Recommended Approach

The purpose of the Regional Economic Development Initiative (REDI) is to identify priority economic development projects for the northern NM region, and to develop a funding strategy to implement the projects. Two types of economic development priorities were identified in meetings with stakeholders in December 2007 and 2008. The first type is associated with region-wide, systemic issues that inhibit the region’s economic development. These priorities are categorized as “regional strategic areas” and include Economic Development Services, Human Capital, Physical Infrastructure and Public Policy.

The second type of priority includes projects and initiatives associated with industry clusters. While such projects and initiatives may need support from REDI in identifying and seeking additional funding sources, most are being led by local governments and organizations in the region, and do not need an entity to plan or implement them. Many of these projects and initiatives are also defined by local priorities, some of which are not necessarily shared by the entire region.

The Regional Development Corporation recommends that REDI focus on the strategic areas of Economic Development Services, Human Capital, Physical Infrastructure and Public Policy, for the first five to ten years of REDI. Support for some industry cluster projects may occur by identifying and helping to obtain funding for projects which are planned and ready to implement. Rationale for this recommendation is as follows:

1.    Greatest Need  Given the gravity of some of the region’s systemic deficiencies, success in individual industry clusters may be limited unless regional priorities are addressed first.

2.    Broad Benefit  Regional priorities will assist all governments and entities in the region by creating a stronger environment for economic development.

3.    Economies of Scale  Regionalizing those economic development priorities that are important to and benefit everyone will save money and increase coordination throughout the region.

4.    Support for Industry Clusters   Regional priorities provide support for all industry clusters without “picking winners” or reacting to changing local priorities. (See pages 11-13)

At year five, it is recommended that REDI assess the progress made in regional priorities. Support for industry cluster projects may be increasingly phased in at that time, growing in dominance as regional priorities are completed.