Definition - What is Economic Development? Economic development involves an ongoing and supported program to help and make better a general level of health, economy, security, and business in a community or region. Because the effort can be so widespread and incorporate so many aspects of a region, it typically involves millions of dollars annually and tends to be very political in award, decision-making and implementation. The development does not need to be focused just on creating business ventures; efforts can focus on improving public health, basic education, improving farming efforts and land management, preserving natural resources, or improving security in the area from lawlessness, war and strife. Many times such efforts get confused with economic growth. However, where economic growth is related to improvement and growth of collective business in a region, development covers far more and can focus on general improvement of the entire society. Often, however, economic development tends to use industry development as an example of success of related programs. 20th century U.S. industrial development has often been touted as a prime version of U.S.-government driven development due to mass industrialization of multiple manufacturing and fabrication processes. In fact, the industrialization change was so pervasive and so impressive, many dubbed the U.S. after World War II as the factory to the world with American products being produced and sent everywhere as a result. Ironically, today, as the U.S. industry has tried to evolve and reach higher levels of function, much of the same manufacturing has left the U.S. to become commonplace in other countries that only 30 or 40 years earlier were primarily agrarian and not industrial at all. This change has created new challenges in the U.S. as far less jobs are needed, and more skilled labor is in demand for those jobs that remain. The shift has caused a fundamental challenge to the American society in general as related job losses have created significant upheaval and demands for the government to step in and produce more help quickly. Part of the goal of economic development is to create a new system that allows local communities and regions to develop new ways of earning and production that can be sold outside of the area. By being able to create new resources and product in demand in a wider network, more financial resources from sales can then come back to the community, improving the area with new cash spent locally by wage earners and businesses. Wages then rise, capital spending increases, and the community can invest more in its infrastructure for societal benefits. Common results tend to be improved schools, improved transportation networks such as train tracks and roads, and improve sanitation systems such as water delivery and sewer system. Capital expense creates opportunity for second-level entities and businesses as well. As initial projects and large ventures occur, support is needed from hundreds of smaller organizations, offices, entities, and skilled staff. These second level entities then begin to thrive from new opportunity, usually far more promising than anything seen before in the area. Another noticeable effect of rising development is the attraction of opportunity to others in the further surrounding area. As development occurs and the immediate recipients show signs of success and benefit, others in the general area want the same benefits for themselves too. With an initial demand for labor, many opportunities exist for agrarian community members to earn far more than they would eke out of the ground annually. The promise of living better, learning more, gaining better health, and enjoying life draws people far and wide to join in the success as well. Small cities become big, and populations in urban areas surge in number. Just what is economic development? An explanation of who does it throughout the world, and why. Home - Definition Economic & Political Goals Sales or Development? The Pros & Cons Who & Why? Privacy Policy