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CERC, the Connecticut
Economic Resource Center, released its second annual Benchmarks
study of the Connecticut economy to representatives from business,
government, policy and press at Northeast Utilities headquarters on
November 30.
The
study, entitled
Benchmarking Connecticut 2006: Determinants of Economic Growth,
analyzes key aspects of Connecticut’s current economic state and its
historical growth trends. The study also considers how well poised
the state’s economy is for success in the future. The study was led
by CERC economist Jeff Blodgett, with contributions from the New
England Public Policy Center, the Federal Reserve Bank of Boston,
the Connecticut Department of Labor, and the University of
Connecticut Center for Economic Analysis.
Current Economic
Picture: Not So Bad
The Benchmarks study compares 50
states’ economies, based on 35 measures, i.e.,
benchmarks, of economic
health. Those 35 measures fall into five categories: technology,
financing, entrepreneurial and business vitality, human capital and
global links. The benchmarks include such factors as the percentage
of eighth-graders at public schools who achieved at least a basic
level on the National Assessment of Education Program exams; the
percentage of the population over age 25 who hold a bachelor’s
degree; initial public offerings per 10,000 employer firms; the
number of patents awarded per one million people; the percentage of
households with computers and Internet access; and computers’ and
electronics’ share of total exports.
The current state of Connecticut’s
economy may seem healthy enough through many peoples lenses, and
indeed the Benchmarks study backs up any such perception:
Connecticut’s current rank among all other states is above average
for 26 of the 35 benchmarks.
Future Economic
Growth: Not So Good
The Benchmarks study warns that our
current state is no predictor or guarantee of future success. The
growth rate for each of the 35 benchmarks over time is what’s really
telling. And that growth data tells a very different story. In
terms of growth, Connecticut’s rank among all other states is above
average for only 5 of the 35 benchmarks. That means that other
states are gaining on us. We’re losing our competitive edge, and
fast.
Brookings Expert
Offers Ideas
In his keynote address, Bruce Katz,
founding director of the
Brookings Metropolitan Policy Program, offered some unvarnished
assessments of Connecticut’s economy. Connecticut deserves praise
for its strong minimum wage laws. And we now have a
Brownfields Redevelopment Authority. But while that’s a good
sign, Katz pointed out that other states having been doing that sort
of thing since the ‘80s, and it took Connecticut until 2006 to get
into the game.
Confessing that he struggled to find
other good policies and practices that Connecticut uses to advance
its economic competitiveness, Katz joked that it reminded him of the
Seinfeld episode,
The Opposite, where George decided that
to be successful, he would have to start doing exactly the opposite
of everything he usually does. But Katz stopped short of proposing a
Seinfeldian (or Costanzian) approach to economic policy for
Connecticut, saying that might not really be the way to go. I think
he was only half joking.
Katz concurred with prior speakers (and
this author) that the state needs a vision for growth,
sustainability and innovation. Among Katz’s other remarks: We need
to promote innovation and quality places. Connecticut needs to
identify its strengths and develop competitive economic polices that
capitalize on them. Our 169 cities and towns need to compete,
together, for
quality growth and
prosperity. We need to invest in urban areas and metropolitan
prosperity because it’s the competitive thing to do. Like it or
not, Katz said, a state’s success, and a region’s success, depends
on urban centers’ ability to adapt to a changing competitive global
economy. Advocates for a competitive economy need to organize for
success. We already know that many diverse organizations have
common ground in a shared desire for serious economic
competitiveness. Those groups could be effective change agents if
they connect, communicate, and speak with one voice, as a massive
coalition.
Like many before it, the conference
concluded with numerous calls for a call to action, for
private-public partnerships, and for government to lead the way. We
need a vision. We need a plan. We need goals and measurable
objectives. We need accountability. The question that went unasked
is how much longer can we wait for government to take the lead?
What if it never does? And anyway, maybe free market and limited
government theories call for government to take its cue from the
people, not the other way around.
Take the Next
Step Now
Consider taking the next step now,
with an online brainstorming session to identify Connecticut’s
strengths and assets. So what exactly are they, in your view? What
does make Connecticut truly unique? What
is Connecticut’s truly
“unique value proposition?”
Use this online survey to weigh in. Add some thoughts now, and
come back to it later and add more if you like. The survey is set
up so you can see others’ responses, I hope you’ll try it and keep
the Benchmarks conversations going. We’ve got to start somewhere.
Why not you? Why not now?
Survey. ^Top
P.S. On a Similar
Note
Consider the impact if those of us
who are likeminded and working on similar projects kept in touch and
built on each other’s efforts rather than duplicate them. In the
interest of connecting, organizing for success, and sharing
information about who’s doing what:
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Faith Middleton’s WNPR show
featured UConn economist Fred Carstenson on November 30,
discussing the benchmarks study and its implications for
Connecticut’s economic outlook. The show asks “Now that the
elections are over, will our leaders deliver? Listen.
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The Old State House exhibit “History
is All Around Us” takes on the importance of place. One
part of the exhibit invites museum-goers to add their thoughts
on such probing questions as “Is a strong central city
essential to 21st century living?” and “What
makes a healthy city?” You should go and read some of
the answers.
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The Capital Region Partnership
and CPTV are laying the groundwork for a Compass indicators
project for the Capital Region, as a follow up to the
regionalism documentary that aired on CPTV this past
spring. The
Citizens Network of the Capital Region is collaborating by
organizing a series of town meetings across the region to get
everyday folks thinking about “people, prosperity and place” and
about what really matters in the region, and how to measure it.
The town meetings are being planned for the early part of 2007.
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See also: “State's
Economy In Jeopardy, Report Says”
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The full Benchmarks report is
available at
www.cerc.com/benchmarks
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