Working with the Portland Maine Chamber of Commerce, Camoin Associates recently released the 2011 economic scorecard for the greater Portland region.  The 2011 Scorecard served as the second update to the initial 2007 report.  

 

The Scorecard measures the Portland region’s 2011 standing on 32 economic indicators against the regions standing on these indicators in previous years, and against a group of benchmark regions that exhibit similar characteristics to Portland’s.  By looking at the change over the last year and over the last five years relative to the comparative geographies, the Scorecard provides an insight into how the region is performing as an economic engine.  The selected indicators include: city and regional unemployment, gross metro product, property tax valuation, total regional cost index, regional venture capital investment, patents issued, and population growth.  The Scorecard measures the city of Portland, the Portland region, and the State of Maine against comparison geographies to understand how each of these three geographies is performing overall, relative to contiguous geographies, and geographies with similar characteristics.  

 

Each of the indicators are rated as either ‘lagging’ ‘keeping up’ or ‘exceeding’ their targeted performance.  The region’s performance is rated ‘exceeding’ on 11 of the indicators including regional private sector employment growth, city population growth and regional educational attainment.  The region is rated ‘lagging’ on 10 indicators including city housing affordability, regional science and engineering occupations, and regional venture capital investment.   

 

Many cities, regions and states around the country are conducting a comprehensive economic indicator analysis to better understand how their geography is currently fairing, and their potential for future growth.  For Portland, the 2011 Scorecard provides an insight into how well the region is positioning itself as an attractive place to live, work and do business. Assessing which indicators the region is lagging illuminates a particular need to invest in these indicators so that the region remains competitive.  Additionally, conducting regular updates to the data provides information on how well targeted investment plans are paying off, and how the region is either to increase its competitive advantage, or where more attention is needed to ensure that Portland does not fall behind other areas.  Knowing what an areas strengths are, and how these strengths are changing over time allows for a solid understanding of how a region can best position itself for sustained economic development. 

 

Click on the sample page below to download the full report.  

  

Micro-credit and micro-enterprise programs are an increasing component of economic and social development strategies in poor nations.  These programs provide small loans to residents to start or maintain a local business.  It is important to note that in many places, the repayment rate of these loans is nearly perfect.  For instance, in Bangladesh, "over the past 2 1/2 decades, the Grameen Bank of Bangladesh has made more than $4 billion in loans… and has a loan repayment rate greater than 98 percent."¹

 

Micro-credit aims to pay for the education and training of poor, rural populations.  Often times 'education' is cited as a way to reduce poverty, and improve the standard of living.  Micro-credit and micro-enterprise make this otherwise vague remedy a reality by infusing money directly into targeted educational programs.  For instance, women throughout Africa participate in the micro-enterprise 'Job Skill Program' which teaches literacy, nutrition, health, and essential profitable skills such as dressmaking, so these women may become entrepreneurs² and contribute to the local economy.   

However, there are drawbacks to these programs.  Firstly, loan recipients are beholden to high interest rates and are often locked into poverty by accepting assistance.  The global average interest rate on micro-credit loans is 35%³.  And so the only way to expand ones business is to assume increasing amounts of debt.  

Secondly, the poorest of the world’s poor are not easily reached via micro-credit.  These programs often fail to reach their target audience.  Micro-lenders are incentivized to invest in those that will repay quickly and in full, and often times the most poor are in rural, remote locations, which increases the amount of inputs needed to reach these people.   Therefore, the most destitute populations are given less attention by micro-lenders.  

Micro-credit assumes that poor individuals, with no education, will create competitive and profitable businesses.   But, "the most common business for microcredit is simple retail - selling groceries - where there are often too many people, fierce competition, and where they don't really earn enough money to get out of poverty."⁴  The assumption that people will create unique businesses generating enough capital to elevate them out of poverty is spurious.  Even in rich nations, only 10% of individuals own and operate a successful small business,⁵ proving that creativity and business sense rather than simply small loans with high interest rates are necessary for poor populations.  

While far from perfect, these programs do have a place in international economic development so long as they are viewed critically, and revised so that they serve the people they are intended to help. 

 

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¹Can microcredit help improve the health of poor women? Some findings from a cross-sectional study in Kerala, India.  International Journal for Equity in Health.  http://www.equityhealthj.com/content/7/1/2

²MICA Inc.: Microcredit in Africa.  http://www.microcreditinafrica.org/index.html 

³Variations in Microcredit Interest Rates.  Kneiding, Christoph & Rosenberg, Richard.   July, 2008.  CGAP: Advancing Financial Access for the World’s Poor.  http://www.cgap.org/p/site/c/template.rc/1.9.5030/

⁴Microcredit: Only a Romantic Notion? Karnani, Aneel.  2007.  Allianz. http://knowledge.allianz.com/en/globalissues/microfinance/microcredit/microcredit_aneel_karnani.html

⁵Ibid.