Economic Development Committee
A metropolitan region comprises of a densely populated urban area and less populated surroundings all sharing housing, industry and infrastructure. It encompasses several municipalities and jurisdictions which include; cities, townships, districts, states, counties, exurbs and neighborhoods. Metropolitan areas comprise of one urban area or more, towns, satellite cities and prevailing rural areas tied socio-economically to the urban core. In simple terms, it combines an urban center with the surrounding territories that are bound together by employment or trade. The main purpose of creating a metropolitan area is to ensure there is improved management of public policies that are of communal interest to all the cities involved. There is an economic development committee in each metropolitan whose work is to pay attention to neighborhood concerns such as planning, zoning, public housing, economic development, township administration, land use and code compliance. This committee is in charge of economic development, which means good living standards and a stable economy for the people. The economic development committee deals with the issues described next. Local and Regional Economic Development Incentives The main aim of economic development incentives is to bring growth in metropolitan areas, creating new jobs, developing infrastructure and still generate tax revenues. These incentives are offered by local, state, and federal governments. It is the duty of the committee to dictate the means to provide their development. These incentives include financial assistance in terms of loans, tax incentives, industrial revenue bond and development in infrastructure. The economic development committee can decide which areas need new investment to reduce the poverty levels and which infrastructure is first to put up. Some cities end up facing budget deficits, thus experiencing slow growth; the committee decides whether to increase taxes or to reduce staff. It may further advise the government to reduce tax liability for a certain period with no expectations of repayment. This lost revenue will be covered by creation of new jobs in that area. The committee discusses the wellbeing of the community, and it reasons that engaging in economic development practices can lead to economic growth of the community. These activities include; involving other local governments when planning for economic development, giving economic assistance to other small communities, developing a workforce for low-income workers, offering training to local business people, increasing taxes to finance infrastructure and giving subsidized loans to businesses. Land Use and Planning Land is a main resource for economic development, and without it economic development is slowed because there would be limited opportunities for business investments and employment. In most metropolitan regions, there is little vacant land suitable for development. The small vacant lands are unfit for usage due to aspects such as, shape, location and size. Land prices are on the increase due to the limited availability of land. The issue that metropolitan leadership is facing is whether to intervene to make land available in the market place for development. It has the power to assemble and acquire land for development, and it is the duty of the economic development committee to decide under what circumstances the land should be acquired. There is also the government’s duty to plan for the land use in their region; it plans for the community’s need and, at the same time, safeguards the natural resources. Land planning is exercised in order to advance the people’s welfare as well as that of their community through the creation of equitable, healthy, convenient and attractive environments for future and present generations. Infrastructure Infrastructure includes water, power, telecommunication, irrigation, sanitation and transport sectors, which have an impact on economic development. Where there is good infrastructure, there is reduced cost of production, resulting in attractive prices for goods in international markets. Once the goods are purchased, they bring foreign exchange, which is an advantage to the particular metropolitan region. It is therefore the government’s duty in conjunction with the development committee to ensure that there is proper and adequate infrastructure at all times. Development in infrastructure such as improved transport and health status increases the economic incomes to labor. Furthermore, proper infrastructure improves the quality of life through provision of amenities such as clean water and proper sanitation. The existence of such services provides access to education and jobs resulting in raised labor productivity. Diseconomies Associated with Economic Development Diseconomies of scale are influences that make the government and other firms to produce products at an increased cost per-unit. It is claimed that if they are not in existence, then there is no limit to the growth and size of a firm. Diseconomies of scale include bureaucratic insularity, communication distortion, incentive limits of employment and atmospheric consequences. When firms expand, there is increased specialization and less commitment by employees. In such cases, employees will have difficulty in understanding the sole purpose of corporate activities and the contribution they make and this will result in alienation of the employees. On bureaucratic insularity, when firms increase in size the accountability of senior managers to the lower organization ranks decreases. This presents a chance for them to benefit personally rather than concentrate on the company’s performance. Putting the incentives into consideration, it is evident that large firms offer limited incentives to their employees. This may have an effect on executive positions and hence making large companies disadvantaged in comparison to the smaller ones where employees are rewarded for the success of the firm. Communication distortion occurs where additional hierarchical layers are required because information passes through many people and ends up distorted. This, in turn, leads to poor decision making by executives since they do not have the real facts. It is therefore the government’s duty together with the economic development committee, to introduce incentives dictating the maximum size to which a firm should increase. Economic Development and Revenue Increases The government uses taxes paid by citizens for government services and to finance them. In situations where the government can finance its spending outside taxation, the following is observed; when tax rate increases productivity declines because people will work less. In the real sense, when there is increased revenue, there is room for economic development. The government can use the collected revenue to finance infrastructure in the region and bring new developments like construction of schools and hospitals. Increase in tax further affects foreign investment as increase in tax will lead to a decrease in foreign investment; this is a negative impact on economic development. Economic Development and the Environment Economic growth and development increase the quality of life for countless people, but with a price of negative consequences on the environment. Natural resources, which are land, air, and water, are facing degradation at an alarming rate. In addition to that, environmental factors such as air pollution, exposure to toxic chemicals and waterborne diseases put the health of many people at risk. Low-income earning regions are vulnerable to environmental hazards like global climate changes. The more a region’s economic development increases the more pollution it causes to the environment. For example, the establishment of many industries means there is increase in development. The problem is that these industries will end up causing air and water pollution. Water pollution is caused by emission of organic pollutants originating from industrial activities. The economic development committee aids the government in enacting rules that prevent severe pollution of the environment. Use of Economic Advisory Committees and Commissions The advisory committee’s duties are to advise director of economic development and the city council on matters concerning economic development in the region. It serves to facilitate the tasks of all economic development groups within the city. It enriches the relationship between them. It further communicates with the community on issues regarding economic development, redevelopment projects and affordable housing. Lastly, it recommends programs that help in stimulating business activities, retention and expansion of existing businesses. Economic development is very essential in any region since people’s standards of living are improved. A city may engage in various activities like setting up new industries and improving infrastructure for proper economic development. However, as these operations are carried out, some may not be healthy and the need for an economic development committee arises. For example, foreign investors may desire to build a factory in a certain area in the city; it is the duty of the committee to show them where they can build and if not to give them the reasons. Cities experience environmental pollution and therefore the committee enacts laws which prevent severe pollution. The committee ensures fair utilization of government revenue through projects involving improvement of infrastructure. In situations when a certain firm desires to expand its business, it has to consult with the committee first to determine if it will present positive competition. The committee also intervenes on the areas that are lagging behind economically to be given special consideration such as more investments and reduction of taxes for some time. The committee works hand in hand with the government, thus ensuring smooth running of the metropolitan regions. Erika Hall, is an experienced writer at a leading writing agency https://essayelites.com. She loves a bit of adventure while traveling. The experience she gains in trips gives her the inspiration to write sparkling essays for students all over the world.