I want to begin today with a warning our communities are under threat from roving
communities are under threat from roving
communities are under threat from roving mobs of Connor’s pushing their wares on
mobs of Connor’s pushing their wares on
mobs of Connor’s pushing their wares on the Goa Bowl the desperate in the
the Goa Bowl the desperate in the
the Goa Bowl the desperate in the impulsive and I know a few that are safe
impulsive and I know a few that are safe
impulsive and I know a few that are safe from their ploy and there’s a couple of
from their ploy and there’s a couple of
from their ploy and there’s a couple of deviants that are particularly
deviants that are particularly
deviants that are particularly concerning to me my daughter’s you see
concerning to me my daughter’s you see
concerning to me my daughter’s you see they are members of a cabal that
they are members of a cabal that
they are members of a cabal that permeates the fabric of America Girl
permeates the fabric of America Girl
permeates the fabric of America Girl Scouts USA every January they comb the
Scouts USA every January they comb the
Scouts USA every January they comb the neighborhood and stake out the
neighborhood and stake out the
neighborhood and stake out the department stores pushing a product that
department stores pushing a product that
department stores pushing a product that while delicious is devoid of any
while delicious is devoid of any
while delicious is devoid of any nutritional value and when I was a
nutritional value and when I was a
nutritional value and when I was a single man I used to buy one or two
single man I used to buy one or two
single man I used to buy one or two boxes and then I had two Girl Scouts of
boxes and then I had two Girl Scouts of
boxes and then I had two Girl Scouts of my own and a network of friends
my own and a network of friends
my own and a network of friends daughters pushing cookies like a street
daughters pushing cookies like a street
daughters pushing cookies like a street corner drug dealer and I found that that
corner drug dealer and I found that that
corner drug dealer and I found that that number increased exponentially
number increased exponentially
number increased exponentially you see Girl Scouts USA has developed
you see Girl Scouts USA has developed
you see Girl Scouts USA has developed cookie sales as a fundraiser but also as
cookie sales as a fundraiser but also as
cookie sales as a fundraiser but also as an opportunity to develop leadership
an opportunity to develop leadership
an opportunity to develop leadership skills and to learn about economics and
skills and to learn about economics and
skills and to learn about economics and there’s some lessons about economics
there’s some lessons about economics
there’s some lessons about economics that we can learn from them you see
that we can learn from them you see
that we can learn from them you see sociologists would describe this ability
sociologists would describe this ability
sociologists would describe this ability of Girl Scouts to sell cookies to their
of Girl Scouts to sell cookies to their
of Girl Scouts to sell cookies to their network as social capital and just like
network as social capital and just like
network as social capital and just like other forms of capital such as physical
other forms of capital such as physical
other forms of capital such as physical capital use in production our financial
capital use in production our financial
capital use in production our financial capital used to buy supplies social
capital used to buy supplies social
capital used to buy supplies social capital has an advantage and economic
capital has an advantage and economic
capital has an advantage and economic advantage for those that hold it now the
advantage for those that hold it now the
advantage for those that hold it now the conventional wisdom is that the secret
conventional wisdom is that the secret
conventional wisdom is that the secret to economic success is rooted in who you
to economic success is rooted in who you
to economic success is rooted in who you know and history is filled with examples
know and history is filled with examples
know and history is filled with examples where this is true you might think about
where this is true you might think about
where this is true you might think about Harry Truman getting elected because of
Harry Truman getting elected because of
Harry Truman getting elected because of Tom Pendergast in the Kansas City
Tom Pendergast in the Kansas City
Tom Pendergast in the Kansas City Democratic machine or Henry Luce the
Democratic machine or Henry Luce the
Democratic machine or Henry Luce the founder of Time magazine whose wealth
founder of Time magazine whose wealth
founder of Time magazine whose wealth came at the hands of Nettie McCormick a
came at the hands of Nettie McCormick a
came at the hands of Nettie McCormick a member of the Chicago
member of the Chicago
member of the Chicago social elite but there is increasing
social elite but there is increasing
social elite but there is increasing evidence that it’s not who you know that
evidence that it’s not who you know that
evidence that it’s not who you know that matters it’s how many people you know in
matters it’s how many people you know in
matters it’s how many people you know in other words economic success comes not
other words economic success comes not
other words economic success comes not from knowing one person really well but
