Andrew Dumont (Federal Reserve System) discusses topics including inclusive resilience planning and development at the NADO-DDAA Washington Conference.

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Advancing Shared Economic
Prosperity in Rural Communities
Presentation at the NADO and DDAA Washington
Conference
Andrew Dumont, Senior Community Development Analyst, Board of Governors of the
Federal Reserve System
March 15, 2022

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Table of Contents
The Future of Economic Development
1
Factors Driving this New Approach to Economic Development
2
Investing in Rural Prosperity: An Overview
3
A Framework for Advancing Shared Economic Prosperity
4
SECTION
SECTION
SECTION
SECTION
5 Building Local Capacity
SECTION

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Disclaimer
The information, analyses, and conclusion set forth are those of the presenter
and do not necessarily indicate concurrence by the Board of Governors of the
Federal Reserve System, the Federal Reserve Banks, or members of their
staffs.
Mention or display of a trademark, proprietary product, or firm in the
presentation by the author does not constitute an endorsement or criticism by
the Federal Reserve System and does not imply approval to the exclusion of
other suitable products or services.

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The Future of
Economic Development

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The Future of Economic Development
• Making your community / region attractive to people
 High quality public education and health care systems
 Access to recreation opportunities
 Available, affordable, high-quality childcare and housing options
 Good sense of place (attractive downtown, unique sense of identity)
• Creating the conditions for those people to be productive and innovative
 Strong entrepreneurial and small business support system
 Workforce development and training opportunities
 Affordable, accessible high-speed internet
 Smooth access to market (transportation infrastructure, regional coordination)
• Inclusive development is also becoming a significant priority
THE FUTURE OF ECONOMIC DEVELOPMENT

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Factors Driving this New Approach to
Economic Development

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Significant Demand for Workers
DRIVING FACTORS

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Anemic Population Growth in Rural Areas
DRIVING FACTORS

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Equity: The Economic Imperative
• While not a settled research question, some research has linked higher
income inequality to slower and less resilient economic growth
 See Cingano, F. (2014). Trends in Income Inequality and its Impact on Economic
Growth. OECD Social, Employment and Migration Working Papers, No. 163.
• Greater income polarization in the U.S. has led to a lower marginal
propensity to consume, a key issue in a consumption-driven economy
 See Alichi, A., Kantenga, K., & Solé, J. (2016). Income Polarization in the United
States. IMF Working Paper, No. 16/121.
• Recent research by Federal Reserve staff estimates that racial and gender
gaps cost $2.6 trillion of foregone GDP nationally in 2019.
 See Buckman, S.R., Choi, L.Y., Daly, M.C., & Seitelman, L.M. (2021). The
Economic Gains from Equity. Economic Research Working Papers, No. 2011-11.
• Research indicates there are things that mitigate the negative effects that
income inequality has on growth (so, there are things we can do)
 See Aiyar, S., & Ebeke, C. (2019). Inequality of Opportunity, Inequality of
Income and Economic Growth. IMF Working Paper, No. 19/34.
DRIVING FACTORS

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Nearly all recent rural population growth
has come from people of color
Source: Lichter, D., & Johnson, K. (2021). A Demographic Lifeline to Rural America: Latino Population Growth in New Destinations, 1990-
2019. In A. Dumont, & D.P. Davis (Eds.), Investing in Rural Prosperity (pp. 67-80). Federal Reserve Bank of St. Louis & Board of Governors
of the Federal Reserve System.
DRIVING FACTORS

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Hispanic population gains are offsetting
population losses in many rural areas
DRIVING FACTORS

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Investing in Rural Prosperity: An
Overview

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Investing in Rural Prosperity: An overview
• What is Investing in Rural Prosperity?
 An edited book, available free of charge to the public electronically and in hard copy
• Who published the book?
 The Federal Reserve Board and the Federal Reserve Bank of St. Louis
• Why did we publish this book?
 To help inform rural development stakeholders how policies, practices, and funding
streams at the local, state, and federal level can support the achievement of shared
economic prosperity in rural communities, especially historically marginalized areas.
• What does the book contain?
 A high-level overview of the past, present, and potential future of economic opportunity in
historically marginalized rural places, including key factors driving those outcomes
 A framework for fostering shared economic prosperity in rural communities
 Case studies showing how rural communities across the country have made strides in
creating opportunities for their residents
 Key policy, practice, and funding considerations
INVESTING IN RURAL PROSPERITY

