An economic strategy for America's inner cities: Addressing the controversy

Revitalizing America's inner cities requires a radically different approach. We must Stop trying to cure the problems of these distressed urban areas by perpetually expanding social programs and hoping that economic activity will follow. An economic strategy is needed to build viable businesses that can provide sorely needed employment opportunities. Economic development in inner cities will only come from enhancing the advantages of an inner-city location and building on the base of existing companies, while dealing frontally with, the present disadvantages of the inner city as a business location (many self-inflicted by poor government policies). There is genuinely economic potential in inner cities that has been largely unrecognized and untapped. The private sector must play a central role, as it has in successful economic development everywhere. The private sector is already investing in inner cities. By improving perceptions and addressing problems in the inner-city business environment, this trend can be accelerated. Community-based organizations (CBOs) deserve much credit for helping to create the conditions under which the private sector would consider investing. Now, however, inner cities are ready to move to the next stage, which will require new CBO strategies. Rather than advising, financing, and owning inner-city companies, CBOs should facilitate private sector involvement, change attitudes, train residents and link them to jobs, and, where appropriate, develop sites. There is a continued, vital role for government and for public resources in inner-city economic development, not a role focused on direct intervention and operating subsidies, but on creating a favorable environment for business (e.g., assembling and improving sites, training workers, upgrading infrastructure, streamlining regulation).