Report on Indiana Economic Development Corporation and Sustainable Development Goals

Introduction

Recent changes in the Indiana Economic Development Corporation (IEDC) board, initiated by Governor Mike Braun, mark a significant shift in the state’s approach to economic development. This report evaluates these changes with a focus on their alignment with the United Nations Sustainable Development Goals (SDGs), emphasizing economic growth, sustainable cities, and responsible consumption and production.

Board Reformation and Diversity

• New appointments include Democrat John Gregg, union leader David Fagan, and diverse business owners.
• This diversification departs from the previous focus on real estate development, aligning with SDG 10 (Reduced Inequalities) and SDG 8 (Decent Work and Economic Growth).

Challenges in Economic Development Policy

1. Lack of Critical Oversight: Historical board meetings show no evidence of critical evaluation of economic development spending, which is essential for SDG 16 (Peace, Justice, and Strong Institutions).
2. Real Estate Development Focus: The prior emphasis on real estate development lacked public debate, contradicting SDG 11 (Sustainable Cities and Communities).

Financial Analysis of Economic Development Spending

• Indiana spends approximately $2 billion annually on direct economic development programs and $8 billion in tax abatements, totaling over $10 billion.
• Economic growth generated is estimated at $5.9 billion, indicating a negative return on investment.
• Job creation costs approximate $650,000 per job, highlighting inefficiencies contrary to SDG 8.
• Residents effectively pay $1,450 annually for $870 in economic growth, raising concerns about responsible consumption and production (SDG 12).

Recommendations for the New IEDC Board

1. Critical Evaluation of Economic Growth Drivers:
   • Investigate what truly causes economic growth and assess competing theories.
   • Examine if tax incentives create new jobs or merely relocate existing ones, supporting SDG 8 and SDG 10.
2. Assessment of Workforce Development Programs:
   • Review spending priorities, particularly on education such as middle school math and literacy, aligning with SDG 4 (Quality Education).
3. Evaluation of Incentive Policies:
   • Analyze the impact of requiring local governments to provide additional tax abatements, which may penalize communities investing in quality of life (SDG 11).
   • Consider the implications of selecting business winners and losers, ensuring transparency and fairness in line with SDG 16.
4. Structural Reforms:
   • Recommend updates to local and regional economic development structures to meet contemporary and future challenges, supporting SDG 9 (Industry, Innovation, and Infrastructure).

Conclusion

The recent board changes under Governor Braun present an opportunity to realign Indiana’s economic development policies with sustainable and equitable growth principles as outlined in the SDGs. A rigorous review and reform of policies and practices are essential to ensure responsible investment of taxpayer funds and to promote inclusive economic prosperity.

1. Sustainable Development Goals (SDGs) Addressed or Connected to the Issues Highlighted in the Article

1. SDG 8: Decent Work and Economic Growth
   • The article discusses economic development spending, job creation, and the effectiveness of policies aimed at attracting businesses and generating economic growth in Indiana.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Focus on economic development policies, infrastructure investment, and the role of the Indiana Economic Development Corp (IEDC) in shaping industrial growth.
3. SDG 10: Reduced Inequalities
   • The article mentions diverse board appointments and concerns about equitable economic development across different communities and regions.
4. SDG 16: Peace, Justice, and Strong Institutions
   • Issues related to transparency, accountability, and governance of public economic development spending are raised.

2. Specific Targets Under Those SDGs Identified Based on the Article’s Content

1. SDG 8: Decent Work and Economic Growth
   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances.
   • Target 8.3: Promote development-oriented policies that support productive activities and decent job creation.
   • Target 8.5: Achieve full and productive employment and decent work for all.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, raise industry’s share of employment and gross domestic product.
   • Target 9.c: Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries (implied through modernization of economic development institutions).
3. SDG 10: Reduced Inequalities
   • Target 10.2: Empower and promote the social, economic and political inclusion of all.
4. SDG 16: Peace, Justice, and Strong Institutions
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels.
   • Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels.

3. Indicators Mentioned or Implied in the Article to Measure Progress Towards the Identified Targets

1. Economic Growth and Job Creation Indicators
   • Annual economic growth measured in dollars generated ($5.9 billion growth vs. $10 billion spent).
   • Number of jobs created annually (15,000 jobs per year).
   • Cost per job created (approximately $650,000 per job).
   • Return on investment of economic development spending (negative return on taxpayer investment).
2. Transparency and Accountability Indicators
   • Presence or absence of board meeting discussions on policy effectiveness and return on investment.
   • Public debate and stakeholder engagement in economic development policy decisions.
   • Assessment of tax incentives and their impact on job creation or relocation.
3. Inclusivity and Equity Indicators
   • Diversity of board appointments (inclusion of Democrat, union leader, diverse business owners).
   • Distribution of economic development benefits across communities (concerns about over-incentivizing some areas).

4. Table of SDGs, Targets, and Indicators

Source: inkfreenews.com