
          The South's Economic Future
                  By StaffStaff
          Vol. 2, No. 1, 1979, pp. 3-4
          
          Southern state development leaders prefer low-wage industries and
anti-union laws as the primary thrust for the future economic growth
in the region, according to a survey released by the Southern Regional
Council (SRC).
          Citing both "bewilderment and hope" in the findings of the survey
of board members of the Southern state economic development agencies,
the SRC reports show that "right-to-work" laws that restrict union
activities are the most preferred strategy for Southern states to
attract industry. As the same time, improved vocational education and
upgraded general education were endorsed as two ther steps for the
South's future economic development.
          The areas of growth which the development leaders endorsed in the
SRC survey completed in late 1978 were sectors "where the wage rates
have been low in the South." For example, the food processing industry
was a high preference of Southern development leaders for future
growth while wage rates in the industry have been among the lowest in
the region during the last decade.
          Steve Suitts, executive director of the Council and author of the
report, says that the development board whose members were surveyed
reflect only a narrow segment of the Southern population and "need to
be more representative." Only two percent of the 169 development board
members in the Southern states are Black or other minority and less
than one percent are female. "There is no representation of
community-based organizations which substatially represent the poor"
and few members are from labor groups. The report also finds a need
for more representation of "small industrial owners and merchants
throughout the region."
          9(Board members on the state development boards in North Carolina
were not included in the survey because the agency was in the process
of legislative change during the time of the survey. The report is
based upon questionnaires which were completed by 43 of the develpment
board members in 10 Southern states — Alabama, Arkansas,
Florida, Georgia, Louisiana, Mississippi, South Carolina, Tennessee,
Texas, & Virginia).
          State development boards and agencies in the South have primary
responsibility for establishing priorities and programs for economic
development. Southern agencies annually spend more than fifteen
million dollars of state fnds to promote the states' economic fortunes
largely through personal contact, recruitment, traveling, and
advertising.
          Almost all development board members surveyed endorsed "balanced
growth" for the South's future yet a few admitted that they didn't
know what the term actually meant. The chemical industries were, in
fact, the first to choice of most leaders surveyed. One in five board
members preferred it. Other areas of high preference included mining,
manufacturing, tourism, and entertainment.
          Suitts points out that develpment leaders have a preference for
areas of economic growth which haven't had rapid job growth in the
South during the last nine years. For example, almost 17 percent of
those surveyed chose agriculture as their first choice for economic
development. "The fact is that jobs in agriculture have been declining
over the past 20 years," Suitts said. If Southern states intend to
develp jobs in areas of low growth, "promotional activities alone will
not secure such an ambitious objective as reordering the areas of
growth within the South.If the trend indicates that development boards
do not place the highest priority with creatingjobs in economic
development, the very purposes of the agencies are in question," the
report states.
          The choices for economic development analyzed by political
affiliation revealed surprisiing results. For example, strong and weak
Democrats were more likely to endorse low-wage industries as preferred
areas of development than were Republicans. Strong Republicans selected
high-wage industries more often as their first preference than did any
other political group.
          Weak Democrats and Independents  — not Republicans  —
chose "right-to-work" laws as the foremost strategy for economic
development more than any other political group. Almost half of both
weak Republicans and Independents believed that "right-to-work" laws
were the preeminent strategies for the South's 

economic future.
          The report also noted that native-born Southerners were more likely
to endorse low-wage industries and "right-to-work" laws than were
those not born within the region. "At the same time," Suitts stated,
"it is encouraging that lifelong Southerners to note that development
leaders born within the South are those who believe that bi-racial
cooperation is in any way important in economic development for the
future."
          The Council is sending its finding to the state economic
development comissions, federal agencies, and Southern governors. The
report recommends that Southern governos appoint a more diverse board
for economic development and that the agencies institue more focused,
direct activities showing that the primary objective of economic
development in the region is creating gainful employment for
Southerners.
          In addition, the report recommends that state agencies "abandon the
preferences for areas and strategies of development that stress cheap
labour and anti-unionism. 'A good day's work for a good day's pay'
should be enough of a philosophy and slogan to emphasize the
attractions of an energetic work force in the South," the report
concludes.
          Copies of the report are available from the Southern Regional
Council, 75 Marietta Street, N.W., Atlanta, Georgia 30303 at $3.00
each.

        