Economics at work—the Greater Cleveland Growth Association - Economics at Work

Business Economics, April, 2002 by Jack E. Kleinhenz

Beginning January 2002, Jack left the staff of the Greater Cleveland Growth Association but continues--as an independent strategy advisor through his company JEK Analytics, Inc.--to serve as its chief economist and as the director of the Northeast Ohio Cluster Project. Jack is a NABE Board member.

I am pleased to contribute to "Economics at Work," a revival of a feature that is familiar to long-term readers of Business Economics. From my perspective, the role of economists has been redefined by the nature and extent of modem business, and-importantly-by ourselves. If any profession should know about the concept of value or adding value, we should.

The services I provide as chief economist of the Greater Cleveland Growth Association cover a fairly wide area. Since ours is a rather unique organization, it is probably best for me to describe its purpose, summarize the typical work we perform inside and outside the organization, and finally present further perspective on a unique regional economic development initiative.

The Greater Cleveland Growth Association, founded in 1848 as the Cleveland Board of Trade, is one of the nation's leading regional economic development organizations and is the largest U.S. metropolitan chamber of commerce. Through its Board of Directors, nearly 100 employees, business volunteers, strategic partnerships, and more than 16,700 member companies large and small, the Growth Association works to support and accelerate the competitive position of Northeast Ohio. Its mission is to serve as the catalyst for economic growth and jobs creation in the eight-county Cleveland/Akron Metropolitan area.

Firms large and small access our programs and services on workforce development, retention and expansion, access to capital, minority business development, and government advocacy. World Trade Center Cleveland is housed in the Growth Association and provides "short cuts" for businesses trying to break into new international markets. Through its small business division, the Council of Smaller Enterprises (COSE), members benefit from business counseling, mentoring, resources, training and education programs, and networking opportunities, as well as the power of group purchasing for vital business services.

Integral to the Growth Association's past and future results are its strong working relationships and collaborative initiatives with key public and private organizations throughout Northeast Ohio. Working with government, education, labor, economic development, and business organizations-as well as civic and community groups-the Association seeks to strengthen the region's ability to remain business-friendly and competitive.

A Business Economist in Economic Development

Why should business economists have an interest in economic development? This is a complicated but interesting question--especially since the position of chief economist did not exist prior to 1995, when I first left the Federal Reserve Bank of Cleveland to join the Growth Association. A short answer has two important considerations. First, economic growth is an important part of civic life and an important subject of study within the economics profession. Recently, economists have attempted to understand the effectiveness of economic growth strategies to encourage long-run prosperity of regions and cities. Second, a firm understanding and the ability to communicate on regional and local issues are extremely important for many of us who have become involved as policy advisers, consultants, and spokespersons for our organizations. Practicality and relevancy are critical for our success.

Fortunately, the Greater Cleveland Growth Association has offered me excellent opportunities to add value to the enterprise and to the region where my family and I live. I have realized that the need for economic thinking and creating value in the economic development arena is critical. However, when approaching the task of economic growth and development, one must do so with a huge dose of humility about the ability to guide or control it. It is difficult for me to believe that one can identify in advance the industries, sectors, and the individual firms that will be created. From my perspective the economy in not built like a machine or any other physical structure but it is more like a garden. As I work in the field of analysis and policy formulation, my focus is to make sure I am more like a gardener than an engineer. My task is to make sure that we have a fertile environment for growth to take place. The common denominators between what I do and other business economists do are the same, however. Both r equire an adequate economic infrastructure (including reliable and accurate data) reasoned analysis, and effective communication.

Research and Economic Analysis

Before I arrived at the Growth Association, the research function focused on providing and publishing business information and statistics on Greater Cleveland's economy, demographic changes, real estate, cultural amenities, and business climate for members, other businesses, the media, tourists, and the public. The five-member staff also provided technical and analytical support to other divisions by undertaking special studies on selected issues.