from knowing one person really well but
from knowing one person really well but from having a large and diverse social
from having a large and diverse social
from having a large and diverse social network so you might think about the
network so you might think about the
network so you might think about the Girl Scouts if a Girl Scout knows one
Girl Scouts if a Girl Scout knows one
Girl Scouts if a Girl Scout knows one person she sells a couple of boxes of
person she sells a couple of boxes of
person she sells a couple of boxes of cookies if a Girl Scout knows dozens of
cookies if a Girl Scout knows dozens of
cookies if a Girl Scout knows dozens of people the number of cookies that she
people the number of cookies that she
people the number of cookies that she can sell increases dramatically now this
can sell increases dramatically now this
can sell increases dramatically now this is not a radically new idea we have
is not a radically new idea we have
is not a radically new idea we have known for a long time that there is a
known for a long time that there is a
known for a long time that there is a connection between relationships and
connection between relationships and
connection between relationships and economic outcomes but what I would argue
economic outcomes but what I would argue
economic outcomes but what I would argue for you today is that the economic
for you today is that the economic
for you today is that the economic advantage of relationships isn’t only
advantage of relationships isn’t only
advantage of relationships isn’t only for individuals but that there is an
for individuals but that there is an
for individuals but that there is an economic advantage of relationship for
economic advantage of relationship for
economic advantage of relationship for communities a group of scholars
communities a group of scholars
communities a group of scholars including myself and Craig Abu Sean and
including myself and Craig Abu Sean and
including myself and Craig Abu Sean and Barry Rubin Indiana University looked at
Barry Rubin Indiana University looked at
Barry Rubin Indiana University looked at job creation and per capita income in
job creation and per capita income in
job creation and per capita income in the largest 50 metropolitan communities
the largest 50 metropolitan communities
the largest 50 metropolitan communities in the United States and what we found
in the United States and what we found
in the United States and what we found was that those communities that were
was that those communities that were
was that those communities that were most socially integrated in other words
most socially integrated in other words
most socially integrated in other words those communities where individuals were
those communities where individuals were
those communities where individuals were connected to each other in frequent and
connected to each other in frequent and
connected to each other in frequent and diverse ways produced jobs at a much
diverse ways produced jobs at a much
diverse ways produced jobs at a much greater rate than those communities
greater rate than those communities
greater rate than those communities where people were less socially
where people were less socially
where people were less socially integrated and not only that but of the
integrated and not only that but of the
integrated and not only that but of the 24 common predictors of economic growth
24 common predictors of economic growth
24 common predictors of economic growth that we considered social capital was
that we considered social capital was
that we considered social capital was the second biggest predictor now don’t
the second biggest predictor now don’t
the second biggest predictor now don’t get me wrong education matters education
get me wrong education matters education
get me wrong education matters education matters more than anything but social
matters more than anything but social
matters more than anything but social capital predicted job creation more than
capital predicted job creation more than
capital predicted job creation more than every other indicator including the
every other indicator including the
every other indicator including the level of manufacturing in the community
level of manufacturing in the community
level of manufacturing in the community and the number of professionals in the
and the number of professionals in the
and the number of professionals in the community so you might think about it
community so you might think about it
community so you might think about it this way if I live in a community and
this way if I live in a community and
this way if I live in a community and everybody that I know works at the same
everybody that I know works at the same
everybody that I know works at the same Bank there is very little economic
Bank there is very little economic
Bank there is very little economic benefit for the community sure the bank
benefit for the community sure the bank
benefit for the community sure the bank is unlikely to lose my business
is unlikely to lose my business
is unlikely to lose my business but I offer very little to them in terms
but I offer very little to them in terms
but I offer very little to them in terms of meaningful referrals by contrast if
of meaningful referrals by contrast if
of meaningful referrals by contrast if I’m part of a large and diverse social
I’m part of a large and diverse social
I’m part of a large and diverse social network that gives me access to
network that gives me access to
