the same mdustry needed collectively key elements in Extension's their sawdust which was a disposal product and educational effort of industrial development. problem for them. Actually, Georgia Pacific now Extension must help with the development of buys the sassdust from O'Sullivan-90 tons per day. the industrial recruitment infrastructure. The Extension agent must market resouzces also Extension can help communities deselop an to the state economic development office because active industrial development program. If the referrals come from this office. state has a certification program for industrial development, then help the community become 4. Manipulator or Facilitator--Thisis the certified.In my county, prospects come from two most time consuming of all but here is %there :he sources:(1) the state economic development EAtension agent can get help. Manipulation must office, and (2) other industries. Therefore, get the occurlocallywiththe community,thento state and other local industries involved in the governi7.g bodies to produce operational funding teameffortapproach. Setupaprospect

88

S 2, committee, sites committee, finance zmmittee, fierce. As the recent song said, "Welcome to the andvisitationcommittee. Competitionfor jungle."If you like challenges and risk, then industryistough--youneedastrong team. industrial recruitment is for you. Competition for industry among communities is

89 ENTREPRENEURS IN RURAL AREAS

Georgia Aycock, Extension Resource Management Specialist Evelyn Brannon, Assistant Professor, Consumcr Affairs Department Cooperative Extension Service, Auburn University

Accordint to forecasters, the 90s will be the the entrepreneur to the success of the business. decade of the entrepreneur. The fastest growing Some fit the profile of the classic entrepreneur-- segment of self-employed people are women who innovative, flexible, dynamic, and a creative risk own their own businesses. Why is business start taker.Such a person is likely to start a growth- up so attractive to women and to rural women oriented businessin which she builds "sweat particularly? equity."Her aim is to create her own company Isolated by distance and transportation costs, and build that company into a bigger player in the rural women arc faced with many barriers to market. successful career development. Most must balance But not all people who start or operate a home care and family responsibilities with the smallbusinessfittheentrepreneurs'profile to make a living.Some also contribute although they share some characteri:tics- drive, unpaid services to famil; farms c.businesses. high energy levels, and technical ability or skAls. Often traditional employment means working for Some people areinsteadinterestedinself- others at low-paying jobs that are dead-ends for employment--that is they have skills, interests, and career development, personal and professional abilities that can Le channeled directly into the growu , and creativity. Even these jobs may be in .ketplace to create their own jobs. Their focus short supply in rural areas.To make matters is on 'ownership' of their work. worse, few employers recognize the transferability One recent study reports four basic: patterns to the workplace of skills learned at home like of business development among rural women:1) budgeting, time management, and planning. teaching what they know: 2) learning a craft and Home-based business offers rural women an selling the product; 3) performing a service; and attractive alternative--the chance to create their 4) developing a hobby into a business. The own jobs while balancing the demands of earning success of each pattern depends on finding a an income, family responsibilities, and rural living. workable business concept.That means being And, when women create a sur:essful business, the able to identify a target cuomer's needs, gather entire family benefits.As one husband putit resouices, and implement actions to satisfy those after joining his wife's business:"Behind every needs. successful woman is a very fortunate man." "America's new love affair with allthings PROGRAMMING IN ALABAMA local," as a recent article in Working Woman points out, opens the doot .or rural entrepreurs. Beginning in1980, specialists and county For the first time in generations itis popular to agents in Alabama have provided programming on buy products based on ',cal color and regional home-based businessincluding area meetings, identity. And, female entrepreneurs have become county programs, printed materials, newsletters, today's culturalheroines. Their ingenuityis technical information, marketing help, referrals to applauded on TV talk shows and in books and other agencies, networking opportunities, and magazines. Examination of these role models individual consultations. The objective of home- illustrates the importance of the commitment of basedbusinessprogramming is oprmide information sufficient for decisionmaking. children in their home as a business, the emphasis Programming for Alabama's small home-based is on licensing requirements, food safety, childcare, business people developed asa responseto and business planning. immediateclientneed--theneedforincome producing alternatives to traditional jobs.The programs developed to meet that need were based Home Health Care Companion on the concept that people have valuable skills but need assistance in turning those skills into Targeted for people who hae elderly people income producing activities. ExtensicA specialists in their homes or who are interested in oring for on the state staff and county agents in all 67 people outside their homes. Alabama countics have been involved in providing assistance to home-based business people. Extension's home-based business programming Freelance Teaching focuses on issues criticalto success, including specif;c technicalinformationandbusinesc Targeted for people who want to translate assistance in the following areas: skills into income by teaching others those skills, the program concentrates on marketing, clasp plans, classroom management, a"rfd preparation of Sew for Pay samples and visuals

Targeted for people with sewing skills, this programfocuses on selectionof aspecialty, PROGRAM EVALUATION pricing, price-quality interactions, customer relations, and time management. Evaluation is meant to assess the merit of a program and provide datafor decisionmaking regarding program improvement.Needs assess- CASH: Creative Artisans Succeeding at Home ment and environmental scanning plus folio ,i-up evaluation of program deliveiy was a part of each Targeted for people Nith a variety of craft home-based business program introduction. skills,this program focuses on design quality, The entire home-based business program in production efficiency, quality-price interactions, Alabama was slated for ealuation in1986/87. and marketing potential beyond local markets. Ealuability Assessment--aqualitativeresearch technique--was selected as the technique ideally suited to the study. The purpose of Evaluability Food for Profit Assessment is to determine the perceptions and informational needs of the program's stakeholders. Targeted for people interested in catering or Such an approach gives piogram staff and key quantny food production and sales, this program stakeholders "ov,nership" of the evaluation b.;' their focuseson complying withstrictrulesand involvement in it. Thus, results are likely to make regulations for food-related businesses, food safety, a differenceto staff, adnunistrators, and policy prkinz, production efficiency, and marketing. makers. For the study, ataskforce of evaluation specialists, administrators, subject-matter Bed and Breakfast Homes and Small Inns specialists, and county agents derived program models, designed a set of interview qucstions, and Targeted for people interestedin opening selected35stakeholdersto beinterviewed. their homes to paying guests, this program focuses Questions were designed to probe the following on characteristics of successful operations, selling issues. points, marketing, food, and home safety. perceptionof home-basedbusiness as a program area for Extension; Day Care Provider awareness of and recommendations on current programs; Targeted for people w.ho Nkantto (are for expected audicmcs including hkely impacts 92 and results; methods suggested paralleled current Extension recommendations on program delivery practices-meetings, conferences with individuals, including adequacy of resources allocated; and publications, and newsletters, etc. As one business commentson futureprogramming and person said, "You people arc inthe ballpark program evaluation. ahead of everybody else." Anothcr secs Extcnsion as "the connecting network between hoine-based Analysis of the interviews makes clear that business people and other professionals." stakeholders are somewhatfamiliar withthe Stakeholdersandstaffsee a rangeof conceptofhome-based business and with evaluation efforts-needs assessment responses to Extension but not as familiar with Extension's programs, follow-up studies with participants, and home-based business programs. While community impacts--as part of programming for eisappointing giventhe number of programs audiences interested in small home-based business. delivered and the publicity accompanying those As one legislator put it, "Extension could be the meetino,s, the finding is not surprising because lead agcncy, could really put things together for Extension programs in this area have been pilot the home-based industries-that ought to be the projects. Smallbusinessdevelopmentisa futureofExtension." All categories of continuingfocusofExtensionplanning and stakeholders calledfor morevisibility for programming, but interest in home-based business Extension programs in small home-based business development is a more recent concern.As one and for networking among agencies interested in Extencion administrator put it, "We've got to do assiMing potential entrepreneurs. a better job of marketing ourselves. That is the Following theEvialuability Assessment, an key to all of it." impact study was conducted state-wide in 1988. Still there was consensus between staff and County agents surveyed 342 people in 23 counties stakeholders on the audience for home-based who had participatedinhome-based business business programming: businessbeginners. programming to:1) evaluate results; 2) profile Specifictargetedaudiences includewomen, the home-based business person, and 3) explore farmcrs and residents of rural areas, low income programming needs. or underemployed people, and retirees. Findings: 65 percent were operating a home- An appointed state official highlighted the based business, 14 percent were undecided; and 21 Opportunity when she said, "There is a real need percent had decided not to start a business. The out there to support the entrepreneurial spirit that reasons mostoftenc itedfornotstartinga is the foundation of our country." business were "not the right time," "need more There was also consensus between the staff business background," and "uncertain about the and stakeholders that small home-based business audience/market." Businesses ranged from programs have impact on individuals in terms of woodcrafts to contract knitting, from quilting to personal development, quality of life, and income; jewdry making; from sign painting to catering, on potential entrepreneurs in terms of informed with many respondents listing more than one decisions; on entrepreneurs in terms of more product or service. Favored marketing strategies efficient operationsand improved business are selling directly from the home, followed by practices; on thc communitvistate interms of selling at fairs and through shops (on consignment economic growth; and on Extension in tcrms of and wholesale). Surprisingly, 30 respondents expanded audience and influence.An attorncy owned their own shops. Among those in business: summed it up best when she explained that "there 61 percent started businesses after paroupating in are two effects:for people toying with the idea, Extension programs, oer half reported woi king it gives them tht: information thcy need to make part-time, with the other responses split equally the decision, for fledgling entrepreneurs, helps betweenfull-time and seasonal. Thirty-seven themoperate moreefficientlywithbetter businesses reported employing others (equally split information." between family members and non-family There was also staff and stakeholder consensus members). Over half reported that inwme from on program de'ivery. Stakeholders' suggestions for the businesses pro, kied less than 10 perLentif topics to be coxered in programs paralleled those thL iny Income,..)ut for 5 percent the business already being presented in Extension programs-- pi-, iu d most of the family imome. Respkmdents regulatory aspects, legal (,.iesti)ns, basic business ralcd E. tt:w. (pi 1nforrnation as helpful in de,ision- practices, and marketing information. De liven, m; kiny t)d Exicnsion information as good ri 3 to excellent when compared with information from With the introduction of two new videosone other sources.Respondents were mostly female focused on business basic.. s and one on market- and between the ages of 35 and 64.Fifty-five ing--and a publication with information paralleling percent described their residence as rural non- that presented in the videos, the task of providing farm, 32 percent as urban, and 13 percent as farm. information for potential entrepreneurs has s`tifted Twelve percent had incomes less than $10,000; 60 from specialists to county agents. By networking percent more than $10,000 but less than S30,(X)0; with smallbusiness cicvekpment centers,the and 28 percent more than 530,000. agents can provide potential entrepreneurs and business beginners with information sufficient for decisionmaking and business start-up. FUTURE PROGRAMMING The focus for specialists now shifts to assisting developing businesses with technical and Generating income through starting businesses marketing assistance.As part of that shift, the inrural areas means pro, iding locally-needed Charles Stewar: Mott Foundation has funded Dr. goods and serk ices or producing products that can Evelyn L. Brannon of Auburn University to direct be marketed beyond the local area. a demonstration project to determine :he impact One manager of a craft marketing cooperative on profit of various marketing strategies in the was quoted as saying that it is a myth that people home-based businr2ss environment. The marketing in rural areas are making lots of neat things" th_., concept will provide an organizing principle for can be channeled into urban markets. He went home-based business development and planning. ontoexplainthatwhilelocaltalentmakes Participantswillutilizea Marketing Analysis valuable, labor-intensive products, that work is not Program for Home-Based Business (MAP-HBB) thekindthatbringseconomicrejuvenation in developing an individualized marketing plan for withoutpi ofessionaldesignandmarketing their business. MAP-HBB is designed to: assistance. He suggests learning as much as possible about the traditional giftware business assist home-based business people in strategic with its forecasts of style trends, trades shows, planning, market research, target audience and salesrepresentatives. But,the giftware identification, and developing andimple- business is only one of many specialized marketing menting marketing strategies for both direct pipelines that offer possibilities for a home-based selling and selling to the trade; business. Such advice points to the problems of provide a useful recordkeeping system for use rural erarepreneurs and the challenges for those inmanagementandrnarketirgactivities interested ir fostering home-grown businesses. As including cash flow, profit and loss statements, Peter Drucker puts it:"Entrepreneurship is risky, break-even analysis; and mainlybecauseso fewoftheso-called provide prediction models (costs, earning on entrepreneurs know what they are doing...Everyone assets, and profitability) for the evaluation of who can face up to decisionmaking can learn to products and produLt linesin given distri- be an entrepreneur and to behave bution and marketing channels. entrepreneurially." Throughtrainingsessions,distributionof EntrepreneursinAlabama have had the printed materials, and consultations, participants opportunity to explore firsthand the marketing will be assisted in developing marketing plans and centers and to attend trade shows for limited testing marketing strategies in specific production productionproducts. Throughhome-based and marketing environments (food products, home business marketing tours to New York, Boston, decor, fashion and fashron accessories, etc.). and Nw.th Carolina, entrepreneurs visit the shops, A framework of performance measures for shows, galleries, and studios of successful small home-based business will be developed to tap into business people and explore the diverse marketing both qualitative (for example:family support, strategies they use to turn talents and skills into personalityfactors,etc.) and quantitative(for profitable enterprises.The most recent tour example: productsandproductlines,new NorthCarolinafocusedontheblendingof products in development, number of retail buyer preservation of historic sites, bed and breakfast numberofwholesaleaccounts,numberof inns,uniquerestaurants,andmarketingof shows/sales attended, sales per year in dollars and handmade products to attract tourists to a rural units, number of employees, percent of family area with great natural beauty. 9 4 Income from business, etc.) factors. 8 7

1111"...MMILMM-. encouragingexplorat ion of marketingpipchnes Bothquahtativeand quantitativedata 2) collected on performance will he analyzed to beyond the local area. Market res::,arch, trend determine the factors that account for the success analysis, andstyleforecasting arereadily or failure of home-based businesses. Special available to those hooked into information networks associated with specialized markets willbe giventospecific marketing attention fashion strzregies employed by "ome-based businesses and like giftware, decorative accessories, their contribution to profitability and job creation. accessories, and specialty foods. The data will be used to build an evaluation 3)rovidingongoingtrainingin entrepreneurship model of marketing strategies for home-based andself-employment. Businessstart-ups businesses.By using the data collection scheme depend on one or tv'o dedicated individuals and analysis at other sites, a national database on with the vision to see an opportunity.Itis the impact of various marketing strategies on unlikely that those individuals will have allthe profitability and survival could be developed. background and exrerience they will need to succeed.Seminars and training sessions on every phase of entrepreneurialactivity assist to IIOKE-BASED BUSINE.3S/RURAL thoseinbusiness and stimulate othets REVITALIZATION become self-employed. Norman Reid of USDA's Economic Research The challenge for communities is to encourage Service cites the payoff for communities whenhe and support fledgling entrepreneurs by: says: "pistroqbaseof smallbusinesses 1)fostering networking among_small business contributes vitality to the whole industrial ecolog the people and their advisors (lawyers, of a..1 area and buffers the economy against accountants,people knowledgeableabout de line of mature industries." marketing and business practices, technical specialists, bankers. and others). Sharing information and expeliences eliminates the isolation that leads to poor decisionmaking.

9 5 OVERVIEW OF THE HOME BASED BUSINESS PROGRAM AT ALABAMA A&M UNIVERSITY

Chinella Henderson Cooperative Extension Service Alabama A&M University

Tne Home Based Business (HBB) component managerial skills needed to help their businesses has been a part of the Cooperative Extension grow and succeed, and to give assistanceto program at Alabama A&M University for five clientele who are in the process of starting up years.Since its initiation in 1984, this program businesses in theit homes. has assisted 106 entrepreneurs in initiating and Specifically the goals for this program arc to. operating businessesinor near their homes. Another 114 entrepreneurs have received training 1. assist clientele in becoraing aware of what needed to improve their business skills in order marketable skills they currently possess; toincreasetheirincomes. Entrepreneurs participatinginthisprogram havereported 2. teach new skillsto clientele who are income incret....?,s of more than S173,000 during seeking ways to increase their incomes, the five-year period. In keeping with tradition, the Cooperative 3. orient new en epreneurs in the process Extension program at Alabama A&M targets for setting up businesses in their homes; much of its efforts toward helping limited resource families improve their quality of life.This target 4. assist clientele who are currently operating audience was the hardest hit by the economic a business in improving their managerial crisis. County Extension agents identified, through skills; annual surveys of clientele needs, the strong desire for ways to enhance the families' income.The 5. help entreprenms establish a market for Extension program responded by developing the their products; and Home Based Business program (HBB). The Home BasedBusiness program was 6. assist young entrepreneurs in starting and developed and coordinated by specialists working Operating a home based business. in theareaof home economics;however. consistent with an Issue programming concept, Working relationshipc were developed with the program was designedtoincludeinan other orgzoiations both on and off campus. On integrakd fashion the areas of agriculture and the campus of Alabama A&M University, linkages t ural reources, community resou ee were established with marketing and child care deve!opment, and 4-Fl. professors in the home economics department. The overall objectives for the pro,tam are to Also, one professor in the school of busiocss entrepreneurs vdto arc Cuirently operating agreed to work laith thc program. These LontaLas binessesfroffi thdrhomein..leveloping were later instrumental in helping to develop a

() series of leaflets on home baed businesses written newspapers, monthly newsletterssentoutb) for clientele. The home economics professors also countyExtensionaents,theChamberof served as workshop consultants. Commerce newsletter and the Campus Intercom. TheSmallBusinessDevelopmentCenter In addition, flyers are sent to county agents to be (SBDC) serves as a major referral agency for the distributed.County agents also announce up- HBB program. The SBDC was initiatedat coming events during weekly radio programs and Alabama A&M University in Septemba of 1940 put up posters in public places.A series of through a consortiumofSmall Business television programs introduced segments of the Administration(SBA)funds. The primary program to an audience not reach:.d by other functionofthe SBDCistoserveasan methods. educational and counseling resource center for the SBA on a local basis to support, aid, and assist small businesses. Italso provides one-on-one MAJOR CHALLENGES counseling, conducts business related workshop/seminars, and performs in-depth r.arket A major challengeinputting the program research with university assistance. together involved selling the program's concept to The Northeast Alabama Regional (NEAR) administrators who wereapprehensive about SBDC formed linka-,2s with and united into one specialists' backgrounds and expertise in working entity to include the Alabama A&M University in Cab; new subject matter area.Specialists who SBDC, the UAH SBDC, and the Huntsville/ were not working in home economics also felt Madison County Chamber of Commerce.The apprehensive about working in a multidisciplinary HBB program works with this agency to conduct program of this type. one-day seminars. Anotherchallengefortheprogramwas The Department of Human Resources is the identifying and establishing reciprocity betveen newest agencyto joinforces with the HBB other organizations with similar goals. The program. This agency cooperates with Extension programactivelysought tolinkupwith to conduct one-day seminars on starting and organizations such as SBDC who have access to operating family daycare homes. consultants associated with financial institutions. The Alabama A&M University Cooperative Information relative to the amount of income Extension Program (CEP) recognizes it does not generatedisdifficultto obtain from clientele. possessexclusiveexpertiseinthetechnical Most new entrepreneurs do not keep good business areas.The CEP's major objectives are records. Some are reluctant to release details of to serve as an educational cielivery mechanism their new enterprises. Others havt indicated that linkage agent and as a catalyst for the Home they are unsure about the stability of their Based Business program. As a result, we depend businesses and do not feel the income is great upon the NEAR SBDC and other agencies to enough to report. provide training in areas such as record keeping, The greatest obstacle in getting nev tusinesses marketing, accounting, procurement, pre-business started has been in obtaining the car ,tal needed skills, etc.The CEP and NEAR SBDC identify topurchase equipment and suppliestoget clientele needs and plan seminars and workshops businesses started. TneSmall Business according to those needs. In addition, the NEAR Development Center has offered some assimanee SBDC offers free seminars in all areas of business in this area. in the target counties. Other or-campus linkages have included public accountants and successful operators of home ACCOMPLISHMENTS based businesses.These contacts assisted with planning sessions for workshops and also served Yearlyaccomplishmentsweiereportedas as workshop consultants. follows: Numerous methods are used to reach potential clienteleforinvolvementintheprogram. * FY 84:One hundred live pei)ns attended a Announcements for v. irkshops are made in local home basedbusiness workshop wnductedat

9 8

L Alabama A&M University.More than1,200 * FY 87: luring FY 87, 70 home-based families received information through bimonthly businesses weic in operation.More than 2,122 newsletters and personal contacts with county families received information through bimonthly agents. Mass media programs were conducted on newsletters and personal contacts of county agents. threetelevisionandsevenradiostations. More than15specialinterestmeetings and Announcements and news articles were carried by workshops were conducted, with 409 persons live local newspapers.County agents conducted attending. Mass media programs were presented 16specialinterestmeetingsand workshops on three television and seven radio stations and involving 1,160 persons. in five local newspapers. That effort resulted in 29 clients participating Seven low-income clients completed initial inthe initial steps for setting up a business. steps in setting up a business.Twelve clients Thirty-sixentrepreneursreportedthatthey improved current business management practices improved their businesspractices. Businesses Surveys returned by clients indicated an income initiatedincludedclothingconstructionand gain of more than $16,829.Businesses included alteration, quilting, ceramics, doilmaking, clothing construction and alteration,quilting, upholstery, and a variety of crafts. ceramics, doll making, upholstering, cake deco- rating, catering, and typing. FY 85: Approximately 1,200clientele received information through bi-monthly newsletters and * tY 88: During 1988, approximately125 personal contacts with county agents. Mass media adults and 24 youth were involved in training programs were conducted on three television and programs for developing entrepreneurial skills. At seven radio stations.Annowicements and news least 26 adults and eight youth initiated home articles were carried by fivelocal newspapers. based businesses.This represents 20 percent of County agents reported conducting 30 speci 11 the 1,132 families projected for the total four year interest meetings involving 221 persons. cycle. Net income reported from these new Nineteen clients completed initial steps in businesses was $43,982. setting up a businessThirty-nine entrepreneurs reportiimprovingtheircurrentpractices. * FY 89: In 1989, approximately 460 adults and Surveys returned by clientele indicated that income 49 youth were involved in training programs for generated from new businesses and improved developing entrepreneurial sk::11s.Twenty-three practices in1984-85 was more than $100,000. adults and seven youth initiated home based Types of businesses initiated were expanded to nusinesses. This represents 22 percent of the 132 include caterin families projected for the total four year cycle. Net income reported from these new businesses * FY 86:During FY 86, 63 home based was $36,487. businesses were in operation.More than 2,090 families received infoimation through bimonthly Of the 136 entrepreneurs who have started newsletters and personal contacts with county businesses since the program's initiation, agents.More than 15 special interest meetings approximately 10 percent have not been successful and workshops were conducted, with 201 persons and discontinued operation.Another 5 percent attending. Mass media progrL.ms were presented have discontinued operation for other reasons on three television and seven radio stations and including moving to another area. in live local newspapers. Seventeen low-income clients completed the Cake decorating 2 initial steps in setting up a business. Nine clients Catering 3 improved current business management practices. Antique sales 1 Surveys returned by clients indicated an income Home sewing 8 gain of more than $12,657.Businesses included Blueberry* 1 clothing construction and alteration,quilting, Christmas trees* 13 ceramics,doll maldng,uphokteriag,cake Barbering 3 decorating, and catering. Home day care 5

99 Oil paintings 1 RESOURCE MATERIALS Honey producer 1 Yard services 2 Quilting 12 I. Leaflet Series Rabbit producers* 14 Vegetable producers* 15 CS1 So You Want to Make Money? Catfish producers* 9 CS2 Are You the Business Type? Fruits* 8 CS3 Will Your Product Sell? Cosmetics 1 CS4 DeterminingthePriceof Your Mops and brooms 1 Handcrafted Items Furniture 1 CS5 important Regulations You Should Hay* 1 Know About When You Work at Firewood 1 Home Total 103 CS6 Suggested Guidelines for Operating a Small Home-Based Business *Farm enterprises not considered as the major CS7 Spreading the Word sources of income are defined as home businesses. CS8 A Look at the Business CS9 Business Possibilities CS10 Cuftom Sewing and Pricing FUTURE CS11 Alterations as a Business CS12 How to Sell Your Quilts Major obstacles that remain in the program are: II.Booklets 1.Entrepreneurs do not keep up-to-date and accurate records of their business accounts. HE-125 Home-Based Business HE-129 Sources of Assistance for Manager of 2. Entrepreneurs do not choose to report Family D..-.1 Care Homes their earnings to Extension agents.

3. Many entrepreneurs are not successful in III. Home-Based Business Resource Notebooks obtainingfundsneededtopurchase suppliesandequipmenttogettheir businesses started. To Order Contact: Future clans for the program include: (1) involving clientele in more "hands on" activities. 1Ars. Carolyn Reedus Thismaybeaccomplishedthroughmore P. 0. Box 967 individual and small group work sessions; (2) Normal, Alabama 35762 developingaworkingrelationshipwiththe Association of Government Accountants.This association offers a free eight week course at Alabama A&M University between January and March.Extension clientele may wish to take advantage of thistraining;(3)ex anding the program to include more training activities for youth; and (4) developing a catalog of area crafts and trades to help clientele market their products and services.

100 92 HOME BASED OR SMALL BUSINESS DEVELOPMENT: 4-H IMPACT

Bill Edwards, Associate State 4-H Leader Cooperative Extension Service University of Georgia

Since its inception, 4-H has in many ways dog new tricks." been a strong advocate of home based or small Would you believe that concept is still going business development.It may not have preached on today? 4-H continues to find ways that youth small business, but its emphasis on transferring can take our message--Extension's mesuge, to the technology through the youth to thei, parents was adults. Some of the information applies directly a significant avenue to help the small f^rmer. We to small business practices.Other knowledge have All heard the saying "you can't teach an old applies to our genem: lifestyle.The Extension dog new tricks" or "seeing is believing.'The mission is to transfer knowledge to the public Extension Service, through its youth component, which will allow them to enjoy a higher lifestyle. 4-H, found A way to reach the old dogs. Ideas or practices which show people how to In Extension's early beginning, the farmers make their money go further enhances their were, set in their wayf on farming techniques. financial statils. Parents still learn from their kids, Although research in farming pi:ctices was moving and you better believe we continue to play this to forward_ rapidly,thefarmerscouldnotbe the hilt. persuaded to change their ways. Knowledge hat A couple of examples of our youth power Extensionhadgainedwasnotbeingtr. ;(1. coming into play can be seen inthe areas of Farmers could not accept the risk of trying n w energy and water consumption. When the energy measures--their margin of profit was small. crisis hit our nation, what did the youth leaders new way that did not work might put them out recognize?Kids can have an impact on their business. A bright 4-H staff suggested that families' economic practices. Many different through the youth, we could put to work the old means were used to convey energy conservation adage:seeing is believing."Wily not let our 4- measrres " rough the youth. Contests to see how H'ers put their new technique.) work in a small much energy youth could conserve were promoted. way...and the corn clubs were started. Of course, Turn off the lights; turn down the heat; put up you know the rest of the story. Parents indulged energy messages on light switches.The effects in their child's play: a 4-H project, or could we were felt in homes throughout the nation. These sayasmallbusiness,waspromoted where measures not only had an immediate effect but Extension agents helped the 4-H'ers put into developed lifelong patterns. The problem of water practice onavery small scaleallthe new conservation and water quality will surely have a techniques to produce a greater yield in corn youth approach. We areactively promoting production. The results were significant. Fathers through 4-H'ers the use o; water conservation were impressed with the increased yields, and measures in homes, and it works.Youth will Extension agents had found a way to "teach an old continue to be an important avenue of influence.

