Focus on Rural Economic Development

Many rural communities desperate for economic development have turned to formerly resisted options, such as influencing the state to locate prisons in their area to revitalize their local economies. Without a vital economy, they fear a continuation of declining population and a diminished quality of life. This study uses 1990 and 2000 census data to examine the economic and demographic impact of new state prisons on small town economies compared to changes that occurred during the decade in all other small towns. The analysis shows that when 1990 economic and demographic factors and region are controlled, new state prison towns experienced less growth than non-prison towns except that prison towns had a greater increase in unemployment, poverty, and percent of minorities. The assumption that prisons represent a solution to distressed small town economies and a boost for community development should be reexamined by community leaders.