REMARKS AS PREPARED FOR DELIVERY - SANDY K. BARUAH, ASSISTANT SECRETARY OF COMMERCE FOR ECONOMIC DEVELOPMENT - U.S. CHAMBER OF COMMERCE BUSINESS CIVIC LEADERSHIP CENTER - WASHINGTON, DC

THURSDAY, MAY 10, 2007

AS PREPARED FOR DELIVERY

Introduction by Arthur J. Rothkopf, SVP & Counselor to the President of the U.S. Chamber of Commerce

Thank you, Arthur, for that kind introduction, and thank you for your leadership at the Chamber.

In today’s worldwide marketplace, we all know competition no longer comes from just the company or county next door. Our competition comes from any person or any point on this globe with a good idea and a good Internet connection. In order to succeed, it’s going to require a comprehensive, holistic approach to development.

The role of the private sector in community and economic development is more critical now than ever before. The old model of community and economic development – of which the Federal government was the chief proponent a generation ago – was to simply spend vast government dollars in a community. We now understand today that government dollars alone – regardless of the amount – is not the panacea to create livable communities and economic opportunity.

What we understand today is that, while governments at all levels – along with universities and other non-profit institutions – are important players, the private sector is the most important element of any successful community and economic development economic strategy.

The most successful examples of community and economic development that I have seen in my travels across the United States as the head of the Economic Development Administration have been characterized by an active and engaged private sector. Too often, we still find areas where community and economic development is the domain of government entities talking to other government entities.

Now, that’s not to say that collaboration between governments isn’t important – it is. In fact, it’s critical that we look beyond traditional political jurisdictions – the city boundary, the county line, even the division between States – and work together. Because the competitiveness of America’s companies is in large part tied to the competitiveness of the economic regions in which they do business.

But one of the new realities of 21st Century economic and community development is that the private-public partnerships become more critical every day. The private sector should not just have a seat at the table, but should be actively engaged as full partners in strategies for economic growth.

This is not just good policy, but, in my opinion, is a prerequisite to success in our global marketplace. Unless the private sector is ready, willing and able to invest in a community, economic growth simply will not occur, regardless of how much government spends.

The private sector should be helping to shape – within the parameters of public accountability, of course – the development strategies that will lead to more livable communities, and more higher-skill, higher-wage jobs.

That’s what today’s event is all about, and I congratulate the U.S. Chamber of Commerce and more specifically the Business Civic Leadership Center for convening the leaders here today to discuss our unique roles in successful community and economic development.

On behalf of the Secretary of Commerce, thank you for the invitation to be here, and I look forward to our discussion.

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