In the United States , local government has the ability to tax business activity , creating a direct source of revenue that can be used to pay for civic activities . This means that economic development activities and initiatives need only focus on increasing overall economic activity to justify the allocation of money and resources . When companies like Amazon or Tesla announce that they are looking for a new site , cities in the U . S . allocate significant resources to attracting these proposals , as the ongoing tax revenue can potentially see a substantial impact on their operational budgets .
Australia ’ s system of government and taxation scheme means that local economic development occurs in a very different context . Local government has limited capacity to raise its own revenue and is heavily reliant on the other tiers of government for funding and grants to engage in a range of activities . As economic activity is taxed at the State and Federal levels ( such as increased revenue from payroll , income tax etc .), increased economic growth may see increased revenue collected in one region be passed on to cities and regions other than the areas in which it was originally generated . Furthermore , local governments in Australia source much of their funding directly from existing residents through the collection of rates . Whilst an influx of new residents and the rates they pay may see an increase in income , it also means that Councils will generally need to expand their service offerings and infrastructure investment to accommodate these new residents . As residents could be considered the ‘ majority shareholders ’ in local governments , local economic development in Australia must ensure that it is delivering value to these shareholders , by devising and implementing initiatives that improve the prosperity and economic livelihood of communities . This is where the use of the Sustainable Development Goals becomes an imperative for local governments if they are to be responsive to the communities which they serve .
A Foreign Affairs Defence and Trade Senate Committee inquiry in 2019 into the SDGs made 18 recommendations , which included that federal and subnational implementation plans be created , and that the Australian government integrate the goals into ‘ all internal and external websites , strategies and policies ’. This is especially important given that many of the targets and goals rely on the efforts of State and Local governments , who are often responsible for more contemporary or localised matters .
Legislative limitations and the lack of a universally accepted definition of ‘ local economic development ’ are often discussed as some of the main challenges facing local government ’ s involvement in economic development in Australia . A focus on achieving the SDGs at a local level has the potential to alleviate some of the constraints caused by these issues , as the SDGs constitute a universal vision for prosperity that have not been shaped by conflicting priorities or politics . The SDGs could even provide an opportunity to revisit models for Local , State and Federal cooperation on economic development in Australia , particularly in the context of dealing with increasing uncertainty and a rapidly changing world . At the very least , a broader adoption of the Sustainable Development Goals amongst local economic development practitioners would provide a common language to facilitate increased knowledge share and collaboration between local governments around the country . Furthermore , increased reference to the SDGs in Australia , combined with the existing uptake of the Goals around the world provide an opportunity for benchmarking progress on prosperity . Unforeseen events , such as COVID-19 , natural disasters , and global conflicts can mean that it might not be possible to achieve goals for measures such as unemployment when it is time to review a strategy . The opportunity to benchmark these targets , using the same measures as other regions , cities or countries can help to provide an indication as to the success of economic development initiatives in the context of extrinsic forces .
During an interview in 1975 , economist Milton Friedman famously said : ‘ One of the great mistakes is to judge policies and programs by their intentions rather than their results ’. As the world heads towards what can feel like an increasingly uncertain future , it is critical that those involved in local economic development draw inspiration from these words , and develop and implement initiatives that deliver genuine social and economic benefits for the members of their communities which they work for . Centering the Sustainable Development Goals , and their focus on achieving prosperous and fulfilling lives for all , at the core of local economic development strategies can help to ensure that these efforts are contributing to the prosperity of our local communities .
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ABOUT THE AUTHOR
TRISTAN CARTMEL Tristan Cartmel is Principal Economic Development Officer , Fraser Coast Regional Council , where he is responsible for leading Council ’ s investment attraction activities . Tristan holds a Master ’ s degree in
Commercial Law from the University of Melbourne , and a Bachelor of Asia and International Studies , Griffith University . He has worked across both the private and public sectors in Australia , China and South Korea . Tristan is passionate about utilising ‘ big data analytics ’ to seek out innovative and sustainable solutions to the economic , social and environmental opportunities and challenges facing communities now and into the future .
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