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September 3, 2008 10:14 AM

Time to Start a Revolution!
September 3, 2008

“The tree of liberty must be refreshed from time to time…”

Ok, so Thomas Jefferson's famous words on revolution, especially those that followed ("...with the blood of patriots and tyrants") are a little harsh for this particular subject. But when you think about the phrase in terms of economic development, the underlying concept is just as true -- every once in a while, failure in a society at the federal, state, local or corporate level is necessary for a better future. Consider the following article from the New York Times, September 2nd: http://www.nytimes.com/2008/09/02/business/economy/02hoenig.html?ref=business&pagewanted=print.

"The president of the Federal Reserve Bank of Kansas City, Thomas M. Hoenig, said on Monday in Buenos Aires that for economies to work best, institutions must be allowed to fail." It's an interesting concept at a time when unemployment is high, stocks are down, and every talking head looks in the mirror only to see Chicken Little staring back. Let's face it, failure is ubiquitous these days -- the housing market, Bear Stearns, etc. -- and I'm sorry, Mr. Hoenig, but our economy doesn't seem to be working.

True.

But through failure, companies and, in the case of economic development, communities must find a way to survive adversity and prosper. It's through these challenges that innovation occurs and new ideas emerge. Without it, inefficiency and complacency.

Look no further than Kalamazoo, MI, whose "failure" came through a string of misfortune -- namely, a closed GM stamping plant, followed by Pfizer's takeover of Pharmacia and subsequent lay-offs. A few thousand lost jobs later, and the city's downtown began to crumble, population declined, and property values decreased. Enter innovation:

  • The "Stick Around" campaign in 2003 offered laid-off Pfizer scientists a chance to start their own business and stay in Kalamazoo;


  • The Southwest Michigan First Life Science Venture Fund was started in 2004 to ignite growth in the life sciences industry -- now nine growing companies are currently in its porfolio;


  • The GM stamping plant, a true "white elephant" within the community, was reimagined years later as a multi-complex business park;


  • The Kalamazoo Promise allowed for free college edcation for area high school graduates, igniting the first rise in local housing prices in 20 years and attracting new residents from all over the world: http://online.wsj.com/article_print/SB121676435398175079.html

Today, at a time when the entire state of Michigan (and most of the nation) is stuck in recession, Kalamazoo has added 4,000+ jobs the last seven months. Is your community "failing?" Might be time for some revolutionary thinking...


Posted by sduncan at 10:14 AM      Email This      Comments (215)      Trackback (0)
    
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