High Tech, Low Tech, No Tech

Book excerpt: Fifty years ago the quality of life in the 13 states of the Old South was judged to be among the lowest in the country. A lack of industrial development and the pervasiveness of a sharecropping system of agricultural production combined to keep the South mired in the backwaters of the American economy. Over the past five decades, however, the South has moved to the forefront as an area of economic growth. The authors show that significant improvements have taken place almost entirely in and around the major cities. Rural areas—especially those with a high percentage of blacks —remain saddled with an economic base dominated almost entirely by slow growing, stagnating, and declining industries. The uneven development of the region is the result of a set of industrial policies in which communities attempt to lure prospective employers with lucrative business incentive packages. Guarantees of cheap, unorganized labor, tax holidays and giveaways of land and buildings are some of the ‘chips’ community leaders use in this high stakes game. Rural communities are often caught in bidding wars among themselves in which they are forced to offer even more lucrative incentives and in the process reallocate resources away from needed human services. Consequently, Falk and Lyson target the need for a national industrial policy that will bring some order to the industrial recruitment process.