Research paper offers suggestions for turning around Appalachian economy

The economic problems of Central Appalachia reflect the problems of other rural communities with economies based on extracting natural resources across the world. To address those issues, the region must undergo a fundamental change to focus on sustainable economy activities, writes one Appalachian researcher. "A reliance on exporting a few things to generate income to import many things has created enormous problems around the globe, particularly in rural, resource-dependent regions like central Appalachia," Anthony Flaccavento, founder of Appalachian Sustainable Development, writes for the journal Solutions. In his paper Flaccavento examines examples of the shift toward a sustainable economy in Appalachia before offering suggestions for his economic model for the region. (Solutions photo of mountaintop removal mine by Paul Corbit Brown)

The emerging sustainable economy enterprises in the region "vary in scale and stage of development, but, in general, they are more ecologically sustainable because of the way they are produced and the greatly reduced transport distances to market," Flaccavento writes. "They use asset-based strategies, building and adding value to the ecological, cultural, and human strengths of the region. They cultivate self-reliance for producers and the broader community. And they build cooperative networks that help overcome isolation, estrangement, and problems of scale." He points to three areas (food and farming, forestry and green building) as fields where sustainable economic endeavors are catching on in Appalachia.

"By 2009, there were more than 20 local healthy-food initiatives in the region, encompassing a range of crops, products, and business models," Flaccavento writes. For instance, the Appalachian Community Economic Network’s commercial kitchen initiative, launched in 1994, has helped launch or expand 250 food businesses that have generated over $6.5 million in annual sales. Flaccavento points to the Forest Opportunities Initiative, launched in 2008 by the Mountain Association for Community Economic Development, as an example of sustainable economic development in the forestry industry. You can read previous Rural Blog coverage of that program here. Green building initiatives, which arose in the region out of affordable housing efforts, emphasize "energy conservation and efficiency, along with the use of regional, sustainably produced wood and other materials and renewable energy sources such as geothermal, solar, and wind," Flaccavento writes.

As central Appalachian economies work through a time of transition, Flaccavento offers six principles of sustainable economies they should follow. Sustainable economies are locally rooted, fit within the ecosystem, are more self reliant and resilient, are more just, have infrastructure that increases the value and marketability of their products and are engaging and empowering, Flaccavento writes. He suggests economic strategies should be examined through the lens of two questions: To what degree does our strategy, policy, technology, or enterprise sustain or restore the ecosystem’s capacity to sequester carbon? and How effectively do our strategies and policies accelerate the development of diverse, resilient, wealth-building local economies?.

Achieving these goals will "require greater investment in the emerging sustainable economy that supports this new way of thinking about prosperity and economic health," Flaccavento writes. "Such investment will need to be flexible and patient, what Tom Miller of MACED has called 'nurture capital,' and it will need to come from both within and outside the region, from foundations and investors. The transformation of regions like central Appalachia, which have historically fueled growth and affluence in other places, will be essential to achieving this new prosperity." (Read more)