A new, bold approach to kick start N.C.’s stalled economy

Published June 20, 2013

by NC Secretary of Commerce Sharon Decker

Over the years, North Carolina has won awards from prestigious publications such as Forbes and Site Selection magazine as an attractive state in which to conduct one type of business or another.

But these awards have overshadowed a troubling fact. Despite spending nearly $600 million during the past five years on regional economic development organizations and specialty nonprofits, our state’s economy has not produced one net new job. The current system is not working.

This failure to deliver for North Carolina families doesn’t cut it for Gov. Pat McCrory. He wants progress. So instead of tweaking our current job creation efforts, Gov. McCrory tasked me with coming up with a bold, new approach to kick start North Carolina’s stalled economy.

After much analysis and consultation with men and women who have a track record of creating jobs, we have proposed the Partnership for Prosperity. Once authorized by the General Assembly – it passed a House committee Wednesday – the Partnership will consolidate the state’s disparate economic development efforts under one roof. Finally, job creators will have a one-stop shop with developers on hand to serve businesses on their timeline, not when it’s convenient for state government.

Partnership for Prosperity developers will be rooted in their respective economic regions.

They’ll understand and embrace their area’s economic and cultural strengths – including our proud heritage industries of manufacturing and agriculture. I guarantee they’ll pursue a furniture factory with the same zeal they’ll pursue a bio-tech lab. Partnership developers will understand that helping existing customers grow is often more profitable than finding new customers. That’s why they’ll spend as much time and resources helping homegrown businesses expand as they will attracting new industries.

That doesn’t mean Partnership for Prosperity developers will let opportunity pass us by when it comes to attracting new industries. We expect them to research companies that can prosper by taking advantage of North Carolina’s numerous assets, and then target those companies for relocation or expansion.

This new approach will shake up the status quo. Already there’s been criticism that these job creation partners will be in the private sector. And that’s exactly what we want. The private sector is where sustainable economic growth is created. We want people who’ve developed jobs firsthand working on behalf of every North Carolinian. Those who are successful will be rewarded. Those who aren’t will be sent packing.

This new partnership will be transparent. It will be overseen by an executive board appointed by the governor and state House and Senate leaders. I will be accountable for partnership operations. A financial firewall will prevent the comingling of private and public economic development monies. And public officials will make the final decisions when it comes to the investment of precious tax dollars.

Finally, let me frankly address accusations that this new approach is an attack on the leaders of rural and regional economic development organizations. Nothing could be further from the truth. Their commitment to rural North Carolina is unquestionable. That commitment has led to successful projects. But the fact remains the job creation gap between small-town North Carolina and the urban areas is not closing.

North Carolina has the fifth highest unemployment rate in the country. Over 30 N.C. counties, nearly all of them rural, have unemployment rates in the double digits. As Gov. McCrory says to nearly every audience he addresses and at every cabinet meeting – North Carolina needs jobs … now.

The Partnership for Prosperity is the best way to bring these jobs to North Carolina and create long-term, sustainable economic growth to communities all across the state.

It’s time to set a new economic course.