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Speeches
 
The Digital Age in Dixie:
A New Economy for the Old South

Mike EspyA regional Neighborhood Reinvestment training institute devoted to the study of sustainable rural development in the Mid-South was held October 28-31,2001, at the Peabody Hotel in Memphis, Tennessee. Mike Espy, Secretary of Agriculture in the Clinton Administration, addressed participants at the event. Here is a summary of Secretary Espy’s remarks.

The Peabody Hotel is a venerable institution proud of its history and renown for its ceremonious treatment of the ducks that have checked into the fountain lobby and rooftop penthouse "duck palace." Mr. Espy noted that this fountain has been said by some to designate the beginning of the Mississippi Delta and was, perhaps, a most fitting place to assemble for this event.

However as rich as the heritage of the Mississippi Delta is, Mr. Espy reminded his audience that the landmarks of the region have also included "grinding poverty, inadequate housing, high rates of infant mortality and lower rates of college graduates." Some "traditions" such as racial intolerance, lagging wages, low levels of employment and inhabitable communities (some without basic amenities such as running water) must not continue.

Mr. Espy saluted the assembled community development practitioners for their efforts to create new traditions and improve lives. Admitting he was not a community development specialist, per se, Mr. Espy told the tale of an accomplished civil engineer, who prided himself on his keen abilities to build ships and navigate raging waters. When the engineer died and went to heaven, St. Peter gave him an orientation to his new surroundings. St. Peter told the freshman that newcomers were expected to give a lecture to the heavenly hosts already in residence in the celestial city. The cocky engineer eagerly planned a speech to boast of his unparalleled skills and experience with ships. St. Peter nodded gently, but warned the engineer that "Noah will be in the audience."

So, with great humility, Mike Espy told of his service as the Secretary of Agriculture in the Clinton Administration where he oversaw the department’s $62 billion budget, 110,000 employees and 14,000 offices here and abroad. The department had many tasks - helping to stabilize farm incomes, provide crop insurance, find international markets for America’s agricultural commodities, provide meals to school children and protect our environment and food supply. Rural development was also a high priority, including improvement of the housing stock, infrastructure and basic services.

There were many accomplishments of which Mr. Espy is rightfully proud. "Water 2000" strove to equip every rural home with clean, hot and cold running water. A cherished photo in Mr. Espy’s office was taken in Dirty Corners, Mississippi and depicts a young girl and her grandmother, with their hands under the flow of running water in their own kitchen for the first time in either of their lives.

While Mr. Espy trumpets these and other successes, he would also urge some caution as we approach a "seminal decision and our greatest challenge." He reminded the crowd of Charles Darwin’s belief that it was not the strongest, largest or even the most intelligent of the species that are destined to survive – it is instead those species who are most responsive to change that are the ones most likely to prosper. The change to which we must now respond is the shift from the "Industrial Age" to the "Digital" or "Information Age." Mr. Espy refers to it as the age of a "New Economy."

All sectors of the economy - manufacturing, services and agriculture - now depend on a global knowledge instantly communicated via technology. Now more than ever, the health of the economy depends on speed, flexibility and innovation. By 2005, 1.5 billion people will be logging-on to the Web (three times the number who do so today). Other evidence confirms that despite the economic slow-down, e-commerce sales are rising and broad band use in homes increased by 150 percent last year.

The "New Economy" is not based on geography – dense urban centers do not necessarily have the edge. Rail lines and waterways are not as essential as before. Face-to-face transactions in urban centers (such as those involved in banking and sales) are increasingly being replaced by services provided over the Internet or other communication vehicles. The advantage goes only to those who can provide the necessary innovative technical solutions. Mr. Espy said it is essential that the Delta region find its niche in this new way of doing business.

There are some rural models that demonstrate how we might get on board this "bullet train." For example, the State of Utah recently devoted $13 million to establish "smart sites" in rural corridors in alliance with high-tech start-up companies. These incubators will provide facilities with high-band width as well as customized training. Other innovative programs are in place in Virginia and Mississippi to attract fast-paced "gazelle-like" high-tech firms.

Mr. Espy implored the participants to encourage their state governments to invest more in education for science and engineering students – and to urge graduates to stay in the region. Research and development tax credits are essential.

It is Mr. Espy's view that the economic future of the Delta region does not rest on agriculture – it takes only two percent of the total American workforce to produce enough food for all. Neither is manufacturing the key - 5 percent of the workforce can make what is needed. Everything else will involve the provision of services and the management of information technology. "As community development practitioners, it is your duty to ‘pole-vault’ into this new economy in order to fulfill your mission to improve communities and lives across the Delta and other American rural communities."

Mr. Espy, Secretary of Agriculture in the Clinton Administration is an attorney who resides in Jackson, Mississippi.

Recommended reading by Mike Espy:

Rising Tide by John Berry
The Lexus and the Olive Tree by Thomas Friedman