33 This leads into the subject of home based or Based ontheseobjectives andhiskids small business deeloprnent. I would like to relate interest, the Dekle Christrtv,s tree business took some of the examples of what 4-H is doing to form.To make ita true business venture, a encourage small business or home based business fc rmal agreement betwcen dad and children was opportunities.4-H is of course noted for the drawn up. Itbasically stated that dad would work values itinstills inits active participants. acquire or rent the land (20 acres), and the Some would even call it a work ethic. To achieve children would own and operate the tree business. in 4-H, one must commit to an active involvement The business was started in 1975 with the in seeral areasSuccess is usually the result of purchase of 20 acres. The first trees were planted determination or an attitude of not giving up. in 1976, 2,000 seedlings (1,000 white pines and The value of keeping records is strzssed, and of 1,000 Virginia pines).There have been a lot of course this provides the basis for success in many mistakes, but the major one was the planting of areas of the business world.Project work is the white pines. The white pin:, does not do very well primary means of teach.ng 4-H'ers the many skills in Georgia.Only about 90 of the 1,000 white necessarytomatureintoproductiveadults. pines lived.The early mistakes of planting the Although all projects do not lend themselves to wrong trees and some incorrect shearing created business vocational pursuits, many are geared in some problems, but as in any business, you learn that direction.Specialists arc excited when a from your mistakes. young person takes the knowledze learned from The money did not come in for three years. a project and turns it into a bushss.I have a This was sort of difficult for the young people, but couple of specific examples that arkdirect spin it probably helped them understand the hard won,. offs of project work. involved in starting a business. In the fourth year, A forestry project in Jefferson County helped they started selling the trees, and it became more produce two national forestry winners and has fun. The first year sales were around 300, all to made a University of Georgia graduate and his retail customers. The business has steadily grown, sister "independently wealthy." That, of course, is and they are now selling 1,500 to 2,000 trees a a relative term, but for college students to have year. They have moved to selling trees wholesale. the necessary funds to carry them through four The Dekle Farm now supplies nine wholesalers in years of college and not have to scrimp makes addition to their retail sales. Another interesting their peers say they are wealthy. These funds are factisthattheDekle businessstaitedthe the result of some hard work, good management, Christmastreeindustryiny.tffersonCounty. and family support, all important ingredients of a There are now five Christmas tree businesses. 4-H success story. The business I am referring to, The bottomlinetellsthestory. The anoutgrowth oftheforestryproject,isa Cn istmas tree farm has met the objectives set out Christmas Tree f .rm.David and Renee Dekle, in the beginning.It has produced two national active 4-1-l'ers whose dad is a County Extension winners in the 4-H Forestry Project, provided the Director, worked out a plan at an early age to necessary money for four years of college for finance their college costs. David was 13 when his David and Renee, and definitely has given the father approached him with an exciting idea. Why Dekle kids something todo. Now thatthe not make money in your project area?David childrcn are grown, the business will be sold. Dad jumped at the suggestionHe was in the eighth will get the profit from the land, and the kids will grade and was gathering statistics for his projc3. reaptheprofits from the sale of trees and He reali7ed you could make a lot of money in equipment.Not a bad record for a small rural Christmas trees.Renee thought it sounded like business. a lot of work.But dad had a plan and had A second example has many similarities to the thought out how this activity would accomplish Christmas trce business. A young 4-H'er, Johnny some speuti, objectives:1) something for the Mitchell,ineast Georgia, Effingham County, kids to do (Jefferson is a rufal area); 2) a 4-H enrolled in the 4-H Wildlife Project. His project club project for the Dekles; and 3) earn money brought him in contact with the State Fisheries for college. Specialist, and this changed his and his family's

102 9 1 lives drastically.Johnny became quite interested Johnny still helps manage.Also, the family has in the catfish project. At the time, his father was opened a restaurant featuring catfish (but bought in business installing septic tanks. There was an from other sources, since the Mitchel Is are only interestinbranching outinotherbusiness inthe hatching business). Profitsfrom the ventures. With Johnny's interest and through his business for 1977-1983 (Jot nny's 4-H years) were association with 4-H and the catfish project, a $51,000.All this ockurced as a result of 4-H single fish hatching pond was constructed.This project interest. So you see, the earliest concept was 1977, and Johnny was in the seventh grade. of conveying knowledge through the youth to their Similar to the Dekle Christmas tree business, parents still works. Johnny entered into an agreement with hisad to In addition to these success stories, let me share in the profits. assure you thereare thousands of examples From thissmall beginning, coupled with throughouttheU.S.thatsupport astrong Johnny's commitment and the close support of the commitment 5y 4-H to help youth see the value Extension Service Fisheries Specialist, the business and potential of home based or small business grew.Johnny read every book he could lay his ventures.Rural county agents understand the hands on and caiied on a nearby wildlife biologist importance of helping youth see the potential of for assistance. Today, there are 14 ponds, which small business opportunities.

103 HUMAN CAPITAL

96 EDUCATION: THE EMPOWERMENT OF PEOPLE

William F. Wmter Former Governor of Mississippi

This conference has brought together many of our population be relegated to a permanent status us representing different disciplines and different of poverty and ignorance. experiences but with a common and crmpelling I have seen in the course of my own lifetime interest in the sustaining and revitalization of the a miraculous transformation in this region. We rural South. are a long way down the road from those days This is not an academic exerciw for me.I am when I was growing up in North Mississippi-- a product of a North Mississippi farm that sus- when- our per capita income was less than half tained four generations oi my family before I that of the rest of the country, and where we were sought in those years of change after World War graduating from high school one in five white II what appeared to be greener pastures some- students and one in 50 blacks. where else.That "somewhere else" has not, We have come a long way since the 1950s however, removed from my memory or my con- and 60s when we were so preoccupied with cern the place of the rural areas in our lives. nv. -itaining a racially segregated society that we Different though it is today, that farm, which almost forgot that we were a part of the rest of I stiil own and operate by rather remote control, the country or the rest of the world. still provides me with a sense of who I am and But as far as we have come and as the Report where I came from.I understand what Alex of the Commission on the Future of the South Haley meant when he was writing about "roots." pointed out, we are only halfway home. As the Without getting maudlin or sentimental, I think Halfway Home report emphasizes, with the job this is an element that is missing in tit:. lives of market having drastically changed in a relatively many of our fellow Americans, who really have no short period of time, the rural South is confronted sense of place--no identity with the land--no place with conditions thatit has not known before. that they can really call home. Now even most of the run-of-the-mill jobs cail for So what I shall try to say to you today is based skills more advanced than we have bcen accus- on this long-standing love affair with the rural tomed. That brings us then to the most critical South and so many of its people. And it is about of the issues that must be addressed.That, of the people of the rural Socth thatI primarily course, is the issue of education and training. want to speak. Since we know that functional illiterates, even My perspective is that of a fellow Southerner when they can find jobs, earn 44 percent less than who believes that we are all in this together--that high school graduates, we understand the eco- what affects some part of our region or the nomic urgency behind the raising of educational community in which we live affects us all--that we levels. The highest priority must be extended to cannot afford for obvious reasons to let a part of the substantial reduction of adult illiteracy, and

97 at the same time we must make sure that we have The president of the company told me that in the produced ourlastgenerationoffunctional community where they had planned to build their illiterates. That means that the present emphasis new plant, the supply of skilled labor was lacking on secondary and elementary educztion reform and the schools were deficient. must not leave anybody out.It also means more My state lost that significant industry because than improving education per se, for there is we were perceived to be noncompetitive in terms involved here a task as challenging as the school of our human resources.I realized, really for the reform movement itself.The stark truth is that first time, that our future would depend on the educational improvement will not automatically development of more of our people. We some- come to those who need it most unless at the how had to empower them to compete, and we same time we attack the fundamental problems would do it only by raising the level of their that result in low educational achievement in the educational achievement. first place. So, I asked myself, how do we do it?It was Our underdeveloped human capital remains obviousthatourattractiveSunbeltlocation our greatest barrier to economic growth and obviously was not going to be enough.I became prosperity. The plain fact is that as long as we convinced the only way we were going to do it have so many undereducated people, our region was to enhance the productive capacity of the is going to be poorer than the rest of the country. people of the South. Poorly educated people translate into poor people. This involves a substantially different approach Education is the only thing that will unlock the to the concept of economic development. For a door to economic opportunity hr allof our long time in many areas of the South our devel- people and parity for our entire region. opment strategy was built around three perceived Why has our region ranked so low in per advantages that we had.They were low wages, capita income? It is certainly not because we are cheap land, and low taxes.In most cases we got lacking in natural resourms. By anybody's stan- about what such a strategy suggested. We per- dards this is a naturally rich area--productive land, petuated a lower standard of living than we should abundant energy and minerals, bountiful timber, have. Those factors translated into poor schools plenty of water, clean air.It is poor ty:cause we and poor communities that were not very attrac- have too many underproductive people.Put in tive places to live. And now we are finding that plain, hard-headed economic terms, it is not just so many of the plants from other areas that were a zero to our economy to have so many underedu- looking for cheap labor are not stopping in the cated people_It is a minus. The more underedu- American South but are locating in Mexico, South cated people our region has, the poorer it is. and Central America, and the Pacific Rim. I learned this lesson very dramatically a few Economic development must now involve a weeks after I was sworn in as Governor of Missis- much broader range of concerns. The first sippi in January, 1980. The head of our Depart- concern obviously must be, asI have said, a ment of Economic Development informed me that skilled work force or at least a trainable work a major electronics company that would employ force. We are not going to be competitive with 900 high skill workers was coming to our state. the rest of the country--much less the rest of the This was precisely the kind of industry that we world--until we educate properly more of our needed to raise our per capita income. Then, a people. short time later, I was advised that the industry Here we are faced with a two-fold problem. was not coming to Mississippi but instead was The first relates to those millions of functionally going to another state.I set out to find out what illiterate adults in ou- region who for whatever had caused this change in plans and flew to reason never got a basic education.It is a stag- Chicago totalkto the company's president. gering loss.If I walked down the Main Street of There I was told that, indeed, the intentions were almost any Southern town this afternoon, one to come to Mississippi and that all of the condi- adult out of every six I met couldn't pick up a tions had been found to be favorable except one. newspaper and read it.In some places it would That one, however, was the quality of education. be one out of five or even one out of four. We

108

-I must go back and try to salvage some of these of the South, specifically including the community people. Adult literacy remains one of our largest colleges, to expand the effectiveness of the various challenges. programs designed to make people more produc- The second problem has to do with keeping tive. There is a crying need for a more intensive the present school generation in school. Our 30 approach to enhancing the level of adult literacy. to 40 percent drop-out rate is a national scandal. You could render invaluable 3ervice in helping I was with a delegation of businessmen from structure that effort. This would be a true exten- South Korea last month.In response to my sion of the educational mission to which you have inquiry, I was told that their high seitool gradua- been long committed. tion rate is over 97 percent.That is reason for This region; after more Ihan a century of concern. We are not going to compete very well outside .:xploitation and inside bungling, has the on that basis. capacity, and I believe the will, to put it all toge- So many of our student failures are the result ther.In doing so, we shall serve not only the of circumstances over which the schools have very interests of those of us who live here, but in the little control. We have a massive task in reducing final analysis we shall be serving the interests of the risks that cause children to fail before they the nation as well. And most important of all we ever get to school. But I can tell you additional shall be serving the interests of those who will resources investe,: in reducing the risks in people inherit this land from us--that next generation of before they drop out of school and out of society Americans that includes my little grandsons who must be provided, or we shall wind up paying a have a right to expect a better place to live than lot more down the road.More than that, we the one which you and I inherited.That is our shall expose our communities and our nation to challenge i. nd opportunity. the kind of unrest and instability that puts us all at risk. In the final analysis, though, the difference for most communities will lie in the quality of local leadership. This will be the most influential factor of all.Too oftcn we have permitted the least creative and the least visionaryto make the strategic decisions.We have fallen behind in many cases because we have relied on the "good old boys" on the one hand or the "I've got it made" defenders of the status quo on the other. It is my observation that those communities which are doing the best are those which are led by bright, creative, unselfish business and polidcal leadas who understand the realities of the world around them and who are willing to make bold and innovative choices. At the risk of being presumptuous, I believe there isaspecialmissiontheCooperative Extension Service can perform in this vital process of developing our region. You have, perhaps, the most pervasive network of committed people of any organizationinthe region. You extend literally into every community. You are in touch with the people and their community leaders. You understand their problems. Let me suggest, therefore, as a new challengL that you build on your past successes by helping forge a link with the local educational institutions

109 j ;.1

=111. JOB TRENDS IN THE FUTURE OF THE SOUTH

Oliver C Johnson, k., Senior Associate Human Resource Policy Southern Growth Policies Board

I am often asked, "Why is it taking the South future.Meeting this competitiveness challenge so long to become fully at home in the modern requires the participation of an informed public. global village?" or, "What has delayed the New During its15 yearlistory,the Southern South's transformation into the Promised Land?" Growth Policies Board has been in the business For one thing, many Southerners have not been of crafting a better future for the South by making the journey. The sunshine on the Sunbelt focusing on growth management in the boom has provedto be anarrow beam oflight years of the early seventies; in the late seventies brightening futures along the Atlantic Seaboard, by fighting battles for the South in the federal and in large cities, but skipping over many small funding wars; in the early eighties by refocusing towns and ruralareas. The decade's widely onstatepolicyregardinghumanresource publicized new jobs at higher pay have been development; and, now during the nineties by largely claimed by educated, urban, middle-class trying to integrate a holistic approach to state Southerners. development policies--in the words of our motto, While nine million new jobs are projected "creating strategies for economic development! for the region by 2000, too many workers in We create these strategies through research, obsolete jobs are not being retrained for the next publications, and meetings. The Board has century's technical and service careers.INventy regular, serial publications dedicated to emerging years ago, when the national unemployment rate economic issues, human resource development, was near 4 percent, people with grade school internationaltrade, growth and environmental educations could still find jobs. Today, the will to management, intergovernmenl relations,and work must be matched with the skill to work. technology. The Board also erea:es development Facing the 1990s, the South must decide how strategies by energizing networks throughout our to rescue those Southerners left behind. They are 13 states and Puerto Rico. These networks take not strangers.They are not people too lazy to our products, and adapt them and use them as work. Often they are nehbors who did not leave instruments of policy change at their respective their jobs but whose jobs left them--some moving state and local levels. to Taiwan, Bangladesh, Hong Kong, and Mexico We are funded and governed by the 14 state where wages are often less than a dollar an hour. and territorial governments, with the governor, a Our need is not so much for greater charity but state senator and representative, and two citizen for greater parity to bring forward all Southerners members serving on the Board from each member at once. A region divided cannot stand, much less state. Thiscombinationofgubernatorial, move ahead. legislative, and private sector membership gives us This region is in the midst of a dramatic a unique strength, and one critical in today's economic transition, one that will require action mon o my. by all Southerners to prepare for the jobs of the

10 0 Before getting into the principal thrust of my economies in response to technological remarks about jobs in the future of the South, breakthroughs and political decisions; however, let me say a word about our motto, "creating what is different now is the pervasiveness and strategiesfor economic development." Itis velocity of these changes. The Commission on the important, both because we chose it carefully and Future of the South proclaims, for example, that because it win give you an understanding of the wearelivinginaneraoftechnological lens through which we look at the future. renaissance, which means that innovations are ever First of all, we chose the verh "creating" to more frequent and powerful--constantly altering imply that our work is cutting edge in nature (and products,the waysinwhichbusinessesare therefore, sometimes risky), that we hope to shed organized and financed, and how markets are new light on new and old problems, and that our defined and served. contribution to public policy is intermediate to a A third trend is the growing importance of long range look at the future.Second, the term the hnman resource base in the future economy. "strategies" also implies a long-term and global Some economists argue that human capital has perspective, as opposed to the often tactical, been the driving forceinnational economic parochial, and brush-fire work of our state and growth for decades, and this has certainly become local political systems.And fatally, the term true for the South today. "economic devecpment" is critical particularly as A fourth trend is the continuing globalization distinguished from "economic growth." of the economy. This development has proceeded What is the difference between "growth" and at almost exponential speed in the last 20 years "developmentrSimnly put, itis the difference and AS almost certainly irreversible. For example, between spurring economic activity, on the one- for 40 years, from 1929 to1969, America's hand--which is growth--and developing the long dependence on international trade remained small term capacity to generate self-sustaining economic andconstantatabout 4 percentof GNP. activity, on the otherwhichisdeveiopment. Between 1969 and the present, however, it has Examples might help clarify the distinction: soared to over 20 percent of r'MP, and now, about 70 percent of our goods compete here and an increaseinper capita incomeis abroad with foreign made goods. growth; an increase in per capita wealth The fifthtrendwillbe towardamore is development. sophisticated understanding of what has been called the post-industrial economy.The per- an increase in the number of jobsis centage of the work force employed in manu- growth; raising the per capita education facturing will continue its 20 year decline, and and skillslevels of tne work force is most of the job creation will be in the services development. sector. In the South, for example. the percent of the woik force employed in manufacturing will Our goal at the Board, then, is to keep the decline by the year 2000.Furthermore, most of eyes of our leajers focused, at least in part, on the new jobs created will be in the services sector. "creating strategies for economic development." Much of this relative decline in manufacturing And, of course, all of this df!als with the future. employment will be due to automation which in I will begin, then by delineating eight major trends turnwillbearesponsetointernational whichwillaffectthefutureofeconomic competition and technology. development in the South. Closely related to this trend is a sixth one, The first major trend is that the era of the and that is information.Financial capital, raw Sunbelt will soon be over--and, in fact, already is materials, and good labor will continue to be over in many parts of the region. By this I mean essential to this new economy, but information is the media's image of our region as the land of emerging as the new strategic input into the milk aud honey, where people are moving and all economy of tomorrow. Ever since the Rothchilds of the jobs are being created. builttheir financial empire, inpart on their The second major trend will be the nature of pioneeringuseofcarrierpigeonstoget change itself.Change has always characterized information on markets and deals before their

112 0 1 competitors, information has been an essential the problems and opportunities we share. commodity. As I read for you the 10 regional objectives, The percentage of the Southern labor force you will envision an action agenda which will employed in information work has grown from address that future I described. around 5 percent after the Civil War to about 50 percent today.Access to information and the 1. Provide a nationally competitive education infrastructures to transidt it will be the keys to for all Southern children. success. 2. Mobilize resources to eliminate adult A seventh trend is that altered development functional illiteracy. patterns emerging out of a new business climate 3. Prepare a flexible, glob; Ily competitive will have locational impact.In the next 20 years, work force. this spatial impact will likely be the continued 4. Strengthensocietyasawholeby metropolitanization of the Southern economy at strengthening at-risk families. the expense of many rural and small town areas. 5. Increase the economic development role This trend began probably a decade ago but was of higher education. only recently documented by us. 6. Increase the South's capacity to generate The eighth and final trend which I see as and use technology. critical in the next 20 years is the growing need 7. Implement new economic development to develop sophisticated, collaborative partnerships strategies aimed at home-grown industry. between the public and private sectors. Our major 8. Enhance the South's natural and cultural industrialcompetitorshavebeenperfecting resources. collaborative models fora long time. The 9. Develop pragmatic leaders with a global Japanese experienceiswell known, but the vision. Germanshavedonelikewise. Howwell 10. Improve the structure and performance positioned is the South to deal with this future? of state and local government. As the report of the Commission on the Future of the South says, we arestillonly "Halfway I won't discuss these objectives in detail, but Home and a Long Way to Go." wt..uld urge each of you to read the report.It is Halfway Home lists 10 regional objectives for available free of charge from the Board; it is only the South to work on for the next three years. 23 nages long, and can be read in less than an These objectives provide us with a roadmap for hour. Since we hired novelist Doris Betts to write addressingthatfuture Idescribedandthe Halfway Home, you will also find that it is unlike problems we face.It poses nothing less than a any public policy document you have ever read. new model of economic development for the It is beautifully written in a Southern style. South.Itis a model of internal development, Some economists argue that human capital rather than external, and one that calls for a new has been the driving force in Southern economic set of strategies aimed at education and training, growth for decades, and this is certainly true for capacity building, indigenous business creation, the South today.An educated, skilled, flexible and a far more sophisticated role fot government. work forcewill bethe key to an economy And, it is here, I would argue, that we find functioning well in this volatile and uncertain the good news from our region--and thatis in environment. We already know the essential facts our capacity to come together as Southerners, to about the work :orce in the year 2000. About 75 care about each other, and work on our problems percent of that work force is already working and collectively. This is a great regional strength that all have been born. is found nowhere else in America. People in one Between now and 2000, the prime age work Southern state really do care about Southerners force (aged 25 to 55) will grow by 12 percent a in other states.This sense of regional identity is year. At the same time, the youth work force will a tremendous asset if we harness it positively and decline by 0.2 percent a year, while the older work with vision.And, this is what the Commission force will grow by 0.2 percent a year. As a result on the Future of the South is all about--an effort of these different growth rates, prime-age workers to create a regional agenda for action to address will account for 73 percent of the work force in

113 .1 0 2

4 2000, up from 67 percent in 1986.Youths will symbols for danger and opportunity.Businesses accountfor only 16 percent, down from 20 of all kinds might want to remember this as they percent.Older workers will also decline as a adjust to the new work force.The number of share of th r! labor force: workers aged 55 and over entry-level workers will fall by 8 percent, and will account for 1 percent of all workers in 2000, virtually all new jobs will be in service industries. down from 13 percent in 1986. In the fall of 1988, the BLS issued its first One thing for certain: the work force is going projections of labor force growth to the year 2000. to be older. The maturing of the baby boom will The projections are dramatic for two reasons: first, raise the median age of the labor force from 35.3 they show sharply slower growth in the labor years in 1986 to 38.9 years in 2000.This is still force, particularly among younger workers; second, below the post-World War II peak of 40.6 years they suggest that the people who will be entering in 1962, but substantially above the record low of the labor force in the years ahead may not ha,,e 34.6 years in 1980. An aging work force worries the skills that employers need.

many eamomists concerned about productivity Overall, the labor force will grow only 1 growth, since older workers traditionally have been percent a year between 1986 and 2000, down from less willing to retrain or to move for a new job. the merage annual 2 percent growth rat:: from The work force L also going to be more 1972 to 1986.This will be the slowest rate of female.The Bureau of Labor Statistics (BLS) labor force growth since the 1930s.The slower projerts an annual increase in women's labor force growth is partly due to slower population groh. participation of 1 percent--half the 1972 to 1986 But it also results from the maturing of the uaby rate, but double the rate projected for the labor boom. The baby-ht om generation is now at work. force as a whole for the rest of the century. Until the end of the century, the small baby-bust Women will continue to account for nearly two- generation will be supplying the nation's new thirds of all new workers and represent fully 47 workers. percent of all workers by 2000. The new projectionsoffer some stunning The third significant shift in the labor force perspectives, such athe prediction that nearly is the increase in minority workers.Hispanics all new jobs created in the South between now will account for 29 percent of all new workers as and2000willbeintheservice-producing the number of Hispanic workers grows by 4 industries. On the face of it, this seems dramatic, percent a yearfortherestof the century. but in reality almost allindustries are service Overall, the number of Hispanic workers will be industries outside of manufacturing and agriculture up by 74 permit, representing 10 percent of all which produce goods.These include low-paying workers by 2000.Presently, Hispanics represent retailtrade,butalso education, health care, 7 percent of all workers. government, and finance, all of which offer large The black labor force is expected to grow at numbers of high-paying jobs. an annual rate of 2 percent.Blacks will account Although some manufacturing industries will for 18 percent of all new workers during the rest offer more jobs, others will cut back, resulting in of the century, with their share of the labor force no change in manufacturing employment between rising from 11 to 12 percent.This growth is now and 2000.Though the value of manufac- driven by the increase in the black population, turing will grow, increas.ag productivity will cap though the BLS assumes that black men will be the size of the manufacturing work ftrce. less likely to join the work force in 2000 than they This industrial evolution has led to fears that are today. If that assumption is correct, there will the re ;ion will lose its middle class.If "middle be more Hispanic men than black mer. in the class" means a high-paid factory worker without labor force by then. much of an education, able to maintain a family, These changes point toa new breed of these fears are well-founded. The current trends worker, one who is more likely to be black or in industrial and occupational growth mean that Hispanic.This is the profile of our current and people's educational levels and their family status future labor force upon which our competitiveness will increasingly determine their income levels-- will rest. and that signals more income inequality among The Chinese symbol for crisis combines the households.

114 1 03 Between now and the year 2000, for the first thefast-growing occupational groups:natural time in history, a majority of all new jobs will scientists and computer specialists; and engineers, require postsecondary education. The new BLS architects, and surveyors.Women are heavily projections divide occupations into three groups: represented in only one occupational cluster that those in which at least two-thirds of the workers isprojectedtodecline: machine setters and in 1986 had some college education, those in operators. Because there will be few white males which the median amount of schooling was greater entering the labor force, employers who have than 12 years, and those in which the proportion depended on white ma:es will be forced to open of workers with less than a high school diploma theirdoorstoothers. Thismeansmi exceeded 30 percent. The employment share of opportunities for qualified women and minorities. thefirstgroup willincrease,rising from 25 Slower labor force growth could hurt the percent of all jobs in 1986 to 27 percent in 2000. economy unless productivity improvesinthe The employment shax of the second group will rapidly growing serviceindustries.But labor drop by lessthan 1 percentage point to 40 shortages of skilled and unskilled workers may percent, while the employment share of the third spur productivity improvements. Businesses that group will drop from 34 percent to under 33 produce labor-saving equipment and processes are percent. likely to see demand growing for their products. The reason that the share of jobs that require Industries that depend on population growth thc least education will not suffer a greater drop todrivetheirmarkets--suchasthefood, is that service workers (waiters, cashiers, etc.) are automobile, and housingindustries--willface increasing as a proportion of all wukers. Many slower growth because there will be fewer young of the jobs that will have the most openings in people demanding these products. But the the decade ahead are service workers. Many of maturing of the population means more demand the jobs that will have the most openings in the for productc and services linked to higher incomes, decade ahead are service jobs that require little likerestaurantmeals,travel,personal-care education and off r little hope for advancement. products, and luxury goods. At the same time, the number of manufacturing A maturing work force is a mixed blessing. and agricultural jobs that require little education On the one hand, productivity should increase as will decline.In contrast, among the jobs that the work force becomes more seasoned. On the requirethemosteducation,allbutone other hand, older workers are less flexible about occupationalgroup(teachers,librarians,and changing jobs, changing locations, and changing counselors) willincrease as a share of total occupations. At the same time, increasing global employment.The biggest increases will be. in competition combined with the rapid pace of managers, technicians, and health diagnosis and technological change puts a premium on flexibility treatment workers. for businesses. Overall, the nuwber of jobs is expected to This creates opportunkies for businesses that increase by nearly 20 percent between now a-id specializeinhelping workers become more 2000. This is only about half the rate of Mcrease flexible. Firms that train other firms' workers will of the previous 14 years.Slower growth means be in a strong position because training and thatthecoming occupationalshifts,though retraining will be increasingly important.Firms dramatic, will not change the face of employment that aid in job search and placement, including much in this century. spouse relocation, will proliferate. But there will be problems in matching new The changing labor force is a mixed blessing workers with jobs. Blacks and Hispanics, in part, as well.Areas that are growing will have more because of their relatively low educational levels, flexibility.Regionally, this means that the South are more likely to work in the occupations that will benefit because we have gmwing industries are projected to grow slowly or decline than to and populations.If immigration to the U.S. work in the rapidly growing occupations. Minority continues atits current pace, the South will workers will need more training if they are to take receive the lion's share of these workers.This advantage of job growth in the 1990s. means that it will be easier to start or to expand Women are underrepresented in only two of businesses here than in any other region.

"5104 Within our region,there are geographic resilient, competitive, and h. mane society. imbalances between jobs and workers.Flexibility If we are to solve this region's overlapping is the key to making the most of opportunities problems...if we aretoearnfulleconomic that the changing work force brings.If the work membership in the national and world economy...if force of tomcrrow is going to be older, more we are to see our citizens earn a good living in a female, more black, and more Hispanic, then society which still preserves the good life...the employers cannot rely on an annual crop of South must make a full commitment to capitalize freshly educated young white males to fill jobs. its most na:ural resource of all: 61 million human Employee training and retraining will be the key beings. to flexibility.As one economist has concluded, during the rest of this century, the good fortune to be born in or to immigrate to the Sou.h will make less difference than the luck or initiative to be well-edurated and well-trained. I see great hope for our region to be globally competitive.But, it will not be easy--and it will not be cheap. Can we afford to make high-priced changes when budgets are tight?Can we afford not to?But, a more difficult cost may have nothing to do with money, but with the historical reluctance of Southerners to change the way we do things. Two centuries ago, when Benjamin Franklin lookedup fromsigningtheDeclaration of Independence which was 'o transform a colony into a nation, he remarked, "We must all hang together, else we shall all hang st_parately." It is clear that the 1776 spirit of independence is still alive and well in our rugged individualism. But, something else has become cicar--a sense of interdependence--a growing awareness thatin today's world the good life of one individual is inextricably linked to the good life of the next. The South ispart of a complex independent natiog and a shrinking world. Tne choice is one of action or inaction, of moving forward fromthiscrossroads on our continuing journey home or of freezing in our tracks withlittleprospect of completing the journey. If wefailtoaddressthe concernsI've mentioned, we--unlike the signers of the original Declaration--will not literally "hang."We will, instead, simply stand still while a bustling world economy moves into the next century and leaves us behind. By forgingthis new Declaiationof Interdependence--among all people of the South and us with the world--we will succeed. By taking appropriate action, we can move into the future and buildforourselves and our childrena

116 1 0 5 Job Trends for the Future

Technical and service jobs will increase the fastest between 1986 and 2000, while private household work and jobs in farming, forestry, and fishing will continue to decline.