network that gives me access to knowledge and resources for my economic
knowledge and resources for my economic
knowledge and resources for my economic betterment and I bring those connections
betterment and I bring those connections
betterment and I bring those connections and I bring those benefits back to my
and I bring those benefits back to my
and I bring those benefits back to my community to help everyone so how is it
community to help everyone so how is it
community to help everyone so how is it that social capital leads to economic
that social capital leads to economic
that social capital leads to economic growth social capital helps communities
growth social capital helps communities
growth social capital helps communities economies grow in two ways by lowering
economies grow in two ways by lowering
economies grow in two ways by lowering the cost of doing business and by
the cost of doing business and by
the cost of doing business and by magnifying the economic impact so first
magnifying the economic impact so first
magnifying the economic impact so first transaction costs transaction costs
transaction costs transaction costs
transaction costs transaction costs refer to those costs associated with
refer to those costs associated with
refer to those costs associated with doing business the cost of finding
doing business the cost of finding
doing business the cost of finding customers the cost of gaining knowledge
customers the cost of gaining knowledge
customers the cost of gaining knowledge and expertise the cost of entering into
and expertise the cost of entering into
and expertise the cost of entering into agreements to deliver goods and services
agreements to deliver goods and services
agreements to deliver goods and services social capital lowers these costs so if
social capital lowers these costs so if
social capital lowers these costs so if I am part of a large and diverse social
I am part of a large and diverse social
I am part of a large and diverse social network people know about the goods and
network people know about the goods and
network people know about the goods and services that I provide I have access to
services that I provide I have access to
services that I provide I have access to knowledge and resources through my
knowledge and resources through my
knowledge and resources through my community and because I’m a trusted
community and because I’m a trusted
community and because I’m a trusted member of the community there’s less
member of the community there’s less
member of the community there’s less need to hire lawyers to enter into
need to hire lawyers to enter into
need to hire lawyers to enter into formal agreements social capital saves
formal agreements social capital saves
formal agreements social capital saves communities money now you may know that
communities money now you may know that
communities money now you may know that there are some parents who sell cookies
there are some parents who sell cookies
there are some parents who sell cookies for their daughters you are out there
for their daughters you are out there
for their daughters you are out there you know who you are parents who work
you know who you are parents who work
you know who you are parents who work for large organizations sell more
for large organizations sell more
for large organizations sell more cookies than parents that work for small
cookies than parents that work for small
cookies than parents that work for small organizations because they have access
organizations because they have access
organizations because they have access to a wider range of customers likewise
to a wider range of customers likewise
to a wider range of customers likewise if I play on an intramural soccer team
if I play on an intramural soccer team
if I play on an intramural soccer team or I’m part of a prayer group that
or I’m part of a prayer group that
or I’m part of a prayer group that creates economic opportunities for my
creates economic opportunities for my
creates economic opportunities for my daughters to help their troop to the
daughters to help their troop to the
daughters to help their troop to the economic impact of these transactions
economic impact of these transactions
economic impact of these transactions each of these relationship facilitated
each of these relationship facilitated
each of these relationship facilitated transactions has an economic multiplier
transactions has an economic multiplier
transactions has an economic multiplier so when my daughter’s sell their cookies
so when my daughter’s sell their cookies
so when my daughter’s sell their cookies that money goes to their
that money goes to their
that money goes to their and their troop uses the money to have a
and their troop uses the money to have a
and their troop uses the money to have a pizza party or to go camping that money
pizza party or to go camping that money
pizza party or to go camping that money pays the salaries of those people that
pays the salaries of those people that
pays the salaries of those people that work at the campground or sell pizza and
work at the campground or sell pizza and
work at the campground or sell pizza and they use that money to go see a baseball
they use that money to go see a baseball
they use that money to go see a baseball game and the owner of the baseball team
game and the owner of the baseball team
game and the owner of the baseball team upgrades the facility creating
upgrades the facility creating
