| | Remarks of David A. Sampson Assistant Secretary of Commerce for Economic Development - AURO Southwestern Region Mid-Year Training Conference Thursday, November 8, 2001 | Back |
| Good afternoon. Thank you Lydia (Ortiz) for the generous introduction. I thank the Austin Regional Office for inviting me here today, for their hospitality, and for their dedicated work on behalf of EDA and our shareholders. It has been my pleasure to talk today with many of you in the audience. This important training conference will assist EDA and our economic development community come together to streamline and improve the way we interact together.I want to thank those people who contributed time and effort to the preparation of this conference, particularly the Oklahoma Association of Regional Councils and the National Association of Development Organizations. I also want to thank the Executive Director of the Southwest Oklahoma Development Authority and member of the NADO Board of Directors, Gary Gorshing, for all your help in making this a productive conference, as well as the Oklahoma districts for being our hosts.In light of the recent tragedy we've suffered as a nation, I'd like to take a moment to reflect on what it means to be gathered here today in Oklahoma City. The Oklahoma City National Memorial honors the victims, survivors and rescuers of the tragic bombing that occurred here on April 19th, 1995. Now more than ever, this memorial stands as a symbol of our nation's courage and our resolute determination to move forward and to continue to strengthen our own communities. EDA is proud to have contributed to the development of the infrastructure necessary to make this memorial a lasting tribute not only to the people of Oklahoma City, but to our nation as a whole.It is an honor to serve as President Bush's Assistant Secretary of Commerce for Economic Development. The Economic Development Administration (EDA) at Commerce is working hard to fulfill President Bush's agenda to leave no geographic area or demographic sector of our nation behind when it comes to achieving the American dream.Our mission at Commerce's Economic Development Administration is to help our partners across the nation (states, regions, and communities) create wealth and minimize poverty by promoting a favorable business environment to attract private capital investments and high-skill/high-wage jobs through world-class capacity building, planning, infrastructure investments, research grants and strategic initiatives.I am passionate about economic development as is Commerce Secretary Don Evans - a man who has spent his entire career in the private sector and who knows what it is like to risk capital and create jobs. Economic development supports two important public policy objectives: creating wealth and minimizing poverty. The creation of wealth enables people to be economically self-sufficient and provides the resources needed for building safe, healthy, convenient and attractive communities in which people want to live, work, and raise their families. Minimizing poverty is important because poverty is not only de-humanizing, it is extremely costly in terms of underutilized human resources, welfare transfer payments, soaring public healthcare costs, crime and declining neighborhoods that lose their value. Thus, the public sector has a legitimate interest in supporting efforts, and strategies to bring economic opportunity to all segments of our society.President Bush has said, "Washington needs to be a results oriented world." To that end, the nation's economic development program needs to be results oriented as well.In order to produce results we must first clearly define what we mean by economic development. Absent a clear definition and destination, talk about results is meaningless.Economic development is the intentional process of finding, sustaining, and capitalizing upon locational advantage to create wealth and minimize poverty. When the private sector invests capital to produce goods and services and increase productivity, the demand for high-skill/high-wage jobs goes up as well.However, I also realize it is not the public sector that creates wealth and minimizes poverty, but the private sector. Therefore, the public sector should foster a favorable environment for the private sector to risk capital investment to produce goods and services and increase productivity, thereby providing the high-skill/high-wage jobs that offer opportunity for all Americans.Governor Keating and the entire state of Oklahoma have made great strides in their efforts to create a favorable climate for local economic development. For example, the recent passage of the Right-to-Work law will help to stimulate economic growth by eliminating constraints on the labor markets. Our mission at EDA is to help economically-distressed communities enhance their success in attracting private capital investment and high-skill/high-wage job opportunities for their citizens.The Three Pillars of EDA Reform will provide the vehicle to transform EDA into a results oriented agency. The first pillar is based on the Organization Management Initiatives:- Alignment of Resources
- Management Processes
- Competency-Based Human Resources System
- The second pillar is based on Performance Measures:
- Balanced Scorecard
- Outcome Funding Initiative
- The third pillar is based on Congressional and Public Affairs:
- Congressional Relations
- State and Local Government Relations
- Public Relations
- Media Relations
The execution of the Three Pillars of EDA Reform will enable EDA to become the premier standard bearer for domestic economic development. Thus moving from a culture of compliance to a culture of performance. As such, EDA is shifting from a processor of grants philosophy to that of an investment philosophy.To this end, EDA will act as a public sector venture capital firm with an accent and focus on results. We will provide the seed capital on the front end that will make the deal work. Decisions regarding where to invest will be based on risk and expected return and will focus on outcomes such as leveraging private sector and local dollars, and attracting higher-skill/higher-wage jobs.EDA will award invest in partners who are entrepreneurial in spirit and in action. EDA will analyze investment applications based on seven criteria: - Are the proposed investments market based?
- Are the proposed investments proactive in nature and scope?
- Do the proposed investments look beyond the immediate economic horizon, anticipate economic changes, and diversity the local and regional economy?
- Are the proposed investments maximizing private capital investment?
- What is the probability of success?
- Level of local, state, and private matching funds?
- High degree of commitment of local political "capital" by elected officials.
- Commitment of human resources talent to project outcomes.
- Will the proposed investment create an environment where higher-skill/higher-wage jobs are created?
- Does the proposed investment maximize Return on Taxpayer Investment?
Successful economic development projects attract private sector capital investment and create value-added jobs. But successful economic development ventures are also beneficial for local communities and government at all levels. By investing in successful undertakings, creating jobs, and expanding the economy, the demand for government expenditures for social services decrease while tax revenues increase.In meeting our objectives, EDA will demonstrate to the taxpayer our return on investment through tangible outcomes and measures. And, as the premier standard bearer for economic development, EDA must set the standard for excellence with its own operations and management.EDA is proud of its active partnership with our economic development partners at the state, regional and local level. The partnership approach to economic development is key to effectively and efficiently addressing the economic development challenges facing our nation's communities.EDA must continue to build upon its partnerships with local development officials, Economic Development Districts, University Centers, faith-based and community-based organizations, and other local, state, and federal agencies. But most of all, we must forge new and strategic working partnerships with private capital markets. We will continue to look for new and innovative ways to spur economic development. We must adjust our tools to fit our client's needs, not for our clients to fit our tools - tools that in many cases have not been updated since the 1960's.These are exciting times at EDA. Change is in the air. We must move to assure that the Agency is best able to provide our stakeholders with the leadership and tools they need to get their important work done. While we are changing the climate at EDA, we will be working to sustain enthusiasm for what we are doing both inside and outside of the Agency.Again, it is a pleasure to be here today to discuss our mission and vision with all of you. I am constantly in touch with your representatives, who communicate to me their priorities for your home states. On this note, I want to take the opportunity to commend Congressmen J.C. Watts and Steve Largent for their outstanding service to the state of Oklahoma and to the nation at large. Congressman Largent will be missed dearly in Washington D.C., but we know he will continue to do great things for Oklahoma.I encourage you to contact me or my staff with any recommendations you have for making EDA a better, more effective and efficient agency. Through training sessions such as this and by gaining critical input from economic development professionals, we will succeed in making EDA the premier standard bearer for the federal governments economic development efforts.Thank you. |
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