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In this
issue...
- Sandy Baruah Confirmed as
Assistant Secretary of Commerce for Economic Development
- December 6 Economic
Development Today Telecast: Lessons Learned from Disaster Recovery
- "Rural
Entrepreneurship and Innovative Leadership" to Be Featured in
Winter 2006 Edition of Economic Development America
- The U.S. Economy Continues to
Strengthen
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Sandy Baruah Confirmed as Assistant Secretary of Commerce for Economic
Development
On Saturday, December 17, 2005, the U.S. Senate
confirmed President George W. Bush's nomination of Sandy K. Baruah to serve
as Assistant Secretary of Commerce for Economic Development. Currently, Mr.
Baruah serves as Acting Assistant Secretary. Sandy Baruah joined President
Bush's team at the Commerce Department in 2001 and served as Chief of Staff
and Deputy Assistance Secretary of Program Operations prior to his current
post. Mr. Baruah succeeds David A. Sampson, who currently serves as the
Deputy Secretary of Commerce.
Baruah
stated, "I am deeply honored by President Bush's trust and confidence in
me and I am pleased to serve in this new capacity. EDA fortunate to have
dedicated and passionate employees all across America and I look forward to
working with them as EDA executes its mission to promote innovation,
competitiveness and preparing American regions for growth and success."
Prior to
joining the Bush Administration, Sandy Baruah was a corporate management
consultant and also previously served in the Administration of George H.W.
Bush (1989-1993) and the staff of U.S. Senator Bob Packwood.
December 6 Economic Development Today Telecast: Lessons Learned
from Disaster Recovery
On
December 6, the first telecast of the 2006 Economic Development Today
series focused on "Lessons Learned from Disaster Recovery." The
broadcast was of a panel discussion held at the Gulf Coast Business
Reinvestment Forum in Washington, D.C. on November 28,
an event co-sponsored by the International Economic Development Council and
the U.S. Chamber of Commerce.
The panel
discussion gave economic development and business professionals from the Gulf Coast region an opportunity
to hear from communities that have experienced disasters and learn how they
were able to maintain and strengthen their economies. Matthew Crow, Director
of Communications for EDA, moderated the discussion. Guests included Mickie
Valente, Director of Partner Relations with Enterprise Florida; Maria Gotsch,
Co-CEO and Co-President of the New York City Investment Fund; and Amy Schoch,
Deputy Commissioner of the Manufacturing and Environmental Program at Empire
State Development.
Valente
opened the panel by discussing business recovery practices in Florida, a state which
experiences devastation during nearly every hurricane season.
- The Florida Small Business
Emergency Bridge Loan Program has been an important part of keeping
small businesses alive directly after a disaster. The program is funded
as a special appropriation from the state's General Fund. Zero-percent
loans from $1,000 to $25,000 are made available for as long as six
months to qualifying businesses.
- A pre-existing network of
public and private sector professionals is central to a successful
rebuilding process. In Florida, the Primary Partner
Network has helped create an avenue for the efficient flow of
information. Businesses know where to turn, allowing disaster response
and recovery to start right away.
- Business recovery should
not be isolated from disaster recovery, and it is important to
communicate directly with small businesses after a disaster.
Regarding
long-term economic recovery, Valente made the following points:
- Recreate state building
codes and standards. After Hurricane Andrew in 1992, the state
legislature mandated higher building standards to ensure durability and
safety.
- Business retention is key. For instance, disaster-impacted businesses that
received special inducements when first recruited to the state may be
allowed some flexibility in meeting deadlines on performance measures.
- Build disaster prevention
and mitigation plans into overall business plans.
- Businesses should be at the
table when elected officials and developers decide where public money
will be spent.
Maria
Gotsch spoke about how New York City worked on the
economic recovery of lower Manhattan after the
September 11 attacks. She emphasized the importance of assessing the economic
impact of a disaster to best understand where financial resources can be used
most effectively. Seven consulting firms were commissioned to do an economic
impact study of the 9/11 attacks that served as the basis for discussions
over what resources were needed to rebuild the economy.
