Jim Heaney's recent Buffalo News article documents how economic development efforts through the Buffalo Economic Renaissance Corporation (BERC) have failed. A different Buffalo News article points out that in Niagara Falls, the City Council reduced the salary of their economic development chief from $100,000 to $1.00 due to dissatisfaction with economic development efforts. While I don't know what has or has not been accomplished with economic development in Niagara Falls, I suspect that political fighting played a role in the City Council's actions. Perhaps the City Council has made a tough but correct decision that government should not be in the business of economic development.
The best approach to attracting economic development is for local government to focus on hiring talented people and providing quality services in the basic areas of police, fire, building permits, streets, and education. Communities where businesses have a fair and honest shot of getting government contracts without engaging in the "pay to play game", and where stable and professional governments provide quality services, attract people and jobs. Local governments have plenty of items to focus on without getting involved in economic development efforts that they traditionally perform poorly. Politicians and patronage employees simply don't know how to create private sector jobs; they do not have the qualifications or experience for such efforts.
As Heaney states:
BERC has been troubled throughout most of its 32 years.
Previous mayors used it to bankroll risky ventures, and BERC and secondary economic development agencies operated by the city suffered loan defaults at more than double the national average. City lending programs also fell short of job creation goals.
In a typical year, before the recent slowdown under Brown, BERC was making about 25 loans a year totaling about $2.5 million. Activity nose-dived when Brown took office in 2006 and lending dwindled to 10 loans last year. Although BERC's lending was aimed at creating jobs, the agency did not have a reliable system to track employment and could document the addition of only about 100 jobs during Brown's first four years in office.
For 32 years BERC has failed, not just under the Brown administration but under all administrations. Organizations that achieve strong results do so based on the quality of the people they employ. Anything that politicians are put in charge of becomes a patronage pit. When you hire employees based on politics and not qualifications good results will not occur. Politicians need money to run for their present positions and the higher offices that they all dream about. Ground zero for the "pay to play" game is government assistance for economic development projects. Businesses with their hands out receive grants/incentives from politicians in exchange for contributing money for campaigns. This money game benefits very few and certainly has not impacted the local economy in any significant way. The 32 years of failure at BERC should be reason enough to get local government out of the economic development business. The failure of government sponsored economic development is not limited to BERC but also includes local agencies such as the Buffalo Urban Renewal Agency (BURA), the many local Industrial Development Agencies, the Empire Zone Program have also failed for the most part.
While County Executive Chris Collins went to war over funding cultural organizations as a luxury we can't afford, you won't see many elected officials brave enough to go to war over handouts to big businesses and developers. As Heaney has documented in past articles, most of BERC's activity was focused on assistance to east side barber shops. Assisting barber shops is a political strategy, not an economic development strategy. A barber who is pleased with assistance provided by a politician speaks favorably about that politician day after day. If loans from previous administrations were reviewed, I bet you will see an imbalance of assistance provided to West Side businesses under Mayor Masiello and to South Buffalo businesses under Mayor Griffin.
Perhaps the dissolution of BERC and the elimination of the Director of Economic Development in Niagara Falls are bold steps in getting government out of the economic development business. What do you think about local government being involved in economic development efforts?





"When you hire employees based on politics and not qualifications good results will not occur"
.......150% correct! Look all all the "ratards" that Brown surrounded himself with, Derenda, Karla Thomas, Miller-Williams, Antoine Thompson, Brian Davis. Thats what you get when you place your vote depending on the color of someone's skin and not the context of their character. After all the stuff thats happened to Brown administration it's going to take a lot of free groceries to get him elected.