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Changing the Economic Narrative • Promoting Inclusive Competitiveness • Connecting the Economically Disconnected

Inclusive Competitiveness

21st Century Solutions to Avoid Economic Apartheid in America ©2013 America21 The America21 Project ▪ Mike Green ▪ 541.730.2164 ▪ mike@blackinnovation.org


Changing the Economic Narrative • Promoting Inclusive Competitiveness • Connecting the Economically Disconnected

National Problem: The global economic competitiveness of the United States is trending downward and lacks a cohesive and inclusive national vision to reverse this worsening course. The U.S. is currently ranked No. 7 in global competitiveness according to The World Economic Forum's 2012-13 Global Competitiveness Index. In 2009, the U.S. was No. 1. Stabilizing the economy under the Obama Administration was an essential first step toward putting the brakes on a competitiveness skid that was in full tailspin by the end of 2008. During this period of economic recovery, the nation has yet to articulate an economic vision that includes the growing racial minority sectors, which have historically been excluded from America's economic competitiveness team. Out of all the nation's top economies, the United States has the most multicultural societal landscape. Unfortunately, the makeup of the population is not reflected in the landscape of economic competitiveness. Minus an inclusive competitiveness vision, America is in danger of disappearing from the list of the top 10 competitive countries before President Obama leaves office. 2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

1

USA

Switzerland

Switzerland

Switzerland

Switzerland

2

Switzerland

USA

Sweden

Singapore

Singapore

3

Denmark

Singapore

Singapore

Sweden

Finland

4

Sweden

Sweden

USA

Finland

Sweden

5

Singapore

Denmark

Germany

USA

Netherlands

6

Finland

Finland

Japan

Germany

Germany

7

Germany

Germany

Finland

Netherlands

USA

8

Netherlands

Japan

Netherlands

Denmark

UK

9

Japan

Canada

Denmark

Japan

Hong Kong

10

Canada

Netherlands

Canada

UK

Japan

Source: World Economic Forum Global Competitiveness Index

Inclusive Competitiveness National Economic Review Measuring and improving the performance of diverse populations in the nation’s local innovation ecosystems, clusters and emerging industry sectors

Census data reveal shifting national racial demographics trending toward a mid-century timetable in which the fast-growing non-white minority population will become the majority. The positive and negative economic ramifications of this shift are indicated in the current disconnect of Black and Hispanic entrepreneurship, which has a strong healthy growth curve yet fails to produce any movement of the needle in business revenue, accounting for less than 3.5% of U.S. GDP and employing less than 1% of U.S. adults (Sources: Census, BLS, BEA). The America21 Project ▪ Mike Green ▪ 541.730.2164 ▪ mike@blackinnovation.org


Changing the Economic Narrative • Promoting Inclusive Competitiveness • Connecting the Economically Disconnected

Data in every NADO region reveal looming economic apartheid conditions that undermine the overall capacity of the economic competitiveness of the nation. City

*Population %

*Business Ownership %

(est) Local GDP %

Black

White

Black

White

Black

White

Detroit, Michigan

83

11

64

31

1

98

Jackson, Mississippi**

80

18

45

53

1

98

Birmingham, Alabama

73

22

38

58

1

98

Memphis, Tennessee

63

29

38

57

1

98

Atlanta, Georgia

54

38

31

62

1

98

Cleveland, Ohio

53

37

26

68

1

98

*Source: US Census | **Census plus local GDP data from Jackson Business Accelerator | GDP data for other regions estimated)

Canary in Coal Mine Data: On a national scale, Black-owned businesses represent 7% of the American business landscape (greater than half of the 13% Black representation in the total population) yet produce less than 1% of total U.S. GDP and employ less than 0.5% of U.S. adults. About 1.8 million of the total 1.9 million Black-owned businesses are sole proprietors. Black entrepreneurship spiked an unprecedented 60% from 2002-2007, more than three times the national average during the same period. The relevance of this public information is overlooked by media and remains relatively unknown. The primary problem is that minority communities lack a 21st century economic narrative and minority entrepreneurs typically lack generational knowledge, sufficient resources and understanding of the 21st century knowledge-based, tech-driven global innovation economy to have significant economic impact. (Data Sources: Census, BLS, BEA)

Nationwide, 1.9 million Blackowned businesses produce less than 1% GDP.

National Trend: Economic trends suggest widespread apathy, ignorance and a lethargic approach to engaging regional economic development leaders and assisting them with the investment of resources to build infrastructure, pipelines and processes that bridge economically disconnected sectors to local innovation ecosystems. Note: The connection of economically disconnected communities to local innovation ecosystems are prerequisite conditions that must exist to establish an Inclusive Competitiveness framework that boosts the overall economic competitiveness of regional economies. National Economic Imperative: America cannot reverse its downward trajectory in global economic competitiveness rankings without an intervention strategy to invest in the development of inclusive local innovation ecosystems within healthy, competitive economic frameworks. The rapidly shifting racial demographics require a sense of urgency in recognizing that Inclusive Competitiveness is a national economic imperative through new policy, investment and collaborative action locally, regionally and nationally. The America21 Project ▪ Mike Green ▪ 541.730.2164 ▪ mike@blackinnovation.org


Changing the Economic Narrative • Promoting Inclusive Competitiveness • Connecting the Economically Disconnected

Challenge: Incumbent approaches to Black and Hispanic economic inclusion are largely designed to retain existing economic value in communities for longer periods, circulating and spreading its impact to more people throughout a region. The critically important matters of accessing and participating in existing economic value chains, primarily through supplier diversity initiatives, is necessary, but alone is insufficient to increase a region’s economic competitiveness. Opportunity: On the other hand, the new thrust to connect Blacks and Hispanics to local innovation ecosystems is focused on providing much needed, complementary leadership to create new economic value and grow new opportunities. This new leadership is designed to cultivate a more robust pipeline of talent and new, job-creating, high-growth enterprises. Creating new economic value is the opportunity of the 21st century. Capitalizing upon shifting and growing minority racial demographics by fostering Inclusive Competitiveness frameworks that deliver new economic value establishes an emerging landscape of growing regional and national economic competitiveness. Solution: Invest in scaling up The America21 Project's (America21) vision, leadership, programs and initiatives to help local innovation ecosystems become inclusive and produce exponential economic impact. America21 is the nation's leading voice on Inclusive CompetitivenessTM and Pipeline2ProductivityTM processes for local innovation ecosystems. Across the landscape of laudable economic frameworks and ideals, America21 envisions a unique cohesive inclusive national economic vision that bridges political divides while promoting national, state and local collaboration through local investment channels, STEAM education pipelines and measurable outcome-based economic processes. This work is already gaining support and traction across America from the White House to Silicon Valley. It's time for a national discussion on Inclusive Competitiveness for a 21st century America.

Johnathan Holifield Esq.

Mike Green

Chad Womack, Ph.D.

FOUNDERS The America21 Project Est. January 2011

See bios of America21's founders at http://blackinnovation.org/about. The America21 Project ▪ Mike Green ▪ 541.730.2164 ▪ mike@blackinnovation.org


America21 inclusive competitivenes