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Building a strong local economy

A vibrant economy is an essential part of maintaining a strong community because it impacts on so many aspects of community life, including the ability to earn a living, develop skills and access training, to attract new residents and businesses to the community, and to access services.

Economic development is far more than producing more products and generating more customers. It involves anticipating change, diversifying industries, value adding, redefining opportunities and challenges, encouraging collaboration and developing organisation and leadership.
Key steps in building a stronger local economy are:

  1. Analysing the local economy
  2. Considering current and future trends influencing the local economy
  3. Developing a clear economic vision
  4. Exploring economic opportunities and challenges
  5. Developing a broad range of economic development strategies
  6. Implementation and evaluation

These steps are based on economic development approaches commonly used in communities in Australia and overseas.

An example of economic development

— Outback Revival —

Outback Revival is a community development organisation which aims to enhance life and economic opportunities in the outback. It was formed after a major community forum in Longreach in response to growing issues and opportunities in western Queensland. Outback Revival works across outback communities, providing support and networking opportunities for individuals and community groups.
Outback Revival has supported groups using innovative approaches to add value to local resources such as the production of high quality furniture and timber products; and organised information technology training for community members. Other activities include value adding to the beef and wool industry, tourism development and input to regional policy.

Extra resources

  • Further information on the economic development strategies described in this section can be found in the following key publications:
    • Shaffer, R., Deller, S. and Marcouiller, D. (2004) Community Economics: Theory and Practice. Blackwell Publishing.
    • Jensen, R.C. and West, G.R. (2002) Community Economic Analysis, Department of Primary Industries, Information Series Q102036.
  • ‘Community Economic Development Action Strategies’ looks at sustainable economic development action strategies based on a six broad and inter-related approaches to local business, local economy and community capacity building.
  • A down-to-earth and useful description of the community economic development practices that turned around the small Queensland town of Surat.
  • An article on ‘Effective economic development —What makes it happen?’ suggests that communities evaluate themselves against key ingredients of ‘belief, collaboration, leadership, strategic planning and opportunism’.
Last reviewed
14 June 2011
Last updated
23 June 2011