Economic Development Programming in Critical Condition

COMMENTARY - In 2007 Brad Wall’s flagship organization Enterprise Saskatchewan was introduced after the execution of the grassroots- driven Regional Economic Development Authorities (REDAs). Enterprise Saskatchewan imposed new centrally controlled organizations responsible for economic development programming called “Enterprise Regions (ERs).” This is in direct contrast to the voluntary participation, local control, and self- determination of the previous REDA system.

The first problem is the approach- it is top-down when effective economic development should be bottom-up. The ERs have little or no autonomy from the provincial government and individual communities or local areas have no ability to self- determine their economic development priorities.

The second problem is that the government dictates that the ERs focus entirely on foreign investment and investment attraction- abandoning all local small business and entrepreneurial development.

This change is baffling considering 80% of all new job and wealth creation is the result of small business retention and expansion. Of course, career politicians are more interested in megaprojects and ribbon cuttings, which is why small business and entrepreneurship are never a priority for governments in Saskatchewan.

Add to the mix a 25% cut in core funding to ERs in the last budget and you have organizations barely a year old that are now crippled, despite the incredible amount of talent available to them from economic development professionals and volunteers.

Hands tied by central government, no attention to small business or entrepreneurship, and no funding to execute anything substantial. Given the current state of economic development programming in Saskatchewan, it is fitting that the acronym for these new organizations is “ER” as there is little doubt that provincial economic development policy is in critical condition.
 
Ryan Bater, Ec.D. was the General Manager of the Battlefords REDA from 2001-2009, a former Director of the Saskatchewan Economic Developers Association and the Economic Developers Association of Canada, and the 2005 Saskatchewan Economic Developer of the Year.