Document: The Role of Local Elected Officials in Economic Development: 10 Things you Should Know

The Role of Local Elected Officials in Economic Development: 10 Things you Should Know was the result of a partnership between the National League of Cities Center for Research and Innovation and the International Economic Development Council (IEDC). IEDC staff were instrumental in facilitating a series of input sessions with economic development officials during their conferences in October 2009 and February 2010. IEDC staff also reviewed the guide and provided constructive feedback. NLC also recognizes the direct input and guidance provided by members of IEDC, members of NLC’s CityFutures Panel on Community and Regional Development, and other local officials.

Economic development is the process of building strong, adaptive economies. Strategies driven by local assets and realities, a diverse industry base and a commitment to equality of opportunity and sustainable practices have emerged as those that will ensure a strong foundation for long-term stability and growth.

Even within the parameters of these principles, what constitutes success in economic development and the specific strategies to accomplish it will look different from place to place. Despite these differences, leadership is consistently identified as a critical factor in effective economic development.

Dedicated leadership is needed to raise awareness, help develop and communicate a common vision, and motivate stakeholders into action. Although leadership can come from many places within the community, local elected officials are particularly well-positioned to take on this role. The political influence of elected leadership is critical to helping communities stay the course toward a vibrant economic future.From the bully pulpit to the design and coordination of public policies, mayors and councilmembers have opportunities every day to effect change and promote a strategic vision of economic growth for their community.

The goal of this guide is not to provide a one-size-fits-all solution to economic development or even to offer an Economic Development 101. Nor does this guide contend that elected officials should be economic development experts. The goal is instead to identify fundamental ways elected officials can become informed and strategic decision-makers who can connect the policy “dots,” be effective communicators and take a leadership role in economic development. The guide is based on the premise that elected officials can and should actively participate in and lead long-term development strategies that make sense for their community.

The format of the guide is a “top 10 list” of things elected officials should know about economic development in order to be effective leaders. These include:

• 1. Your local economic strengths and weaknesses. A stronger understanding of your community’s economic profile will help you create a realistic vision and strategies for economic development. 
• 2. Your community’s place in the broader regional economy. With a firmer grasp of how your community fits into the broader region, you’re better prepared to work with other jurisdictions to share responsibility for regional economic success.
• 3. Your community’s economic development vision and goals. Local elected officials can play a key role in building consensus for a vision and goals that provide clear direction for local economic development.
• 4. Your community’s strategy to attain its goals. A strategic approach means linking economic development goals to specific activities, allocating a budget and staff to these activities and evaluating performance based on measurable outcomes. 
• 5. Connections between economic development and other city policies. When crafting economic development policies, it is essential to consider how other city policies (e.g., transportation or housing) affect your economic development goals. 
• 6. Your regulatory environment. Your community’s regulatory process should allow for timely, reliable and transparent resolution of issues facing businesses, while still remaining true to your long-term economic development vision. 
• 7. Your local economic development stakeholders and partners. Local officials should think strategically on a project-by-project basis about who needs to be involved, the resources they bring to the table, and what it will take to get them engaged. 
• 8. The needs of your local business community. Local officials can help create an environment that supports the growth and expansion of local businesses, primarily by opening lines of communication. 9. Your community’s economic development message. You will want a clear, accurate and compelling message that reflects your local vision and that helps ensure broad support for economic development projects undertaken by the city and its partners. 
• 10. Your economic development staff. Local elected officials will be more effective in leading economic development activities to the extent that they forge strong relationships with staff members who work on these issues on a daily basis.