An economic development organization (EDO) is an organization dedicated to the
economic development
In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and o ...
of a region, be it a subnational area such as a town, city, county, province, or state; a whole nation; or transnational regions unified through
economic integration
Economic integration is the unification of economic policies between different states, through the partial or full abolition of tariff and Non-tariff barriers to trade, non-tariff restrictions on trade.
The trade-stimulation effects intended b ...
.
EDOs are typically
government agencies
A government or state agency, sometimes an appointed commission, is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an administratio ...
,
public-private partnerships, or
non-governmental organization
A non-governmental organization (NGO) or non-governmental organisation (see spelling differences) is an organization that generally is formed independent from government. They are typically nonprofit entities, and many of them are active in h ...
s (NGOs) working together with other actors to improve the regional economy they focus on (be it internal or external).
[
EDOs are sometimes confused with ]regional development organization
In geography, regions, otherwise referred to as zones, lands or territories, are areas that are broadly divided by physical characteristics (physical geography), human impact characteristics (human geography), and the interaction of humanity and t ...
s (RDOs) which have a similar focus but whose operations are often based on foreign aid
In international relations, aid (also known as international aid, overseas aid, foreign aid, economic aid or foreign assistance) is – from the perspective of governments – a voluntary transfer of resources from one country to another.
Ai ...
or foreign assistance
In international relations, aid (also known as international aid, overseas aid, foreign aid, economic aid or foreign assistance) is – from the perspective of governments – a voluntary transfer of resources from one country to another.
Ai ...
. EDOs may not even need to fund their operations, programs, and services as they might simply operate as a consortium
A consortium (plural: consortia) is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources for ...
rather than as an incorporation.
Overview
Economic development has evolved into a professional industry of highly specialized practitioners. The practitioners have two key roles: one is to provide leadership in policy-making, and the other is to administer policy, programs, and projects. Economic development practitioners generally work in public offices on the state, regional, or municipal level, or in public–private partnerships organizations that may be partially funded by local, regional, state, or federal tax money. These economic development organizations function as individual entities and in some cases as departments of local governments. Their role is to seek out new economic opportunities and retain their existing business wealth.
There are numerous other organizations whose primary function is not economic development but which work in partnership with economic developers. They may include the news media, foundations, utilities, schools, health care providers, faith-based organizations, and colleges, universities, and other education or research institutions.
Criticism
Economic development organizations have faced some criticism from industry groups and economists. As quasi-public entities, the leadership of economic development organizations often oversee large and complicated financial transactions without having the requisite skill level or oversight from competent third parties. Economic development organizations in the U.S., including ones in Montgomery County, Maryland
Montgomery County is the most populous county in the state of Maryland. As of the 2020 census, the county's population was 1,062,061, increasing by 9.3% from 2010. The county seat and largest municipality is Rockville, although the census-design ...
and Warren County, Virginia
Warren County is a U.S. county located in the Commonwealth of Virginia. The 2020 census places Warren County within the Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical Area with a population of 40,727. The county seat is F ...
have been embroiled in financial embezzlement or fiscal mismanagement scandals.
References
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Economic development