A Strategy for Economic Vitality

As Morton argues (1995), the health of an area's economy depends somewhat on the growth and diversity of the economic base. The economic base in the United States is no longer composed primarily of the manufacturing sector. The increase in non-labor income, and income earned at knowledge-based services--including engineering and management, business, health and telecommunications firms, as well as colleges and universities--have diversified the nation's economic base.

Morton argues that the same basic services have helped diversify the economic base of the Chattooga four-county area. "Any analysis of the basic industries of the four-county area should fully account for the contribution of these 'basic' services and non-labor income to the region's economic base. This is an important point because many economists continue to ignore the contribution of these businesses to an area's economic base. A diverse economic base enhances an area's prospects for economic stability. Economic development plans should not promote reliance on one industry but should strive to diversify an area's economic base. As Rasker (1994) notes:

The cornerstone of an economic diversity strategy is the creation of a favorable business climate and the protection of the cultural, social and environmental qualities that make a community a pleasant place to live and do business. In addition, the strategy should include investment in the infrastructure, such as education and telecommunications facilities, in order to promote entrepreneurial activity. In many instances the most economically productive role of public lands is not in resource extraction or tourism, but in protecting the landscape, the wildlife, the rivers and streams, and the scenery - all those things that collectively enhance the quality of life for local residents (Rasker, 1994).

"The National Wild and Scenic Chattooga River and the surrounding national forests represent natural assets for the four-county area and provide communities with a comparative advantage over other rural areas in diversifying their economic base. Rudzitis and Johansen (1989) conducted a random survey of recent migrants to wilderness counties and found that the most important reasons for relocating to a county with wilderness were the environmental and physical amenities, scenery, outdoor recreation and the pace of life. A survey of recent migrants to the four-county Chattooga watershed area might reveal similar results.

"The economic trends noted in the study provide an argument for the conservation of forest ecosystems in the area. The three national forests in the Chattooga watershed dominate the landscape, provide the scenic vistas, the hiking, camping, hunting and fishing opportunities that can retain existing residents and businesses while attracting new businesses, retirees, tourists and recreationalists to sustain the diversity of the area's economic base. As such, economic development will suffer if the forests are indiscriminately cut, recreation trails are not maintained or expanded, or if the habitat needed to sustain healthy populations of native species and hence the health of the ecosystem is not conserved" (Morton 1995).

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