Gary Sasse: The Misguided Battle over Managing Commerce in RI

On Wednesday, Andrew made a pretty airtight case that

Renaming the EDC is not “Doing Away” With the EDC

In Friday’s RI Taxpayer Times, Gary Sasse also expressed his skepticism about the advisability of the current debate on Smith Hill with regard to the potential re-org of the EDC.  His case is reiterated below, for those who may have missed the newsletter.

(In non-breaking news, I myself stand firmly by my conviction that the EDC should be abolished altogether so that the real “Economic Development Corporation” – the General Assembly – can no longer hide its legislative inactivity behind the thin veneer of an impotent quango.)

The economic recovery in Rhode Island is uneven as employment and personal income projections were revised downward by the Revenue Estimating Conference. During this period of relatively weak recovery from the recent recession, I cannot think of anything less productive and energy draining than the debate between the State’s Chief Executive and the General Assembly over the question of whether or not to create the Office of Secretary of Commerce. Even if the General Assembly enacted such legislation, it would not result in any practical immediate accomplishments and could be problematic when Rhode Island is struggling to come out of a period of economic stagnation for the following reasons:

1) A legislature cannot control the spirit and pace of implementation by a reluctant administration.

2) The timing makes no sense because implementation will bump into the next election and not only take the bat out of this Governor’s hand but also any newly elected chief executive.

3) Best practice is to move away from a government/bureaucratic dominated system to one that operates as a partnership within a network of collaborative stakeholders.

4) Debates over process take the oxygen out of the room when the General Assembly needs to be dealing with substantive reforms that can make the state more competitive–higher education, cost of doing business, workforce training etc.  Arguing about process is an inside game that will not create economic security for one Rhode Islander and, in this economic environment, is counter-productive.

5) The organization “span of control” would create challenges for the most adept manager.

6) The House leadership has not, to my knowledge, demonstrated any measurable benefit from establishing the new agency.

I have expressed concerns about the Governor’s leadership on the issue of economic development and along with others have suggested reforms. However, in this instance we should take the Governor’s reservations about the House’s legislation very seriously. The Governor is reported to have said that he wants the opportunity to “drive” EDC.

If a compromise cannot be reached with the General Assembly, the Governor should be given 18 months to demonstrate that he can get the job done and then let the voters decide.

Gary Sasse is the Founding Director of Bryant University’s Hassenfeld Institute for Public Leadership and a former Director of the Rhode Island Department of Administration.

Disclaimer: The views and opinions expressed in The Ocean State Current, including text, graphics, images, and information are solely those of the authors. They do not purport to reflect the views and opinions of The Current, the RI Center for Freedom & Prosperity, or its members or staff. The Current cannot be held responsible for information posted or provided by third-party sources. Readers are encouraged to fact check any information on this web site with other sources.

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