The New Framework for Rural Economic Development The New Framework for Rural Economic Development Presented to the National Public Policy Education Conference St. Louis, Missouri September 20, 2004 Charles W. Fluharty, Director The Rural Policy Research Institute

I.National Policy Considerations II.The Importance of Rural Governance III.The Critical Role of Public Intermediaries IV.The Challenge and Opportunity for Public Policy Educators Four Overview Considerations

I. National Policy Considerations Growing rural policy consciousness Federal “push down;” fiscal crisis; funding decline; capacity challenge Federal “Regional Balkanization” New inter-jurisdictional cooperation A new institutional framework for rural regional advancement Many state level rural policy efforts

II. The Importance of Rural Governance

“We define ‘governance’ as the means by which people come together to identify key problems and opportunities, craft intelligent strategies, marshal necessary resources, and evaluate outcomes.” -- RUPRI / CFED Rural Governance Initiative Governance is about the process of making decisions regarding the distribution of public and private resources and responsibilities, across multiple stakeholders. Defining Governance:

Past 15 Years: Public Practice and Literature Move Toward Making Government “More....” Examples: New Public Management Devolution Reinventing Government New Governance

Contemporary Conceptions of Governance: Interdependence of governmental and non-governmental organizations (central government’s role reducing over time) Now more coordination; facilitation; negotiation through multiple policy networks: Diverse, overlapping, integrated Comprised of government, private sector, nonprofit and associational actors All Actors Bring Unique: Power bases Roles, responsibilities Values, skills, organizational resources

The Importance of Rural Governance: The Community Capacity Disadvantage The Necessity of a Place-Based, Non-Sectoral Framework The OECD Story!

The Current Rural Governance Scorecard Federal, Regional, State and Local Policy Innovation in Intergovernmental Relationships Innovation in NGO and Private Sector Relationships Positive and Negative Developments Future Opportunities

III. The Critical Role of Public Intermediaries

The Critical Role of Intermediaries “Intermediaries are people and institutions that add value to the world indirectly, by connecting and supporting – i.e., by enabling others to be more effective. Intermediaries may act as facilitators, educators, capacity builders, social investors, performance managers, coalition builders, and organizers of new groups.” Xavier de Souza Briggs The Art and Science of Community Problem-Solving Project Kennedy School, Harvard University, June, 2003.

Five Types of Intermediaries Promoting Public Interest: 1.Government as intermediaries 2.Civic intermediaries 3.Funder intermediaries 4.Issue-focused intermediaries 5.Capacity building intermediaries Xavier de Souza Briggs The Art and Science of Community Problem-Solving Project Kennedy School, Harvard University, June, 2003.

Five Strategic Challenges for Public Intermediaries 1.The most useful specific functions of an intermediary will often be ambiguous and will likely change over time. 2.Intermediaries may have to develop the market for what they wish to provide. 3.A given community may be home to multiple intermediaries with diverse and overlapping functions. 4.Broad community change – social, economic, political – shifts the “market” for what intermediaries should contribute, how, and with what support. 5.Showing value added – credibly demonstrating the intermediary’s contribution – is an ongoing challenge. Xavier de Souza Briggs The Art and Science of Community Problem-Solving Project Kennedy School, Harvard University, June, 2003.

IV. The Challenge and Opportunity for Public Policy Educators

Three Critical Questions Who will be the Champions? Public and Private Entrepreneurs Change Agents Where are the Intermediaries to Shoulder the Burdens of Institutional Innovation? Where are the Constituencies to Support these Innovative Leaders and Institutions?

The Rural Community Context: What Can Communities Do? Facilitate / Support These Emergent Models Foster the New Economic Engines Become Change Agents Support Entrepreneurs (Public and Private!)

Concluding Thoughts for Public Policy Educators