Sunday, July 31, 2011

Fixing California - Lt. Governor Gavin Newsom has a plan


From Silicon Valley Mercury News/Karen de Sa, 7/29/11.  "California Lt. Gov. Gavin Newsom arrives in San Jose Friday to unveil his plan to hoist the state out of its economic abyss -- borrowing on the successes of Silicon Valley's global reach and the need to restore long-absent state leadership in job creation. The plan aims to expand exports, green industry and new manufacturing in a state with a foreclosure-riddled housing market and the nation's second-highest jobless rate. It comes after several months in which the Democratic second-in-command searched for effective economic-development strategies in dozens of countries, from Singapore to Germany. Newsom also traveled to six other states, even making a trip to Texas with 14 Republicans.

In California, dozens of agencies oversee some aspect of employment, but they have no coordination or accountability -- something that left him "dumbfounded," Newsom said in an interview Thursday. And despite the dictates of the global economy, California has no trade or export agency and no overseas representation, unlike 35 other states. Pennsylvania alone has 23 state representatives in foreign capitals, Newsom noted.

As far as jobs and economic development, "there's no agency and there's no plan," Newsom said after surveying dozens of economists, academics, and business and labor leaders. "I was stunned. I just couldn't believe it." The future economy should be "more export-oriented, more new manufacturing-oriented, more clean economy-oriented, and more high skill-oriented," said Lenny Mendonca, a former chairman of the McKinsey Global Institute, a San Francisco-based economic think tank that contributed to the report.

"The most important thing is that the state actually has a plan and does something about it," he added. "California can no longer rest on its laurels of a history of being a beautiful place with great talent and great universities -- that's terrific, but we're in a global marketplace now and we've got to compete for jobs just like everybody else."
Newsom calls for a 180-day "action plan" aimed at prompting longer-term reforms through legislation and executive orders. The recommendations, which will be presented today at the San Jose-based Wyse Technology firm, include:  

  • Creating a single Cabinet-level office with a "jobs czar." The office would serve businesses and promote regionally distinct economic development strategies.
  • Eliminating a bevy of state commissions with overlapping and fragmented missions.
  • Forming "regulatory strike teams" to resolve problems businesses face in receiving permits and navigating often-conflicting local, state and federal rules.

  • Newsom calls for stepping up exports and re-establishing an official state presence in international markets, beginning with China. He would promote innovation through patent expansion and smooth the way for increased manufacturing." 
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    Posted by Kathy Meeh

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