Working not Where the Light is Best; Rather, Where the Gains are Greatest PART 1 of 3

Look out the Window

Darla Moore is known for her straight talk and ability to "dust it up" with the best of the good-old-boy network. In giving a talk to a group of citizens in a rural county in South Carolina, she asked those present where they thought their economic future lay.   Answers ranged from aviation to high tech. Not limited by an overabundance of patience, Moore implored the group to "Look out the window!   You build first on your primary asset.   See those trees? That’s your future."

Philanthropist and economic develop advocate, Moore of tiny Lake City, SC (population 6500) stands apart from the crowd in many ways.   First, she left "the backwoods" to do exceptionally well on Wall Street.   Then, defying all expectations, Moore – and her riches -- moved back to Lake City where she directs her Palmetto Institute and works tirelessly to help her home town, county, and state craft a positive vision and actions for the future.

Jefferson County, Georgia:   A National Model

As the Endowment has begun to work on a project to advance "asset creation" for under served and disadvantage populations (read poor and often of color), I’ve reflected on the comment attributed to Darla.   We are in the early stages of working with the residents of Jefferson County, Georgia, where – if we are successful – this off-the-beaten-path area could ultimately host what best selling authors Chip and Dan Heath call a "bright spot."   In short, our hope is to develop a shining light of positive progress resulting from a new business model.

Before getting into the basics of the plan, first visualize with me Jefferson County.   The total population is just over 17,000.   Trees – even whole acres of trees --outnumber people by nearly 15-to-1.   Fully three-quarters of the rural landscape is cloaked in forest cover.

The hardworking people of this east-central Georgia area exceed not only state, but also national averages in several categories.   It is a majority-minority county with fully 56% of the population being African-American.   Poverty and unemployment are all-too-common with both far exceeding the national average.   Families living below the poverty line are half-again more common than the rest of the nation and unemployment, anticipating another plant closure that has already been announced, will double that of the nation – expected to surpass 17% in the next few months.

Dumping vs. Investing

Some have questioned the Endowment’s plans to partner with for-profit alternative energy developer, North Star Renewable Power.   The most cynical say that the county was targeted because its population is poor and heavily minority.   The odd thing is the critics are right.   The difference is intent.   We, indeed, "targeted" Jefferson County, but not to "take advantage" of its people and its plight; rather, our hope is to try some tangible things designed to help reverse the downward trend.

Jefferson County is first and foremost a "forest rich" place.   Even current private employment is heavily rooted in the forest.   Among the most important businesses are family-owned Battle Lumber Company that produces hardwood lumber and flooring for global markets.    Just up the road is Fulghum Industries working with international customers in the wood handling business, both paper and lumber.   And , there is Cooper Machine which makes equipment for the sawmill industry.   An outside expert might look at these three businesses, and the ubiquitous forests, and suggest that Jefferson County already has the makings of a "business cluster" – one tied to forests.

Enter the Endowment and North Star.   Our plan is to develop a right-sized (scaled to fit the community and the forest resource) wood-to-energy facility that not only provides additional markets for waste wood and low-value timber, but also, that showcases the potential of linking a for-profit business with the long-term needs of the community through a significant equity investment designed to accrue financial gains that will stay within the community.   The Endowment’s interests will be represented by its first-ever for-profit subsidiary – Community Wealth through Forestry, Inc. (CWF).

Carlton N. Owen