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Posts Tagged ‘growth’

56876a3cc5470-imagePhoto: Richmond Register
When artist Ken Gastineau moved to Berea, Kentucky, in 1987, there were few artists working in Old Town. Today, with taxpayer support, artists have become Berea’s economic engine.

Residents of Berea, Kentucky, have long known that their arts college was internationally admired. But it wasn’t until the loss of local mining jobs, that people began to see the arts as their most promising economic engine.

Ivy Brashear writes at NextCity, “One of the things people notice after spending any amount of time in Berea’s historic downtown is the density of galleries. For a small city in the foothills of the Appalachian Mountains, there are a lot of them.

“The state-designated ‘Folk Arts and Crafts Capital of Kentucky’ attracts visual artists, ceramicists and traditional craftspeople just like Nashville lures country musicians, albeit on a smaller scale. …

“City officials count 40 galleries in total, and three new restaurants and a gallery-cafe have opened in the past two years — not a bad showing of entrepreneurship in a city of fewer than 20,000 people.

“ ‘I believe we can legitimately claim we’re a town where art’s alive because any visitor, almost any time of the year, will be able to encounter active arts in motion,’ says Mayor Steve Connelly. …

“The little town that sprung up around Berea College [is] a rare growing, thriving city in a region that’s confronting steep population decline and rising rates of joblessness due in large part to the collapse of the coal industry. Eastern Kentucky alone has lost nearly 7,500 coal jobs since 2012. … The hope is for something place-based that can keep the economy humming while encouraging businesses to invest locally. In Berea, that thing is art and culture.

“Since 2010, the population of the city has grown by nearly 12 percent, making it one of the fastest growing places in the state. … With new people and businesses moving in, the city’s unemployment rate is four percent, compared to a statewide rate of five percent and a rate of seven percent in nearby communities, 2016 Census Bureau data shows.

“It’s difficult to make a direct connection between any one economic strategy and growth, but local officials say that their investment in building an arts economy has paid off because it gives people a reason to stay. …

“The [arts] culture was largely unsupported by any local government entity until about a decade ago. It was at this time that the city began to recognize what Connelly refers to as its ‘artistic infrastructure,’ and the need to invest in it. …

“It didn’t take long for local officials to recognize that Berea’s greatest local asset was its arts community, something that had been woven into the fabric of the town since the very beginning.

“Local artists were investing in Berea in big ways: by opening galleries and weaving shops, making and selling art, and starting local festivals that continue today.

“They were doing it largely on their own with little to no help from the government or Berea College. They were doing it because there was energy and synergy behind their efforts — a confluence of creativity and economy that city commissioners saw as an investment worth making.

“In 1982, the City Commission passed a hotel/motel tax and started a tourism commission. The World’s Fair was in Knoxville that year, and Berea wanted to catch I-75 travelers on their way south. The commission passed a 3 percent tax, and from 1982 to 2007, the all-volunteer tourism commission received about $125,000 a year from the tax.

“Further tax reform was made in 2007 during the Great Recession when Berea raised its property tax rate from the lowest in the state at .03 percent, to 10 percent. Soon after, they instituted a 3 percent restaurant tax, and the tourism budget quickly shot up to nearly one million dollars a year. …

“Berea Economic Development Director Danny Isaacs describes the decision to move away from traditional industries and look to the arts as a economic engine as one of sheer logic. …

“ ‘[Economic growth] goes back to building on what you have and what you’re known for,’ Isaacs says. ‘For Berea, the natural choice was arts and crafts.’ ”

More at NextCity, here.

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This year, I’ve been volunteering with refugee organizations — four altogether — and am always grateful for positive stories about this population. Here’s a story from Sweden.

Bridie Witton writes at the UK’s Independent, “Immigration has helped fuel Sweden’s biggest economic boom in five years, new figures have revealed.

“The Swedish government, whose policies saw the country take in more refugees per capita than any other in Europe last year, helped lower unemployment rates by increased spending on welfare for asylum seekers from war torn countries like Syria, Afghanistan and Iraq.

“The move helped the Nordic region’s largest economy expand 4.5 percent on an annual basis in the fourth quarter of 2015, the most in almost five years and more than twice the growth of Germany, according to Bloomberg. Increased consumer spending and borrowing and high house prices also contributed to the boom which, although projected to fade, has consolidated Sweden as one of Europe’s success stories.

“National Institute of Economic and Social Research fellow Jonathan Portes said economies benefitted from more workers, but emphasised the difference between immigrants and refugees.