Gotsch
spoke about the need to provide immediate assistance to businesses, including
technical assistance, grants and low-interest loans. The faster small
businesses can move from crisis management to rebuilding, the better. She
also noted that federal and state assistance should be used not just for
replacing what once existed, but for upgrading and building for the future. A
disaster can be an opportunity for growth and development.
Gotsch's
final points focused on the importance of creating partnerships between the
private and public sectors, and of attracting people back into a region to
get the local economy moving again. She also commented that instead of
providing general job training, more effective results come from a system
that provides people with jobs directly after being trained.
Amy
Schoch echoed Ms. Gotsch's comments and added several key points.
- Keep a positive attitude.
In an attempt to create solidarity, New York state helped fund TV and
radio commercials meant to unify New York residents.
- Retaining the large
businesses to which smaller businesses sell helps hold the economy in
place. To assist, the state created incentives for large businesses to
stay in New York.
- Create avenues for
communication. Within 24 hours of the attacks, New York had walk-in assistance
centers and a call center for information.
- Flexibility in government
grants is important. For instance, SBA loans require collateral, yet the
New York City economy is virtually all
service-based. Because of this, many small businesses owners were forced
to put their homes on the line.
- Create a flexible tax
system. Depending on their proximity to the impacted area, businesses
were not taxed for a certain number of days to compensate for the loss
of revenue.
After the
panel discussion, Department of Commerce Deputy Assistant Secretary Eric
Stewart discussed the new Hurricane Contracting Information Center created by EDA.
The center was started to provide guidance to small, minority- and
women-owned businesses that are looking to do business with the federal
government. Businesses can call in and talk to contract specialists from
various federal agencies in order to receive counsel. To talk with a contract
specialist, call 1-888-487-2362. To learn more about the Hurricane Contracting Information Center visit: www.rebuildingthegulfcoast.gov.
To view a
webcast of this show, and previous shows, please visit www.eda.gov/NewsEvents/Edevinfocoalition.xml.
The
broadcast schedule for the next three Economic Development Today
telecasts is as follows:
- Tuesday,
February 14, 2005 -- Global Gateways
- Tuesday,
March 28, 2005 – Rural Entrepreneurship and Innovative Leadership
- Wednesday,
May 10, 2005 – Base Realignment and Closure (BRAC)
To
register for a telecast or for more information on the series, contact Peggy
Tadej at the National Association of Regional Councils, (202) 986-1032, ext.
224 or at tadej@narc.org.
"Rural Entrepreneurship and Innovative Leadership" to Be
Featured in Winter 2006 Edition of Economic Development America
The next
edition of Economic Development America magazine, to be published in
February, will focus on efforts to build entrepreneurship in rural areas.
Other themes for 2006 include:
- Global Gateways (Spring)
- Financial Tools for
Economic Development (Summer)
- Performance Metrics: What
Is Your Economic Development Return on Investment? (Fall)
Story
ideas are welcomed for each of the 2006 editions of the magazine. For more
information, contact editor Louise Anderson at landerson@iedconline.org. Past
issues of Economic Development America magazine are available at www.eda.gov/NewsEvents/Edevinfocoalition.xml.
The U.S. Economy Continues to Strengthen
Since May
2003, the economy has added nearly 4.5 million new jobs. The unemployment
rate is down to 5 percent – lower than the average for the 1970s, 1980s, and
1990s. Last quarter, the economy grew at 4.3 percent and has been growing
near that average for more than two years.
Sales of
new homes reached an all-time high in October, more Americans now own their
homes, and minority ownership is at an all-time high. Real disposable income
is up and consumers are confident. New orders for durable goods have risen
sharply, and shipments of manufactured goods are up. Business activity in the
manufacturing sector reported its 30th straight month of growth. In the past
five years, productivity has grown at some of its fastest rates since the
1960s, and small businesses are thriving.
EDA Update is brought to you as a benefit of a partnership among the
Economic Development Administration (EDA), the International Economic
Development Council (IEDC) and the National Association of Regional Councils
(NARC), to provide information about economic development practices and
programs to economic development practitioners who serve distressed
communities throughout the United States. This partnership
also provides six telecasts and a quarterly magazine. For more information,
visit the EDA Web site.
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