===================================================================== Center for Community Economic Development University of Wisconsin-Extension Community Economics Newsletter No. 295 May 2001 ===================================================================== A Newsletter from the Center for Community Economic Development; Community,Natural Resource and Economic Development Programs, and University of Wisconsin-Extension, Cooperative Extension Service ===================================================================== Adaptive Strategies for Rural Communities in an Information-Intensive Economic Environment /1 by John Leatherman /2 Electronic commerce and, more broadly, information technologies (IT) are having increasingly important implications for rural economic viability. This discussion catalogues some of the adaptive strategies available to help close the digital divide in rural places. Strategic Planning for Rural Telecommunications The process of determining how to bring needed telecommunications infrastructure to a rural community might begin with a local strategic planning initiative. Strategic planning starts by evaluating the existing market and opportunities and potential future technology applications. Such an initiative involves a broad cross-section of public and private information users and providers. Beginning with a needs assessment, community leaders inventory existing infrastructure and services as well as current use of available services, estimate potential demand for expanded services, and identify the resources necessary to implement strategies. The second step involves creating priorities, acknowledging that the community is unlikely to obtain all services and improvements at once. The priority might relate to upgrading local school infrastructure, creating a central community access point, or bringing telemedicine services to the hospital, any of which might serve as a starting point for upgrading local infrastructure. The third step is to create an action plan that outlines strategies, funding resources, organizational issues, and a time line for implementation. Demand Aggregation Low-income and rural communities typically suffer from similar problems when market-driven solutions are needed. That is, they lack the economic base to be attractive investment targets to profit-driven interests. The principle of cooperatives might be successfully applied to enhance the attractiveness of these communities. The notion is one of aggregating demand into something like a rural cooperative to enhance the negotiating capacity and/or buying power of participating individuals. Perhaps the most feasible cooperative-type model might function in association with existing trusted local nonprofit organizations. Churches, unions, colleges, tribal councils, agricultural organizations, and other locally based organizations may be in the best position to negotiate with technology manufacturers and providers given strong preexisting ties with larger numbers of potential co-op members. This model could supplement access provided at public locations such as schools and libraries. A similar strategy is to “piggyback” a number of small users onto communications nodes created for larger users. These rural area networks might bring together local businesses, health care providers, and local governments and piggyback them onto a major private sector employer or the state educational system, for example. Locally Based Telecommunication Enterprises Following the model of public electric and water utilities, some rural communities are creating public enterprises to provide advanced telecommunications technologies. The case of Iowa is significant in this respect. In recent years, 30 rural communities have voted to create municipal telecommunications utilities. The motivation for action varied, but included dissatisfaction with current service levels, the hope that upgraded telecommunications service would stimulate economic development, the desire to improve educational and other information-intensive local services, and the experience of having prepared for increased competition associated with energy deregulation in the state. Similar to public utilities, not-for-profit organizations have been formed to bring Internet-related services to under served rural areas. Upgrading Local Government Increasingly, local governments are engaging in information technology planning to identify how to meet its own ever-growing and changing technology needs. The elements of a local government IT plan would include an evaluation of current and future hardware, software, and staff/training resources. It would also set policies governing IT-related purchases to avoid incompatible or duplicative purchases, and it would develop specific strategies for funding implementation plans. Given the ever-increasing necessity to utilize IT tools, helping local policy makers understand the opportunities associated with local government adoption of technology can help transform IT from a “black hole” of expense to a tool for improved service delivery. Local Initiatives to Foster Technology Development and Literacy Among the more important elements of a local technology development and literacy program is that it be locally-designed and driven. This is to say that each program needs heavy input from local institutions and the target population to create programs responsive to the needs of the under served. One way to increase the desired impact is to work through established, trusted local institutions. This is to incorporate an added element of technology access and training to places and programs where the under served already go for education, training, or other assistance. Thus, program success is more likely when programs are built through existing community centers, service programs, and other existing local institutions. The other major element needed for success is to emphasize training in the use of technology beyond simply providing access. Many among under served populations need encouragement and assistance in overcoming their ambivalence or reticence toward technology. The success of a technology access center will increase when coupled with targeted training opportunities such as after-school programs for youth, job-skills training for the poor, family communication opportunities and health care information of interest for the elderly, or business applications for remote locations. Making Use of External Resources Among the well-established strategies for rural community economic development is to make full use of external aids and resources. The case of Internet technology development is no different. The federal government has placed great emphasis on technology development and dissemination and has established numerous programs to support telecommunications access. Similarly, many states have initiated science- and technology-based development programs. Numerous private foundations have emphasized reducing the digital divide and have dedicated significant resources to the goal. The important point is that help and resources are available to communities. The Internet itself may be the best research tool available to identify external resources. 1/ Based on “Internet-Based Commerce: Implications for Rural Communities.” Reviews of Economic Development Literature and Practice: No. 5. U.S. Economic Development Administration. The full report is available on the EDA Web site at: 2/ Assistant Professor in the Department of Agricultural Economics and Director of the Office of Local Government, Kansas State University-Extension. Ron Shaffer Community Development Economist Issued in furtherance of Cooperative Extension work, Acts of May 8, and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Carl O‘Connor, Cooperative Extension, University of Wisconsin-Extension. University of Wisconsin-Extension, U.S. Department of Agriculture and Wisconsin counties cooperating. 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