Game Changers Needed to Sustain Post COVID-19 Recovery - Sasse and Paolino

Game Changers Needed to Sustain Post COVID-19 Recovery - Sasse and Paolino

In January America will have a new president and Rhode Island will have a new speaker and, hopefully, a vaccine to mark the end of COVID-19. These events present an unprecedented opportunity to address long standing economic deficiencies that the pandemic has magnified.

Historically, Rhode Island has not been a leader in rebounding quickly from economic disruptions. This history does not have to be repeated if we recognize that the economic and social dogmas of the past are not adequate for the post pandemic future.

This requires the state to consider a two-pronged strategy. The first is to focus like a laser on recovery programs to help families and small businesses gravely impacted by the coronavirus and to balance the state budget. Second is to implement long-term game changers to sustainably move the economic needle.

Over the next few years, most economists see a “K” shaped recovery where well-educated professionals and the wealthy prosper but most others continue to face economic stress. Failure to recognize this will exacerbate Rhode Island’s high level of employment in low-wage industries, relatively weak educational attainment, inadequate public investment in infrastructure and the innovation economy.

This need not be Rhode Island’s fate if an inclusive process is designed and implemented to respond to the economic and social dislocation brought by the pandemic.

This effort should focus on ways to make the most productive use of the state’s human, capital and natural resources. In the post-coronavirus economy, innovation in production and process will be the drivers of jobs and opportunity.

Only productive enterprises create jobs and wealth, and states will be competing to provide the most productive environment for these enterprises.

Rhode Island has no choice but to consider an economic game changer strategy focused on digital technology, infrastructure investments, underwriting higher education programs in science and technology and accelerated financing of student outcomes, as outlined below.

1) Infrastructure and Capital Investing

Rhode Island’s recovery plan should be predicated on making strategic capital investments to accelerate the recovery and build a stronger economic future. With historically low borrowing costs and state debt affordability headroom, now is the time to invest in capital assets. These include educational facilities, sustainable building upgrades, resiliency for climate change, transportation mobility including high speed rail, technology infrastructure, industrial site development, workforce housing and wet labs to incentivize the innovation economy.                                                                                                                                               

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2) Digital Technology Access and Equity

Digital technology is a powerful tool that can transform access to educational opportunities, healthcare and essential public services. A game changing strategy would begin with an evaluation of the needs, adequacy and availability of digital technology. Value added would include educational enhancements, telemedicine to improve the quality and economy of healthcare services, and maximizing digital applications in delivering essential government.

3) Enhance Rhode Island's Public Schools and Higher Education Institutions

In the innovation economy the K-12 and post-secondary education systems are the state’s most valuable assets. Colleges and universities play a critical role in state economies by producing workers in critical occupations, commercialization of knowledge, and research and development. As technology competitors and products evolve, the education and economic development systems needs to be responsive to new demands. Relentlessly improving the K-12 system is the essential foundation of competitiveness and productivity. Much planning has been done aimed at improving student outcomes. However, it will be difficult to maximize results without a predictable sustained investment in our schools. This may require a dedicated source of revenue to fund public school improvements. Essential in fostering equal access is to make education a constitutional right so the promise of opportunity can be enforced.

With strong leadership, government can play an indispensable role in marshalling the collective talents, energy and experiences of all our people to meet the extraordinary challenges of retooling the state’s economy following the pandemic.

Gary Sasse is the Founding Director of the Hassenfeld Institute for Public Leadership at Bryant University

Joseph R. Paolino Jr. is the former Mayor of Providence and Managing Partner of Paolino Properties