(employment by broad occupational group, 1986 and projected to 2000; numbers in thousands)

percent 1986 2000 change number percent number percent1986-2000

Total 111,623 100.0 133.030100.0 19.2

Executive, administrative and managerial 10,583 9,5 13,616 10.2 28.7

Professional workers 13,538 12.1 17,192 12.9 27.0

Technicians and related support workers 3,726 3.3 5,151 3.9 38.2

Salesworkers 12,606 11.3 16,334 12.3 29.6

Administrative support (including clerical) 19,851 17.8 22,109 16.6 11.4

Private household workers 981 0.9 955 0.7 -2.7

Service workers (except private household) 16,555 14.8 21,962 16.5 32.7

Precision production, craft, & repair workers 13,924 12.5 15,590 11.7 12.0

Operators, fabricators, and laborers 16,300 14,6 16,724 12.6 2.6 Farming, forestry, and fishing workers 3,556 3.2 3,393...12.6 -4.6

Source: Bureau of Labor Statistics, 1987

: 106 COMMUNITY WELLNESS: A RESOURCE DEVELOPMENT APPROACHTO HEALTH ISSSUES

Susan Jenkins, Extension Sociologist - Community Health Programs Rich Reinheimer, Community Development Specialist Lonnie Varnedoe, Community Development Specialist University of Georgia

A recently publishedreport on "Human resources by providing communities withan Capital Needs"(Beaulieu, 1989) notes that the approach to solving local health issues.This is South remains a region of contrasts: the urban done in two ways, first, by enabling people, as in areas appear to show marked improvement while dividuals and in organized ways, to improve their the social and economic problems seem to be sti- health and, secondly, by involving lw)th the kealih fling the growth of rural areas. A similar trend and non-hcalth scctor in collaborating ainivitics is apparent when considering the overall health of thataddress the manyfacetednature of the urban and rural areas.Rural areas continue community health issues. to report higher rates of chronic illness, infant Community Wellnessisa proccfs-oriented mortality, and maldistribution of healthcant program that provides interested citizens ith a services (Van Hook, 1989; DHHS, 1989; Source framework to assess, identify, and ;Ind workat,lc Book of Health Insurance, 1987). The rural South solutionstotheissuesoftheir communtt is plagued with issues which range from closing of County agents and other leaders, through local ruralhospitalstodealing withcontroversial meetings and networking, serve as catalysts to subjects such as AIDS and teen pregnancy. bring members of the community together. The In order for the rural South to make both process encompasses community-based procram economic and social progress, emphasis must be planning, interventions based on assessment of placed on strengthening the human capital re- specificcommunityhealthnceds, encourago souri:es.As the "Human Capital Needs" (Beau- empowerment of the community, and develops a lieu, 1989) report states, "the task of addressing community-wide support system. human capital resources must become a collective The CommunityWellnessprogramand interest" (p. 7) of the family, of institutions, and process consists of a progressive involvement b of the community.Collective interest can be cit;zensincommunity problem-solving issues enhanced by collaboration and participation among The core is based on different resource leu.k the many sectors that function within the com- within the community (Figure 1). munity. (World Health Organization, 1986; Milio, The process begins with the Single Resource 1988; Jenkins, et al. 1989). level.Initially, the county Extension agent pro. Community Wellness,a program ofthe vides programs that he/she can plan and impk- University of Georgia Cooperative Exteesion ment alone. An example of this type of resource Service, is designed to strengthen human capital may include a presentation on stress management

107 7/"CCIMLI"\ Sitta1 tlint=t1V...WWI RetoiVel....raingialt-tade lasithualinagszt Stress Risko filleitfall Comeauney NMAT Student Mean oah ft* welkin* Nutrition Num,Fak Pityascrultment , Councils Programs Divorce To Modal Fete Sett-Care Recovery Mune Remit/nem 1 Farm Rescue Nurse Placement Fair

Figure1

for teachers.The majority of programs at this Litcnuon officr provides nutrtoon education VA.! level arc sclf contained.The purpose of thts counseling to ihr factory employee& The count. initial programming elTortisto introduce the Extension agent coordinates thc planning of thc service and demonstrate the county agent's interest screening program. After the cholesterol SC7Ce n in the overall health of the community. mg is finished. the Extension ariit. community The next stage of the Communit:- Wellness health nurse. and iniory representative dtscuss thc process is that of Multiply Resources (Figure 1 y follow-up pnxedure to be initiated.It is decided This implementation of programs requires thc that a retest %sill be done in six months. At that involvement and cooperation of other health time the two cholaterol rcadinp 'JOH be com professionals or agencies. In int these programs pared for difference&Finally, a summary rcp.srt cannot be properly achieved without the insvilve- is wntten highlighting thefindings.. and cath mcnt of individuals from other organizations. organization takes part of the responsibility for Multiple Resource programs involve pre-planning. the success of the program. rzganizing. and following up in order to reach The third stage of the Community Wellness their goal. process ts Community-wide Resources. This stagc For example. a choiesterol screening program requires additional organizational involvement may be planned for a local factory.Since the in the collaboration and coordination of more purpose is to involve other local resources within complot programs. Itfurther invoheslocal the community. the county Extension agent makes meetings and networking in order to expand thr arrangements to borrow the cholesterol machine organizationalstructure. A community-wide from thc twalth department or local hospital and health fairis 3 good example of this levet of asks for assistance during the screening. The resource.In order to implement a health fair.

120

S to 30 organizations may be involved in the coor- 4.Farm Families and Stress dination process of this one-day event. With each 5.Secretaries and Stress completed community project, members leurn more about one another and the organization they The series of stress workshops has been well represent, and realize that more can be accom- utilized.Within a 12 month period, over 3500 plished working as a group than separately. After Georgians attenied an Extension sponsored stress the different projects are complete, a report is workshop. A large sample of those attending the written and shared with all cooperating organiza- workshop indicate the audience reaction to the tions. stress workshops was 3.70 on a 4-point scale Since a core group has successfully functioned (Figure II). together with c variety of programs, the next step may be to consider some of the larger issues that affect the community. When the time comes that RISKO health issues are addressed, there is a core group ready to help the community deve:op a supportive RISKO (Heart Attack Risk Factors Plogram*) atmosphere to find solutions to ,,te problems. is a microcomputer assisted educational program This brings us to the final stage; of this process, designed to estimate the participant's chances of whichiscalled Task Force Resources. The suffering a heart attack or stroke based on eight ultimate goal is for members of the community to risk factors. develop a task force or Community Wellness The primary reason for doing this program is Counzil. The councils evolve from a loosely knit that Georgians have a higher rate of heart attacks group of individuals to one with solidarity and and strokes than the national average. According commitment that generates a process of identifying to '..ealth officials, this higher rate is due to life- community health needs, and strategies to solve style factors as much as any other cause. problems and implement solutions. The RISKO programhas been vety popular While the Community Wellness program has with agents since it was first introduced. Original- many programs associated with it, this will sum- ly, the computer was linked to VPI's computer. marize examples from the areas of single resources Mor^ recently, the RISKO program was rede- and multiple resources. The programs are: signet; for microcomputers. Much of this year was spent helping agents utilize this newer version. 1.Stress Workshop Although the design of the program is to 2. RISKO Program assess the participant's risk of a heart attack or 3 Divorce to Recovery str01. the major reason for improvements on 4.Farm Rescue Workshops RP is to enable the agent to use the results for ogramming purposes. Based on the STRESS WORKSHOP returned kISKO discs, 4620 people participated in the program for 1988. We would estimate that Economic pressures, work pressures, family over $115,000 worth of health cate and education- pressures, and life-stage changes affect one's stress al information was provided by this program. The level regardless of age, sex, or socioeconomic results show: status.Research indicates that 60 percent of all illness is stress related. Most institutions, such as 426 or 9 percent had blood pressure greater than school work, or church, do not teach crisis or 160; stress rianagement. 910. 20 percent did light activity and had seden- For the above reasons, the Extensio. tary jobs; develor.. five stress workshops that are pre, ,nt- 2541 or 55 percent either reduced fats a little or ed by County Extension agents. They are: ate as they like; 1151 or 25 percent were more than 21 pounds 1.Managing Your Stress - Short Version over weight; 2.Managing Your Stress - Long Version 849 or 18 percent smoked cigarettes or a pipe; 3.Teachers and Stress 1393 or 30 percent had moderate risk of having

121 AUDIENCE REACTION TO STRESS WORKSHOPS Excellent 4/ 3.7

3

0 Poor

Figure II

a heart attack; and 53 percent were 31 to 60 years of age 284 or 6 percent had a dangerous risk of having 27 percent were over 60 years old a heart attack; 21 or 0 percent had a danger/urgent risk. Sex 61 r 1-cent were females Another way of considering these results is to 39 percent were males create a population at-risk profile of those who participated in the program this past year (Figure Marital Status III). 69 percent were married For the at,. lts, this at-risk profile suggests 39 percent were single, divorced, separated, or that community programming should include more widowed nutrition education, particularly on importance of reducing fats in diet, weight reduction classes, an Race exercise or walking club, and continued education 86 percent were Caucasian on the hazards of smoking. 12 percent were Black A closer lookatthedataoffers some 2 percent were Hispanic, American Indian or opportunities for a review of clientele and specific Asian program needs.Who then participates in the RISKO program? Occupations The occupations of theparticipants were Age spread out among the various occupational 20 percent were 30 years of age and under categories.Twenty-six percent were profes

122 110 1988 POPULATION AT RISK PROFILE

Nds ts..,:r.14, Ed../,;//7/////////,',; /).` -,/// /A 55%

Mod Risk HI Attack -61 30%

21 lb + Overweight - 25%

Smokers -4 20%

Need Exercise 18%

High Blood Pressure ^TN Danger Rsk Heart A0 , 6%

0% 50% 100%

(N4620)

Figure III sional workers, and another 12 percent were When locng at an individual's weight as an skilled workers. These were the two most indicator of one5 risk level, it was found that 53 prevalent occupational groups. percent of participants were six or more pounds overweight. Of this group, 37 percent had a Heredity moderate or above risk of having a heart attack Sixty-five percent reported a history of heart of stroke. attacks or strokes among closerelatives. When considering cholesterol, we found that Thirty-five percent reported no close relative 55 percent could benefit from a foods and nutri- having a heart attack or stroke. tion programto help reduce fatin the diet. Approximately 45 percent of those recorded a It is important to keep in mind who we have moderate risk and above. reached but more importantly who we might need Eighty-foul percent of the participants were to be reaching.Although we reached a wide non-users of tobacco.It should be noted that 50 range of people of various ages and occupations, percent of those who did use tobacco also had it is important to remember that our audience has moderate or higher risk levels. been white, married females.While in 1988 we Based upon the above findings, it appears that did reach more blacks and males, we still need to follow-up educational programs are in order. continue targeting these groups. Programs on exercise, diet, weight control, and In terms of future program efforts, those nutrition information are ones that would greatly factors that an individual can change are reviewed benefit the participants. below as a result of the RISKO analysis. Although high blood pressure is an important factor related to heart attacks and strokes, with DIVORCE TO RECOVERY this sample, blood pressure did not appear to be a major contributor to high risk among those who In many counties throughout Georgia, few participated. resources are available to strengthen the emotion- Interestingly, when considering exercise, it was al well-being of families--particularly families going found that 51 percent of those who participated through a divorce.Floyd County in North did not exercise enough and had a sitting job. Of Georgia discoveredits divorce rate has been the group who lacked exercise, 79 percent record- consistently higher than either Georgia's or the ed a moderate to a dangerous/urgent level of risk. U.S. divorce rate.

123 Due to the local statistics and general interest, gency Medical Technicians, rescuepersonnel, the Divorce to Recovery program was initiated by farmers, and farm wives on accident extrication the local Extension office and 1=7, hospital. The and general rescue procedures. During this period five session workshops are designed to assist of time, between nine and 14 workshops were held divorced families in understanding the process of each year, for atotal of over 120 programs. divorce and recovery. The program was conducted Within the last few years these programs have by the county agent and a local minister.The concentrated on providing EMTs and resource topics covered were: personnel with a knowledge of the operation of farm machinery. These programs have also A. Reviewing the past marriage educated rural EMTs about how typical farm B. Stages of recovery, accidents occur, as well as the nature of the C. Continuing relationships injuries that can be expected from certain types of D. Children farm equipment, pesticides, and other farm chemi- E. Starting over cals. F.Support group formation There were nine Farm Rescue Workshops held in 1988 (Figure IV), with an attendance of Even though the formal sessions have been 277 EMTs and farmers.Surprisingly, four of finishel, those attending continue to provide th7se were from urban counties which have only support to each other by meeting on a regular a few full-time farmers. It is felt that this increase basis.In addition, other divorced persons are in requests from urban counties is due in part to invited to participate in this newly formed support an increase in the number of accidents involving group. "sundown farmers" who farm after working full- time at another job.Experts believe that this FARM RESCUE WORKSHOPS number will increase in the very near future.

In 1988 the Cooperative Extension Service completed its tenth year of working with Emer- FARM RESCUE WORKSHOPS 1988

9 Workshops Total Attendance 277

Figureiv REFERENCES

Beaulieu, Ijonel, Building Partreiships for People: Addressing National Center for Health Statistics:Health. United States, the Rural South's Human Capital Needs. Report prepared for 193. DHHS Pubre.ation No. (PHS) 88-1232. Public Health Task Force for Altet...dives for Leadership and Human Service, Washington, D.C., U.S. Government Printing Office, Resource Deveopment in Rural Communities in the South. March, 1989. Mtssissippi Sta.e, MS: Southern Rural Development Center, 1989; No. 11- . Source Book of Health Insurance Data:198611987, Health Insurance Association of America, Washington, D.C., 1987. Jenkins, Susan, Richard Reinhtimer and Lonnie Varnedoe, Community Wellness: Summary Report for 1988, Athens, GA, VanHook, Robert, "Access to Health Care," Presentation for Cooperative Extension Service, March, 1989, MP-314 the Georgia Rural Health Association, Savannah, GA, Nov. , 1989. Milio, Nancy, "Public Policy as the Corner Stone for a New Public Health:Local and Global Beginnings."Famibr and World Health Organization, "Framework for a I Iealth Promo- Community Health, 1988:11(2):57-71. tion Policy: A Discussion Dor ument," Health PronrAga, 1986: 1(3): 335-340

125 FREE TO FACE THE FUTURE

Joseph A. Weber, Extension Human Development Specialist Sheila Forbes, Extension 4-H Program Specialist Sandra Gilliland, Graduate Assistant Cooperative Extension Service, Oklahoma State University

Many of the dilemmas young people face are 1. Determine needs--List the needs and problems a direct result of their inability to make logical, in the community.Get community input by rational decisions.Adolescents are reluctant to asking the opinions of parents, local officials, heed the advice of adults, but the decisions they service and civic club leaders, other youth groups, make on their own are often not in their best local media representatives, 4-H leaders, teachers, interest. ministers, and law enforcement officials. This is what the Oklahoma Community Youth Effort (OCYE) isall about--training youth in 2.Choose a projectSelect aproject thatis gc,od decisionmaking skills. OCYE provides youth inte.'esting and thatcan be completed ina experiential learning opportunities as they dell reasonable amount of time. Try to pick a project with "real" community problems. that will succeed.

3.Get approvalBefoie proceeding, check with A COMMUNITY PROGRAM a 4-H leader or adult advisor to see if any type of permission or permit is needed. Check with city OCYE is based on the idea that teens learn officials and police or other law enforcement more about themselves and gain a greater degree people if the project will draw a crowd, involves of personal maturity and responsibility when they streets or highways, or involves any unusual apply newly learned skills and knowledge to real- activity. Ifnecessary,askpermissionof life situations. landowr -s or business people. The objectives of OCYE include helping teens to:develop leadership skills; provide service to 4.Check resourcesBe aware of what resources others and the community; believe in themselves are available and how to get support for a project. and make the most of their potential; value a Make a list of available resources within the club healthy mind and body; become self-sufficient, and community. productive members of society; understand the problems facing them and their communities; 5.Develop a p/an--Set goals and determine a encourage one another to make positive choices; plan of action. Outline the steps to carry out the and develop solutions to problems that affect daily project, and decide who will do what. Develop a lives. timetable with starting and completion dates for Regardless of the issues youth choose, the all activities.Determine specific resource needs OCYE program encourages them to follow seven and costs of the materials.If possible, work with basic steps for organizing a project: other groups within the community.

114 6. Implement the plan--Carry out the plan with for example, surveyed other teens and adults and total group involvement. Remember to let others decided to address the issue of drinking and know about the plan.Keep track of what driving. This team, composed of three members happens by taking notes and pictures and keeping and an adult advisor, receives support from the all records needed to evaluate the team's successes Tulsa business community. and failures.Stop, look, and listen occasionally After hours of library work and contacts with to see if changes are needed. law enforcement agencies, they developed a 15- minute skit, which has been presented at schools, 7.EvaluateDiscusshowwellgoalswere civic organizations, and several 4-H functions. reached, what was learned from the activity, and Extension 4-H staff have incorporated the what should be done differentlynexttime. OCYE materials in a school setting. Publicize accomplishments in the local newspaper. The Oklahoma Community Youth Effort is providing youth with an opportunity to learn more aboutthemselvesandtoassume significant YOUTH MAKE A DIFFERENCE community leadership roles while addressing many youth-at-risk issues. OCYE youth are developing Teens across Oklahoma have become part of life skills so that they and their peers can be "free the OCYE program. A group in Tulsa County, to face the future." BUILDING PARTNERSHEPS FOR PEOPLE: ADDRESSING THE RURAL SOUTH'S HUMAN CAPITAL NEEDS'

Lionel J. Beaulieu, Profasor University of Florida

INTRODUCTION SO=CONTEMPORARY ISSUES IN TFLE RURAL The South remains a region of contrastsa metropolitan area whose spirited growth and The 1980s are proving to be a time when many economic expansion haveintroduced marked areas of the rural South are being forced to improvementsinthequality oflifeofits recognize the harsh realities of their social and tesidentsversus a nonmetropolitan South, whose economic status in the region and in the United cur. ;nt social and economic woes have threatened States.This is difficult in light of the fact that to whittle away at the gains experienced by rural only a few short years ago, rural areas of the Southerners during the 1970s. These distinctive South were being lauded as meccas of economic paths of development are the end product of a and social progress. This vision of optimism was, number of key factors. Most basic of these, as I in part, a result of the population resurgence willarguetoday,arethehumancapital which touched ahost of theregion'srural shortcomingsthatcharacterizetheSouth's localities during the 1970s.And why not be nonmetropolitan locales. optimistic? During the 1960s, population in the My intent is to share with you some of the South's nonmetropolitan areas slipped by 21.3 social and economic shifts that have taken place percent, a stark contrast to the 46.4 percent in the region's metro-nonmetro areas in recent growth experienced by the metro counties of the years.Next, I will give attention to two key region. But the 1970-80 period brought signs of human capital concerns thatIfeel are most hope to rural areas of the South, with nonmetro prevalent in the rural Southhigh school dropouts growth closely paralleling that of the entire region and adult illiteracyisst, that serve P'major (16.3 percent versus 20 percent), and lagging impediments to the realization of economic and behindtheSouth'sboomingmetropolitan social progress in the area.Finally, I will argue population increase by a mere 4.9 percent. that successful enhancement of the human capital However, the 1980-86 period offered evidence resourcesinthe South'srurallocalitieswill that major metro-nonmetro population disparities require collaborative activities among families, were once again the standard fare in the South. schools, and communities. A major stimulus for Yes, nonmetropolitan areas did continue to gain the creation of this partnership will be visionary inpopulation, bct the 5.4 perce_ttage points leaders at the local level. increase was two-thirdslessthanthat being enjoyed by its metropolitan counterparts. The key questionis Why such a dramatic change over the theeconomichardshipsoftheearly1980s course of only two short decades?(Figure 1) effectively stemmed further convergence of the The factors are not simple, bin the worsening metro-nonmetro underemploymect disparities. In economic conditions that have confronted many justtwoshortyears(1980-82),themetro/ of the South's rural communities have made nonmetro underempioyment dinrential population expansion a difficult task at best. A accelerated to 8.4 percentage points (Lichter and large segment of the rural South remains heavily Coastanzo, 1986).Recent evidence (i.e., 1985 dependent on traditional, goods-producing statistics) suggests that while the gap is receding, industries (such as manufacturing, agriculture, and it continues to hover above 7 percentage points mining), the very industris that have suffered (Figure 4). appreciable hardship in recent years (Henry et al., Unfortunately, the economic dislocation that has 1988; Mulkey and Henry, 1988; Ryan, 1988). As confronted rurai communities in the 1980s has Figure 2 reveals, nearly 32 percent of the region's reversed the income gains experienced by many nonmetropolitan counties draw their principal rural residents since the 1960s (Henry etal., income from manuracturing activities. Mining and 1988). As a region. the South had 16.1 percent farming serve as primary economic base of of its residents liv .6 in poverty in 1986, versus another 20.3pcscentof Southern nonmetro 13.6 percent for the U.S. as a whole.What is counties.All told, five of every ten nonmetro alarming, however,isthehigh proportion of counties in the South have economies that arc personsin theSouth'snonmctrocounties intimately tied to goods-producing activities (Ross, classified as being in poverty-22.4 percent in 1986. 1989)--activities that have stifled the economic Equally depressing are the statistics for nonmetro vitality of many of the South's rural localities families--in 1986, one in five families in the rum! during the past decade.2 South fell below the poverty line. And unlike the The by-products of this economic downturn metro South, the percent of both individi;als and have been increasing problems of unemployment families living in poverty in the rural South has and underemployment (Hobbs, 1988; Sullivan and been on a steady increase since the latter part of Avery,1989). If one were to examine the the seventies (sce Figure 5).3 economic performance of the South in recent The pervasive nature of poverty in the South years, the erroneous conclusion could be reached nonmetrolocalitiesbecomesapparent when that unemployment has been held in check.In examined by race and sex. Better than 41 percent reality, the strength of the metropolitan economy of :ural black families living in the South in 1986 has masked the difficult times being imposed on were poverty stricken. Equally disturbing are the many of the region's rural counties. As Figure 3 statistics for rural black persons in the South-- shows, unemployment has been much higher in nearly 44 percent were in poverty in 1986 (U.S. the nonmetro South than in metro areas during BureauoftheCensus,1988). Forblack the entire period of the 1980s.Even as recently households headed by a female, the proportion a )87, unemployment stood at 8.4 percent in the falling below the poverty line approached the 66 nonmetro South--a figure that was 37 percent percent mark. And in cases where children under higher than the rate experienced by the region's 18 years of age were present in the households, metro localities. the percent in poverty grew to a startling 78.1 An attendant concern has been the issue of percent (Figure 6).4 These figv-es are not simple underemployment--a condition commonly aberrations from past trends, Out are continuluE, associated with the inability to secure full-time evidence of the enduring difficulties which these employment ortogarner earningsthatare population groupings have experienced over the commensurate with one's qualifications.It is true course of the last seeral years. that rural economic expi..nsion during the 1970s Thus,thede-escalatedrateof growthin playedasignificantrole intrimmingthe population, the over-dependence on a stagnating metro/nonmetro under employment gap to jutt 4 goods-producing economy,thehighratesof percentageloints in1980 (an impressive gain unemployment and unde--employment, and the given that the metro,nonmetro difference was in pervasiNe conditions of low-iacome and high rates excess of 9 percent only five years earlier).But, of poverty, are visible symptoms of monumental

I '3 0 .1 7 Figure 1 Population Change in the South

(Percent Change) eo 50 40 30 20 14;3 10 o 71 -10 -20 -30 -I/ 1960-70 1970-80 1980-86 Time Period

11111Overall \Metro = Nonmetro 1

Figure 2 Economic Bases of Nonmetro Counties, 1936

Percent 35 30 26.9 25 _23.6 21.1 21.1 20.2 20 14.7 14.8 15 13.7 9.9 10 5

FRM. MFG. MIN. GVT. RET. POV. County Type

= U.S. South 1

118 le alb . .. .

: Ail.=

z Awl N. 1110ftwo..-

. 4111140.+-

I

: : : II 1982 1984! : : ; . I : i . :

a A

0

.

: e i

: i %%%% \% % M \ % \% % % \\ \I :

I

t Figure 5 Poverty in the South Among Persons and Families

Percent

25 20 15 10 A;111 AIM I 5 FamiliesV, ersor

1975 1983 1986 1975 1983 1986

Nonmetro 18.4 18.9 1 20.3 20.1 20.7 22.4 Overall 14.8 15.7 14.4 16.2 17.2 16.1 Metro 11.9 13.3 ' 12 13.2 14.6 13.5

LEE Metro III Overall C=JR1nmetro

Figure 6 Family Poverty Among Female Headed Households-Children Under 18

ALL HOUSEHOLDS BLACK HOUSEHOLDS

100 Amor 80 Aire,04a0A Amw 60 or 40 ristLa 20 - 0 40Ir 1975 1983 1986 YEAR 1975 1983 1986 Nonmetro62.3 61.5 67.4 75.9 76.7 78.1 Overall 57.9 56.4 56.2 70.9 69.2 69.5 Metro 55 53.1 51.6 67.7 64.9 65.4

=I Metro OM Overall Nonmetro 1

120 social and economk problems thatconfront the unskilled workers located primarily today's rural communities of the South.What the rural South.5 options exist for the region's rural areas? How can communities andtheirleaders beginto o By the beginning of thc next decade, 3 of capablyaddressthemyriadofproblems evety 4 new jobs will require better than a threatcning their long-term well-being? It is some high school education (Ong, 1988; MDC, Inc., of the questions that provide a context for the 1988).Approximately 90 percent of these forthcoming sections of my presentation. jobs will be located in the service sector (National Alliance of Business, :986).