upgrades the facility creating construction jobs and so on and so on
construction jobs and so on and so on
construction jobs and so on and so on when people are socially integrated into
when people are socially integrated into
when people are socially integrated into their communities that gives them an
their communities that gives them an
their communities that gives them an incentive to spend their money and to
incentive to spend their money and to
incentive to spend their money and to spend their money locally in a way that
spend their money locally in a way that
spend their money locally in a way that magnifies the economic advantage for the
magnifies the economic advantage for the
magnifies the economic advantage for the communities in which they live there are
communities in which they live there are
communities in which they live there are a lot of different approaches to
a lot of different approaches to
a lot of different approaches to economic developments communities build
economic developments communities build
economic developments communities build stadiums to create construction jobs and
stadiums to create construction jobs and
stadiums to create construction jobs and to attract tourism a lot of towns have
to attract tourism a lot of towns have
to attract tourism a lot of towns have invested heavily in fostering
invested heavily in fostering
invested heavily in fostering entrepreneurship and building a creative
entrepreneurship and building a creative
entrepreneurship and building a creative economy I once it had to had the
economy I once it had to had the
economy I once it had to had the director of economic development for a
director of economic development for a
director of economic development for a major aviation community tell me
major aviation community tell me
major aviation community tell me incentives and subsidies are all that
incentives and subsidies are all that
incentives and subsidies are all that matters what I love about relationship
matters what I love about relationship
matters what I love about relationship facilitated economic development is that
facilitated economic development is that
facilitated economic development is that it’s cheap it’s easy and it has positive
it’s cheap it’s easy and it has positive
it’s cheap it’s easy and it has positive benefits for everybody in the community
benefits for everybody in the community
benefits for everybody in the community so how do we do this how do we go about
so how do we do this how do we go about
so how do we do this how do we go about using relationships to foster the
using relationships to foster the
using relationships to foster the economy first begin with mapping your
economy first begin with mapping your
economy first begin with mapping your community look for linking connections
community look for linking connections
community look for linking connections relationships and networks that are more
relationships and networks that are more
relationships and networks that are more highly integrated produce economic
highly integrated produce economic
highly integrated produce economic outcomes better than networks that are
outcomes better than networks that are
outcomes better than networks that are disjointed from each other in order to
disjointed from each other in order to
disjointed from each other in order to maximize the economic effect people’s
maximize the economic effect people’s
maximize the economic effect people’s networks need to be connected so if we
networks need to be connected so if we
networks need to be connected so if we go back to this relay this map that we
go back to this relay this map that we
go back to this relay this map that we saw earlier if we take one person out of
saw earlier if we take one person out of
saw earlier if we take one person out of this map our once cohesive network
this map our once cohesive network
this map our once cohesive network separates into two disjointed networks
separates into two disjointed networks
separates into two disjointed networks with half of the professional and
with half of the professional and
with half of the professional and geographic coverage of the first network
geographic coverage of the first network
geographic coverage of the first network we need to be intentional about bringing
we need to be intentional about bringing
we need to be intentional about bringing people together there was a study that
people together there was a study that
people together there was a study that they a report that came out not too long
they a report that came out not too long
they a report that came out not too long ago from the Center for representative
ago from the Center for representative
ago from the Center for representative democracy
democracy
democracy about the characteristics of the most
about the characteristics of the most
about the characteristics of the most effective politicians they and
effective politicians they and
effective politicians they and identified intelligence honesty systems
identified intelligence honesty systems
identified intelligence honesty systems thinking resourcefulness I would add
thinking resourcefulness I would add
thinking resourcefulness I would add that our politicians need to be like
that our politicians need to be like
that our politicians need to be like Yenta in Fiddler on the Roof
Yenta in Fiddler on the Roof
Yenta in Fiddler on the Roof they need to be matchmakers they need to
they need to be matchmakers they need to
