ABSTRACT
Evidence collected from manufacturers in the rural South, experiences in western Europe, and regional history and culture suggest a new paradigm for rural economic development, one that generates growth by improving the competitiveness of local manufacturers. The features of the paradigm are constant innovation and improvement, adoption of appropriate technology, access to information, increased flexibility, sectoral concentration, participatory management, and, perhaps most important, strategic alliances and networks and a highly skilled work force. Private sector investment in formal training is only 1.4 percent of payroll; the training has reached only 10.0 percent of those in the work force. The plans are intended to facilitate collective action by firms, using state resources to leverage private sector activity, and to identify concentrations of like industries with particular growth potential and establish hubs to accelerate innovation and growth. The private sector would provide essential resources, services, and job-specific training.
