business backgrounder | economy
Acknowledging that lower-income families have been particularly hard hit , he adds , “ But if the economy gets hot enough ” everyone benefits and “ the ‘ K ’ will become a checkmark .”
“ Hot enough ,” however , does not describe current conditions , which have exposed pre-existing economic fault lines requiring immediate attention . There ’ s now a heightened awareness of trends that were contributing to socioeconomic divisions before the lockdowns . Rural communities , particularly those with limited broadband access , were further disadvantaged as business and education went online . So too were lowincome families without access to technology essential for work and their children ’ s education . For people just entering the job market , many entry-level jobs disappeared .
the awb institute responds
Mike Schwenk , chair of the AWB Institute , speaks of the urgency as he describes the institute ’ s Washington in the Making initiative . He speaks of “ reinventing ” the institute with a long-term focus , seeking solutions to some of the intractable problems of the state . Working with Patrick Jones , executive director of the Institute of Public Policy & Economic Analysis at Eastern Washington University , AWB created a set of economic indicators organized around five “ pillars :” talent , business environment , infrastructure and connectivity , entrepreneurship and innovation , and place and community . ( See cover story .)
Schwenk emphasizes that the indicators are a means to an end . The metrics help the institute identify opportunities and measure progress . While some of the challenges , inevitably , are long-standing — broadband , rural economic development , and workforce availability and training — he wants to explore system-based approaches to solving them .
The pandemic “ puts it all on steroids ” and has led to some new approaches to rural development . He cites the urban-rural divide as one example .
“ With the advent of Covid , we have a different view of how to do rural economic development ,” Schwenk says . “ It ’ s not so much about getting new businesses to be in rural areas , it ’ s about getting new people to be in rural areas .” As remote work has taken off , it has expanded opportunities for those already in rural communities as well as for those who might want to relocate . So the institute adapted a successful worker training program from Utah , he said , that will be introduced in Wenatchee with plans to take the program statewide .
“ With the advent of Covid , … we have a different view of how to do rural economic development .”
— Mike Schwenk , chair , AWB Institute
new partnerships emerge to promote recovery
Lisa Brown , director of the state Commerce Department , also stresses the need for a targeted , urgent response to the economic crisis . The department has adopted a “ sector-by-sector and region-by-region ” approach to recovery , with progress tracked by the Economic Recovery Dashboard . “ We are concerned that while obviously some companies and some sectors are doing well , there are others that are being left behind .”
“ The recovery from the last recession was uneven ,” Brown says , with unemployment rates in parts of the state finally approaching pre-recession levels just as the pandemic hit .
In addition to the sector / region focus , Brown says , “ equity is a big piece of this .” She cites the department ’ s new Small Business Resiliency Program that works with nonprofits in under-represented communities to help the department connect them to federal and state resources . The department reports “ non-English speaking and business owners of color are far less likely to receive information about those programs even as they face disproportionately higher rates of closure .” The program began pre-pandemic but efforts have accelerated during the recession .
Schwenk and Brown both emphasize the importance of partnerships developed during the pandemic , calling their efforts collaborative and complementary . AWB ’ s networks , including the Grassroots Alliance , are key to facilitating local focus underlying the region-by-region and sector-by-sector approach embraced by both organizations .
A brief closing word on the state budget that will be written in a few months : Brown , a former Senate majority leader , says , “ Sometimes the toughest challenges create the opportunity for the best cooperation .” The opportunity , then , could not be greater .
The shape and timing of the recovery remains unknowable , but there will be a recovery . And the efforts undertaken today will help ensure that all sectors and regions in the state share in it .
26 association of washington business