Obama’s ‘Promise Zones’ Have Potential if They Include Anchor Institutions

At a press conference last week, President Obama told the story of his time organizing in Chicago and highlighted the work local communities do to support their neighbors and prepare them to be contributors to the economy. This renewed emphasis on the importance of localities accompanied the President’s announcement of five “Promise Zones,” specially designated communities that will receive increased federal resources and coordinating support in their efforts to develop economically. This announcement comes as welcome news to advocates for equal economy opportunity in the United States, but the approach seems to be constrained by an overly narrow definition of community stakeholders.

According to the White House, the Promise Zones, which will be established in Los Angeles, San Antonio, Philadelphia, southeastern Kentucky, and the Choctaw Nation of Oklahoma, will focus on replacing distressed housing, reducing crime rates, increasing student high school graduation prospects, and stimulating economic growth via tax incentives. As I’ve written before, the ineffectiveness of the modern United States Congress has made federal legislation to address rising inequality a pipe dream. Thus, the local level is the new battleground for tackling pressing economic challenges such as these.

However, questions still remain as to whether these new Promise Zones take the best possible approach to generating sustainable economic development. At this point, information provided by the Department of Housing and Urban Development and the White House focuses primarily on the usual community stakeholders: businesses, K-12 programs, the local government, etc. Given the financial constraints many localities and school districts are facing and the natural limitations of tax incentives, it would behoove the administration to widen the scope of the policies they implement in pursuit of growth.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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