Las Vegas Economic Diversification the Research Paper
- Length: 9 pages
- Sources: 7
- Subject: Economics
- Type: Research Paper
- Paper: #27455464
Excerpt from Research Paper :
The federal obligations cause smaller or underdeveloped counties to be economically pressurized. Low income communities, who do not come to stand this pressure, give in to accept substandard living conditions. Lack of social development such as water, waste lines and housing are not the only deprived areas, there are counties which still do not have a facility of communication lines. This is a massive drawback that deprives the counties with quality opportunity, attraction and community commerce. The rural Nevadans plan will be to develop the surrounding regions of their communities. However, the ownership of these regions belongs to the federal government. Lack of planning and motivation causes the federal government to overlook the importance of the region. Privatization of this land can be fruitful for the communities of these counties which can prove helpful in easing the economic burden that the weak county governments have to face (NCED, 2011).
Known globally for hospitality/entertainment, not as a prime business location
An improper understanding of the business opportunities available to a state such as Nevada is placing restrictions on the ability of the state to develop and prosper. Development Counselors International, a public relations firm surveyed CEO's of businesses to assess the viability of Nevada as a place for new ventures and enterprises. Only fourteen percent of the CEO's thought that Nevada was a good location. This adversely affects the state's ability to grow and develop as a center for trade and commerce. As a result the state is slow to develop economically, and faces reduced chances of business development. The truth is that Nevada is a good place for business. A National Tax Foundation publication reveals that Nevada has the fourth most friendly business tax climate of all the states. The business tax structure offered by the state is perhaps the most attractive thing for business in the state. This should attract businesses to open and operate in the state. It should also lead to increased revenue. Unfortunately the misconception of the business climate is far more prevalent than the fifty states. A survey indicates that this perception pervades to foreign businesses as well. The perception that they have of Nevada is that the industries in the state are limited to entertainment. This makes the job of enticing foreign direct investments considerably more complicated (NCED, 2011).
Inadequate skilled workforce
Workforce is an element which is the necessity of mostly every business. Thus, the larger the sizes of the workforce that is available, the greater are the chances of economic prosperity. It is important that such a workforce is rich in transferable skills. A look at a few basic statistics reveals just how poor Nevada is in terms of a skilled workforce. The state lies about thirty three present below the average for people who have a bachelor's degree. The statistics are in comparison to the national average. The state has a dismal 48th place ranking in the states with facilities for four-year public post-secondary education facilities. It has a ranking of 43rd in the same nationwide comparison of two-year institutions. Further complicating the situation is the lack of these facilities in Nevada's rural areas. NCED is limited in improving the situation. It is limited to (TEN) an initiative that trains new employees. Some of the funding available through the initiative has come to be replaced by (DETR) which stands for the Department of Education Training and Rehabilitation. But the funds available through DETR are limited to primary employers (NCED, 2011).
Community capacity issues in rural Nevada
Research carried out by various institutions such as Pew Partnership for Civic change, Heartland Centre for Leadership and Development shows that when it comes to rural populations communities that lack resources are weaker when it comes to economic growth. Logically these communities have lower survival chances compared to communities that are well facilitated. Nevada Commission on Economic Development (NCED) is faced with these constraints in addition to others when it comes to developing renewable energy. This is a particularly troublesome problem because most of Nevada's renewable energy resources are to be found in rural areas. (NCED, 2011) shows that lack of adequate community capacity can be demonstrated in a variety of ways:
Sub-par leadership: leadership that is to be found intermittently in business and education fields (NCED, 2011);
The lack of distinguished community vision, lack of proper strategic planning, improper assessment of the community assets, and an improper assessment of the strengths and shortcomings of the community.
Low levels of civic engagement: This can be seen through the low number of voter turnout. A general dearth of community volunteerism and a an almost nonexistent level of community pride (NCED,2011);
A general lack of consensus, frequent trouble and disagreement, and a general lack of something to bind the community in to one cohesive whole. A general dearth of resources, whether these are human, financial or physical. There is a general dearth of inward investment. There is also the case of youth migration. These last two are perhaps two of the greatest challenges that rural communities are faced with (NCED, 2011).
The situations above are reflective of diminished or weak community capacity. Different communities show signs of the above problems to differing degrees. These challenges cause serious problems to the effort of NCED. If NCED is to fulfill its target and meets its goal it has to first address the problems described above (NCED, 2011).
If the agency is to meet its goals and objectives then it must undertake certain actions and measures. Chief amongst these is strategic initiatives. These initiatives are described as being initiatives that are very important for the well-being of the state and will have a major effect. Because budget is a huge issue the first task will be to develop scalability in terms of the existing assets. New Nevada Taskforce has come up with a blueprint for the future of Nevada. Their key initiatives for the Las Vegas diversification plan are detailed below:
Diversification and Jobs
The first goal is to increase the rates of job creation as well as the rates of job retention. The second goal is to make improvements and to try to increase businesses in general. Other than businesses in the entertainment, gambling and mining industries. The goal therefore is to increase the employment figures in non-gambling and non-mining areas.
Business Empowerment Environment
Another main aim will be to create the infrastructure that is necessary to enhance growth of the business already in existence and to aid in the development of new businesses and increase the opportunities available for export from the state. The goal is to create an environment that is friendly for businesses and to try to increase the effectiveness of workforce development and training programs. This will cause a better trained and educated pool of talent.
Business Cluster Enhancement
This deals with the effort of trying to improve the business clusters of the state of Nevada. An analysis based in clusters is crucial for understanding both regional and local economies and for creating economic strategies that are practical and sustainable. Nevada already has clusters in renewable energy, financial services, wellness and pharmaceuticals and light manufacturing.
Entrepreneurship & Technology Commercialization
The task here is to try and develop a commercialization plan for the technology available. This is meant to facilitate the rapid development of applied research in various business fields. This is meant to work in unison with aerospace, renewable energy, bio science and defense systems.
Land, Infrastructure Development and Community Capacity
To help in the transfer of BLM controlled land form the central government to the state. This is meant for uses that deal in renewable energy and for the general diversification of Nevada. Help rural communities in Nevada to identify their existing strengths and weaknesses.
New and Existing Market Development
The goal here is to somehow expand Nevada's economic foundation. This is done through creating new opportunities for business using the states existing assets. The assets are used in trade and investment around the globe. The assets to be created are mostly digital media and film, medical and bio science industries, and national defense.
Meenan, C. And Schwer, K. (2011). Economic Diversification. Accessed on February 24, 2012 from www.geddes4nevada.com/docs/EconomicDiversification.pdf
Nevada Commission of Economic Development (NCED). A Strategy for Economic Diversification. Accessed on February 24, 2012 from http://www.diversifynevada.com/images/uploads/strategic_plan_master_document.rev2011.pdf
Nevada Development Authority. (2011). Tracking Southern Nevada's Economic diversification. Accessed on February 24, 2012 from www.nevadadevelopment.org/documents/NDAED2011Q3_000.pdf
Whaley, S. (2011).Economic Diversification Report Provides Roadmap for…