Tuesday, July 13, 2010

A restatement of Waldo's view of economic development

The SC Policy Council is an interesting body. It styles itself a conservative critic of a conservative governing party.

Which means- at best- the SCPC is rearranging the Titanic's deck chairs.

As I've noted before, in politics, you can be one of three things.

The first is a candidate/office holder.

The second and third are a counselor and a prophet.

Counselors moderate ideas. They moosh them into a properly masticated pablum before presenting them to the candidate/office holders. There may be a spiky radical bit here and there but it's explained away as a little extra paprika in the recipe. Overall, there's nothing to threaten the counselor's standing at court.

Prophets foretell the future, and the devil take the hindmost. They may be wrong. They may be right. But the last thing they worry about is their access to the candidate/office holder class.

SCPC shows promising signs of prophecy but is hindered by the wish to sit close to the rulers. Take their recent paper of economic development.

Please, as Henny Youngman used to say of his wife.

It's a thoughtful- if ill-proofread-piece ("gaffes" not "gaffs") but it concentrates on what is being done wrong. That's classic counselor-speak.

Prophecy would be not just carping about the legislature's errors but laying before them an alternative.

That means an alternative that is shown to work, not just one that fits an ideological paradigm. If the latter's what a policy maker is looking for, s/he need no advice at all. Once you are convinced you already know all you need to know, you needn't know what anyone else knows.

The solutions to SC's economic development doldrums are not things counselors will want to say, nor office holders to hear. The latter not only want to pick winners and losers, but also to pick winners and losers whose fate will accrue to the benefit of the office holder's continued office-holding.

Thus the state's persistent fondness for 1950s-style economic plans that are, curiously, way more command and control than the present-day trimming at the edges adjustments that get one decried as a RINO- are. SC leaders love bribes of cheap land, cheap workers, and little regulation to attract one big corporate tenant every decade or so.

One community thrives, and the SC press wets itself to argue that the Palmetto State is, somehow, emerging from the muck to take its place in the civilized world.

Except it's the Henry Grady's "New South" world that ended a long time ago.

A new economic development policy means South Carolina has to do a number of things it views as a double dose of Castor oil followed by a liberal- we use the term advisedly- dose of livermush.

At its heart, such a new policy means accepting that SC has a crappy, inefficient, money-gorging school and university system, and a claque of  private universities more devoted to Jeebus, football and  fundraising than  turning out graduates who'll pay to keep the hamster wheel turning than to graduate independent thinkers whose thoughts might, from time to time, require thinking "liberal."

As in importing high-tech companies who aren't just looking for a dozen or so people to churn their coffee beans or keep the air conditioners.

As in importing the REAL value-added workers: people who think.

The trouble with thinking, of course, is that Thinkers contemplate ideas outside the orthodoxy. They are thinkers who concern themselves with How To Get Things Done, not just to How To Stay In Power and Keep the Darkies Grateful.

An openness to outside the boxers is why NC has the thriving Research Triangle Park and SC has to Innovista Empty Building Park.

SCPC has the ability to change the mindset in this state. They just need to divorce themselves from their perceived need to be counselors, not prophets, and do the real- hard- work of making the case to office holders that the right is not only the enemy of the good but the enemy of getting re-elected.

5 comments:

  1. Very good post, Waldo. On a related note, I feel that Innovista will remain empty for as long as our state legislators keep flying the Confederate flag. And one thing that I'm trying to do at my blog is to advocate for a reasonable resolution (2007-2008's H.3588), not just to point out the problem.

    The problem of course is that our state legislators are chosing to brand our state as "South Carolina, where the Confederate flag still flies." It's a branding decision that they have made, and branding decisions are probably the most important of all economic decisions that a state (or a company) can make. This economically-harmful and politically-motivated branding decision does not bode well for the future of our state.

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  2. Sorry to disagree with you, Michael, but the Confederate flag has little to do with whether or not Innovista ever attains any sort of success.

    Companies make decisions on where to build or relocate for any number of reasons, including a state's tax burden, its infrastructure, the red tape inherent in a state's bureaucracy, the skill level of the workforce, and educational opportunities, to name a few.

    However, whether or not state legislators choose to fly the Confederate flag outside the Statehouse probably plays a very small role in the decision-making process.

