SBANE: Only transformative change can save R.I. economy

THE RHODE ISLAND CHAPTER of the Smaller Business Association of New England released a report announcing the goals of its newly created Economic Development Committee. / COURTESY SBANE RHODE ISLAND
THE RHODE ISLAND CHAPTER of the Smaller Business Association of New England released a report announcing the goals of its newly created Economic Development Committee. / COURTESY SBANE RHODE ISLAND

WALTHAM, Mass. – The keys to turning around Rhode Island’s economy are new ideas and workable solutions, according to a report released by the Rhode Island chapter of the Small Business Association of New England.

The report, “Shared Goals Can Move R.I. Forward,” announced developments from SBANE Rhode Island’s Economic Development Committee, which is charged with strategizing and recommending ideas to improve the Ocean State’s faltering economy.

“For too many years, our members have watched in dismay as Rhode Island’s economy has withered, our tax base has eroded and Rhode Island has grown increasingly inhospitable to business relative to other states. We are committed to turning that around,” said the report, written by Ken Block and John Cronin, chair and vice chair, respectively, of SBANE’s Economic Development Committee.

According to the report, the starting block to change is understanding why Rhode Island’s economy is faltering compared to other states in the nation.

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“Our group quickly reached a consensus that Rhode Island suffers economically because of the lack of a clear set of shared goals between the public and private sector – and even between different branches of our government,” said the report, adding that “once we can agree on goals, we can create a common plan for how to fix our economy.”

The consensus from SBANE’s Rhode Island chapter was that the state needed “fundamental, transformative change.”

“To fix something this big, incremental change just won’t do,” said the report.

SBANE’s Economic Development Committee came up with three common goals to help improve Rhode Island’s economy, adding that if a proposed rule or law moves the state away from any of the goals that that legislation should be abolished.

The first committee goal called for Rhode Island’s unemployment rate to be no higher than the national unemployment rate. “We believe a high unemployment rate is a direct indicator of a lack of business competitiveness.”

In the second goal, the group called for Rhode Island to attain a median ranking in fostering a competitive business environment compared to other states. “If we can reach the midpoint – or better – in these rankings, our geographic and quality-of-life advantages will let us shine on the national stage.”

The final goal had to do with education. “Our public schools should be an asset, not a liability, in attracting business,” said the report. “Massachusetts has shown that it is possible to attain significant, measurable public-school improvements in a fairly short period of time. Rhode Island needs to re-commit to, and accelerate, its efforts to improve the educational quality and outcomes at all of our public schools and universities.”

“In addition to these goals, Rhode Island should become a reliable business partner, which is currently not the norm,” said Block and Cronin.

SBANE Rhode Island pointed to the “instability and unreliability” of the state’s legislative process, particularly regarding income-tax reforms passed by the General Assembly. “We will not grow our economy by posting ‘keep out’ signs on our borders,” said the report.

The report called the disastrous deal with former Red Sox pitcher Curt Schilling’s failed video game venture 38 Studios LLC an “extreme example of how desperate Rhode Island has become to attract business.”

“We simply cannot fling money at anyone with good connections and a wisp of a business plan,” said the report. “Rhode Island’s economy will only rebound and prosper when businesses can decide to locate here on the basis of what we offer to all our companies.”

According to the report, the real measure of success in turning around the Rhode Island economy will be a marked decrease in unemployment along with an increase in the state’s gross domestic product.

“Tangible things that we create on a shop floor, assembly line or in an artist’s studio will translate directly into a healthier economy and more money to pay for vital social services,” said the report. “Making and selling more services and products to a global marketplace will translate into more local jobs, a healthier housing market and a more robust retail sales industry.

SBANE Rhode Island said that it plans to propose specific regulatory and legislative actions within the coming months that will help achieve its goals.

“Rhode Island should and can be an excellent place to live and do business,” finished the report. “It’s time to get to work to make it happen.”

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