they need to be matchmakers they need to make connections between people who are
make connections between people who are
make connections between people who are otherwise not connected seconds we need
otherwise not connected seconds we need
otherwise not connected seconds we need to ask ourselves the question who do we
to ask ourselves the question who do we
to ask ourselves the question who do we bring to the table
bring to the table
bring to the table during some of my early research on
during some of my early research on
during some of my early research on economic development I came across the
economic development I came across the
economic development I came across the cake a case of the Church of God of
cake a case of the Church of God of
cake a case of the Church of God of Christ in Wichita Kansas the city of
Christ in Wichita Kansas the city of
Christ in Wichita Kansas the city of Wichita had been approached by the
Wichita had been approached by the
Wichita had been approached by the Church of God of Christ because the city
Church of God of Christ because the city
Church of God of Christ because the city had a 50,000 square foot department
had a 50,000 square foot department
had a 50,000 square foot department store that had been given to the city it
store that had been given to the city it
store that had been given to the city it had been abandoned and the city had no
had been abandoned and the city had no
had been abandoned and the city had no idea what to do with it the church came
idea what to do with it the church came
idea what to do with it the church came to the city and said we have an idea we
to the city and said we have an idea we
to the city and said we have an idea we want to take this store and break it up
want to take this store and break it up
want to take this store and break it up into mini stores and use them to
into mini stores and use them to
into mini stores and use them to incubate entrepreneurship so here you
incubate entrepreneurship so here you
incubate entrepreneurship so here you have the example of a city that had a
have the example of a city that had a
have the example of a city that had a resource that they didn’t know what to
resource that they didn’t know what to
resource that they didn’t know what to do it and by involving people that’s
do it and by involving people that’s
do it and by involving people that’s outside of the usual suspects outside of
outside of the usual suspects outside of
outside of the usual suspects outside of the major employers outside of the
the major employers outside of the
the major employers outside of the Chamber of Commerce outside of the
Chamber of Commerce outside of the
Chamber of Commerce outside of the United Way a church by involving them in
United Way a church by involving them in
United Way a church by involving them in the planning process they were able to
the planning process they were able to
the planning process they were able to realize an economic outcome that they
realize an economic outcome that they
realize an economic outcome that they wouldn’t have otherwise attained third
wouldn’t have otherwise attained third
wouldn’t have otherwise attained third support civil society 40% of Americans
support civil society 40% of Americans
support civil society 40% of Americans go to church regularly seventy-five
go to church regularly seventy-five
go to church regularly seventy-five percent of families with school-age
percent of families with school-age
percent of families with school-age children are somehow involved in youth
children are somehow involved in youth
children are somehow involved in youth sports half half of women over the age
sports half half of women over the age
sports half half of women over the age of 25 who describe themselves as regular
of 25 who describe themselves as regular
of 25 who describe themselves as regular readers are members of a book club these
readers are members of a book club these
readers are members of a book club these are untapped
are untapped
are untapped economic development resources by
economic development resources by
economic development resources by supporting these organizations as an
supporting these organizations as an
supporting these organizations as an opportunity to bring people together we
opportunity to bring people together we
opportunity to bring people together we create economic opportunity for everyone
create economic opportunity for everyone
create economic opportunity for everyone but civil society needs our help they
but civil society needs our help they
but civil society needs our help they need financial support from individuals
need financial support from individuals
need financial support from individuals and corporations but more importantly
and corporations but more importantly
and corporations but more importantly they need our time and they need our
they need our time and they need our
they need our time and they need our dedication
there is no silver bullet for economic
there is no silver bullet for economic development but building relationships
development but building relationships
development but building relationships is a good first step
is a good first step
is a good first step so go out meet your neighbor volunteer
so go out meet your neighbor volunteer
so go out meet your neighbor volunteer buy some cookies let’s get our economy
buy some cookies let’s get our economy
buy some cookies let’s get our economy going thank you
going thank you
going thank you [Applause]
”
Be First to Comment