Economic development is inherently competitive. Cities compete to bring in new investments, grow and keep entrepreneurs and small businesses, and educate, attract and retain a talented workforce. 
Traditionally, cities competed for these assets against their neighboring cities, counties and states. However, in the 21st century economy, cities compete against metropolitan regions across the globe. Furthermore, in a global economy, a city's competitiveness is inherently tied to how well it can foster relationships with the adjacent cities it used to compete against. 

While a focus on global competitiveness is not new, the drum beat is certainly getting louder. President Obama launched his National Export Initiative and set the goal of doubling the amount of U.S. exports in 5 years. The strategy is tailor-made for cities, because it recognizes the opportunities for export expansion by small- and medium-sized firms, which are the bulk of hometown enterprises.

City Examples 

The Seattle region is one of the oldest and best examples of how cities can make an impact in a global marketplace by establishing a common strategy and pooling resources. In remarks at an NLC CityFutures Panel gathering last month at the Congressional City Conference in Washington, D.C., Bill Stafford, president of the Trade Development Alliance of Greater Seattle, explained that the alliance was born out of recognition that new local partnerships were necessary to retain the region's future competitiveness in a rapidly changing global economy. 

The alliance is made up of the Washington cities of Bellevue, Everett, Seattle and Tacoma; Pierce and Snohomish counties; the Ports of Seattle, Everett and Tacoma; and the Greater Seattle Chamber of Commerce. Together, they market the region's collective assets and create a brand as one of North America's premier international gateways and commercial centers. 

Making a community more open to foreign cultures is another way to encourage lasting relationships with international investors. For example, in Cleveland, Tenn., the Cleveland/Bradley Chamber of Commerce is undertaking efforts to make the region more welcoming to new German employers and employees, as it prepares for two new companies - Volkswagen and Wacker Chemie. 

The chamber's six week class, "Understanding the German Way," is designed to help prepare local businesses to interact with these new clients and industries. Classes cover issues such as values and attitudes, housing and real estate, and consumer preferences. 

Action Steps 

A supportive policy environment for both domestic and foreign investment is necessary to encourage economic growth. Local governments can streamline business licensing and permitting to make it easier for new business start-ups or expansion of existing firms. 

Local governments can also help by connecting businesses with information resources and with knowledgeable people who are part of neighborhood, regional and global networks. These networks are built through sister cities or study abroad programs or perhaps by trade and investment missions - both inbound and outbound. 

Foreign Trade Zones (FTZs) offer unique cost-savings benefits relating to the importation, manufacturing, assembling and exportation of goods. Local governments can identify accessible FTZs and explore the appropriate uses that may serve local businesses. For a list of FTZs, contact the Foreign-Trade Zones Board, http://ia.ita.doc.gov/ftzpage. 

NLC Resources 

NLC supports local efforts on economic competitiveness with a variety of programs and resources. 

NLC's International Council offers a forum for interested local leaders to access global networks. At the recent Congressional City Conference, the International Council hosted a trade and investment delegation from South Africa. There are plans for hosting a similar group of investors from China at the 2010 Congress of Cities in Denver. 

Details: For details about the International Council, contact James Brooks at brooks@nlc.org. For more information about NLC's Center for Research and Innovation's work on economic development and global competitiveness, contact Christiana McFarland at mcfarland@nlc.org or Katie Seeger atseeger@nlc.org.