Community Economic Development Strategies in Rural Washington: Toward a Synthesis of Natural and Social Capital*

Abstract

AbstractRoutes to economic development attract considerable attention in community and rural sociology. Social scientists draw increasingly on studies of social capital and environmental surroundings as they examine the factors that facilitate and inhibit economic development. However, few empirical analyses exist that analyze the impact of the combination of social infrastructure and natural capital on different forms of economic development such as on industrial recruitment and self‐development. Using data collected from six communities in Washington State, the interaction of a community's social infrastructure and natural capital on industrial recruitment and self‐development efforts is examined. Results suggest that while natural capital positively impacts a community's successful recruitment of outside industries, it is not significant for a community's level of self‐development. However, a community's social infrastructure, measured by the existence of active civic organizations, local businesses that support local community projects, community‐wide fund‐raising capacity, and extra‐local linkages to nearby communities, state, and national agencies, positively affects both industrial recruitment and self‐development. These findings illustrate the need for communities and local activists to carefully weigh their advantages and potential shortcomings when deciding on an economic development strategy.