” ‘What the Swedish experience tells us is that even in the short term, even when you have a very large influx of refugees, there is a perception this is an impossible burden on the state,’ he told The Independent. ‘But in the short term it increases growth.’

“He said the Swedish government needed to have a long-term strategy to successfully integrate refugees and continue the growth.”

Careful planning is needed, for sure, but history shows that an influx of workers with needed skills helps countries grow.

More at the Independent, here.

Photo: Getty
Sweden took in more refugees per capita than any other country in Europe in 2015.

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Two of my grandchildren just got back from a month in Scandinavia with their parents, visiting the Swedish side of the family. It’s amazing how much kids can develop in one month.

The baby left here with four teeth and came back with eight. She could barely reach for something without falling over and now crawls like a demon. Her older brother is more of a conversationalist than ever and has returned with new ideas for playing with old toys.

The children bloomed and blossomed with all the love and attention of their Swedish family.

The lotus below was also blooming during the past month.

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The U.S. Department of Agriculture funds a wide range of activities to boost the economic strength of small towns and rural areas. It doesn’t just fund farmers, although farmers may benefit from a more vibrant rural economy.

To that point, here’s an story from the Philadelphia Inquirer by Howard Shapiro on how the USDA is helping a New Jersey theater.

“A little semiprofessional theater amid the farmland of Hammonton, N.J., has become the beneficiary of more than a half-million dollars in grants and low-interest loans from a most unlikely arts angel: the U.S. Department of Agriculture. …

“The Agriculture Department money is coming directly to the theater in three acts, so to speak: a $23,000 grant to improve its historic building and its ticketing and computer programming; an $89,000 20-year loan at 3.5 percent interest, mainly to enhance stage equipment; and a 30-year loan of $482,000 at 3.38 percent interest, to buy its building.

” ‘It’s an unusual project for the USDA to finance,’ said Howard Henderson, the department’s rural-development director for New Jersey. “This is a fascinating way we’ve been able to benefit a rural community.’

“The Rural Development program, financed by Congress, exists to strengthen or help establish facilities in rural communities that will improve downtowns, provide services, and encourage local activities. But money usually goes to such projects as firehouse restoration or, as in New Jersey’s northern Sussex County, a plan for hospice units.”

The Eagle Theatre applied for the money because, according to Henderson, everyone around Hammonton knows how active the USDA has been in supporting growth. More.

Photograph: http://theeagletheatre.com/about-us/

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You might be interested in this article about how Dayton, Ohio, is welcoming immigrants as part of its effort to spur economic growth.

Dylan Scott at Governing magazine writes, “In contrast to some states’ anti-immigration policies, a few cities are actively trying to attract immigrants to boost their own economies. …

“City officials estimate that 10 percent of the Ahiska Turks in the United States have established themselves here in Dayton. But they aren’t alone. There are also immigrants from Mexico, Vietnam, Samoa and elsewhere.

“Watching some of these residents’ difficulty in adjusting to their new surroundings — some encountering language barriers and others struggling to secure housing — convinced city officials they needed to do more to help.

“Dayton’s Human Relations Council, a city department that investigates discrimination complaints, started in 2010 by initiating a study into allegations from Hispanic residents regarding housing discrimination. Around the same time, City Manager Tim Riordan and City Commissioner Matt Joseph resolved to make public services more accessible for those who spoke English as a second language.

“It didn’t take long for Dayton’s leaders to figure out that incremental steps wouldn’t do, that the immigration issue needed a comprehensive solution and the involvement of the entire community.

” ‘It requires a huge partnership. There are only so many things we can do as the city,’ Joseph says. ‘And the big thing is an attitude change. We have to make sure we’re encouraging people to be more welcoming and that the incentives are running the right way. That’s our role.’ …

“Dayton officials seized on a growing academic consensus that embracing immigrants is beneficial to the country as a whole and specifically the economy. A June 2011 Brookings Institution report concluded: ‘U.S. global competitiveness rests on the ability of immigrants and their children to thrive economically and to contribute to the nation’s productivity.’ The U.S. Chamber of Commerce wrote last year that research shows ‘immigrants significantly benefit the U.S. economy.’ ” Read more.

Photograph: Tim Witmer
Sarvar Ispahi, his son Uzeir and their family moved to the United States from Russia in 2005 after Ahiska Turks were granted refugee status by the federal government. They chose Dayton because a refugee community was already forming there.

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