IS RURAL ECONOMIC DEVELOPMENT ME o Of all new jobs in the year 2000, only onc ANSWER? infour will be classifiedaslow-skilled. Today itis two in five (Swain, 1989).In There is a belief in some circlesthat the addition, it is estimated that the median level diversification of the rural economy is key to of education required for jobs at the turn of revitalizing the rural communities of the South. the centuty will be 13.5 years (Mandel, 1988). It is suggested that the futurc of the South's rural areaslies with the growth of small business o Jobs that are considered middle-skilled in enterprises, with the stimulation of entrepreneurial today's environment will be the least skilled activities, and with the recruitment of service- occupations of the future (Swain, 1989). producing and high-tech industries (Extension Service/USDA,1986; Friedman, 1987;Pulver, In surveying the rural South, it is clear that thc 1987).The key issue, however, is whether the fundamental problem impeding realii .;onof bulk of rural communities in the region are measured improvements in the economic climate positioned to capture these types of industries? of rural Southern communities is the state of the Unfortunately, the evidence appears to suggest region'shuman capitalresources. Vibrant that they are not. economies are unsustainable in a rural S3uth that On the new indicators of economic capacity leadsthe nationinthe rate of high school being formulated for the high growth industries of dropouts, in the proportion of adults suffering today and tomorrow, rural Southern communities from functional illiteracy (Ross and R )Senfeld, are judged as highly deficient (Rosenfeld, 1988). 1988), or in an area having the lowest percentage By monitoring the current and anticipated needs of college-educated adults (Swanson and Butler, of the economy, it is easy to understand why this 1987). The necessary precursor to the realization is so.Consider the following: of an economic development renaissance in rural communities of the Southisafull-fledged o Many ncw jobs at present are knowledge commitmcnt to enhancing the human capital intensive white-collar positions requiriag resources of these localities--to addressing the a minimum of some college education serious problem of high school dropouts, and to (Garland et al., 1988). attacking the issue of adult illiteracy. Only in this way can economic security for the South's rural o Manufacturing,longconsidcredthe communities and its citizens be truly enhanced mainstay of the rural South's economy, is (Dcaton and Deaton, 1988). changing. Low-skilled industries have citherclosed,movedoffshore,or modernized (implying the need for less STATUS OF ME RURAL SOUTH'S peorle, but more hie.ly-skilled workcrs). HUMAN CAPITAL RESOURCES Now technologically advanced manufacturing firms are sprouting in thc The human capital resources problems that urnan localities of thc South (Sullivan and plague rural America are clearly most applicable Avety, 1989).Lost in this structural re- to the South.Why is this so?Fo. one, the shifting of the manufacturing sector are South is homefornearlyhalfofthc

137 i 21 nonmeiropoliian residents in this country (O'Hare, Conscquenily, There is a :try t.tiantx. ;hat ill 1988). Second, factors commonly associated with tlhs ncw era of technological sophisticationthc humancmitaldeficienciessuchas poverty. school dropout will become permanently displaced illiteracy, and low educational achievementare from the mainstream of the economy. principally concentrated in the ruril localities of An important companion piece to thc issue of theSouth(O'Hare, 1988;Rosenfeld, 1988; sci.00l dropouts is that of adult illiteracy. There Swanson and Butler, 1988; Winter, 1988). A brief remains no uniform procedure for measuring reflection onthe prevalence of high school illiteracy, but one appruach that has gaincd some dropouts and adult illiterates offers some notion acceptance is number of school yurs compieted. of the human capital shortcomings in the rural It is Suggested that persons who have completed South. eight ycars of education arc functionally

It is somewhat disconcerting that.five of the ten illiterate (Ross antiRosenfeld,1987). These U.S.stateswiththepooresthighschool individuals arc unable to master the ability to read graduation rates (in1987) are located inthe and write to a point where they can operate South.8 The state of Florida, a state that John sufficiently in society (Levine, 1982). Naisbitt (1982) labels the country's bellwther In comparison to other regions of the country, state in his book Megatrends, has the unfortunate the South has the highest proportion of functional distinction of ranking firstin the nation in the illiterates (see Figure 8).in 1975, over 27 percent proportion of its high school-aged youth who do of Southerners had le&sthan ahigh school not graduate.7 And data for rural areas of the education. Recent figures (1987) suggest that the South arc equally depressinghigh school illiteracy numbers have gone down, but still, the completion rates are generally lower in these areas South retains its position as highest of any section than in urban locales (Ross and Rosenfeld, 1988). of the imuntry. Closer examination of the More specifically, high school graduation rates in Southern regionalfigures uncovers significant the nonmetropolitan counties of the region are differences on the basis of race. Regardless of the nearly 25 percent below those registered in the year under in,,estigation, black Southerners are South's metro countiesRosenfeld, 1988). more likely thLwhites to be funciionally illiterate The educational attainment problems of the (Figure 9). rural South are clearly reflected inFigure 7. What is important to understand, however, is Nearly 39 percent of nonmetro residents 25 years that illiteracy rates arc even more dramatic in the of age and above lacked a high school education rural South.Estimates suggest that one in four in1988.8 For metropolitan Southerners, the ruralSoutherners above thc age of 25 was figure was 24.4 percent (approximately 37 percent functionally illiterate in 1980, and for rural blacks, below the nonmetro percentage). More alarming the number approached 40 percent (Ross and are the numbers for black nonmetro adults-- Rosenfeld, 1988; Winter, 1988).The nonmetro approximately 55 percent neves* completed a high South's rate of functional illiteracy was 71 percent school education (Ross, 1989). higher than that uncovemd in the m.:tro area cf Unfortunately,individuals who leavehigh the region (Rosenfeld, 1988). school prior to graduation commit themselves to Such personal illiteracy has powerful spillover a life of economic hardships. Markey (1988), for effccts on workplace success. Functional illiterates example, notes that one infive male dropouts earn 44 percent less than those with a high school were unemployed in October 1986.For high education, and arc likely to be a less productive school graduates, the number was one in ten force in the local economy (Deatoti and Deaton, unemployed. Further, in the face of demands for 1988). The economic vitality of ruial areas is higher skilled workers, dropouts are having to directly linked to literacy--0-:. higher the rates of compete withhigh school graduatesfor the adult illiteracy, the higher the unemployment rate dwindling supply of lower-skilled jobs. They and the slower the economic growth experienced simply cannotfit the billfor the up-and-coming by rural communities (Rosenfeld, 1988). industries in the region who are demanding a Intoday's economic climate,labor market better educated, more adaptive, flexible, and multi- recruitersbroadcast a clear message: certain kvels skilled labor force (Moen, 1989; Redwood, 1988). of formal schooling are an absolute necessity if one

138 1 02 Figure 7 Non-High School Graduates in the South by Race and Residence, 1988

Percent Persons 26* Years 70 -'1 60 -* 14.7. 60 -* 38.8 36:3. 40 4 24:4 30 22 6 20 10

White Black All

MI Metro Ea Nonnum.

5OW011:Rosa, 19116.

Figure 8 Persons With L.T.a H.S. Education (25 Years Old and Aix le)

(Percent)

A.. 1111' 4.711111-7 1976 1981 1987

West 16.3 12.4 10.2 Midwest 20.3 16.1 10.6 Northeast 21.2 16.2 12.2 South 27.4 20.7 16 Year

U.S. Region al West Midwest Northeast M3 South

123 wishes to gain access to jobs (Harman, 1987:54). tional illiteracy campaigns are waged. It Ls more Others note that the future of the rural economy than a question of teaching people to read--it Ls is dependent on the capacity of rural people to a question of reexamining values--community by work smarter, not just harder (Reid, 1988), OE on community. the mental strengths of its labor force (Johnson, 1988). These are no easy shoes to fill, particularly Harmon's comment offers an important clue when the better educated youth--the very people regardingeffectiveresnonsestothehuman with whom the hope of reinvigorating the rural resource problems of the region.Placing the economy rests--are deciding to leave their rural burden on the educational system alone is not homesteads (O'Hare, 1988; Tweeten, 1988).In satisfactory.Rather, the task of addressing the both 1985-86 and 1986-87 (as shown in Figure area's human capital resources must become of 10), netoutmigration from the South's collective interest and concern to the Family, the nonmetropolitan areas was greatest among the School, and the Community. Building better educated person:: 25 years of age and partnerships among these important elements in above. the locality is essential, partnerships that send a So, in the final analysis, one must ask how clearsignaltoallresidentsthatacademic competitive can the rural South be when it has performance and literacy are highly valued goals the lowest proportion of adults with a high school of the community--and that each partner in this education,or whenitspercentofcollege triad has a critical role to perform in helping graduates is 40 percent below the national average instill those values within the local setting. (Carlin and Ross, 1987; MDC, Inc., 1986), or Families providethefirstinklingsof the when its pool of brightest residents are opting to importance attached to education.In essence, migrate elsewhere? parents s.,4 thestageforthecognitive devzlopment of the child via the role modeling that they offer within the home environment. As PARTNER:HIP: THE KEY STRATEGY Honig (1985: 163-64) suggests:

If the rural South is to ever enjoy significant The evidence all points in the same direction; the economic and social progress over the long term, most important way inwhich parents can thenastrengtheningofitshumancapital contribute to the education of their children is by resources must be given top priority.But in what they do at home... Specifical4,, the children doing so, one must guard against embracing who typical4, perform better in school are the strategies that are too parochial or narrow in their children of parents who read to them when they focus.It has been suggested, for example, that are young who supervise their hcm,work by the problems of high school dropouts and adult making sure they have a quiet place to study, who illiteracy are symptomatic of an educational system talk with them about school and everyday events gone awry, andthat a turnaround in these and express an interest in their progren. problems must commence with an overhaul of the educational system.Is this strateg sufficient, or The family also offers a capacity for children to even appropriate? adapt to a changing world during his/her working Consider this poignant observation offered by life. Familymembershipistheprincipal Harman (1987:44-45) in his discussion of illiteracy: motivator of responsible personal behavior and of sustained individual commitments to proiluctivity The clustering of illiteracy in certain areas strong4, throughout life. suxests that there are illiterate communities-- The school system provides a valuable resource groups of people living in environments in which to the community.But, its success is largely literacy plays on4, a marginal role and where ifs determined by the commitment that families and acquisition Ls neither encouraged nor supported. communities have to its educational mission.If families and communities exhibit a hands-off So long as such communities erist, illiteracy rates attitude, or show apathy regarding the goings on will continue to soar, no matter t- w many na- within the school system, then there is little hope

141 124 Figure 9 Education Status of Southerners by Race (25 Years ,.:)f Age and Above)

Percent so -/1 Less Than H.S. 4 +. ypars College 40

30

20 -

10

0 1976 1981 1987 1975 1981 1987 Year

-Whites ESO Blacks

Figure 10 Net Migration Rates of Nonmetro Southerners by Educational Level

/ -0.06 a

1.03 -1.31

L.T. high Sch. H.S.Grad. Some CollegeCollege Grad. Educational Level

Ra 1986-1986 ED 1986-1987

125 that schools will succeed in stemming the tide of COMMUNITY LEADERSHIP: A VITAL high scnool dropouts and/or illiterates. Designing INGREDIENT usefulenrichingeducationalexperiencesfor students requires schools, families, and community Enlightened leaders at the local level can plan working in tandem.Shaping the goals of the an instrumental role in fostering a vision of what schoolsystemisacommunity andfamily ispossible or achievable with regardtothe obligation, a responsibility that engenders success community's human capital resources. The term for students and schools alike when exercised. "enlightened" implies a leadership that is cognizant Communitiss offer an important laboratory for of the frailties associated with a community whose enhancing the experiential base of their youth. human resources are poorly educated or trained They represent valuable opportunities for youth to for the economic realities of today and tomorrow. apply knowledgc gained in the classroom to real Unfortunately, this type of progressive, forward- lifesituationsinthecommunity(National thinking leadership is often not present in rural Commission on Youth, 1980). Implementation of communities. What appears to be the more career exploration activities, for example, where common characteristic of leadershipinrural students are placed in jobs in the community's localities is one in which issues are addressed by business, government, or other sectors of the specialized leaders with subject matter expertise in locality, offers a rare opportunity for youth to these issue areas.But, the prevalence of special expand their understanding of the workplace interest leaders can indeed prove problematic environment. But, the business and governmental (Wilkinson, 1986). As Gardner (1984) notes: sectors of the community must be steadfastly behind this effort if it is to be successful. Nothing shouldbeallowedtoimpairthe The business and government sectors can also effectiveness and independence of our specialized play an instrumental role in facilitating parental leadershipgroups. But,suchfragmented involvement in the school system.With the leadership does create problems. One of .hem is increasing prevalence of working parents, few that it isn't anybody's business to think about the opportunities exist for parents to take an active big questions facing our society.Where are we part in the daytime school-based activities of their headed? Where do we want to head? What are children. However, busines.s and government can the major trends determining our future? Should be a major force in implementing policies allowing we do anything about them?Our fragmented parental involvement in schools during work hours leadership failsto deal effectively with these (Erhlich, 1988).Such policies could serve to transcendent questions. underscore business and governments' recognition of the crucialrole that parents playinthe So, in a very real sense, as families, schools, and academic success and career aspirations of their communities dedicate their energies to addressing children (Gittleman, 1989; Otto, 1986). the issues of school dropouts and adult illiterates, So, in the final analysis, the degree to which they must append another item to their list of real progress is made in enhancing the human human capital concernsthe need to develop a capital resources of the South's rural communities local leadership that is capable of stirring the will bedependent uponthesupportive community to a higher level of excellence with environment thatisfostered within the local regard to the social and economic security of its arena.If families and communities demand an residents. Realizationofthissaengthened active role in deciding the educational agenda of leadership will not be easy, but some strategies are the schools, and see academic excellence as an worth exploring. For example, the prevalence of intimatepartoftheirvaluesystems,then specialinterestleaders inthecommunity substantive improvements in the human capital represents a talented pool of individuals having reserves of the community will indeed evolve over the potential to evolve into generalized leaders. the long term (Harmon, 1987). Rare is that generalized leader whose understanding of the broad-based needs of the community were not first rooted in local actions having a more specialized orientation.

145 12G coupled with community receptivityto youth Tomorrow's leadm will very likely have begun involvement, may offer one viable strategy for life as trained specialists, but to mature as stemming the departure of talented youth from leaders, they must sooner or later climb out of the rural communities of the South (Israel and the trenches of specializatiai and rise above Beaulieu, 1989). theboundaries that separatethevarious segments of society.Only as generalists can they cope with the diversity of problems and CONCLYJDING REMARKS multipleconstituenciesthatcontemporary leaecrs face (Gardner, 1987). Itisclear that the challenges facing rural communities of the South are monumental.In It is essential that opportunities be offered to help fact, some might argue that the human resources these special interest leaders develop the capacity problems in the rural South are far too significant to fulfill these generalizing roles. and complex to address in any effective way. It is A second strategy would involve community important for rural communities of the South to affairs.High on the list of potential leaders repel such pronouncements and to begin the should be people whose voic..s rarely have been process of aggressively responding to their human part of the leadership of the past, namely, women, resource shortcomings. The commitment, the hard racial/ethnic minorities, and the disadvantaged. work, and the vision must originate and be carried They must be an integral part of the leadership of out at the local level.The creation of family, rural localities (Martin and Wilkinson, 1985). school,and community partnershipscan be But, itis clear that the long-term hopes for instrumental in achieving substantive rural communities will rest wi,h their youth. Rare improvements in the locality's humar capital istheoccasion,however, wnere community reSOUltes. leadership opportunities have been part of the Surely, the Cooperative Extension Service can learning activities offered to younger residents.It be a vital force in this initiative.But, I'm afraid istime that rural areas begin developing an that if we rely on our traditional vehicles for atmosphere that is conducive to the growth of carrying out our educational activities, our efforts leadership skills among their younger residents. will be destined for failure. We can ill afford to Schools can beakeyforceinofferinga work on building the human capital of our rural curriculumthatimpartstothestudentsthe communities by doing 4-H, Home Economics, knowledge and skills needed to participate in CRD, or ANR workinisolationfrom one community improvementactivities. That another. The partnership model articulated in this curriculum, however, must include opportunities report makes clear the need to build the human to move beyond the classroom and into the r.:al resources of our rural areas via the use of a holis- life environment of the community. By engaging tic, integrated process.Simply put, all of us--be in concrete community developmentand we 4-H, CRD, Home Economics, or Agriculture community service projects, students are given the andNatural Resourceshave tobeinthis chance to envision the future of their community together, working side by side on this initiative. and to work onrealizingit(YouthPolicy Ourefforts in helping localitiesrealize Institute, 1988: 28). These important experiential partnershipsamongfamilies,schools,and programs will only possible, however, if the communities mustbeginwithameaningful public and private sectors of the community work partnership among our own Extension proprpm in concert with the school system in supporting areas. And that Extension partnership imludes a these activities (Gardner, 1987). rong, working relationship between our 1862 and We must not forget the key role of families in 1890 Extension professionals. this process.Parents who embrace the notion And, if ve are successful in creating this holistic that youth have an important voice in shaping Extension initiative, let us not forget that we must local decisions will likely foster a commitment on be in it for the long haul.The human capital the part of their children to community service shortcomings of the rural South are the end- activities.This type of parental encouragemen% products of a host of forces which are deeply

146 127 rooted in the history of this region. Overcoming are .:Lassified nonmetro.Approximately 80 peicent of all these shortfalls will demand nitich energy and counties in the South are designated as nonmetro. time on our parts.Please, let us not be saddled by a need to comply with a so-called "four-year" 2The county classificationsprovidedinFigure 2 arc Wan of work. We must reatt_e_s_ier mindful of unpublished information contained in a recent paper prepared the by Rosa (1989).According to Ross, classification of county thefactthat significant enhancements in types were guided by the following definitions: Farming: at human capital stock of the region's rural localities least 20 percent of labor and prom-lc:dry income from farming, are years away. We cannot, as Extension faculty, weightedannualaverage,1981, 1982:984thru 86; permit this fact to lessen our commitment to the Manufacturing: at least 30 percent of labor and proprietary rural South's human capital agenda. income from manufacturing, 1986; Mining: at least 20 percent oflaborand proprietaryincomefrommining,1986; Thereis aneedtostrengthenanothi.!r Gov_empts_ni: at lost 25 percent of labor and propnetary partnership--that between the state Cooperative income from gov!rnment, 198o;Retirement:atleast15 Extension Service and the university community percent net immivation rate of people aged 60 and over, 1070-80; Poverty county with per capita personal income in of whicn itia part.The land-grant mission the bottom quintile in each of the years of 1950, 1960, 1969, she notbeviewed astheexclusive and 1979 (Rats, 1989:11). respuusibility of persons who work in colleges of agticulture. Rather, the broader pool of expertise 3For example, between 1983 to 1986, poverty declined by andresourcesthatresidesacrossuniversity nearly 10 percent among families and 7.5 percent among campuses should be called upon to assist in our persons living in metropolitan areas.In the South's nonmetro human capital activities.No force can be more counties, on the other hand, families and persons in poverty instrumental in facilitating these alliances than increased by 7.4 percent and 8.2 percent, respectively, over the can a university administration that fnlly embraces same period of time. the vital service function that the total university community must perform in meeting the near and 4Since 1975, poverty among all nonmetro female-headed long-term needs of people and communities of households has increased by 11.6 percent, but has declined by a near equalproportioninmetro Southern households. the state. Similarly, poverty among black femaleheaded households has In closing, let me state that this confrrence accelerated by 4.9 percent in nonmetro areas of the South, represents a significant, positive step 4n helping but has declined 7.2 percentinthe region's metropolitan focus the energies of our entire Extension family counties. on the serious issues impacting the rural South. We shoulduseitasaforumtodigest 5R06s (1989) offers dramatic evidence of the scrious blow information, deb,Ite points, present philosophies, that non metro workers suffered during thr economic distress and offer ideas.But if anything, let's leave here of the 1980s.She notes that during the 1983-86 period, 45 percent of all tonmetro workers who were displaced from their committed to working as partners in improving jobs lived in the South. Further, some 47 percent of displaced the lot of those people and places who call the manufacturingworkers were nonmetro Southerners. rural South home. Unless we are in this togethm Ifear that enhancements in the socioeconomic 6Grzduation rates apply only to public schools since private status of the South's rural communities will be a high school graduation data are not available in all states. The tcnuous goal at best. adjusted graduation rates were calculated by dividing the number of public school graduates by the public ninth grade enrollment four years earlier. Ninth grade enrollments include a prorated portion of the secondary school students who were ENDNOTES unclassified by grade.Graduation rates were also corrected for interstate population migration. Information on the 1For the purpose of this report, the terms rural aod number of persons of graduating age receiving GED's is not nonmetro are being used inter,hangeably, as are those ot urban currently available. Data on graduation rates werc assembled id metro. Metropolitan counties are defined as areas having by the National Center for Education Statistics, U.S. Bureau large populationnucleus and which encompassadjacent of the Census. Appreciationisextended to LindaK. ommunities having a high degree of economic and social Harageones, Flonda Department of Education, who graciously integration with that nucleus.This includes counties with a provided the graduation rate information to the Task Force ccntral city of 50,000 persons or more, and surrounding for purposes of this report. counties whose population is substantially dependent on the metropolitan "-linty for work and other important services. 7 All counties which do not meet the cnteria of a metro county itis important to point out that the District of Columbia

147 2 S actually has a higher non-high school groduathm rite than 1987 Leadership DevelopmentLeadership Paper No. 7. Florida (44.5 percent versus 41.4 percent), but since the Leadership Studies Program sponsored by Independent District of Columbia is not a state, Florida's graduation rate Sector (June). is the worst of a1 50 states. Garland, Susan B., Lois Therrien and Keith H. Hammonds 1988 "Why the underclass can'tget out from under." 8The nonrnetro figure represents a modest improvement Business Week (September 19): 122-124. over the 1980 percentages.In 1980, over half of all nonmetro adults in the region lackecl a high school education (Ross and Gittleman, Mark Rosenfeld, 1988). 1989 'The education deficit: A report summarizing the hearings on "competitiveness and the quality of the american wort force:" Youth Policy (February): 46-48. REFERENCES Harman, David Bernstein, Aaron 1987 Illiteracy A National Dilemma. Ncw York, NY: 1988 "Where the jobs are is where theskills aren't." Cambridge. Business Week (September 19): 104-108. Herny, Mark, Mark Dravenstoa and Lynn Gibson Carlin, Thomas and Peggy Ross 1988 "A changing rural economy! Pp. 15-37 in Mark 1987 Investments in rural education canmean higher Dravenstott and Lynn Gibson (eds.), Rural America in incomes, but in the cities! Choices (FourthQuarter): 22- Transition. Federal Reserve Bank of Kansas City (April). 23. Hines, Fred and Mindy F. Petrulis Congress of the United States 1986 "An overview of the Southern nonmetro economy: an 1986 New Dimensiont in Rural Policy: Building Upon Our historical and current view with emphasis on Southern Heritage. Studies prteared for the use of the Subcommittee agriculture." Weeedinp of the Emerging Issues in the on Agriculture and Transportation of the Joint Economic Rupiy.aiD (ugly ot ilte South Conference. Mississippi State: Committee. Washington, D.C.:U.S. Government Printing Southern Rural Devebpment Center (April). Office (June 5). Hobbs, Daryl Corporation for cmterprise DevekTiment 1988 "Rural school improvement: Bigger or better." Mi 1987 Making the Grade: The Development Report Card Journal of State Government 61 (January/February): 22-28. for the States. Washington, D.C. Honig, Bill Deaton, Br y J. and Anne S. Deaton 1985 Last Chance for Our Children: How You Can Help 1988 "Education reform and regional development! Pp. Save Our Schools. Reading, MA: Addison-Wesley Publishing 304-324 in Lionel J. Beaulieu (ed.), The Rural South in Company, Inc. Crisis: Challenges for the Future. Boulder, CO: Westvicw Press--Rural Studies Series. Hoppe, Rata A. 1985 Economic Structure and Chanze in Persistently Low- Edwand:,, Greg and David Pearce Snyder IncomeNonmetroCounties.AgriculturuandRural 1988 "An assessment: Have things changed?" Special Public Economics Division/EconomicsResearchService,U.S. Policy Section, National Council on Family Relations. Department of Agriculture. Rural Development Research Report No. 50. Erlich, Elizabeth 1988 "Business is Incoming a substitute teacher! Business Israel, Glenn D. and Lionel J. Beaulieu Week (September 19): 134-135. 1990 "Community leadership! In Albert E. Luloff and Louis E. Sv.enson (eds.), American Rural Communities. Boulder, Extension Service/USDA CO: Westview Press. 1986 Revitalizing Rural America: A Cooperative Extension Service Response. Report prepared for the Extension Johnson, Oliver Committee on Organization and Policy (November). 1988 "Adult functional literacy in the South: Program responses and a proposal for a regional approach! SGPB Friedman, Robert E. Alert (November); No. 25. 1987 "The role of entrepreneurship in rural development." Pp. 1-6 in Beth W. Honadle and J. Norman Reid (eds.), Lichter, Daniel T. and Janice A. Constanzo National Rural Entrepreneurship Symposium. Mississippi 1986 "Underemployment in nonmetropolitan America, 1970 State, MS: Southern Rural Development Center. to 1982." Pp. 134-143 in New Dimensions in Rural Policv: Building Upon Our Heritage. Studies prepared for the use Gardner, John W. of the Subcommittee on Agriculture and Transportation of 1984 "The antileadership vaccine? Pp. 318-325 in William the Joint Economic Committee, Congress of the United E. Rosenbach and Robert L Taylor (cds.), Contemporag States. Wuhington, D.C.: U.S. Government Printing Office Issues in Leadership. Boulder, CC. Westview Press. (June 5).

148 1 0 (.1 I rvine, Kenneth 1982"Functionalliteracy:Fondillusionsandfalse O'Hare, William P. economies." Harvard Educational Review 52 (August): 249- 1988 The Rise of Poverty in Rural America. Population 266. Trends and Public Policy Senes (July).

Lyson, Thomas A and William W. Falk Ong, .!Ihn D. 1986 "'No sides of the Sunbelt: Economic dIvelopment in 1988 "Workplace 2000: managing change." Excerpted in the rum! and urbanSouth."Pp.158-165inNew Youth Policy 10 (September):34. Dimensions in Rural Policy: Building Upon Our Heritage. Studies prepared for the use of the Subcommittee on Otto, Luthei B. Agoculture and Transportation of the Joint Economic 1966 "Family influences on youth's occupational aspirations Committee, Congress of the United States. Washington, and achievements." Pp. 226-255 in Geoffrey K. Leigh and D.C.: U.S. Government Printing Office (June 5). Gary W.Peterson(eds.),Adolescentsin Families. Cincinnati, OH: South-Western Publishing Co. Markey, James P. 1988 'The labor market problems of today's high school Pulver, Glen C. dropouts." Monthly Labor Review (June): 36-43. 1987 "Fitting entrepreneurs into community developrcznt strategies." Pp. 93-101 in Beth W. Honadle and J. Norman Martin, Kenneth E. and Kenneth P. Wilkinson Reid (eds.), National RtAnd_Entretreneurship Symposium. 1985 "Dotsleadership developmentinterveneinthe Mississippi State, MS: Southern Rural Development Center. relationshipbetweenpublicaffairsparticipationand socioeconomic statuerlomatoftheCommunity Redwood, Anthony Developm Tit ,corietv 16 (2): 97-106. 1988 "Job creation in nonmetropolitan communities." De Journal of State Government ol (January/Februaty): 9-15. Martinez, Doug 1985 "Will thc rural South's job boom go bustr Farnnline Reid, J. Norman (November): 12-14. 1988 "Rural areas in the 1980's: Prologue to the 21st century. Paper presented at the Policy and Planning Center MDC, inc. Annual Symposium. Louisville, KY (December). 1986 Shadows in the Sunbdr Dev&ipAir. jhe Rural South in an Era of Economic Change. A report of the MDC Rosenfeld, Stuart A. Panel on Rural Economic Development (May). 1988 'The tale of two Souths." Pp. 51-71 in Lionel J. Beaulieu (ed.), The Rural South in Crises: Challenges for 1988 America's Shame--America's Hope: We've Million the Future. Boulder, CO: Westview PressRural Studies Youth At Risk. A report for the Charles Stewart Mott Series. Foundation (September). Ross, Pcggy J. 1989 "Human rcsouraz in the South: Directicns for rural Mendel, Richard A. sociology in the 1990's." Presidential address presented at 1988 Meeting the E.:onomic Challenge of the 1990's: the 1989 Annual Meeting of the Southern Rural Sociological Workplace Literacy in the South. A Report for the Sunbelt Association, Nashville, TN. institute. Chapel Hill, NC: MDC, inc. (September). Ross, Peggy J. and Stuart A. Resenfeld Moen, Jon R. 1988 "Human resource policies and economic development." 1989 "Poverty in the South."Economic ReviewFederal Pp. 333-357 in David L. Brown, J. Norman Reid, Herman Reserve Bank of Atlanta (January/February): 36-41. Bluestone, David A. McGranahan, and Sara M. Mazie (eds.),RuralEconomic Developmentinthe1980's: Mulkey, David and Mark S. Henry Prospects for the Future. Agriculture and Rural Economic 1988 "Development strategies in the rural South: issues and Division/Economic Research Service, U.S. Department of alternatives." Pp. 249-264 in Lionel J. Beaulieu (cd.), The Agriculture. Rural Development Research Report No. 69. Rural South in Crisis: Challenges for the Future. Boulder, CO: Westview PressRural Studies Series. Ryan, Vernon D. 1988 'The significance of community development to rural Naisbitt, John economic development initiatives." Pp. 359-375 in David L. 1982 Megatrends: Ten New Directions Transforming Our Brown, J. Norman Reid, Herman Bluestone, David A. Lives New York, NY: Warner Books. McC ,,han, and Sara M. Mazie (eds.), Rural Economic Develo nein in the 1980's: Prcspects for the Future. National Alliance of Business Agriculture and RuralEconomicDivision/Economic 1986 ErapAnt Policies: Looking to the Year 2000 Research Service, U.S. Department of Agriculture.Rural Washington, D.C. Development Research Report No. 69.

National Commission on Youth 1980 The Transition of Youth to Adulthood: A Bridge Too Long Boulder, CO: Westviev, ?rms.

149

13 0 Sullivan, Gene D. and David Avery Constania, "Underemployment in nonmetropolitan 1989 "Southeastern manufacturing:Recent changes and America, 1970 to 1982." Full citation is provided in tl-e prospects." Economic ReviewFederal Research Bank of reference section. The 1985 figure wa. graciously Atlanta (January/February) 2-15. provided by Daniel T. Lichter.

Swain, Frank S. Figures 1989 "Small business/workplace literacy, and rural Ameeica." 5 and 6:U.S. Bureau of the Census, Current Population Rural Adult Education Forum 1 (February/March):5. Reports Series P-60, Poverty in the United -tates. U.S. Government Printing Office, Washington, D.C. Swanson, Linda L. and Margaret A. Butler Selected issues from the P-60 series were used to 1988 "Human resource base of rural economics." Pp. 159- prepare these figures. 179inDavid I Brown, J.Norman Reid, Herman Bluestone, David A. McGranahan, and Sarah M. Mazie Figure 7: Peggy J.Ross, "Human resources inthe South: (eds.),RuralEconomic Developmentinthe1980's: Directions for rural sociology in the 1990's." See Prospects for the Future. Agriculture and Rurai Economic reference ection for the complete citation. Division/Economic Research Service, U.S. D-Partment of Agriculture. Rural Development Research Report. No. 69. Figures 8 and 9:U.S. Bureau of the Census, Current Population 1\secten, Luther G. Report Series P-20, Educational Altainment in the 1988 "Elements of a sound rural development policy." United States.U.S. Government Printing Office, ResearchinDomestic andInternationalAgribusiness Washington, D.C. Various issues from the P-20 Development, Volume 9: 103-111. series were used to prepare these figures.

