States' Rights and Economic Development

Abstract

The United States' growing immersion in the global marketplace has great significance in the area of economic development. The current lack of agreement between the federal and state levels of government concerning their respective roles in attracting foreign investment could possibly have serious consequences as America becomes further integrated into the world economy. A national discussion between government officials, the private sector, and experts in academia needs to take place to determine a comprehensive course of action for the nation. Such a national plan, however, does not require the nationalization of economic development planning. Indeed, to better plot future economic development in the global environment, it is useful to examine the two competing forces driving state and federal economic development planning, states' rights and centralization, and to assess the current status of these ideologies.