Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, June 19, 1994 TAG: 9407150001
SECTION: EDITORIAL PAGE: F3 EDITION: METRO
SOURCE: REGINALD SHAREEF
DATELINE: LENGTH: Long
Regional economic cooperation is necessary to successfully compete in the global economy.
Local governments, while paying lip service to regionalism, continue to interact primarily in an adversarial manner.
In economic-development discussions, the ability of localities such as Charlotte, N.C., and Spartanburg-Greenville, S.C., to attract and retain quality, high-paying jobs is often presented as the best example of economic regionalism. Why then, local residents ask, haven't our political leaders developed a similar single economic entity between the city-state of metropolitan Roanoke and the large geographic area that stretches west into West Virginia and Tennessee?
Much of the problem lies in the inability of these leaders to make the necessary cognitive and conceptual shift from zero-sum economic solutions to what popular organizational theorist Steven Covey calls "win-win" situations.
In his classic book, "The Zero-Sum Society," Lester Thurow, dean of MlT's School of Business and Economics, wrote, "Our political and economic structure simply isn't able to cope with an economy that has a substantial zero-sum element. ... That is, for every winner there is a loser and winners can only exist if losers exist."
The zero-sum equation accurately describes our political and economic reality for the past 100 years, when national products and high-volume production characterized the political economy. In this arena, local municipalities competed against each other for national industries. If one locality successfully lured a business they won and the competing municipality lost. Thus, zero-sum games constitute win-lose situations.
Since all economic solutions require decisions about the distribution of income in the zero-sum equation, local politicians have been free to argue that economic losses should be allocated to someone else's municipality. This is exactly what voters want to hear.
Moreover, politicians operate in short time horizons. Seeking re-election every two, four or six years, they are interested in short-term projects that bring votes. Long-term projects, like economic development based on regional economics, involve long periods when costs accrue with the benefits coming much later.
The politician who incurs these costs may not be around to collect the credit when economic development is achieved years later. Since the zero-sum element has been successful in ensuring re-election, politicians have had little incentive to abandon this paradigm.
The zero-sum game, a political system where every economic decision produced winners as well as losers, worked well as long as a national economy existed. But the economic rules have changed dramatically. We now operate in a global economy where entire regions must be marketed, and resources marshaled, to effectively compete.
Our politicians, however, continue to make decisions from the zero-sum paradigm in a global economy that demands regional win-win economic solutions.
Continued reliance on win-lose solutions in the global economy inevitably results in lose-lose business outcomes and lost job opportunities for the municipality (and thus, region). Unfortunately, this is the current political and economic status quo of the Roanoke region.
How can we, as citizens, help facilitate the transition of the political process from win-lose to win-win economic solutions?
One way is to hold politicians accountable for their failure to develop regional economic cooperation and unity. Regional economics must become a priority for any candidate seeking political office. As we head toward the 21st century, there is really only one important question concerning the political economy that must be asked of a prospective local candidate: If elected, what will you do to enhance regional economics?
We cannot wait for political parties, still operating out of the zero-sum paradigm, to make regional economics a political priority. Rather, it appears the impetus for this transition will come from nongovernmental entities like The New Century Council and the Roanoke Times & World-News (for example, by endorsing candidates who articulate a vision for developing regionalism).
The Roanoke region possesses many of the public amenities necessary to develop a prosperous economic zone. These amenities include a world-class research university, direct linkage to an international airport, a modern convention center (Hotel Roanoke), and easy access to mountain resorts and recreation facilities.
The Bell Atlantic-sponsored electronic village in Blacksburg, and research for the smart highway at Virginia Tech not only bring research dollars into the region but also provide fertile ground for regional manufacturing plants that will produce and market these technological advances worldwide.
Additionally, these economic zones usually spawn a local market for entrepreneurs to provide the in-person services and facilities demanded by the influx of talent the region will surely attract.
This is indeed a rosy scenario, but not unlike what has happened in places like Charlotte and Austin, Texas. The zero-sum economic game is no longer realistic, and our political leaders are going to have to learn a new game - regional economics. If our leaders don't learn these new rules, or continue to operate out of the zero-sum paradigm, the Roanoke region will simply fail to develop as a viable economic entity.
Reginald Shareef is an associate professor of political science and public administration at Radford University.
by CNB