U.S. Bureau of the Census Figure 10:The 1985-86 figures were drawn from the article by 1988 Poverty in the United States 1986 Current Populatrin Linda L Swanson and Margaret A. Butler, "Human Reports, Series P-60, No. 160. Washington, D.C.: U.S. resource base of rural economies," while the 1986- Government Printing Office. 87 figures were secured from the work of Peggy J. Ross, "Human resources in the South:II' .ections Wilkinson, Kenneth P. for rural sociology in the 1990's." See reference 1986 "Community change in rural America: challenges for section for complete citations on these two works community leadc.ship development." Proceedings of the Conference on Resurgence in Rural America. Mandate for Community Leadership. "stension Service, U.S. Department of Agriculture (Septeu c.).

Winter, William F. 1988 "Charting a course for the rural South." N. 358-364 in Lionel J. Beaulieu (ed.), The Rural South in Crisis. Challenges for the Future. Boulder. CO: Westvi:w Press-- Rural Stu. ,,s Series.

Youth Policy Institute 1988 "Educational through community-building." Youth Policy (October):28-30.

FIGURE REFERENCES

Figure 1:U.S Bureau of the Census, Statistical Abstract of

theUnitedStatt, 1971 : 1n d 1988 editions. Washington, D.C.

Figure 2.Unpublisheddataprovidedby PeggyJ.Ross, Agriculture and Rural Economy Division/Fxonomie Ittearch Service, US. Department of Agriculture

figure 3.13urcau of labor Arca Unemployment Statistics as piepared by the Ai,oculture and Rural Economy Division/Economic Research Service, U.S. Department of Agriculture

Figure 4. Data for 1975, 1980 and 1982 were secured from the articlebyDaniel T.Lichter andJaniceA.

150 ":el1 1 .1I INFRASTRUCTURE

.13 2 INFRASTRUCIDRE AND ECONOMIC DEVELOPMENT

Gerald W. Doeksen, Regents Professor Claude W. Allen, Jr., Research Associate Department of Agricultural Economic; Oklahoma State University

DoesAmerica'sinfrastructurereceivea the struggle to finance rural infrastructure are the passing grade? The National Council on Public reasons th's issue is so critical. Without adequate Works Improvement in a recent study graded infrastructure, rural areas may find it difficult to America's infrastructure. Their gt tde on an have economic development and growth. On the academic scale was a scant C- which is barely other hand, without economic development and adequate to support current demands.Specific growth, it may be difficult to finance infrstructure. services such as highways were given a C+, solid The problems of inadequate infrastructure and waste a C- and hazardous waste a D. The study financingareseverec oughtheplanning concluded: "After two years of study, the National comMittee for this confetence felt it important Council on Public Works Improvement has found enough to devote a session to the issue.The convincing evidence that the quality of America's purpose of this paper is to: infrastructure is barely adequate to fulfill current requirements,andinsufficienttomeetthe 1.Provide a brief history of infrastructure dmandsoffutureeconomicgrowthand funding; development (National Council on Public Works 2. Reviewselectedstudieswhichhave Improvement 1988, p. 1). measured the impact of infrastructure on The problem in many rural areas, particularly economic growth; and inthe South,iscompounded bythe poor 3. Discuss how extension can assist with economic conditions and the inability of the local infrastructure issues. andstateeconomytosupportadditional infrastructure investment. In addition to the poor economic conditions in many rural areas, the BRIEF HISTORY OF FUNDING OF financing of infrastructure has shifted to local INFRASTRUCTURE areas. Since 1977, local government outlays have continuedtorise,wholestateandfederal The problem of funding infrastructure is not governmen outlays have fallen.The result has an overnight issue.It's been evolving for over 30 been an increasing shift in responsibility away years in response to dynamic economic, political, from the state and federal level toward the local and social changes.The national trends of the levels. Local governments now provide half of the last few decades, which include periods of rapid money spenton public works. This is up from 38 economic growth, economic decline, and shifts in percent 20 years ago (National League of Cities soda: priorities illustrate this evolution. State and 1987). local concerns are illustrated using Oklahoma's The deterioration of rural infrastructure and current infrastructure situation. Trends in the 1950's and 1960's 4.1 percent to 1.3 percent of Gross National Product. Even after excluding highway figures the These years arc characterized as a period of drop was from 2.75 percent to 1.9 percent of GNP rapid economic growth. As a result of the post- (O'DayandNewman1984,asrelatedby war baby boom, demand increased for all types of Gakenheimer 1989, p. 16). publicworks. TheInterstateand Defense Highway System of 1941 (funded in 1956 by the Highway Trust Fund), enabled efficient travel from The Present coasttocoast. This might well mark the beginning of aremarkable age of American Thepresentperiodofbleralbudget commitmenttoinfrastructure. The federal constraintsbaresthecaptionofthe"New government started providing 90 percent of the Federalism:which pushes the respnsibilities back construction cost of new highways.The Public to state and local governments even more than Works ana Economic Devetopment Act of 1965 tbe 1970's and 1980's.It brought aloss of increased federal aid for infrastructure 1-ederalRevenueSharingandadramatic construction through local matching grants to state slowdown infederal grants for infrastructure. and local governments.These grants provided With the Tax Reform Act of 1986came harsh small governments with financial support for not restrictions onstateandlocalfundraising only highways,butforlargeblocksof alternatives (Apogee 1987; Ledbur et al. 1986). infrastructure categories, including water pollution As a result of recent exploits and assuming public control, sewers, sidewalks, and other social services works depreciate at an average of three percenta (National Council on Public Works Improvement year, investment in state and local facilities nears 1988, pp. 87-90' Hu 1ton and Peterson 1984, pp. zero in the 1980's (Hu lten and Peterson 1984, p. 166-168; National Council for Urban Economic 167). Development 1976; Walzer and Chicoine 1989, p. 2). State and Local Concerns

Trends in the 1970's and 1980's As federal programs have been or are being cut back, state and local governments will have to In most parts of the United States, this was bearmoreoftheburdenofproviding aperiodof economic declinebearinghigh infrastructure. Oklahoma is used to illustrate the inflation, high interest rates, and high current needs and concerns regarding selected ur 3rnployrnent (stagflation). Accompanying these infrastructure items. The Oklahoma Department problems wereshiftsinspendingpriorities. of Transportation has recently substantiateda Emphasis was placed on social welfare and defense need to improve atleast 274 miles of state spending resulting in the reduction and crowding highways each year until the year 2006 to provide out of capital investment spending. an a:leo:pate system of state highways (Oklahoma Incentives for infrastructure were concentrated Department of Transportation 1989). Oklahoma on construction rather than the "4-Rs": repair, has 15,323 bridges within its city-county system. resurfacing,restoration, and reconstruction Shockingly, 53 percent are classified structurally (Dunlop 1986). A deliberate strategy of "deferred deficient and 19 percent functionally obsolete. maintenance" was the norm (Hu lten and Peterson Oklahoma municipalities control 33,179 lane miles 1984). The period coincided with the life cycles of streets.A massive percentage of these are of public works &Aides, population shifts toward "critically inadequate" (State of Oklahoma 1986, the"sunbelt," and a growing taxpayer revolt 11. 28-46, 53, 61). (Cuciti 1986). Over this time period, an immense User fees are the primary source of revenues needs gap estimated as high as $33.1 billion forOklahomawatersystems(78percent). annually (1988-2000), evolved. Over half of this Unfortunately,mostfacilitiesdon'tgenerate amount was !n highway and bridges.Between enough revenues to cover all costs.The rates 1965 and 1977, infrastructtre investment fell from usually consider only operation and maintenance,

154 134

1 not replacement costs.Most water problems are task of infrastructure is to generate a "minimum in distribution facilities (i.e., leaks, deterioration, critical size of urbanization" that will act as a core undersized lines, etc.), and inadequate storage. for development (Hansen 1965; Hirschman 1958; This is reflected in that very few communities as related by Eberts 1986, pp.18-19). Once have attempted to upgrade their distribution and growth is underway, regions may need periodic storage facilities. Major problems with wastewater injections of infrastructuretoproliferatethe systems include a lack of decent storm sewers.In expansior.; otherwise, they may remain in a "low- fact, many smaller communities have no storm levelequilibriumtrap"(Richardson1973,in sewer systems at all.Reports of flooded sanitary Eberts 1986, pp. 16-17).Firms are attracted to sewers are all too common. Solid waste collection regions where the cost of production are !owe" and disposal systems ate accepted byallas and infrastructureisprovided at a reasonable important factors in maintaining quality of life. price (Helms 1985, in McGuire 1986, p.10). Improperdisposalleadstogroundwater Property tax rates and industrial sites don't seem contamination and lack of sufficient disposal sites to matter so long as other services are available. reeks havoc. Many communities report problems Factorsattractingfirmsareexcesssewer, in meetingregulatorystandards(Stateof sanitation and water capacity, as well as well- Oklahoma 1986). developed transportation and educational facilities Insummary,thestatestudy(Stateof (Kuehn et al. 1979). Oklahoma, 1986) shows that 25 percent of the water treatment system and 50 percent of the waste water systems are near capacity and that Sewerage and Sanitation industrial expansion is limited.Thus, if you add problems of other services such as roads, bridges, Garcia-Mila and McGuire (1986) propose that and solid waste, more than half of Oklahoma's sewerage and sanitation have a positive relation cities have severely impaired their potertial for to Gross State Product (GSP), and have higher eco-...umic development and growth. Oklahoma's marginal products that private investments. Using infrastructure problems parallels most other states. GSP as the dependent variable and annual state Maintaining the status quo is difficult.Satisfying infrastructure expenditure for all states including increasing federal EPA standardsispresently theDistrictofColumbis(1%5-1983),as improbable.Progression of infrastructure seems independentvariables,theirhypothesiswas impossible. Evenso,economic growthis confirmed. However, they cautioned that testing remarkably coupled with infrastructure. for causality was lacking, thus the results were preliminary and would be retested at a later time (McGuire 1986, pp. 11-12, 14).The availability of sewer services are extremely important to REVIEW OF SELECTED INFRASTRUCTURE developers; hence, they're a powerful mechanism STUDIES in economic development planning.Nelson and Knapp (1987) tested the effects of a centralized Many studies have attemped to document the sewer service on land development in Portland, linkages betweeninfrastructure and economic Oregon.They used a double log regression of growth. Researchexhibitsahighpositive extraneous socio-economicvariables,suchas correlation,butcausalityhasn'tbeenfirmly distances to the city center, densities of multi- establishedduetostatisticalandempirical family and corporate parcels, income within census problems. Nevertheless, these studies lead to the tracts, tax rates,andlocationsofsewer logicalconclusionthatinfrastructureattracts interceptors on the market price of land sold to private investment and thus promotes economic developers during 1980. With an R2 of .595 and growth. over 764 observations, they found that developers Selected research studies will be reviewed to were willing to pay more for land within a region Illustrate what researchers have found concerning having a centralized sewer system than for land the relationship betwen ifrastructure and economic having separate sewer agencies (Nelson and Knapp growth.In general, research concludes that the 1987, p. 419). Ku ;hn, Braschier, and Shonkwi!er

155 (1979) contrived an econometric study based on nonmetropolitan communities.The sample 'was a sample of 115 rural Missouri communities to stratified by community population and states in determine factors that contributed to new plant the West North Central region of the United locations between1972-1974. The regression States.Results inferred that multiple regression showed a positive excess water capacity coefficient on 136 variables implied that diraances to large (+.01), and positive and significant excess sewer urban areas, access to interstate highway or water capacity (+.23). The regression produced an R2 transportation systems arc notnecessaryfor of .435, so other factors not included such as attracting small and average sized firms. But they preferences and salesmanship also had influence maybequiteimportantforluringlarge on plant location decisions. So, an ample supply manufacturing plants. of fresh waterisessentialin accommodating economic expansion. Most problems in supplying drinkingwaterareinthedistributionand Educ treatment facilities.As communities struggle to meet increasing federal and state requirements, Enterprises crave skilled and educated work funding and technicalassistance becomes forces, in addition to readily accessible research increasingly important.Chemical run-off from facilities. Schools are acknowledged contributors agricultural activities, poorly completed oil and gas to theabilitytoattractjobs;therefore, wells, and neglected land-fills can peimanently expenditures on education are positive factors in contaminate an otherwise perpetual source of economicgrowth. Firms responding to clean water. Fortunately, federal, state, and local questionnairesconsideredamenitiessuchas decision-makers are becoming aware of these schools as important factors in plant location problems and are increasingly providing technical decisions, even though they ranked eighth out, f assistance. twelve general factors (Binkman 1975; in Dorf and Emerson 1978, p. 110). Wasylenko and McGuire (1985) used regression analysis on 48 states in an Transportation attempt to find which factors explained differences in state's employment growth rates (1975-1980). Transportation infrastiucture greatly effects They found that expenditures in education were economic growth (Mera 1973; Antic 1983; as positivefactorsforemploymentgrowth(in related by Eberts 1986, pp. 14-15).Car lino and McGuire 1986, pp. 9-10, 14). Mills(1987)usedasimultaneous,general Although no study todateisabsolutely equilibriummodeltostudytheeffectsof conclusive,infrastructureisregardedasthe economic, demographic, and climatic variables on economic foundation of a nation. The proision population and employment. They collected data of basic amenities can result in economic growth from 3,000 counties over a cross-section of the by enticing private investment toward United States during the 1970's and estimated comparatively advantageous regions. Growth equations by two-stage least-squares. Results absorbing infrastructure provides many ad%antages showed thatifinterstate highway density was to firms willing to indulge themselves. doubled, total manufacturing employment would increasesixpercent over aten year period. Similarly, it would lead to a 2.8 percent increase GENERAL in population densit:.Thus, interstate highways have asignificanteffect on employment and A compresensive reiew of the leterature of population growth.In a study of small Missouri the research studies that looked at the relationship towns, highways and barge docks, among other between infrastructure and economic deAelopment things, contributed to income growth (CONSAD by McGuire concluded: Research Corporation, 1969; in Eberts 1986, p. 21). Dorfand Emerson(1978) tested "The most striking aspect of this report manufacturing plant location (1960-1970) isthepaacityof empiricalevidence differencesbetween 147 randomlysampled specificallyinvestigating thelinkage

156 13 6 betweeneconomicdevelopmentand eomple:aentary inputs for increasing production. infrastructure investment.Several well- If public services provide a cost-savings resources designed, informative empirical studies are freed an'Irms may purchase other inputs- with varying degrees of relevance to the leadingt.. %Lonal aoutput and an increased linkage were examined.Except for the derived 4 ...1 for more inputs. Over the long- study by Keeler (1986) on the trucking run,1 tc.... , in returns to capital and labor industry and theregional analysis by should attract other investments.The causal Hulten and Schwa." (1984), the evidence linkages are not clearly understood.But, taken appears to be that there is a positive and together, these studies lead to the conclusion that perhapsstrongrelationshipbetween there is a positive linkage between infrastructure infrasturcture investment and economic investment and economic growth (Garn and development. The studies supporting this Ledbur 1986; McGuire 1986, p. 18). hypotheses are by Helms (1985), and Garcia-Mila and McGuire (1986).The studies are neither detailed enough nor POSSIBLE ROLE FOR EXTENSION desigr -x1to answer questions such as: whichtype ofinfrastructureismost The above discussion has demons*:ated the productive? what is the optimal level of crucial relationship between economic infrastructure investment?which industries development and infrastructure. The Cooperative aremoredependentontraditional Extension Service has identified revitalizing rural infrastructure?" (McGuire 1986, pp. 24- America as one of its initiatives. Thus, extension 25). professionals have been charged with assisting rural leaders with infrastructure development. The In fashioning economic strategy,policymakers question arises as to what can be extension should be aware that voters migrate to areas best professionals contribute in this area.Programs meeting needs and preferences (Tiebout 1956). which may be possib1 . will be divided into three Bergstrom and Goodman (1973) concluded that categorieswhichincludeleadershiptraining, communities with high employmentresidential providing information or alternative programs, ratios tended to have more economic activity. To and providing technical assistance with support additional growth more public services infrastructure planning.In no way, are the three would nri.:d to be provided.And "State fiscal categori;s or the list of activities intended to be policies can and do iafluence relative state per all inclusive. capital income levels" (Canto and Webb 1987, p. 201). In attempting to investigate whether put,lic Leadership Training investment(i.e.infrastructure)causesprivate investment or the reverse, Eberts and Fogarty Leadership is key in all aspects of extension (1986) constructed a production function with work.It takes top notch leadership to conduct inputs of private capital, labor, and public capital. and carry out local infrastructure programs. Rural Results showed that both public andprivate decision makers, who participate in infras ructure capital may be endogenous in generating personal planning, must thinklong term and evaluate growth. To this point, each of these inputs may between competing Issues. Thus,leadership simultaneously cause the other (in McGuire 1986, development programs are a must and should be p. 11). An important requirement for economic continued and strengthened. stimulation is that publir capital must complement private investment. If they are complements, infrastructure wouldprovideabaseforthe Information Distributicn expansion of private capital. In summary, businesses locate where they can Extension through its great distribution system receiveincrwsed productNity. Infrastructure shou,d N., the agency to disseminate information provides thenecessary, though notsufficient, relative to rural infrastructure programs,This

157 would mcan that a specialist would have to be inventoly all available resources.The includes knowledgeable inall aspects of infrastructure condition analysis of all infrastructure, assessment planning,financing, and delivery. Extension of the availability of financing and technical materialwouldhavetobepreparedfor assistance, and assessment of human resources. distribution and presentations made concerning Targeting industries help communities zero-in on infrastructureprograms. Inaddition,the the most probable firms that might be willing to professional would become an expert on financing locate in their arca. A target industry analysis rural infrastructurc and should be knowledgeable helps identify any additional infrastructure needs enough to discuss all financing schemes to state that must be in place to attract a particular type elected officials.Fur instance the governor or of firm.Formulation of strategies to improve state legislators may wish to be informed of quality of life is the action part of the former infrastructure financing schemes used by other steps.After a formal development organization states. has assessed its avaiiable resources and identified its target industry market, strategies are developed to carry out stated goals and objectives. Technical Assistance

A recentin-depth study (Mee, 1989) of Strategic Capital Improvelnent Planning infrastructure issues was completed in Oklahoma. As part of that study, the investigator visited with Capital Improvement Programs (C1P5), are the experts involved with rural capital improvements hcartblood of local economic developmen`.. Most planning. What actually occurs is crisis planning. localities will claim to have CIPs, but in fact do Community leaders do not plan capital items until not. Traditional planning has been ineffective; as a crisis occurs.This may occur because capital a result, the most progressive governmental units items no longer can be repaired and new items are adopting strategic planning techniques. The have to be purchased or some federal or state disappointmentoftraditionalcomprehensive regulation forces changes. When the crisis occurs, planning methods is that it often lacks economic then a capital investment is made. reality. Many timesitneglectsmeaningful Whatisneedediscapitalimprovement implementation strategies and doesn't specify the planning. Extension withleadershipanda organizationalarrangementsneeded. Often training information base should be in an excellent underlying these problemsisa general non- position to provide technical assistance to rural commitment to the planning process (Isburg 1980; communityleadersforcapitalimprovement Cuciti 1985, p. 1) planning.The process could be aided with the Strategic Planning is a popular management developmentofa guide frit- ruralcapital technique.It can help governments and public improvement planning. This guide would be agencies deal with changes by overlapping and written to illustrate why a plan is needed, how to complementing comprehensive planning. undertake a plan, and elements it I:. plan. It Comprehensive planning tends to simply sum the should be written so thatitwceild be easity functionalpartsof asystem. Inthis way, understood. comprehef -lye planning is typically not Development planning can take on a number "comprehensive (Bryson and Einsweiler 1987; of forms.Even so, each method has common Bryson and Rocring 1987).Bryson and Rocring elements. Four basic requirements in cultivating (1987) present an outline of a public sector successful teonomic development programs have strategic planning process, which involves: beensuggestedhyWolf (1986)asformal o ganizations,resourceassessmentprograms, I. Initia! Agreement."A plan for planning" target industry programs, and strategies. among key decision makers.It is imperative Formal organizations work to identify problem that support and commitment exist. arcas,findusefulfinancing mechanisms, and educate and coordinate all parties. Resource 2. Identification of Mandates.These arc the assessment consist of aprogramto critically things that must be done.Mandate come

158 1 ..L.4,) L.; about through sacio-econornic pressures. 10. Evaluation of Results.Strategic planning is 3. Statement or Mission and Values. The an iterative process of monitoring, feedback, mission is influenced by the "wants" of various and rethinking. stakeholders. Stakeholders have a legiminate interestinpolicyformulation;therefore. On the whole, the difference between strategic stakeholder interest should't be ignored. planning and traditional public planning is that strategic planning is oriented more toward actions, 4. Identification of the External Environment. results,andimplementation. Itpromotes External scanning is an in-depth, participation in the planning process, puts greater comprehensive, environmental policy analysis emphasis ontheexternalenvironment, and of anything impacting the jurisdiction.This assesses a community's strengths and weaknesses involves, but is not limited to, a review of givenitsopportunitiesandthreats. Ifa relevantlegislative, regional, national, and communityisunusually activeintraditional international issues. planning, then strategic planning may not makc much difference; otherwise, it can revitalize and 5. Identification of the Internal Environment. excite planning efforts (Kaufman and Jacobs 1987, Analysis of strengths, weaknesses, and resource p. 25, 29). limiations. Cuciti (1985) spells out the major tasks in conducting a comprehensive assessment of infrastructure needs as: SUMMARY (a) determining the scope and structure of the analysis; Infrastructure creation and deterioration is a (b) inventorying the infrastructure; cyclical process.The cycle is on its first down- (c) assessing the condition and performance swing at a time of federal financial disengagement. of facilities; State and local governments are having enough (d) identifying trends in conditions, service, troubleprovidingbasicservices,muchless and spending; satisfying perpetually increasing (though laudable), (e)forecasting developmentpatterns and federal standards. Research tends to support the investment needs; concept of positive linkages between infrastructurc (f) identifying likely revenue levels; and and economic growth. (g)considering ways to obtain additional Even so, state governments can ill afford to revenue. wait on Washington. Statelegislatures and In other words, aTevicand analysis of all issues governors must take the initiative put their and problems should be conducted constituents on the path to economic development. There must be a strengthening of 6.Identification of Strategic Issues.These are regional comprehensive coordination of public thepolicy questionsthatwillaffectthe works. Systems must be invented at the state and mandates, mission, financing, and stakeholders. local level for planning, prioritizing, funding, and staging production of "strategicall: important" 7.Identification ofAlternative Strategies. public works.What is needed is "infrastructure Action plans and implementation strategies far for infrastruire" (Hanson 1986, p. 22, 85). handling strategic issues and achieving the State and local government should use all goals and objectives. appropriate financing mechaaism to help facilitate the construction, operation, and maintenancof 8. Description of the Organization's Future. An public infrastructure. To this end, restrictive debt Outline of the organization after it successfully caps might be reviewed, along with considering implements its strategies. "creative"financing mechanism such as bond banks,revolvingfunds,bondinsurance,tax 9. Implementation Actions.Selected plans arc increment financing, interest rate subsidies, and put into play. local debt guarantees to name a few. States

159 cannot depend on the federal government to provide the services essential to economic growth CONSAD Rcscarch Corporation, A Study of the Effects of Public Investment (Washington, D.C.: Economic Development and prosperity. States r.i.tst take the initiatives to Administration), 1969. help10Calcommunities willing to help themselves. The Cooperative Extension Service should bc Cuciti, P., Planning for Intrastructure. A Ilandnook for State readytoassistruralareasininfrastructure and Local Officials (Denver Univeisity of Colorado, Center for Public-Private Sector Cooperation), 1985. planning.The three areas where Extension can shine includeleadershiptraining,information Cuciti, P., A Perspective- on PuMic Works. The Nature of the disemination and technical assistance. Many Problem (Denver Univeisity of Colorado, Center for Pubhc- states have excellent leadership training programs. Private Sector Cooperation), 1986. Top-notchruralleadership is required in Dorf, R., and Emerson, M., "Determinants of Manufacturing infrastructureplanningisgoingtooccur. Plant Location for Non-Metropolitan Communities in the Wist Extension with its already established distribution North Central Region of the U S ," Journal of Regional systemsisprime tonandletheinformation Science, 18 (1978), 109.120. dissenimationaspectofinfrastructureissues. Dunlop, P., "Rebuilding America's VitalPublic Facilities," Finally, technical assistance to rural communities APWA Reporter 51 (1984), repnnted in Kemp, R. (ed.) conducting capital improvement planning ,^u bc Amenca's Infrastructure. Problems and Prcspects, pp 29-42 completed by experienced extension personnel. (Chicago: Interstate Pnnters), 1-6. The CoopetativeExtensio:-,Servicehasan Everts, R. W., An Assessment of the- Linkage Between Public excellent opportunity and challenge to assist rtral Infrasti ucture and Economic Development (Eugene: University leadersininfrasiructurep!nning andthus of Oregon), 1986. promote economic development and Eherts, R. W., and Fogarty, M S., "Tne Role of Public diversification. investmentinRegional Economic Development," working paper, October 1985.

REFERENCES Gakenheimer, R., "Infrastructure Shortfall: The institutional Problems," Journal of the American Planning Association, 55 (1989), 14-23. Antic,J.M.,"Infra..truct,ire and Aggregate Agricultural Productivity: Internation.11 Evidence," Economic I)evelopment Garcia-Mila, T., and McGuire, TJ., "An Empincal Analysis of and Cultural Changc 31 (1983), 609-619. the Efficiency of Publicly Provided Inputs," working paper, April 1986. Apogee Research, Inc.Amenca's Countus: Public Works Leaders (Washington, D C. l'iational Association of Counties), Garn,H., and Ledebur, L,InfrastructureinEconomic 1987. Development (McLean: Asian Institute), 1986.

Bergstr:- n, T C. and Goodman, R. P , "Pnvate Demands for Hansen, N., "Unbalanced Growth and Regional Development," Public Goods," The Amencan Economic Review, 63 (1973), Western Economics Journal, 4 (1965), 3-14. 280 196. I lanson, R., The Nest Generation in Management of Public Bnnkmam, G L., 'The imperiance of Community Controlled Works. Getting Some of it Together (St Paul: University of LocationFactorsit.Attracting New IndustrytoSmall Minnesota), 1986. Communities," unpublished paper, Manhattan, Kansas: Kansas State University, 1975 Helms, J., "The Effect of State and Local Taxes on Economic Growth: A Time SenesCross Section Apprc.ach," The Review Bryson,1. M ,arid Einsweiler, R. C., "Strategic Planning." of Economics and Statistics, 67 (1985), 574-582. Journal of the American Planning Association. 53 (1987), 6-8 I hrschman, A. 0., The Strategy of Economic Development Bryson, J. M. and Roenng, W. D., "Applying Pnvate-Scctor (New Haven: Yale University Press), 1958. Strelegic Planning:nthe Pubhc Sector," Journal of the American Planning Association, 53 (1987), 9-22. Hulten, C. R , and Peterson, G. E., 'The Public Capital Stock. Needs, Trends, and Performance," The American aonomic Canto, V. A., and Weob, R , "The Effect of State Fiscal Policy Review 74 (1984), 166.173. on State Relative Economic Performance " Southern Economic Journal. 54 (1987), 186-202. 1 lulten, C. R., and Schwab, R. M. "Regional Productivity GrowthinU.S. Manufactunng: 1951-78; The American Carhno, G., and Mills,E., "The Determinants of County Economic Review 74 (1984), 15' 162. Growth," Journal of Regional Science, 27 (1987), 39-54.

160 City Oklahoma Department of Economic and Community !Myr& G., "Strategic Planning: A major Development Tool for Affairs), 1986. the 1980s," Minnesota Cities, 69 (1984), 5-6. Teibout, C., "A Pure Theory of Local Expenditures," Journal Kaufman, J. L, and Jaribs, H. M., "A Public Planning of Political Economet, 64 (1965), 416-424. Perspectuve on Strategic Planning," Journal of the America Planning Association, 53 (1987), 23-33. Walzer, N., aud Chicoine, D. L, Rural Roads and Bndges: FederalandStateFinancing(Washington,D.C.:U.S. Keeler, T. E., "Public Policy and Productivity in the Trucking Department of Agriculture), 1989. IndustrySomcEvidenceontheEffectsofHighway Investments, Deregulation, and the 55 MPH Speed mit," The Wasylenko, M., and McGuire, T. lobs and Taxes: The Effects Amencan Economic Review, 76 (1986), 153-158. of Business Climate on State's Employment Growth Rates," National Tax Journal, 38 (1985), 497-511. Kuehn, J.A., Bra-hler, C., and Shonkwiler, J.S., "Rural Industnalization and Community Action: New Plant Locations Wolf, V. L, "Strategic Planning for Economic Development," Among Missoun's Small Towns," Journal of the Community Itinnti_Salio, 71 (1986), 1041. Development Society, 10 (1979), 95-107.

