ECONOMIC DEVELOPMENT IN A RURAL COUNTY: A CASE STUDY OF A
PRIVATELY DRIVEN PROGRAM
Abstract
Rural areas of the country have seen an increase in the number of economic development
programs in recent years. Most of these initiatives have been government-driven. The literature
suggests that for many of these programs success can be problematic. In contrast to government-
led programs, this paper investigates a privately driven economic development organization in a
distressed rural county of Pennsylvania. The analysis indicates that a privately driven initiative
can be effective in certain aspects. Specifically, the establishment of a loan fund to aid local
businesses along with being able to set an agenda and pursue it based on the best available
information can be viewed as positives. Conversely, the inability to attract new manufacturing
firms that pay higher wages has not proven successful.
Key Words: deindustrialization, infrastructure, social capital
Local economic development programs have become increasingly commonplace in rural
America. Two events appear to have triggered these initiatives: First, the decline of federal
funding during the 1980s, and second, a general economic decline in rural areas during the same
timeframe. (Buttel and Gillespie, 1991) The majority of these programs have been government
driven, where state and or local governments use various techniques in an attempt to boost a
local economy. The outcomes of these initiatives can vary, however, the research suggests that
reviving a local economy is no easy task and real progress is often hard to come by. The
question this article poses is, could a privately driven program in an economically distressed
rural county, less burdened by government bureaucracy and politics, do better? However, it is
important to note that economic development initiatives usually involve some combination of
government, business, and civic participation. For instance, all economic development programs,
including privately driven ones, are dependent on various types of government funding in order
to function effectively. Similarly, these organizations must develop close ties with the business
community to have an impact, while the support and involvement of various civic groups can aid
in creating growth. (Galston and Baehler, 1995)