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Investing in Rural Prosperity (continued)
• How did we decide what to include in the book?
 We were advised by colleagues at the other Reserve Banks, along with rural development
leaders from the financial, nonprofit, philanthropic, academic, and government sectors
• How long is the book?
 The book contains 42 chapters that average 14 pages long for a total of just over 600 pages
• Who wrote the chapters included in the book?
 79 authors from 28 states representing nearly every region of the United States
o From financial institutions, nonprofits, philanthropies, academia, and government agencies
o More than half are women, and a quarter are people of color
o They address an array of issues including workforce development, housing, small business support,
financial and/or digital inclusion, capacity building, and health
• Where can I access the book?
 www.stlouisfed.org/investinrural
INVESTING IN RURAL PROSPERITY

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A Framework for Advancing Shared
Economic Prosperity1
1 The ideas in this section are drawn from Davis, D.P., & Dumont, A. (2021). The “TRIC” to Fostering Shared
Economic Prosperity in Rural America. In A. Dumont, & D.P. Davis (Eds.), Investing in Rural Prosperity (pp. 135-
152). Federal Reserve Bank of St. Louis & Board of Governors of the Federal Reserve System.

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• Rural communities are more likely to achieve broad-based, long lasting
economic prosperity if they take an asset-based, equitable approach to
development
• To that end, we propose an approach to rural development that is:
 Tailored to the specific goals, assets and organizational infrastructure of the
community;
 Designed to be resilient to changing circumstances;
 Intentionally inclusive about who is at the decision-making table and who
benefits from local development; and
 Created and carried out through a collaborative process.
• We think this approach is the “TRIC” to fostering shared economic
prosperity in rural communities
The “TRIC” to Shared Rural Prosperity
A FRAMEWORK FOR SHARED PROSPERITY

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The four TRIC principles are intimately
interrelated and mutually reinforcing
A FRAMEWORK FOR SHARED PROSPERITY

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Building Local Capacity

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Six Strategies to Build Inclusive Local Capacity
• Build local organizational capacity1
 Operating support for rural community-based organizations
• Foster robust local engagement and leadership
 Funding for community events or surveys; training on inclusive engagement strategies
• Advance community planning
 Training on how to do inclusive and equitable planning, and funding to implement
• Leverage partnerships and collaboration
 Connecting scattered rural organizations and governments to form partnerships
• Promote wealth-building, financial capability and homeownership
 Providing capital to residents to purchase their manufactured home communities
• Strengthen community and individual resiliency
 Financial and technical support for resilience planning and capital for mitigation measures
1 Drawn from Kackar, S., & Fitter Harris, S. (2021). Building Local Capacity in Rural People, Places and Systems. In
A. Dumont, & D.P. Davis (Eds.), Investing in Rural Prosperity (pp. 461-474). Federal Reserve Bank of St. Louis &
Board of Governors of the Federal Reserve System.
BUILDING LOCAL CAPACITY

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Developing Climatic Capacity
• Rural communities are more vulnerable to climate change because they
often lack the resources, infrastructure and adaptive capacity of more-
urbanized areas.1
• Building adaptive capacity building requires addressing community-level
and individual-level factors
 Fostering individual-level adaptive capacity requires strengthening the
socioeconomic condition of individuals. For example, through:
o Helping workers gain skills that are transferrable outside the region if a disaster strikes
o Increasing financial literacy and disaster readiness planning skills
 Fostering community-level adaptive capacity requires:
o Supporting rural organizations to hone their ability to think long-term, manage
complex projects, develop and execute community-based economic recovery plans, and
access federal recovery funds and maintain compliance with applicable federal policies
1 Drawn from Cain, C. (2021). Developing Climatic Capacity. In A. Dumont, & D.P. Davis (Eds.), Investing in Rural
Prosperity (pp. 475-486). Federal Reserve Bank of St. Louis & Board of Governors of the Federal Reserve System.
BUILDING LOCAL CAPACITY

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Inclusive Resilience Planning
• To be effective, resilience planning needs to address deep disparities and
inequitable socioeconomic fragmentation, as a community is only as
resilient as its most vulnerable members1
• A vital aspect of increasing disaster awareness and preparedness among
vulnerable community members is establishing partnerships with local
orgs trusted by the community and with a demonstrated track record
• Planning grants for community planning team participants allow them to
meaningfully engage, while small additional grants to cover the cost of
meeting space, food and materials for the planning process help ensure
laypeople can participate, reducing barriers for marginalized groups.
• Since rural communities may lack sufficient resources to move from
planning to action, access to funding to implement at least one promising
strategy from the planning process is crucial for inclusive engagement.
1 Drawn from Bryant, J., & Cooper, J.T. (2021). A Path for Rural Resilience. In A. Dumont, & D.P. Davis (Eds.),
Investing in Rural Prosperity (pp. 169-180). Federal Reserve Bank of St. Louis & Board of Governors of the Federal
Reserve System.
BUILDING LOCAL CAPACITY

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Thank you!
Andrew Dumont
Senior Community Development Analyst
Board of Governors of the Federal Reserve System
Andrew.m.Dumont@frb.gov