Ledebur, L., Hamilton, W., Matz, D., and Andetson, L, Federal and State Roles in Infrastructure (McLean: Asian Institute), 1986

McGuire, T., On thc RelationsW Between Infrastructure Investment and Economic Development (Stony Brook: State University of New York), 1986.

Meo, Mark, Claude Allen. Gerald Doeksen and Grant Wilson, Integrated Infrastructure Planning for Economic Development in Oklahoma Report submitted to Oklahoma Department of Commerce, December 1989.

Mcra, K., "Regional Production Functions and Social Overhead Capital: An Analysis of the Japanese Case," Regional and Urban Economics, 3 (1973). 157-186

National Council on Public Works Improvement, fragile Foundations: A Report on Amenca's Public WorksFinal Report to the Prtsident and the Congress, (Washington, D.C.: Government Printing Office, 1988.

NationalCouncilforUrbanEconomicDevelopment, CommuniLy, Economic, and Manpower Development Linkages_ SectionI (Washington, D C.: Government Pnnting Office), 1976.

Nat' ,nal League of Cities, Financing Infrastructure Innovations at thc Local Level, December 1987.

Nelson, A. C., and Knapp, G. J., "A Theoretical and Empirical Argument for Centralized Regional Score.Planning," Journal of thc Amencan Planning Association, 53 (1987), 479-486.

O'Day, D. and Newman. L. "As.sessing Infrastructure Needs: The (late of the Art," Hanson. R., (ed) Perspectives of Urban Infrastructure, 67-109. (Washington, D.C.: National Academy Pim), 1984.

Oklahoma Department tsr Transportation. Road to Excellence (Norman: University of Ok.lhoina Pnnting Servic), 1989.

Richardson,H.,RegionalGrowth Theory (New York: MacMillan), 1972.

Statc of Oklahoma, Oklahoma Infrastructure Study (Oklahoma

161

4 WHAT ARE THE LOCAL INFRASTRUCTURE NEEDS IN THE RURAL SOUTH?

0. H. "Buddy" Sharp less, Executive Dire -tor Association of County Commissions of Alabama

DEFINITIONS SCOPE OF THE PROBLEM

Mostlocalofficialsconsiderthepublic In Alabama, as in most other Southern states, infrastructure to include roads, streets, bridges, counties are responsible for most of the rural curbs, gutters, sidewalks, storm sewers, and water infrastructure. Alabamc counties are responsible and sewer lines.But many now realize that it is for the maintenance of 57,426 mites of paved and more. The term in a broader sense also includes unpaved roads and 9,076 bridges. A recent study public buildine;, such as city halls, courthouses has revealed that almost one-hal. (47.1 percent) and jails, public parks and playgrounds, school of all county paved roads need resurfacing and buildings, and publicly-owned industrial parks. In that more than one-half (60.2 percent) of all the broad sense, public infrastructure includes 211 bridgesinthe county system are structurally buildings, facilities, and other structures; built or deficient or functionally obsolete. The study also constructed to serve the public for long periods revealed that it would cost more than $600 million and involving relatively large sums of money. to correct these deficiencies.Alabama counties What is "rural infrastructure"?In the public collectively receive only about $185 million per setting, itis most likely that which is located in year in revenues for road and bridge purposes, theunincorporated areas and perhaps even in and much of this amount is used for routine sparsely populated cities and towns.The con- maintenance.It wculd take every penny that all centration of infrastructure in such areas is, of 67 Alabama counties have available for road and course, less than in heavily populated municipali- bridge purposes from now until1993 just to ties and urbanized areas. address the current road and bridge maintenance It should be kept in mind that rural infra- needs.It is easy to see that Alabama's counties structureisnot inplace justto serve those are fighting a losing battlein their efforts to citi7ens who reside outside incorporated municipa- maintain this vital part of our rural infrastructure. lities.The rural infrastructure is there to serve Counties,: other Southern states are facing the economic and personal interests of all citizens similar problen.s. Counties in Florida are respon- For example, itis over rural roads and bridges sible for 60,082 miles of roads and 4,401 bridges. that much of our agricultural products and in- More than 30 percent of those bridges are dustrial raw materials must travel in order to classified as substandard.Georgia counties are reach markets and industries.The economy of responsible for 75,835 miles of roads and 8,335 any region of our country and especially the bridges.It has been determined that more than South, with its dependence on agricultural, forest, 45 percent of those bridges are classifiedas and mineral industries, is highly dependent on the substandard. In Mississippi, counties maintain rural infrastructure. 53,130 miles of roads and 12,366 bridges, over 64

14 2 percent of which have been determined to be SOLUTIONS substandard. Countiesin Tennesseeare responsible for 53,955 miles of roads and 11,557 There are a number of steps that Lan be taken bridges. More than 46 percent of those bridges to address the needs of our rural infrastructure. have been classified as substandard. At the heart of all soiutions or approaches is Counties in Alabama are also responsible for money.Local governments simply must have maintaining infrastructure in many rural more money to invest in our aging and expanding subdivisions.Aside from streets in such areas, infrastructure system.Certainly better financial counties have to maintain other facilities like management practices can be implemented and curbs, gutters, storm sewers, and waste facilities. advanced technologies utilized, but the impact of Tax receipts genc rated by the benefited property such efforts on revenues would be minimal. With or person are generally not sufficient to pay the regard to highways. roads, and bridges, there is a cost thereof.Revenue generated through user need to rethink our national highway program. fees is also generally not sufficient. The result is Forthelastseveraldecadesthefederal thatinfrastructurein many such areasisin government has poured billions of dollars into our deplorable condition. interstate system. Now that the interstate system Many of the public buildings, courthouses, is about complete, the United States Congress jails, youth facilities, public health facilities, etc., must decide how it will spend the hundreds of in Alabama arcinneed of replacement or millions of dollars in the federal Highway Trust renovation.Revenues available to countics are Fund. Thereiscurrently about S9.9 billion barely sufficient to fund the daily operations, surplus revenue in the trust fund. Itis our much less replacement or renovation costs. position that Congress should reduce the amounts Small municipalities in rural areas often find authorized for the interstate system and increase themselves in similar situations.Much of the funds available to the other federal aid systems infrastructure for which they are responsible is in and "off-systems" in proportion toneeds. If poor condition. Revenues availableto such "needs" is the basic criteria in distributing federal municipalities are simply not sufficient to fund highway funds in the future, rural highways, roads, routineoperationsandmakeinfrastructure and bridges willreceive substantial additional improvemen ts. revenue. The basic and paramount reason counties and There has been considerable discussion and manymunicipalitiesclnnotkeep up with debatelatelyaboutjusthowthefederal infrastructure needs js clearly insufficient reenues. government should spend the vast surplusses in County governing bodies in Alabama have very the Highway Trust Fund. Some have suggested a littletaxing authority. Much of the revenue portion of it be used to balance the federal budget available tocountiesforinfrastructureneeds deficit. Citizens who wanttomaintain an comes in the form of tax proceeds shared with the adequate transportation system in our country state. Revenues generatedlocallyare from should oppose such suggestions v`). all the vigor sources which tend to te stagnant and low in they can muster.Revenue in the trust fund is yield. generated through highway user fees.Highway At the center of the local tax issue is the user fees should never be used for anything except property tax.Alabama holds the distinction of highways, roads, and bridges. having the lowest ad valorem taxes in the United Rural citizens should also oppose efforts to States. Alabama constitutional and statutory allocate substantial portions of the Highway Trust prmisions make it almost impossible to increase Fund for urban mass )ransportation programs. ad valorem taxes to fund infrastructure needs or Such programs would suck millions and millions for any other purposes.The ad valorem tax is of dollars out of ,Ile rural areas of our nation. the unquestionably the most under utilized local tax South in particular. revenue source in the state of Alabama.

164 Recent history has taught local government is as important to the economic well-being of our officialsa very importantlessc,n: you cannot region and state as interstate highways and water depend on the federal government as a permanent andsewer lines in ourmostpopulous source of funding. Local officials must plan municipalities.In order to expand and maintain infrastructure funding with a balanced approach. this important resource, our counties and rural There must be a proper mix of federal, state, and municipalitiesmust havesufficientrevenues. local funding.In order to achieve this balanced Sufficient funding.,n be achieved by working approach, county government bodies must be toward a realistic federal funding policy and by given additional authority to raise revenue locally. ensuring that local governments have adequate Thetaxingauthorityofcountiesmustbe revenue-raising authority. increased. It was pointed out earlier that counties in Alabama are finding it difficult to meet funding needs of infrastructure in rural subdivisions.As a result, many Alabamians are living in less than desirableconditions. Streetsin many rural subdivisions are in need of resurfacing.In many instances curbs and gutters do not exist. Flooding is often a serious problem, and in many such areas sanitary sewage faciiities do not exist. The cost of providing and maintaining such basic infrastructure in rural subdivisions is prohibitive and simply out of the question for most counties inAlabama. TheAssociationofCounty Commissions of Alabama, during the last several sessions of the Alabama Legislature, has supported legislation which would grant county commissions the authority to make infrastructure improvements and assessallor a portion of costs against property owners who benefit from improvements. The legislation provides that a majority of the affectedproperty ownersmustapprovethe assessmentsbeforetheycouldbelevied. Unfortuntely the legisla:ion has not been passed. The Association plans to continue its support for such legislation. Finally, if counties and smaa municipalities in ruralareasinAlabama are goingto make significant progress in funding infrastructure needs, there must be some restructuring of our state's ad valorem tax laws. As stated earlier, Alabama's ad valorem taxes are the lowest in the nation.It is appropriate that the property which benefits from infrastructuresbethebasisforfundinga reasovble portion of its costs.

CONCLUSION

The South, and in particular Alabama, cannot exist 1.A.'iltout ,:n adequate rural infrastructure.It

165 544 STRATEGIES FOR IMPROVING HOUSING AT THE COMMUNITY LEVEL: RESULTS OF A SEVEN-STATE RESEARCH PROJECT*

Jacquelyn W. Mc Cray, Deputy Dean/Director University of Arkansas at Pine Bluff

Margaret Weber, Interim Assistant Director of Home Economics Oklahoma State University

'The results inthis paper are based on analyses of data SS0,000 (Pifer,1987). More recently the obtained from Regional Research Project S-194, "Barriers and National Association of Home Builders (1988) IncentivestoAffordableHousing,"funded by USDA Agricultural Expenment Station regional reseach funds under reported that the median costs of new and the Hatch and Evans-Allen Acts. The content of this paper existing homes at the end of 1987 were is the sole respousibility of the authors." S105,000 and S85,000, respectively. These dramatic increases in shelt^r costs withrisinghome During thepasttenyears,the Southern havebeencoupled nnintenanceandutilitycostsandwith 2egional Housing Reset. -It Technical Committee has been concerned with housing for low- and increasing home mortgage expenses associated moderate-income households. with fluctuating interest rates.Some would Of particular concern is the current trend in argue that these conditions have occurred federal policy away from direct programming for across America and that housing in the rural or expanded assistance to housing as evidenced by South has not been any more adversely substantial reductionsin both the growth of affected than other regions of the country. federal aid and absolute levels of aid for housing However, the magnitude of change in any .ssistance.As a result, states and communities region must be viewed in the context of the are having to take a more proactive attitude general economic climate in which change towardmeetingthehousing needs oftheir occurs aswellasinrelationshiptoits citizens. influence on the lifestyle of inhabitants of the Anotherdimensionoftheproblemof region. providing adequate and affordable housing across Demographic changes impacting housing non-metropolitan America is a growing shortage supply and conditions in the rural South of resources, i.e., buildable land, fossil fuels, and include a regional shift from the Frost Belt to traditional construction materials. Since many of the Sunbelt, and a shift from suburban to these resources are nonrenewable, the style, size, nort-metropolitanareas,bothcreatinga and/or density of available housing will have to be demand for increased housing in many rural areas across the South. According to Lerman adjustedifitisto remain affordable for all households. Evidences of a growing affordability (1986),asnew householdswithhigher crisis abound. incomes move to small town America, shifts Between 1970 and1985 median monthly in the local housing market often result in tental costs escalated from S108 to S350, while greater use of lower quality units becat.se of the median selling price rose from S23,000 to increasesin housing costs throughout the

1 4 5 market area.In addition, changes in household Recognizing the possibility that housii,6 composition and changes in social values and intermediaries,cor.imunity leaders, and lifestyles (i.e., greater participation of women in community residents may be influential in the labor force) have important implications for determining the quantity and affordability of housing needs in the rural South. Specifically, the a community's housing stock, and accepting traditional singie-family unit on a private lot may thepremisethatgreaterdiversityina no longer support the lifestyle or affordability community's housing stock results in a wider needs of inhabitants of the region. According to rangeoflifestyleandcostoptionsfor Robert Lesser (1982), the housing shortage of community residents, a study was undertaken today is really a shortage of affordable housing-- to determine the influence of community the kind that the average person can secure for 25 related attitudes on thelevelof housing to 30 percent of his income.This affordability diversity in small rural communities in the crisis is indeed critical in the rural south where South. incomes and job opportunities have traditionally lagged behind those of other regions. While housing afford- ability is a complex issue, there ANTICIPATED RESULTS are indications that housing may be less affordable in communitiesif limited options in housing The results obtained should be useful to design, structural types, financing mechanisms, and many peopleinvolvedinhousing. The programs exist. primary beneiriaries will be rural communities thatwishtoimprove the acceptanceof affordable housing in their local areas for all ROLE OF THE COMMUNITY IN THE incomegroups. Byunderstandingthe HOUSING PROCESS interactionofthevariousbarriersand incentives affecting levels of housing diversity, Much of the past and current success in the communities can implement roiicies that will delivery of adequate housing in non-metropolitan encourage rather than discourage housing (rural) areas rests with the actions of the local alternatives.Builders, contractors, realtors, community through itselected and appointed and lenders will also be able to identify and governing bodies (boards, councils, and applypoliciesthattheymightuseto commissions). However, attitudeg of housing encourage the adoption of alternative housing intermediaries (lenders, regulators, and builders) forms and programs, and educational programs and consumers are also influential in the delivery thatfacilitate consumer andintermediary of adequate housing. The actions and attitudes of acceptance of alternatives may be developed these groups take any form, including: byCooperativeExtensionpersonnel and members of the housing industry. the willingness to seek and accept availableprogramsthatbuildor rehabilitate units for rural and low- DFFINITION OF TERMS income households; Housing Practices- tlie combination of 2. establishing programs or subsidies housing actions and .esource, that exist within thro:^h tax breaks that encourage the community relatedtchousing design, energy efficient construction; and financing, regulations and programs. Housing Diversitya measure of variance 3. allowing theintroductionof new in housing practices at the community level. technolog in the form of building Housing Dcsiga Optionsthe total array code reformsand/or modular or of alternative density. structural, and energy double-wide construction techniques. related housing types in a community. Th,..se options include mobile/manufactured, earth Conversely, the failure to provide adeqoate sheltered, passive and/or active solar, adaptive housing in other communities may be lin;ledto reuse, and various forms of high-density units. the actions/inactions of these same bodies when Housing Finance Optionsadjustable and they Lid to embrace and allow these opportunities. variable rate mortgages, builder assisted loans, 168 state and/or municipal bond financing, self-help of2,500ormore. Thenumberof housing programs, and alternative ownership forms communities from each state is presented in such as condominiums and cooperatives. Figure 1. Housing Regulationsthe presence and use of zoning and other local codes and ordinances that controlthe availabilityof variousalternative S-194 Study Area housing types. Housing Programs--the presence of federal and local housing programs that assist residents State Number of in acquiring and/or maintaining housing. Communities

OBJECTIVES Alabama 56 Arkansas 68 103 1. To measure the degree of housing diver- Georgia sity in small rural communities in a seven- North Carolina 71 state area; Oklahoma 59 Tennessee 51 2. To assess institutional and infrastructural Virginia 57 barriers and incentivesto community acceptance of innovationsinhousing Total 465 design, construction, and financing that ultimately impact housing diversity at the Figure 1. community level; and

3. To develop a conceptual model which DATE COLLECTION delineatestheinterrelationshipsand interactions of the various barriers and A multi-phase data collection process was incentives. usedinobtainingthequantitativeard qualitative data necessary to accomplish the states' objectives.Phase I included a review RESEARCH METHODS of census data for each eligible community and the development and administration of a Housing Practices Survey in all communities SELECTION OF STUDY COMMUNITIES across the seven states. Phase II included the selection of four communities in each state to All incorporated arcasin seven Southern solicit household, intermediary, and leader states (AL, AR, GA, Ole, NC, TN, and VA) with responses.Additional data were collected a population between _,500 and 10,000 (1980 from the:;e 28 communities using a case study Census of Population) were identified. format. Communities located within 1Iiropolitan Phase I--Development of housing diversity Statistical Areas (MSA) counties were eliminated measure. For each eligible community, 1'119 in order to maintain the rural focus of the study. and 1980 census data were collected for the Remaining communities were then evaluated following variables:population; number of to determine if the sebmion process captured families;totalnumber of housing units both geographic and cultural variations typical of including number of single, mobile, and multi- each state and the Southern region.Results family units; number of owner and renter indicated that some sections of all states were occupied units; median income; and median omitted because they did not include communities house value.ri.-.icent change between 1970 with population of 2,500 or more. Incorporated and 1980 was calculated for each variable. county seats with a population between 1,000 and These data provided a quantitative profile of 2,500 were Lien included in the study area if they each community and noted communities that met the non-MSA county criterion, and if no had experienced changes in housing, family, other community in the county had a population and income variables. 169

147 The next step in developing the diversity Community Selection Matrix measure was to obtaininformation regarding housing practices in each community. A housing Population Scale practices survey containing 48 questionsthat assessed the availability of alternative financing practices, housing programs, local regulations, and housing types in each community was administered by mail questionnaire procedures outlined by Low Population High Population Dil !man (1978).Survey forms were mailed to High Diversity High Diversity localrepresentativesfrwnvariousagencics, housing related professionals, and local officials for each eligible community.These included Low Population High Population county Cooperative Extension su pervisors, Farmers Low Diversity Low Diversity Home Administration county supervisors, regional planners, a representative realtor and lender in Eiglre 2. each community, and the mayor or citymanager. A total of 1,583 respondents (AL= 252, AR = not match on these !actors, the next most 213, GA = 351, NC = 179, OK= 237, TN = extreme con.munity was examined. The 158, and VA = 193) completed thesurvey. The process was followed until suitable matches survey form included specific items on variable were identified. rate mortgages, community development block Two survey instruments were developed (a grants, heilding codes, zoning ordinances, multi- Housing Intermediary Questionnaire anda family housing, and mobile homes.The items Household Questionnaire). Both surveys were assigned one point for each yes response to addressed the identification of barriers and arrive at an adjusted mean score for each subscale. incentives, knowledge level of respondents A mean score for each community was developed Egarding innovations in housing, acceptability from the number of respondents per community of alternative housing, general attitude toward for the development of a final Housing Diversity innovativeness, and perceived future demand Index. for various housing types. Subscales of thc Diversity Index were analyzed forinternalconsistency. Overall,internal consistency for each of the four dimensions ranged SAMPLING STRATEGIES from 0.55 to 0.73. The regulations subscale had the highest consistency among respondents, while Households included in the study were the housing area had thc lowest consistency randomlyselectedfromthe 1987-1988 among respondents.Nonetheless, the internal telephone directoriesfor each community. consistency of all subscales was sufficiently high to A mailquestionnaire wassenttoeach yield an acceptable reliability rating. household drawn for the sample. Two follow- Phase II--Four communities in each statewere up mailings were sentto non-responding selected from which to conduct in depth analyses householdsinaneffortto maximize the of barriers 3nd incentives to affordable housing response rate. Completed questionnaires from (Figure 2).Rankings of diversity scores were all households who said they livedin the used to plot eligible communities alonga community were included in the data base. continuum from high diversity to low diversity. All persons identified as housing Median diversity scores and 1980 population intermediaries and/or community leaderswere medians for each state were then calculated in sent the Intermediary Questionnaire. ordertoassigncommunitiestoappropriate Intermediaries included lenders, regulators, quadrants of a four cell matrix. builders, governmentofficialsand others Scatter diagrams were plotted, and involved in the production and distribution communities with extreme scores in each quadrant of housing. Community leaders includedall were identified :IS a potential study community. persons identified three or more times as a Effort was undertaken to match smaller and larger community leader by city and county officials, communities on location,industrial base, and housing intermediaries or other community transportation variables.If the comnnmities did leaders. A total of 5,341 household and 786 170 :4 (,) intermediary and/or leader respondents returned (Housing Diversity, Housing Affordability and useable questionnaires for a regional response rate Housing Quality), resulting in three dependent of 38.2 percent on the household survey and 36 variables for analysis. percent on the intermediary/leader survey. Appropriate variables were then created from data obtained during various phases of projectactivity(census, housing practices, ANALYSIS OF DATA community case studies, and household and intermediary surveys) and assigned to specific Numerousstatisticalprocedures(factor model components. Pearsoncorrelation analysis,Pearsoncorrelation,andmultiple coefficientswerecalculatedpairingeach regression) were employed in both identifying variable with all other variables.In order to barriers and incentives to affordable housing, and reduce problems of multi-colincarity, one of assessing interrelationships and interactions among the following two strategies was employed if and between various barriers and incentives. a pair of variables in a single component Factor analysis was used primarily in developing correlated at .80 or above: (1) a substitute scales from various categories of items included in variable was used if the substitute variable was the household and in termediaty/leader highly correlated with the variable being questionnaires. A causal model (Figure3) deleted and not correlated with the variable depicting possible interactions among the variables being retained; and(2)if no substitute being studied was developed from theoretical and variablewasfound,bothvariableswere practical explanations of relationships. included separately in subsequent analyses, and The proposed model included seven major the most important variable was retained. categories of independent variables, with Housing The substitution procedure was followed when Stock as the major dependent variable. Housing anindependentvariablewasfound;the Stock was then subdivided into three components independent variable was deleted.

Figure 3. Causal Model Depicting Expected Relationships

FINANCE ECONOMIC BASE

SERVICES DEMOGRAPHICS

ATTITUDES REGULATIONS VALUES

PROGRAMS ,,

1 7 1 1 4 The following variable sets weie retained for Housing production preliminary regression analyses: Acceptance of housing alternatives

Independent Variables Household Disposition Toward Demographics 1 - (1) Innovativeness (5) Number of families General innovativeness Median family income InnovatNeness in work Median age Innovativeness toward improvement Percent white Number of families below poverty Household Ranking of Housing Values- (5) Family, personal, economy, social Demographics 2(1) Family, economy, personal, social Number of people Other Median age Percent white Household Attitudes Regardilig Level of Per capita income Adequacy - (5) Number of people below poverty Lender attitudes Affordable housing Economic Base 1 Concern for housing Percent unemployed (1) Housing programs Percentile range of school childr,m below Personal concern poverty (2) Community services District expenditure per student (2) Total market value of real estate (3) Household Perception of Future Demand- (5) Singh': family Economic Base 2 Mobile homes Percent change in unemployment 1970 (4)- Apartments 1980 (1) Percentile range of school children below Intermediary Perceptions of Barriers and poverty (2) iecentives - (6) District expenditure per student (2) Building regulations Total market value of real estate (3) rinance Production Economic Base 3 Housing affordability Percent change in unemployment 1970 (4)- Acceptance of housing types 1980 (1) Natural environment Sales tax 87 (3) Mobile homes Percentile range of school children below poverty (2) Intermediary Disposition Toward District expenditure per student (2) Innovativeness - (6) General innovativeness Economic Base 4 Innovativeness in work Percent unemployed (1) Innovativeness toward improvements Sales tax 87 (3) Percentile range of school children below Intermediary Attitude Regarding Level poverty (2) Adequacy - (6) District expenditure per student (2) Rental un,,, Loans Household Perceptions of Barriers Community services and Incentives (5) Homes Building regulations Budget Housing affordability Zoning Lender attitudes Land-use regulations 172 150 Intermediary Perception of Future Demand - (6) procedure was usedin developing overall Single family ITIOdels for the various dependent variables. Mobile homes Finally,pathanalysisthatcombined Apartments significant variables from each sub-model was Intermediary Perception of Discrimination- (6) conducted in developing separate ..aths toward Against elderly. handicapped, single each of the three major dependent variables. parent, etc. Against racial and ethnic groups FINDINGS Diversity ir, 12.o asing Practices Coma ,'il , finance score (7) Findings are presented in two parts. The Ccinmr o,,,ifF:lations score (7) first part presents results of the component Comm ,r;',5i pic;gram score (7) sub-modeldevelopment,andparttwo Community service score (5) describes results from the overall model and Namber of community regulations (3) the path analysis. Descriptive and bi-variate analyses are not Dependent Variables presentedbecauseoftimeandspace Housing Quality. - (1) limitationsimposedbythenumberof Percent of units with plumbing and variables under study. crowding deficiencies Percent of units built before 1959 Part L Percent of units built before 1939 ComponentSub-models. Seventeen separate regression models were developed Affordability/Own - (1) from the various categories of independent Percent of families with sufficient income to variables. Two demographic andfour purchase median cost housing economic base models were initially created (following the bi-variate analyses) in an effort Diversity to identify the most important variable sets Percent of mobile and apartment units (1) forusein subsequentanalyses. The Housing type diversity score (7) demographics 1 variable set included statistics on family characteristics, and the Date Sources demographics 2 setincludedstAtistics on (1)1980 Census individual characteristics of the pueulation. The demograrinics 2 variable set was retained (2)1986-87 Curriculum Information Center, because subsequent analyses revealed that Market Data Retrieval individual characteristics of the pcpulation explained more variance in the dependent (3)Community case studies variables.The four economic base variable sets were developed to compare differences in (4)1970 Census sub-models resulting from substituting values from two sets of highly correlated variables (5)Household questionnaire (percent unemployed 1980 vs. percent change in unemployment 1970-1980; and total market (6)Intermediar: questionnaire value of NA estate vs. sales tax revenue 1987). The model that included percent change in (7)Housing practices survey unemployment and sales tax revenue 1987 explained more variance in the dependent The various groups of independent variables variable and was therefore used in developing (model components) were used to develop a series the sub-models. of multi-variate sub-models for each dependent Following these preliminary procedures, variable under consideration. Significant variables linear regression models for housing quality, fromallcomponent sub-models werethen housing affordability, and housing diversity combinedintoanoverallmodelforeach weredevelopedusingtheresulting13 dependent variable. A step-wiseregression independent variable sets.Table 1 presents 173 151 regression results of the three housing quality likely to have more units with plumbing and models.The demographic variables (Model 1) crowding deficiencies. explained 49, 32, and 73 percent of the variation Percentage change in unemployment, sales in units built before 1939, units built before 1959, tax revenue 87, poverty level indicator and andpercentof unitscrowded andlacking district expenditure per student (Model 2) complete plumbing, respectively. The F Value of explained 49 percent of the variancein the models ranged from 3.2 to 13.9, and all three percent of units crowded and lacking complete models were significant (P<.05). Median age and plumbing. Poverty level indicator and district per capita income were the most important expendituresperstudent weretheonly variables in explaining age of units, while percent significant variables in the model, and both whitewastheonlysignificantvariablein were negatively associated with the dependent explaining percent of units crowded and lacking variable. complete plumbing.Median age was positively Household perceptions of barriers and associated with age of stock variables, while per incentives to affordable housing (Mode.: 3) capita income was negatively associated with age explained50 percent of thevariancein of housing stock. No other independent variable percent of unit^ -rowelPA I lacking complete sets contributed to explained variance in age of plumbing. household per- housing stock. The negative association between ceptionsof ;Illations,lender percer *. white and percent crowded and lacking attitudes anu for housing completplumbing indicates that communities production, wei teat.;in the model. with higher percents of non-white population are Perceptions of buildingregulations and lender

Table I. Regression of Housing Quality on Household aid intersedleriAeader Characteristics and/cr Peroeptions

Mesures of Mousing Quality Percent m1711 1.01 or More PPR Percent Built Before 1939 Percunt Built Before 1959 and ,KG Node! Components a SE 0 SE Model 1 Demographics Intercept -6.27 16.31 38.43 29.68 4.31 .887 Population .0002 0.001 0.17 0.004 0.003 1.56 .00005 .00008 0.72 Median Age 1.93. 0.40 4.78 2.30" 0.70 3.27 -.0029 .0210 -0.14 Percent White -0.06 0.12 -0.50 -0.03 0.21 -0.12 -.0369..° .0063 -5.82 Per Capita Income -0.005. 6.002 -2.46 -0.01.. .004 -2.87 .00007 .0001 -0.65 Humber People In Poverty -0.0009 0.007 -0.12 -0.01 0.01 -1.19 .0006 .0004 -1.70

2 z z Adj. R F Value ProbF Adj. B r Value Prob> F Adj. R F Value Prob> i .489 5.41 .0033 .312 3.17 .0300 .730 13.95 .0001