    South Carolina has had a number of notable eco devo announcements in the past few months and while I believe the idea of throwing money and cheap land at companies to get them to build ancillary operations is an antiquated one, it would seem apparent that Boeing and the other operations which have announced plans to build in SC don't have a major problem with the flag.

    I understand that you may see things differently, but almost all major business decisions that involve tens or hundreds of millions of dollars are predicated on much more than whether or not a 3-by-5 piece of cloth representing a long-ago, though still politically nettlesome, era is flying.

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  3. Cotton Boll:
    No business has a problem with the Confederate flag that money can't solve. It's not a binary they came here or they didn't issue. Boeing got a lot of money to come here.
    But back to the issue of Innovista. I'll take the truth of the matter from Mayor Bob, himself. On Sunday, 15 April 2007, he wrote to Brad Warthen (http://blogs.thestate.com/bradwarthensblog/2007/04/from_mayor_bob_.html):

    "South Carolina and Columbia really are entering the knowledge economy. The State's hydrogen series two weeks ago, the Horizon and Discovery Buildings actually coming out of the ground, the hiring of John Parks as the Innovista's executive director, and the announcement of Innovista's first tenant, Duck Creek, all confirm that the potential for success is real. The Confederate flag represents the antithesis of these efforts, and is always the first or second question about what kind of place South Carolina really is."

    The antithesis! Always the first or second question! They ended up hiring John Parks! Not someone good, but someone awful. Why?

    Because the city of Columbia was put immediately on the defensive, because of the Confederate flag. And obviously, it's not the piece of cloth itself that's causing such harm, it's our state government's branding decision. Branding decisions are HUGE.

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  4. Michael,

    To blame the hiring of John Parks on the fact the Confederate flag flies outside the Statehouse is, with all due respect, ludicrous.

    Parks was the executive director of the University of Kentucky's Coldstream Research Campus when he was hired to lead Innovista.

    Prior to that, he directed research campus efforts at the University of Illinois and Iowa State University, and while at Kentucky, the Coldstream campus saw its employment jump to 1,100 from 600. Private investment jumped, as well.

    University of Kentucky president Lee Todd told The State paper that under Parks' leadership the Coldstream campus "took significant steps forward in successfully commercializing some of the most promising university research."

    Parks' choice in whom he hired as a developer may not have been wise, but it sounds to me like USC's poor vetting process had a lot to do with that.

    Second, Innovista's so-called first tenant - Duck Creek Technologies - never materialized. There was a big announcement and a lot of fanfare, but it never happened. Given that former PMSC CEO Larry Wilson was a major player in Duck Creek, it's not like Duck Creek came to town, saw the flag and then decided to go elsewhere.

    Finally, the state's investment in hydrogen has been a bust. Tens of millions of dollars invested with little to nothing to show for it.

    I'll say it again: Whether or not Innovista succeeds will have little to do with the Confederate flag. If only success in the area of economic development were as simple as flying the right kind of flag.

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  5. Cotton Boll:

    The decision by our state legislature to fly the Confederate flag has become a branding decision. Our state is now known as "South Carolina, where the Confederate flag still flies." Almost all economic development efforts by people in our state have to fight against that branding decision.

    We can debate about how difficult it is to fight against that branding decision and about what effects having to fight against that branding decision has had. What's not debatable is whether people have had to fight against that branding decision. They have.

    If our state legislators were able to take down the flag and change our brand to "South Carolina, with smiling faces and beautiful places," then this branding decision would help people in our state with economic development.

    If our state legislators can reintroduce and pass 2007-2008's H.3588, then what they will achieve is a change of the South Carolina brand from something that acts as a headwind hindering economic development to something that acts as a tailwind fostering economic development.

    Obviously, the wind is not the only important thing. Obviously, for people to achieve success in economic development, they have to work very hard with the right strategy, the right team, the right contacts, the right financial support, etc., etc. Obviously, success in the area of economic development is not as simple as flying the right kind of flag.

    The issue is to get our state legislature to see that their decision to fly the Confederate flag has become a branding decision that has become a hindering headwind on economic development. Changing which way the wind is blowing will help people in our state with economic development.

    We can debate how much this change will help. What's not debatable is whether this change will help. It will.

    Regards,

    Michael Rodgers

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