Model 2 Economic Base Intercept 12.72 8.67 53.55 7.95 2.83 0.46 Percent Change in On4wOlDllment 0.03 0.17 0.19 -0.03 0.15 -0.19 -0 01 0.009 -1.22 Riven:* 1987 -1.36 4.66 -0.29 -3.39 4.27 -0.79 1.95 2.48 0.79 Poverty level 7.31 4.13 1.77 7.69 3.79 2.03 -0.97." 0.22 -4.47 District Expendltore/Student 0.20 3.78 0.05 -2.47 3.47 -0.71 -0.46. 0.20 -2.28

2 z z Adj. R r Value Pro4t>1 Adj. R r 35Ine Prob>r Adj. R r Value Prob>r -.024 0.87 .4990 .052 1.30 .3071 .494 6.37 .0022

Model 3 Barriers/Household intercept 79.59 63.91 143.96 100.7 0.08 2.886

Barrier Building Regulation -0.38 2015. -0.02 1.74 30.8 0.06 2.46. .894 2./5 Barrier Housing Atfordabillty 8.09 15.03 0.54 3.98 23.4 0.17 -.34 .157 -0.75 Barrier Lander Attitude -8.12 10.56 -0.77 -1.78 16.6 0.11 1.87... .472 3.95 Borrier Land Ilse Regulation -11.51 12.85 -0.90 -10.73 20.2 -0.53 -.92 .543 -1.70 Beerier Housing Productt., -5.59 12.09 -0.46 -10.88 18.6 -0.58 -2.10... .535 -3.93 Barrier Acceptance 0.31 15.40 0.02 -9.69 24.2 -0.40 -.94 .683 -1.38

2 z Adj. R Value Prob>r Adj. R2 r Value Prob> F Adj. R r Value Prob.. i -.198 0.37 .8901 ..212 0.30 .9286 .509 5.66 .0013

Model 4 innovetelllousehold Intercett -135.68 126.36 81.36 193.2 0.19 9.49 Innovative Concepts -49.16 27.66 -1.78 -95.3. 38.9 2.40 1.89 1.27 Innovative Work 21.59 21.47 1.01 56.4 35.1 .70 -3.58. 1.65 -2.17 Innovative Improvement 76.50° 35.03 2.18 31.2 55.9 0.56 1.44 2.71 0.53

2 z z Adj. R r Value Prob>r Adj. R r Value Prob>r Adj. R r Value Pr66 I .179 2.67 .0754 .129 2.19 .1196 .065 1.62 .2110

,o 174 NO4SUfe)of HousiniSfiellly Percent ilth 1.01 cr More lilt Percent 00111 0ofvfe 7919 Pe.,e0 mass flofcra 1919 andLEC Cc=plete PlOebtel P SE P Nadel Componeets 0 SE P 0 SE " Model 5 Yafues Household 5.94 Intercept 152.1 110.0 82.3 155.8 15.05 1.19 -1.05 Family Val ue. 30.9 40.5 0.16 142.8. 54.4 2.61 -2.40 2.49 -1.85 Econoey Values -71.9 49.1 -1.4) -153.1. 66.1 -2.32 -4.60 2.10 -0.40 Personal Values -72.4 35.5 -2.04 -131.6. 47.8 -2.75 -0.83 0.74 2.61 0. 8 Social Values -63.8 47.3 -1.35 -122.1 66.5 -1.84

142 F Adj. 82 f Value ProtOF Adj . B2 FYalUeProt. >1 Adj. F Value Pr.b .042 1.25 .1229 .218 2.68 .0618 .287 3.71 .0180

3406.1 6 Attltuchullouseaold Intercept 129.5 79.6 39.3 126.6 -4.91 3.95 -0.07 Attitude Lender 18.6 17.6 1.06 3.1 27.6 0.11 - .06 0.91 -2.85 Attitude AffcrdablItty -9.0 9.9 .0.90 -16.8 15.6 -1.08 -1.60.. 0.55 7.01 Attitude Conca-n -10.6 22.3 -0.48 5.1 15.4 0.15 2.16 1.07 Attitude Prude.. -0.3 7.8 -0.04 -8.3 12.3 -.61 0.51 0.45 1.13 Altitude Hy Aflordabillty -24.0 16.7 -1.41 16.2 26.0 0.62 1.28 0.96 1.33 0.47 -1.10 Adequacy Household ServICe 0.31 8.3 0.04 4.0 13.1 0.31 -0.80

112 F Value Vro0F Adj. 1 Value Prob>1 Adj. H2 fYal.Proh)f Adj. R2 -.134 .547 .7658 -0.171 0.42 .8582 .248 2.48 .0564

Model 7 Derailed Household Intercept -80.6 136.4 10.12 218.3 -5.89 7.43 Hou.e Ommend 24.2 26.0 .930 6.11 41.5 0.15 0.58 1.45 0.40 Mobile Demend 16.8 19.8 .847 2.10 31.7 0.07 2.24 1.12 2.00 Apartment Demand 7.5 23.9 .326 15.35 36.8 0.42 0.66 1.21 0.55 2 82 Adj. R F Value Prob)f Adj. 12 F Value PrcAfSF Adj. F Value Prof), 1 -.069 0.50 .6820 -.116 0.171 .9147 .491 4.69 .0103

Nadal 0 !Mrs-tars latermodlary Intercept 63.25 48.5 20.65 76.86 -0.89 2.50 Barrier Regulatloa 3.89 11.0 0.35 24.9 17.05 1.46 0.18 0.60 0.30 Barrier Finance -4.32 7.3 -0.60 -5.0 11.30 -0.44 0.03 0.36 0.08 tlarrlar ProdOction 1.11 8.8 0.15 0.95 13.17 0.07 -0.41 0.41 -0.88 Beerier Atiordobillte -15.04 8.2 -1.84 -8.91 13.05 -0.69 1.02. 0.41 2.49 Barrier ....liability 3.51 9.5 0.37 3.95 15.10 0.26 -1.23. 0.54 -2.28 0.005 tiarrlar Acceptance -0.39 13.6 -0.03 5.09 21.67 0.24 0.003 0.64 Barrier Natural -3.24 6.3 -0.51 -5.28 10.02 -0.53 -0.01 0.16 -0.052 Barrier Moblle 2.60 6.9 0.38 -3.01 10.94 -0.78 0.84. 0.39 2.13 F Value ProOF Adj. R2 F Value Plob>f Adj. RZ F Value Prob)F Adj. RZ .0526 -.177 0.57 .7883 -.214 0.41 .1583 .299 7.44

Model 9 Ittapviltaintermodlary Intercept -21.7 76.5 -23.42 126.83 -1.21 5.02 Innocative Concept. 17.6 13.6 1.3 6.39 22.69 0.28 .1.30 0.91 -1.44 InnovatIve %tech -18.7 11.7 -1.6 -8.10 19.56 -0.41 0.30 0.78 0.39 Innovative improvasent IS. 17.8 0.89 26.92 29.75 0.91 3.30. 1.19 2.83

Adj.82 F Value Pro0F Adj. 12 F Value Prob.11. Adj. R2 F Value Prob.> F .046 1.37 .2814 -.094 0.32 .8140 .215 3.46 .8322

Model 10 Attltude/tatarmedlary Intercept -4.7 88.8 -137.83 128.47 -4.36 4.05 Rent -5.5 15.1 -0.31 19.71 21.03 0.04 1.60 0.78 2.05 Loan. 12.8 19.4 0.66 1(1.40 29.40 0.69 0.0 1.08 0.51 Adequacy of Service 0.45 8.5 0.05 9.49 12.84 0.74 -0.08 0.43 -0.19 Homes -2.3 14.3 -0.16 19.53 21.18 0.92 0.04 0.86 0.04 0.93 -1.10 fludget 10.3 15.2 0.67 -17.119 22.77 -0.79 -1.28 2onIng -LI 11.0 -0.64 5.16 16.63 0.32 0.68 0.72 0.94

I 1 Adl. R f Value Nob) F Adj. 112 F Value Prrh)F Adj. R F Value. Prob.> F -.209 .336 .9087 -.111 0.537 .7130 .030 1.14 0.1759

Modal II Coefand/Interfeediary Intercept 46.2 64.7 162.1 101.98 -2-63 4.40 Dletand noose -9.7 10.1 -0.95 -15.4 16.10 -0.94 0.02 0.73 0.03 1.44 ()emend Mobile -2.7 11.2 -0.74 -19.5 17.65 -1.11 1.0P 0.75 Oenend Apartment 3.6 15.0 0.74 -16.3 23.69 -0.71 0.26 0.95 0.79

2 Adj. 112 F Value Prcia 1( AdJ. 11 F Value P. oh F Adj. 112 F Value Prot, > F -.057 0.59 .6 95 -.076 0.44 .7299 .064 1.62 ail/

Noclal 12 Dfacrlailaatlon Intarcept 28.75 22.7 49..4 35.33 0.88 1.62 Discriminate Old. Poor.Ilandlcapped -0.11 12.9 -0.01 1.11 19.98 0.06 0.45 0.91 0.49 OlscrImInate Race -1.67 11.5 99.15 3.30 18.02 0.18 -0.49 0.81 -0.59

Adj. 112 f Value Poott1F Adj. 172 F Yalu. Prob/F Adj. R2 f Value Prob) F -.093 .019 .9810 -.081 0.04 .9592 -.064 0.19 .8114 Measures of Bousing Beellty Percent with 1.01 or More lilt Percent Built Belore 1939 Percent Built Before 1959 and 1KG Complete Plumb1119_ Model Components SE SE g P Model 13 Housing Pracilces and Services InterceM 58.7 16.30 71.94 26.07 1.56 0.96 finance Score 64 3.54 2.42 -7.02 3.57 -1.96 -0.27 0.17 -1.60 Cormunity Service Score -0.10 0.18 -0.54 0.11 0./9 0.44 -0.01 0.0/ -0.89 Regulallon Score -6.31 2.10 -3.01 ../.51 3.26 -0.77 0.12 0.15 0.83 Numberof Regulations -1.02 5.39 -0.19 1.96 8.57 0.2/ 0.09 0.41 0.21 Prose.. Score -3.51 2.83 -1.24 1.21 4.50 0.27 -0.05 0.23 -0.24

2 Adj. R2 f Value Prob>f Adj. R f ValueProb>f Adj. R f Value Prob.sf .249 2.53 .0669 .215 2.32 .0819 .010 1.05 .4134

attitudes werepositivelyassociatedwiththe tions of barriers and incentives (Model 3), dependent variable, while the perceived availability household perceptions of housing type demand of resource for housing production was negatively (Model 7), and intermediary perceptions of associated with percent of un:ts crowded and barriers and incentives (Model 8) produced lackingcompleteplumbing. Thisnegative models with significant F values for both association suggests that households in housing affordability and housing diversity. communitieswithhighernumbersofunits The combination of demographic variables crowded and lacking plumbing perceived that explained 35 and 28 percent of the variance fewerresourceswereavailableforhousing in housing affordability and housing diversity, production. respectively. The number of people in poverty Only two other combinations of variables was theonlysignificantvariableinthe (Model 7, perceived demand for single-family, affordability model, and per capita income multi-family, and mobile units; and Model 9, was the single significant variabkin the innovativenem of intermediaries and leaders) diversity model. Both vark 'es were positive produced models with significant F Values for suggesting that housing affor..ability, as a ratio percent of units crowded and lacking complete of mean house value to median income, plumbing. Although the combination of variables increases concomitantly with the number of in Model 7 explained 29 percent of the variance people in poverty; and that housing diversity in the dependent variable, no single independent increases as per capita income increases. variable was significant at the .05 level. However, Household perceptions of barriers and P statistics for the model indicate that perceived incentives (Model 3) explained 57 and 33 demand for mobile home units was the most percent of the variance in housing affordability important variable. Intermediary and leader and housing diversity, respectively. No single dispositions toward innovativeness explained 22 variable was significant in the diversity model, percent of the variancein percent of units whilehousdioldperceptionsoflender crowded and lacking complete plumbing. General attitudes was the only significant variable in innovativeness toward improvements was the only the affordability model. The statistic (-3.24) significant variable in the model. indicates that lender attitudes are viewed less Table 2 presents the results of the regression frequently as a barrier to affordable housing of housing affordability and housing diversity on in cc mmunities where housing affordability is the 13 independent variable sets.The demo- grea.est. Household perceptions of the future graphic variables(Model 1), household percep- demand for single-family, mobile, and multi- 176 5 4 family units explained 35 and 44 percent of the housing diversity is higher in communities variance in housing affordability and diversity, where financingisperceived to be more respectively. Perceptions of the demand for available. apartment units was the single significant variable Housing values of households (Model 5) in each model.The P statistic was -3.15 in the and inZermediary perceptions of discrimination affordability model and 3.43inthe diversity (Model 12) were the only other combinations model. Thesepositiveand negativevalues of variables that produced significant housing indicate that households in communities with affordability models. The housing values greatcr diversity in housing types perceive higher rankings explained 34 percent of the variation demands for apartment units in the future, and inhousing affordability, and intermediary that this perceived future demand is also greatest perceptions of discrimination explained 25 in communities where affordabilityratios are percent of the variance.A strong housing lowest. value orientation toward family was associated Significant affordability and diversity models with a higher ratio of median house values to resulted from the regression of these dependent median income. As noted in Model 12, variables on intermediary perceptions of harriers discrimination against racial ana ethnic groups and incentives.The combination of perceived was the most importantvariableinthe barriers explained 47 percent of the variance in discriminationmodel andwasnegatively the affordability model and 34 percent of the associated with housing affordability. variance in the diversity model. The perception Intermediary perceptions of discrimination of finance as a barrier was significant in both against thelderly, poor, and handicapped models. The P statistics (-4.37 for affordability were also negatively associated with housing and2..59fordiversity)revealthathigher affordability but to a lesser degree (P statistics perceptions of financing as a barrier is associated were -.03 vs. -2.54). with lower community affordability ratio; and that

lable 2. Regression of Dousing Affordability and Diversity on Communlly. Ibuseholdand Inters. 't/teerior Characteristics and/or Perceptions

liousingAl frAnbillly IklusInq 0Iror siy Model Number end Component 0 su 4

Model ! Demographic Intercept 55.001 34.118 0.675 3.596 Population -0.005 0 001 -1.89 0.0002 0.00111 0.56 Medin Age 0.669 0.809 0.81 -0.07 0.005 Percent White 0.758 0./44 1.06 -0.01 0.016 -0.4s Per Capita Income -0.006 0.004 -1.18 0.001° 0.0005 1.48

Burner PeopleIm1,,ver 1 y 0.011° 0.014 1.70 -0.0007 0.001 -11.0

Adj. Ri f Value P/oll FF Adj. 1 Value l't tth > .147 1.55 .0196 .781 7.87 .04j 7

Model 2 Economic Base Intercept B7.581 16.146 /.02 1.4/

Percent Change 0.384 0.111 1 '1 -0.06 0.01 Revenue 198/ -1.801 8.6/5 0./1 9.67 7.90 1./7 Poverty Level -14.188 7.697 -1.84 1.21 0.70 1.76 OlstrILI -7.600 /.019 -('.37 0.64 0.64 1.0(1

2 Ad). RI F Value ['nth )( Adj. R F Yahoo 19ob )1 .078 1.16 Itaf, .193 1.11 .10)71

Model 3 Berriers/lOusehold Intercept -29.676 6H.44/ 11.11 0.85 Barrier Building Regulation 47.111 11.196 7.00 -1.49 7./4 -1.28 Barrier Rousing Affordbility 70.614 10.046 1.90 1.59 1.40 1.11 harrier Lender Attitude -36.174" 11.197 0.15 1.4% 0 10 Barrier Land jse Regulation 9.647 11.0/6 0 'S -1.11 1.66 7.00 Barrier IkrusIng ProJoetion 0.740 17.601 -0.06 -0.79 1.64 -0.40 Barrier Accep.ance -7.9/1 15.190 -0 49 4./7 7.09 7.0/

Adl. Ri / A41. Ri F Value Pr o. )f .5/$ 7.05 .0001 .178 1.19 .021a

Model 4 Ioacvstlye/Iloukehoid Intercept 607.61 705.71 -1.11 24.74

Innovative COnCepis -80.581 40.98 -1.16 11.77 4.83 2 17

Innovative Work -67.11 15./6 -1 74 -1.0/* 4.21 -0.4B Innovative improvement -9.05 58.66 -0.17 -7.09 6.91 .1.01

Adj. Fi Adl. ST P".th .110 Mro' r,,t>11140 lioull ng Alfcrdabillly Housing Dlvertily Model Ikmber and Commommot SE P 0 SE Model 5 Volvos lioamehold Intercept 335.56 144.97 -18.77 16.53 Frilly Vetoes -146.31° 55.83 -2.66 5.11 7.14 0.72 Economic Values 97.56 .88 1.60 2.09 7./8 0.27 Personol Valu-s 0.26 51 .30 0.01 3.80 6.56 0.58 Soda! Value. 29.52 63. 82 0.46 0.44 8.16 0.05

2 Adj. 112 f Value Prob>f Adj. R f Vlue Prob> F .343 4.52 .0077 -.01 3 .014 .4726

Model 6 Attitede/licenmeltold Intercept 166.11 101.90 6.04 10.96 Attltude Lender -50.86° 23.34 -2.18 -0.37 2.51 -0.13 Attitude AflordebIlity 7.66 14.44 0.55 1.70 1.55 1.09 Attltude Concern -13.61 27.59 -0.50 1.45 2.97 0.49 Altitude Pregram 19.45 11.67 1.67 0.00 1.26 0.48 Attitude Hy AffcrdebIllty -3.85 74.76 0 .16 -3.63 2.66 -1.36 Adequacy Household SorvIce 4.84 12.14 0. 40 0.39 1.31 0.30

2 2 Adj. R F Value Prob>1 Ad./ R I Value Prob .279 2.34 .06 4 .159 15 13/6

Model 7 flemead/Howsolsold Intercept 162.0 181.1 -32.59 17.22 House Demand -17.7 35.3 -0.50 4.97 7.36 1.46 Mobile Demand -43.1 27.4 -1.57 3.06 2.61 1.17 Apartment Denand -92.7.. 29.5 -3.15 9.62.. 2.60 3.43

2 Adj. 112 F Value Prob'>F Adj. R F Value Prob 5F .349 5.82 .0039 .445 8.20 .0006

Model lBarriersintermediary

Interzep 18.5 55.4 '5 6.35 134rr ler Re, Ilaticm -10.5 13.3 -0.79 -0 .56 1.53 -0.23

Barrier Finvnce -55.3... 8.1 -4.37 2 40° 0.93 2.59

Barrier Production -0.76 10.3 -0.07 -0.4 1.19 -0.63 Barrier Affordability 12.6 9.1 1.40 -0.6 1.04 -0.61 Barrler Avail/161111y 15.7 12.0 1.31 0.70 1.37 0.51 Barrier Acceptance 9.6 14.3 0.67 -0.90 1.64 0.55 BerrierHatlral 16.3 8.0 2.03 -0.35 0.97 -0.38 BarrierMobile 12.7 21.7 1.46 2.71° 1.00 -2.70

AdJ. R2 f Yalu° Prob>r Adj. 112 F Value Prob F .467 3.96 .0065 .339 2.77 .0744

Model 9 lonovetiveYlmtnrmediary Intercept 52.1 115.7 -2.89 12.5

Innovative Concepts 2.0 Z.S.4 0.08 4.76. 2.28 2.09 Innovetive Work -30.3 22.7 -1.33 3.67 1.96 1.87 Innovative leptovesent 34.2 34.5 0.99 6.68. 7.98 -2.24

2 Adj. R F Value Prob 5F Adj.112 F Value Prob > F -.022 .805 .5034 .280 4.50 .0121

Model 10 Attltudelmtersediary intercept 166.43 111.6 -13.08 9.57 Rent -1.59 21.6 -.074 2.23 1.65 1.21 loans 3.34 29.1 .112 4.55 2.55 .78 Adequecy of Service -9.27 11.0 -.786 1.68 1.01 1 .86

Homes -6.29 23.e -.2...6 -4.39. 2.04 -2. 6 Budget 2.45 25.6 .096 0.44 2.20 0.2 0 2onIng -28.56 19.9 -1.435 1.33 1.71 0.78

Adj. 112 f Value Prob >1 Adj. 112 F Value Prob > F -.140 0.45 .8581 .211 7.20 .08 37

Model 11 Demand/imtermediery Intercept 197.3 11).2 -17.20 11.73 Demand Hems* -3.1 18.5 -.165 2.40 1.87 1.78 Demand Mobile -23.4 19.0 -1.234 2.47 1.92 1.29 Demand Apartment -44.1 24.0 -1.836 5.74. 2.43 2.37

2 2 Adj. R f Value Prob>r Adj. R Value 8466>f .076 1.74 .1864 .110 2.11 .1250

Model 12 Olscrlelnetlon Intercept 173.15 34.7 -2.12 4.03 DIscrielnate Old. Poor, Handicapped -0.67 19.5 -.03 3.27 2.27 1.4 4 Olscrlelnato Race -44.94. -2.54 -0.22 2.06 /0.11

Adj. 172 F Value Prob) I Adj. 112 F Value Prob> F .249 5.48 .0106 .042 1.59 .224

178 15 6 Housing Affordability Mamber mod Compomeat SE SE Model 13 Housing Practices sod Services Intercept 108.86 23.82 -2.63 2.18 finence Score -5.39 4.12 -1.31 0.39 0.38 1.03 Community Service Sccro -0.38 0.38 -1.01 -0.008 0.03 0.22 Regulation Sccre 1.67 3.65 0.46 0.54 0.33 1.62 Number of Regulations -21.13. 10.03 -2.41 0.98 0.92 1.07 Progreso Score 7.49 5.63 1.33 0.36 0.52 0.70

Adj. R2 : Value Prob5r Adj. R2 I Value Prob) I .150 1.92 .n36 .299 3.22 .0259

F, (.0)

C.oi

P < .001

The combination of housing practices and future;(3)householdsexpressedmore services resulted in a significant model for housing disposition toward innovative concepts; (4) diversity, but no single varkzhle was significant. intermediaries and leaders were less tolerant Observation of the P statistics, however, indicates of racia: differences; and (5) as the percentage that the two regulation variables were more oE houses built before 1939 increased. importantinexplaining variationthan wr re The variables which contributed to the finance, service or program scores. availability of affordable housing were a higher percentageof people poverty,higher Part II. percenizge of houses before 1959, and Overall Model..Following the develop-ment greater diversity n housin, types available in of sub-modelsf reachsetof indepen-dent the community. variables, significant variables from each of the Housing Otality.The variables in the sub-models were usedindevelopingoverall overall housing quality model explained 92.6 models for housing affordability, housing quality, percent of the variance in housing quality. and housing diversity. As noted earlier, only two The model wan significant at the .0001 level variables (per capita income and median age) were of probability, and all of the estimates were significant in explaining variance in percent of significant. As in the preceding model, only units built before 1939 and percent of units built the significant variables in the housing quality before 1959. Therefore, overall mo,lels were not sub-models were considered. These variables developed for those ages of stock housing quality includehouseholdperceptionsof lender measures.Table 3 presents results of the step- attitudes, building regulations, and housing wise regression used in developing the three production; intermediary perceptions of the overall models. availability of affordable housing; percent of Housing Affordability.The overall houst honsing units built before 1939; poverty level affordability model includes variables that were' indicator,percentwhite;andhousehold significant in the housing affordability sub-models. perception of the future demand for mobile Measures of housing quality and diversity were units. The variables positively related to included as well.This model was significant at housing quality were lender attitudes, percent the .0001 probability level.Together, variables of houses built before 1939, intermediary presented in the table explained 89.6 percent of perceptionsofaffordability,andfuture the variancein housing affordability, and all demand for mobile homes.The variables estimateswere significantexcepthouseholds' negatively related to housing quality were perception of lender attitudes. housing regulations, household perception of Housing affordability, as measured by ratio of housing production as a barrier, poverty level mean house dollar value to median income, indicator, and percent white. The negative P decreased as (1) the housing value orientation statisticsindicatethatincreasesinthese toward family needs increased; (2) households variables caused decreases in housing quality. expect..d a greater demand for apartments in the 179 Table 3. Overall Regression of Housing Affordebility. Quality. and Diversity on Community. Household end lntersediery/leader Characteristics aed/or Perceptions

Masted Affordability Housing pushily HouSIPO Diversity

Variables 13 SE SE It SE

Intercept 736.89 93.204 1.58 1.25 -10.28 7.189 feelly Value -79.78.. 24.269 -3.3 Apartment Deeand Household -49.51... 10.635 -4.7 3.23 2.008 1.4 Humber People/Poverty 0.01... 0.002 4.5 Innovative Concepts Household -98.110" 25.055 -3.9 Barrier Lender Attitude Household -11.86 5.573 -2.1 0.65.. 0.212 3.0 Olscrimlnate Raon -17.69° 6.533 -2.7 Percent Before 1959 0.77.. 0.257 3.0 -0.04 0.031 -1.4 Percent Before 1939 -0.70.. 0.223 -3.1 0.02. 0.004 2.9 Housing Type Score 3.44.. 0.999 3.4

2 Adj. R rYalu.Prth)f .855 23.03 .0001

Barrier QuildIng Regulation Household -0.73. 0.314 -2.3 (farrier Housing Production Household -0.60. 0.238 -2.5 Poverty Level -0.35. 0.122 -2.8 Percent White -0.02... 0.003 -6.3 fierier Affordability intermediary 0.64.. 0.170 3.8 Mobile Demand Household 0.76.. 0.201 3.8

Adj. 112 f ValueProb>f .926 37.07 .0001

Per Capita income 0.0007. 0.0003 2.2 Innovative Concepts interoadiary 1.99 1.99 1.0

Adj. R2 f ylue Prot," f. .459 5.88 .0030

included only the significant variables from the Housing Diversity. Only four variables itom mrall regression models. The resulting Path the housing diversity sub-models were included in Model (Figure 4) helps clarify relationships the overall model. The model was significant and amongtheindependentanddependent explained 45.9 percent of the variance in housing variables as well as explain cause and effect diversity.The variables included in the model relationshipsamongandbetweenthe werehouseholds'perceptionofthefuture dependent variables. demands for apartment units, percent of houses Intermsofrelationshipsbetween builtbefore1959,percapitaincome,and dependent variables, housing diversity was intermediarydisposition toward innovative significantly related to housing affordability concepts. Two of these variables, apartment and contlibuted to the explanation of 93 demand and percent built before 1959, were percent of the variance in the affordability significant also in the overall housing affordability variable.There were no other significant model. Per capita income was the only variable relationships among the dependent variables significant in the housing diversity model and was and only one independent variable (median posit;,tly related to the dependent variable. This age) was significantly related to diversity (R2 means that greater :lousing diversity, as measured = .553). by higher numbers of alternative structural, energy, Sevenvariablescontributedtothe and ownershipalternatives, is found in explanation of 93.6 percent of the variance in communities where per capita income is highnr. affordability and included: age of house, Path Analysis. Several significant relationships percent of units built before 1939, and percent were found among the variables used in creating of units built before 1959, the demand for path models. The same dependent variables used apartments, a ...may value orientation, number in developing the component sub-models and the of people in poverty, household disposition to overall regression models (housing affordability, innovative concepts, and intermediary/leader housing diversity, and housing quality) were also perceptions of racial/ethnic discrimination. used as dependent variables in developing path Likewise, several variables explained 95.76 models. Separatepaths towardeach depen- percent of the variancein quality.Some dent variable were created. Independent variables of thesevariables were the same as those 180 Figure 4. Path Model economic base (percentile range of school childrenbelowpoverty)contributedto explaining differences in housing cost and I MEDIAN !

i AGE , : DVERSITY condition at the community level.However, R4 5531 it appears that the other intervening variables (finance, service, regulations, and programs) DEMAND -OR ! APARTMENTS contributed little to explaining differences in (HOUSEHOLD) \ housing stock in the 28 communities under study. . BUILT Although some demographic variables (age

BEFORE 1959 1 \\\ of household head, poverty status, and racial composition ofthe community)were r AMIL Y- ALULS important, iis apparent that the values and

PEDPLE IN attitudes of households and intermediaries/ POVERTY ArFORDABIL I TY leaders were major factors in influencing the R2 .9367 cost and quality of housing available in the INNOYATIVL community. Particularlyrelevanttoan CONCEPTS understanding of values and attitudes is the (1NTERMEDIARIES/LEADERS) ' respondents' reported personal perceptions of

DISCRIMINATION ! trie inluence of varying factors and conditions ontheavailabilityofhousinginthe

% BUILT BEFORL community. One example of the accuracy of 1939 these perceptions is evident via observation of intermediary/leader responses to the question BARRIER - HOUSING of discrimination in their communities.In PRODUCTION (HOUSEHOLDS) those communities where intermediaries and leaders perceived that racial/ethnic POVERTY LEVEL QUALITY R2 ..9576 discrimination was a barrier to affordable housing,fewer households hadsufficient . led IE 1 incomes to obtain median price housing in the

BARRIER - ArFORDABILITY area. Other relationships between values and (INTERVEDIAR IES/LEADERS) attitudesofrespondentsandqualitative measures of housing stock in the communities DEMAhD FOR MOBILE HOMES were also shown. (INTERMEDIARIES/LEADERS) In comparing the influence of the three major dependent variables descriptive of the significantly related to affordability and included: community'shousingstock(i.e.,housing household perceptionof housing production affordability, housing quality, and housing resources as a barrier to housing affordability, diversity) results indicate that the number and povertylevel,percentwhite,leaders'and types of housing units available is positively intermediaries' perceptions of affo:dability as a related to the affordability of housing in the barrier, and the demand for mobile homes. community. The overallquality of the housing stoi-K was not found to be related to either diversity or affordability, suggesting that CONCLUSIONS AND IMPLICATIONS other factors(i.e., demographics) influence housing quality. The causal model depictedinFigure 3 Inconclusion,itisimperativethat illustratesproposedrelationshipsthatwere intermediaries and households understand the developed from an intensive review.Statistical importanceofvaluesandattitudesin analysis indicates that of the major independent improving the housing stock at the community variables in the proposed model, demographics level. An important role for Extension is to and attitudes and values exert major influences on assist community leaders and intermediaries in the housing stock of the community. In the final recognizing that housing affordability isa pathmodel,oneaspectof acommunity's complex issue that is associated not only with 181 complex issue that is associated not only with specific characteristics of households, but that housing affordability as well as housing diversity are also dependent upon community leaders and housing intermediaries whose personal values, attitudes, and dispositions toward innovativeness functionas barriers and/or incentives in the housing process.

LITERATURE CITED

Dittman, D. A. (1978).Mail and Telephone Surveys:The Total Design Mcthod. New York: John Wiley and Sons.

Lerman, D. L (1986). How Well Can Alternative Policies Reduce Rural Substandard Housing? Rural Development Research Report No. 64, Washington, DC: ERS/USDA.

Lesser, R. C.(1982).Thc Future of Housing Depends on Adaptable Builders. Real Estatc Review, (12):112, 115-117.

National Association of Homc Builders(1988).Housing Backvounder, NAHB/Public Affairs Division.

Pifer, G.(1987).Extension Service Update - Energy and Environment. February, Washington, DC: ES/USDA

182 6 o WASTEWATER MANAGEMENT AND LOCAL INFRASTRUCTURE NEEDS

F. J. Humenk Biological and Agricultural Engineer M. P. Levi, Associate State Leader, NIVCRD North Carolina Agricultural Extension Service

SITUATION 1) septictanksfor individualhomes, A coastal North Carolina county and a resort esnecillly in rural or coastal areas; community within this county on Bogue Banks havehaddifficultyinprovidingadequate 2) small package treatment plants for new wastewater treatment for many years. Rapid developments such as condominiums in population growth arid increased tourism have 0 c-s..sral areas; and caused the county's current wastewater disposal systems to become inadequate and jeopardize the 3) publicly owned treatmentfacilitiesfor high water quality and natural resource base so larger municipalities. important to the area. Problems such as meeting peak summer water demands and deteriorating water quality resulting in shellfish area closures PAST STUDIES continue. About one-third of North Carolina's fin fish and shellfish come from this county. A survey was conducted in 1988 by a group from the Duke University Marine Lab. The survey results are reported as a qualitative review BACKGROUND of a select group of residents perceived by their peers as knowledgeable on the current issues. Over the past 18 years more than ten studies The initial list of respondents was comprised of havebeenconductedconcerning wastewater elected and appointed officials and several civil management inthe county. However, these servants from various areas throughout the county. studies have 1,cn :ad to an agreement on the The final list of respondents also inclnded retail problem or solution for the county's wastewater merchants,professionals,fishermen,scientists, management problem. In 1987 a bond referendum developers, realtors, and retirees. was proposed to raise monies for a county-wide Sixty-eight percent of tile respondents said they water and sewer project.The bond reterendum perceived major population growth occurring in was soundly defeated. In spite of all of the the county, and the majority of the respondents studies, evaluations, and resources invested, the also indicated that the county was not adequately problem of wastewater management for the total prepared for this growth.The two most cited county and individual municipalities remains. reasons were lack of land nse planning, including The county currently employs three major types zoning, and inadequate water and sewer facilities. of treatment facilities: However, respondents were more optimistic about

161 their local waste disposal system than systems Environmental Management concluded that, "A outside of their immediate communities.Sixty- comprehensive, county-wide environmental impact six pett,ent of the respondents believed their local statement should be prepared to evaluate all area's wastewater disposal to be adequate, but 94 optionsavailableforshort andlongrange percent stated that other areas in the county had wastewater disposal....lt was decided that the only inadequate disposal capabilities.This suggests way to achieve proper long range planning was that the people will be less likely to actively through a cooperative effort of all affected local pursue a county-wide wastewater management governments." Subsequent to this letermination, program. This is supported by the failure of the the North Carolina Division of Environmental 1987 bond referent *m. The r " frequently cited Management announced that "no permits for new reasons for the bond failure were: or expanded discharges of wastewater would be approveduntiladequate wastewater disposal 1) misinformation and!ale of education planning was done for the county." A preliminary concerning the nature of :he problem and draft of this environmental impact statement was the purpose of the referendum; released in 1988 by an engineering fun that had conducted previous studies for the total f'ounty 2) fear of expense of a county-wide disposal and municipalities within the county. The process system; and involved with this environmental impact statement is currently ongoing. 3) belief that construction of such a system would lead to additional growth. EXTENSION INVOLVEMENT The most commonly cited alternatives were ocean outfall and land application.Many respondents The North Carolina Agricultural Extension could not cite specific advantages or disadvantages Service was invited to provide educational and for either system. technical assistance for wastewater management in In summarizing the servey, the project team boththeresort community and total county noted that residents of the county realized a becauseof recognizedachievementsinland wastewater management problem existed but not application of agricultural and municipal waste, in their immediate area. Perhaps a means to help water management for high water table soils, and resolvethis is throughbettercommunity public participation/educational programming.It education.An element of this education must was requested that Extension provide assistance address cooperation and communication among in evaluating wastewater treatment alternatives and communities.Thc surveyors did not feel that then conduct an educational program to better comprehensive wastewater disposal plannir.g was inform everyone of the advantages andthe understood because this type of planning coupled disadvantages of feasible alternatives. with land use planning can result in dual benefits: Extension administration evaluated the effective wastewater disposal and preservation of appropriatenessofcommitting te suchan the quality of life desired by people in the county. extensive program in just one county. This The surveyors felt that the reluctance to accept concentrated effort was approved as a pilot effort zoning and long range planning are the most withtheunderstandingthattechniques and significantobstaclestoregionalwastewater methods would be developedthatcould be disposal. Finally they noted that despite the adapted for other water and waste management numerous studies undertaken regarding wastewater issues that were becoming increasingly important disposal alternatives in the county, little action has across the state. been taken, and county residents must decide for It was stressed that a public opinion survey themselves what disposal alternatives should be would beabsolutelyessentialtoconducta developed. meaningful education program. Confusion existed Upon reviewing a wastewater project proposal asto whether landapplication was opposed for a resort community on Bogue Banks in this because of an influential minority or because of county, the North Carolina Division of widespread concern based on technically sound

184 - (N., , S./- reasoas.Uncertainty also existed as to public the combined impacts may be significant. Lack of feeling and knowledge of the other options being knowledge about septic tanks and their impacts cn considered, i.e. inland water discharge and ocean drinkingwaterqualitypresents a major discharge. Re:ognizing that public education educational challenge.The factthat so many programs are most effective when based on people saw county wastewater problems as more adequate understanding of existing public attitudes serious than problems in their own community is and knowledge and that a telephone survey is the another indication of people's unwillingness to most effective means for obtaining systematic take responsibility for water quality problems. information from a representative sample of the The public expressed a clear preference for one population, a contract was developed between wastewater management alternative, land Extension and the county board of commissioners application. Surveyrespondentswerenot, for a telephone survey.Another contract was however, able to select one site as particularly developed between researchers and the county suitable for land application. People would prefer board of commissioners to study the hydrologic to locate such a site on government forest land impacts of land treatment of municipal wastewater where presumably it would be farthest removed in the county. Results of these two projects were from people and the water.They are clearly reportedto a group of electedofficials and opposed to continuing inland water discharge or interested individuals as selected by the county discharge to streams or estuaries.Respondents commissioners under the direction of the county showed a moderate level of support for ocean v,-ter and sewer board in August 1989. Everyone outfalls. was very complimentary of the thorough analysis Attitudcs toward growth and development are of the hydrologic impacts of land treatment of related to attitudcs toward wastewater municipal wastewater on different agricultural and management. The survey results clearly indicate forestry sites and the information derived from the the public's concern about the impacts of rapid telephone surn. growth on water quality and the overall quality of life. Given thetradeoffs between economic deveiopment and water quality, almost everyone TELEPHONE SURVEY supports improved water quality.

Telepbone interviews were conducted with 301 county citizens during April of 1989. Telephone CURRENT ACTIVITY numbers wereselectedatrandomusinga computerized technique known as "Random Digit Results of the hydrologic impact study and Dialing." This insured that every resident of the telepnone survey are being incorporated into an county with a telephone had an equal opportunity educationalslidetape on water qualityand of being interviewed.Detailed results of the wastewatermanagementalternativesforthe survey procedure, questions asked, and results will county. An intensivecounty-wide education be available soon. program will be conducted with this slide tape by The telephone survey emphasized that the the county Extension Homemakers Club.The public desires and expects to be a full partner in county water and sewer task force will also usc future wastewater management decisions. An this slide tape aspart of the education and important educational needisto help people information retrieval process required under the understand and accept their own responsibility for nnvironmental impact assessment currently being causing and correcting water quality problems. conducted.Theseeducationalactivitiesare Most people do not recognize or admit to the pursuant to a county wide public meeting to severity of the water quality problems caused by ft:rther information and answer questions improperlyinstalledormalfunctioning septic arising from the slide tape or overall evaluation tanks. These systems tend to be widely accepted and education program. Extension specialists assafe. People may believe thatindividual fromthedepartmentsofBiological and systems may not have a grcat impact, even though Agricultural Engineering, Soil Science, Sociology, Forcstry, Economics and Business, and Wildlife

185

7 63 who have participated in this project will attend program being conducted by thz county Extension this mecting as rcsource indisiduals. office under the e'rection of the stay; staff is to helppeoplebecomemoreknowledgeable SUMMARY concerningtheactualfactsrelatedtothe alternative wastewater disposal techniques being Rest Its of this pilot Extension program have considered. already provided a basis for a more complete and We have learned that itis very important to knowledgeable evaluation of alternatives available eliminateunjustifiedemotionalortechnical foraddressingthecountyandindividual barriers, regardless of the origin or extent of any municipalities' wastewater management needs. As such inhibitions to an openminded and unbiased with an environmental impact statement, this process.The advantages and .:isadvantages of project is not designed or conducted to decide each disposal method must bc considered and the best wastewater management program for 'dended within an overall county plan for both county or municipality citizens. Local leaders and short term and long term needs.In order to be the involved public need the best information of value theplan must be flexible, consider possible to evaluate alternatives and reach a economic needs and issues, and be supported by decisionthatwillbe technically sound and the general public. Thereafter, county leaders and acceptable to most of the citizens. elected officials are responsible for imp;cmcnting Extension can play a key role in helping the the choice judged to be the most technically sound state to develop a technically sound basis for and cost effective for treating wastewater and public participa.ion, education, iiiiti public policy preserving the valuable natural resources and determination. The bz-..,ic goal of the education water quality.

136 EXTENSION'S ROLE IN STRENGTHENING THE COMMUNITY HEALTH INFRASTRUCTURE

Susan Jenkins, Extension Sociologist - Community Health Programs Rich Reinheimer - Community Development Specialist Lonnie Varnedoe, Community Development Specialist University of Georgia

During the past decade,decentralization of decreasing impaci that traditional, microbe, and government has occurred from the federal to the infestation orientzd preventive programs have on state and locallevels. Currently, states are the cormporary profile of chronic and degener- focusing attention on preparing local governments ate '.Iness and violent deaths (DHEW, 1979). to be more responsible for their economic and Carent causes of illness and death are influenced social concerns. This is due to decreasing funding by the industrialized society and its accompanying sources from the federal and state levels, as well style of living.Research indicates that many of as the apparent belief that social and economic the major health problems of today c..re directly issues should be resolved locally. linked to unhealty lifestyles.During the past One ofthemajorconsequencesofa decade, individual awareness has increased, and decentralized government structure is that tocat many have made purposeful changes intheir communities areconfrontedwithaddres.ing lifestyles.Between 1970 and 1986, age adjusted complicated issues ranging from Impioving the death rates declined by 31 percentfor heart economic climatetosolving complex health disease, the leading cause of death, and by 53 concerns. An emerging concern is the question percent for stroke (DHHS, 1989). of how a community will pay for the rising cost With local governments struggling with more of health services, such as subsidizing public financial responsibility for health concerns and the hospitals, and supporting ambulance service and latest research indicating individual changes in life- public health clinics.Increased health care costs stytes can lower health coAs, it seems reasonable occur from the use of high technolog systems for that communities would urge citizens to practice both diagnosis and treatment, escalating premiums better health behaviors.While the method of for liability and hc .1th insurance, and additional utilizing strategies for health promotion is not outlays for indigent care (Source Book of Health new,thepracticeofthetotalcommunity Insurance Data, 1986-1987). As the health care encouraging healthpromotionisnot widely financingshiftsfromthefederalandstate employed. Experts such as Earl Hipp (1984), govermoents to local sources, communities are Robert Allen (1981),Nancy Milio (1976), and beginning to make concerted efforts to control the Halbert Dunn (1959) suggest that communities spiraling health C become places that promote lifestyle changes. Afide from becoming cognizant of health care Not only can communities encourage healthier servicecostcontrols, some communities are lifestylebehaviors, but communities can also encouragingcitizenstoadoptbetterhealth provide the infrastructure that creates a supportive practices. The heightened int,zrest in community envitonment so good habits can be practiced. The healthpromotionisaconsequence ofthe World Health Organization (WHO, 1986) suggests

165 that one purpose of commlnities is to create inencouraging health promotion, as well as readily available alternatives 'or citizens willing to providing the supportive environment that allows practice better health Additionally, Milio citizens health enhancing options.The Coop- (1988) notes that the range of options available erative Extension Service in Georgia is playingan to citizens and the ease with which a person may important role in this effort. An example of this choose certain ones over others is typically set by role is the Community Wellness program which is communities and organizations, public and private, designed to strengthen the community health formal and informal.For example, if a local infrastructure. This is done in two ways, first, by effort is being made to provide more knowledge enabling people, as individuals and in organized about healthful diets but this is not accompanied ways, to improve their health, and secondly, by by a combination of healthful and readily availaN: involving both the health and non-health sectors footi, then changes in eating patterns are not in collaborating activities that address themany likely tooccur. Likewise,ifacommunity facetednatureof communityhealthissues. encoorages citizens to exercise but neglects to Commun,tyWellness isa process-oriented organize a supportive medium such as a re reation program which encompasses community-based p1ogram for that purpose, then long-term benefits program planning, intervenes based on assessment are unlikely to be met. The necessity for readily of specific community health needs, encourages available healthy food and a recreation program empowerment of the community, and develops a requires aneffort beyond the individual and community-wide support system.County agents extends to the community organizational structure. and other leaders, through local meetings and This community organization structure can be networking, serve as catalysts to bring members of enhanced by private and public cooperation and the community together. This process is based on c- Ilaboration, particularly if long-term benefits are different resource levels within the community. expected. The program provides single, multiple, community- From the above discussion, it is apparent that wide, and task force level resources that address communities should be taking a more active role community needs (Figure 1).

Figure 1

Communtty

Issues

Community Welltvass

%mile +Multiple Resources -4Community Wide -.4 Stress laskatacileaourcas. Risko Resources Communtty NMAT Student Health Health Fair Wellness Nutrition Health Fair Phy Recruitment / Councils Programs Divorce To Medical Fair Self-Care Recovery Nurse Recruttment / Farm Rescue Nurse Placement Fair

, While the Community Wellness program has Family Physicians, Georgia Hospital Association, many programs associatedwithit,thiswill and eight other organizations. summari ze. examples from the areas of community- The Extension role in the Medical Fair, at the wide resources and task force resources.The local level, is one of organizing and orienting the programs are: community toward its goal of improving health careresourcesanddevelopingaphysician 1. Physician Recruitment recruitment strategy. Extension agents work with Program/Medical Fair hospital administrators, local doctors, Chamber of Commerce personnel, and community leaders to 2. Nurse Placement Fair encourage doctors to locate in towns of 15,000 population or less that have an existing hospital 3. Community Wellness Councils facility (communities without a hospital may also participate, but must coordinate with a community that does have a hospital).The Medical Fair PHYSICIAN RECRUITMENT PROGRAM/ offers community representatives a chance to meet MEDICAL FAIR a large number of prospective medical personnel, and conversely, it offers doctors an occasion to Inadequate primary health care is a major review 40 practice opportunities in rural Georgia problem in mzny rural communities throughout communities. Georgia. One of the main contributorsto In the ten years the program has been in inadequate primary health is either a shortage of existence, 156 physicians have located in rural physicians or complete void of physicians.No Georgia as a direct result of the Medical Fair. In ruralcommunitycancompeteineconomic 1987, 29 doctors were placed inruralareas development unless there is adequate medical care. through this program. Since over half of the 156 While an adequate number of physicians is being physicians pla,)(1 through the fair have been graduated from medial institutions in Georgia placed within the past fotAr years, it appears that andothercontiguou-states,there is a thefairisbecoming moreefficientinits maldistribution problem. The urban areas of the recruiting. state have an overabundance of physicians, and The economic impact of this program has the small rural communities have only a limimd been tremendous.Conservatively speaking, itis number.Althogh the State Medical Board is estimated that each physician adds $250,000 per fulfilling it.; mandate to restore parity by placing year to the local economy. Using the $250,000 young doctors (who have been educated at public figure for each of the 29 doctors, it is estimated expense) in rural areas, many rural communities that $7 million have been added to the economy have had little success in recruiting doctors to of the state in rural areas.Although the fiscal their areas. The unfortunate result has been an impact of the program is quite substantial, thc inequality in health care.The solution to the important fact is that rural Georgia residents have problem seems tolie in the organization and worked together to improve their health care education of rural community leaders in physician problems. recruitmentretention. SincetheGeorgia Cooperative Extension Service has an office in every county in the state and an interest in NURSE PLACEMENT FAIR community health, it was an obvious derision for the Extension Service to be a major sponsor of The first ever Nurse Placement Fair was held the physician recruitment effort (the Medical on April5,1989,inTiftonattheRural Fair). Development Center. After months of coordina- The Medical Fair is sponsored by the State ting, planning, and prepLring, the day ended with Medical Education Board, University of Georgia atotal of 143 student nurses and 18rural Cooperative Extension Service, Medical College of communities participating. Georgia, Joint Board of Family Practice, Medical The Nurse Placement Fair committee, which Association of Georgia, Georgia Academy of includedtheGeorgiaHospitalAssociation,

189

167 Georgia Nurses Association, Georgia Department site can accommodate 20 communities, while in of Human Resources, Georgia Rural Health oie sitewill only accommodate 15 Association,StateMedicalEducationBoard, communities. University System of Georgia (Board of Regents) and University of Georgia Cooperative Extension Service, came together in 1987 to begin their COMMUNITY WELLNESS COUNCIIS planning after much attention had been given to the nursing shortage in Georgia.Early in the The purpose of any community development planningprocessthecommitteefocusedits process is to encourage groups to form and begin attention on the needs of rural communities addressing common interests of the group. The (under 15,000) and decided to pilot a program in aim of the Community Wellness process is for the southern half of the state (area code 912). community members to work collaboratively with In November 1988 a community orientation local resources to find workable solutions to the session was held for interested communities. The health issues. meeting informed the communities about the logistics of the fair and the information needed to Trcutlen County assist in recruiting nurses.Eleven communities participated in the orientation. Treutlen County is located in the rural area Throughouttheplanning processcollege of southeast Georgia. The county does not have nursing program directors and/or deans were kept a hospital, but for the past several years local abreastof developments and encouragedto health and health related organizations and civic participate in the fair in April.The following organizations have combined forces to sponsor a college with nursing programs participated: South county-wide seat belt campaign and an area health Georgia, AlbanyState,ValdostaState,and fair, and to consider health services for the county. Georgia Southern. As a part of Treutlen County's 2000 project Each student nurse who attended the fair (County Strategic Planning Project) a committee completed a su,vey regarding qualifications and was appointed to identify the services available to desires.This Information was shared with the the elderly population.After the services were communities prior to the fair and during the fair. identified, a meeting was formed to acquaint local Nurses also received information about each government officials with the services. Represen- community before the fair and during the fair to tatives from the following organizations made help prepare for discussions with communities. brief presentations describing their services: The fair was a success in many ways.One community was pleasedtohave doubled the Georgia Legal Services contacts they had expected to make during the Americare Home Health Services fair.One participating nurse said that she had Community Care not thought much about practicing in a rural Heart of Georgia Community Action community until now. Council In the final analysis five nurses were recruited Heart of Georgia Council on Aging by rural communities as a result of thefair. Treutic 1 Senior Center Althoughitmay be asmall number,rural Treutlen County Extension Service communities had an opportunity to discuss with Treutlen County Health Department student nurses the attributes of rural health job opportunities and rural communities. As an outgrowth of the 2000 project, members In April of 1990, three such fairs will be identified the need for a local walking trail. A conducted which will cover the state.The fairs committee unanimously agreed that a walking trail will be conducted in the following locations: April would be a "healthy" asset to the community and 3, Statesboro; April 5, Tifton; April 19, Kennesaw. began identifying prospective locations. Colleges with nursing programs throughout the A committeememberbriefedmembers state will be invited to attend the fair thatis regarding the legalities of liability for recreational closest to them. In Statesboro and Tifton the fair facilities. The committee asked representatives to

190 i ) ,:, talk with the properly owner about the possibility educational program in the county and schools of using the track at the old foc _ field as a on seat belt usage. Over 800 children were walking trail. The purpose of the tr,l would be reached with this program. One component of to encourage fitness and to provide a safeplace the program was to develop a poster on the for Treutlen citizens to walk. theme of "Be a Good Passenger." Sixty-fiv2. The property owner gave permission to use students had their posters displayed at the mall. the track, and a five-year lease was drawn up. The winner of this contest received free tickets to The countycommissionersprovideda"not an Atlanta Braves Game and free lodging while responsible" sign. The city and county road crews in Atlanta. filled in washed out areas and leveled parts of the The major project the Council undertook was track. Theyalsoremovediheremaining the creation, development, and printing of the foundaticns of some bleachers that were once Lowndes County Resource Guide This Resource used at the site, and cut back the overgrown Guide highlights over 80 different organizations shrubs. A group of 4-H'ers picked up trash and and services that are available to the citizens of debris. the county.Each organization was sent a form On November 11, the trail officially onened. asking about its hours of service, phone number, An article and pictures were featuredit.the contactperson,el )ility,fees,andabrief Soperton News.The cot-mince has been very summary of its services.This listis maintained pleased with the response from citizens.Many oncomputer bygraduatestudentsinthe retired people use the trail during the day, but Department of Health at Valdosta State College. they have discovered that people are really using Funding for the Resource Guide was a major the walking trail after work (5:00-6:00 P.M.). The hurdle since the Community Wellness Council has county and city are discussing alternatives for no funding source.A representative from the lighting the area.The Million Pines Arts and Council asked the Lowndes County Board of Crafts Festival Committee has also expressed an Commissioners to fund the Guide. They voted interest in helping finance lighting for the walking to pay S1,100 for printing and supply cost::The trail. county manager is urgun,, that area businesses The Treutlen County organizers are very with over ten members or a personnel office have proud of what they have been able to do.First, a Resource Guide for referral purposes.The they have made the leaders and citizens aware of Chamber of Commerce and Industrial Authority the services for the elderly, and secondly, have plan to show the Guide to prospective businesses provided the city of Soperton with a walking tr til as a measure of the "quality-of-life" in the area. that will be utilized for many years. The most ambitious proiect of the year has been the planning for the spring Health Seminar. The themeis"Don't Worry-Be Healthy (A Lowndes County Healthy Living Conference)" and will be held at the local college. Over 200 healthcare personnel, Lowndes County is located in the southern- business and civic leaders, and interested citizens most part of the state. This county has an active are expected to attend this conference on health heahh community, rebonal hospital, four-year awareness, diseaseprevention,andhealth college, and Air Force Base. The Lowndes resources.Presently, there are approximately 20 County Wellness Council was originally formed sponsors.A well known keynote speaker will because there was a need to know what other highlight how attitude affects one's health.Thi organizations were doing in the areas of health will be followed by concurrent workshop sessions services and health education. and an exhibit area for those attending The Council has over 100 members repre- From the spring conference, the Lowndes senting 40 differentlocal organizations. The County Community Wellness Council hopes to Council holds quarterly meetirt's and sends out a find a health issue to address for an 18 month quarterly newslet ter. period through media, education, and a seminar. This past year has been a very productive year. The Safety Committee completed an

191 I 6) Talbot County damaging to health generating patterns," American Journal of Public Health, 1976:Vol. 66: 435-439.

Talbot County is located in the west central 'Public policy as the corner stone for a new public part of Georgia. This rural county does not have health. local and global beginnings," Family and Community a good economic base; .,therefore, the services to Health, 1988. 11 (2): 57-71. the county are very spar:R. The county has an National Center for Health Statistics:Health, United States, access to health care problems as there are no 1988. DHHS Pubhcation No. (PHS) 89-1232.Public Health medical services available.Because there are so Sernce, Washington, D.C., U.S. Government Printing Office, fewservices,the countyExtensionDirector March, 1989. organized local comthunity representatives from Source Book of Health Insurance Data:198611987, Health the health department, school system, churches, :41b uranoe Association of America, 1850 K Street, N.W., and government agenties.The purpose was to Washington, D.C., 1987. identify local health issues and to try, as a group, to address some of these issues. These identified U.S. Department of Health, Educat!on, and Welfare: Healthy people--The surgeon general's report on health promotion and issues were access to health care problems and disease prevention, 1979. DHEW (PHS) Publicanon No. 79- the isolation of the elderly. 55071. Public Health Sernce,Washington, D C.,U.S In the 18 monthsAince itsinception, the Government Printing Office, July, 1979 Talbot County Community Wellness Council has World Health Organization (WHO), "Framework for a health supported two major efforts. The first addressed promotion policy: A discussion document," Health Promotion, the health care problem. A student Health Fair 1986 1 (3): 335-340. brought medical students from across the state in for a two week period.During this time, over 500 local I."'ents were given complete physicals. Over 50 volunteers were used, and 15 local homes were opened for lodging of the medical students. Over 12 churches and civic clubs provided food for the stLdents and volunteers.Itis estimated that closeto $75,000 worth of free medical services were provided by this special health fair. The second project considered the problem of isolation of the elderly.Several meetings of the Wellness Council were devoted to uying to solve the problem.After much work, several applica- tions were made for a van to help transport elderlypeopletodoctors,medicalfacilities, grocery stores, and drug stores.The community has just received its third van in order to help ease the isolation of the elderly.

REFERENCES

Allen, Robert, Lifegain. Nev., York, Appleton-Century-Crofts, 1981.

Dunn, Halbert L., "I-hgh-level wellness for men and society," American Journal of Public Health, 1959; Vol. 49(6): 786- 792

Hipp, Earl, "Is the wellness ni9Vement dying?," I lath Values Achieving High Lt..vel Wellness, 1984; Vol.5:10-12.

Milio, Nancy, "A framework for 'preventicn Changing health

192 7 The SRDC is one of four regional rural development centersinthe nation.It coordinates cooperation between theResearch (Experiment Station) and Extension (Cooperative Extension Service) staffs at land-grant institutions in the South to provide tech nical consultation, research, training, and evaluation services for rural development. This publication is one of several published by the Center on various oeeds, program thrusts, and research efforts in rural devalop- ment. For more information about SRDC activities and publications, write to the Director.

Southern Rural Development Center Box 5446 Mississippi State, MS 39762

The Southern Rural Development Center is an Equal Opportunity Organization pi ovidirig research, educational information, and other services only to individuals and institutions that function without regard to race, color, sex or national origin. SRDC is an Equal Opportunity Employer. -.. SRDC Publication No. 130 June 1990 11 7 1