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| Dr. Ernesto Sirolli IOWA PRESS #3134>>
Borg: CHRONIC PROBLEMS PLAGUE RURAL AMERICA AND THREATEN TO BE CATASTROPHIC. WE'LL EXPLORE REDEVELOPMENT SOLUTIONS WITH TWO RURAL EXPERTS: DR. ERNESTO SIROLLI OF THE SIROLLI INSTITUTE AND CORNELIA BUTLER FLORA OF IOWA STATE UNIVERSITY, ON THIS EDITION OF "IOWA PRESS."
FUNDING FOR THIS PROGRAM WAS PROVIDED BY "FRIENDS," THE IOWA PUBLIC TELEVISION FOUNDATION... GENERATIONS OF FAMILIES AND FRIENDS WHO FEEL PASSIONATE ABOUT THE PROGRAMS THEY WATCH ON IOWA PUBLIC TELEVISION;
AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS;
AND BY THE ASSOCIATED GENERAL CONTRACTORS OF IOWA... THE PUBLIC'S PARTNER IN BUILDING IOWA'S HIGHWAY, BRIDGE, AND MUNICIPAL UTILITY INFRASTRUCTURE.
ON STATEWIDE IOWA PUBLIC TELEVISION, THIS IS THE FRIDAY, APRIL 16 EDITION OF "IOWA PRESS." HERE IS DEAN BORG.
Borg: RURAL AMERICA HAS TAKEN SOME HEAVY HITS OVER THE YEARS, PARTICULARLY OVER THE PAST THREE DECADES. CYCLES OFTEN STRIKE DEEPER AND LAST LONGER IN THE COUNTRYSIDE. MANY OBSERVERS BLAME AN AGRICULTURAL EVOLUTION. SOME CALL IT CORPORATIZATION OF FARM OPERATIONS. OTHERS SEE THE COMBINATION OF HIGH LAND PRICES AND INCONSISTENT COMMODITY RETURNS TO BE AT THE ROOT. WHATEVER YOU CALL IT, RURAL POPULATIONS ARE DECLINING, SMALL TOWNS, SCHOOLS, AND BUSINESSES WITHERING. THIS WEEK IN DES MOINES, A BLUE RIBBON SYMPOSIUM CONVENED TO FOCUS ON THOSE PROBLEMS, AND TWO PANELISTS FROM THAT SYMPOSIUM, WHICH WAS TITLED "CAPITALIZING ON RURAL AMERICA," JOIN US TODAY. DR. ERNESTO SIROLLI IS A NOTED EXPERT IN THE BUSINESS OF CONVERTING IDEAS INTO ENTERPRISE. DR. CORNELIA BUTLER FLORA OF IOWA STATE UNIVERSITY SPECIALIZES IN RURAL DEVELOPMENT, AND SHE'S THE CHARLES F. CURTIS DISTINGUISHED PROFESSOR OF AGRICULTURE AT IOWA STATE UNIVERSITY. DR. SIROLLI AND DR. FLORA BUTLER, WELCOME TO "IOWA PRESS." OR "BUTLER FLORA," I'M SORRY. YES, THANK YOU.
Butler Flora: FLORA IS FINE.
Borg: ALL RIGHT. WE'LL DO THAT. AND ALSO WITH US AT THE TABLE: "DES MOINES REGISTER" COLUMNIST DAVID YEPSEN, AND "RADIO IOWA" NEWS DIRECTOR KAY HENDERSON.
Henderson: DR. FLORA, LET'S START WITH YOU. AS A SOCIOLOGIST, GIVE US A CONDITION REPORT, IF YOU WILL, OF RURAL IOWA.
Butler Flora: WELL, WE'RE SEEING A FEWER NUMBER OF FULL-TIME FARMERS. WE'RE SEEING AN AWFUL LOT OF PEOPLE WHO LOVE FARMING AND GATHER MOST OF THEIR INCOME OFF THE FARM, AND WE SEE A LOT OF PEOPLE -- IN FACT THE VAST MAJORITY OF RURAL IOWA, ARE FOLKS WHO DO NOT EARN THEIR LIVING WITH ANYTHING TO DO WITH AGRICULTURE. AND WE'VE ALSO SEEN A SHIFT IN RURAL MANUFACTURING THAT HAS LED TO SOME MOVING OFF SHORE OF A VARIETY OF MANUFACTURERS, BUT WE ALSO HAVE -- AND I THINK THIS IS THE EXCITING PART -- WE ALSO IN IOWA HAVE A LOT OF SMALL MANUFACTURERS THAT ARE DOING A LOT OF VERY INNOVATIVE THINGS THAT CAN BE A BASIS FOR A MUCH MORE INFORMATION-BASED MANUFACTURING ECONOMY.
Henderson: DR. SIROLLI, AS A PERSON WHO CONSULTS WITH COMMUNITIES ALL ACROSS THE COUNTRY IN RURAL AMERICA, WHAT ABOUT RURAL IOWA THAT YOU SEE MY BE SPECIFIC IN TERMS OF ITS CONDITION ECONOMICALLY?
Sirolli: I'VE BEEN HERE ONLY A COUPLE OF TIMES, AND CERTAINLY I DON'T HAVE THE KIND OF DEPTH OF EXPERTISE THAT CORNELIA HAS ABOUT LOCAL CIRCUMSTANCES. I WAS INVITED, HOWEVER, BY FIVE COUNTIES IN YOUR -- IN THE CENTRAL WEST PART OF THE STATE NOT LONG AGO, AND THE ATMOSPHERE IN THAT ROOM WAS VERY EXCITING. THERE WERE 17 BANKS REPRESENTED FROM THE FIVE-COUNTY AREA. THE ENTIRE COMMUNITY WAS IN THAT ROOM, FROM RELIGIOUS ORGANIZATIONS TO CITY COUNCILS AND COUNTY GOVERNMENTS. AND SOMEHOW THERE WAS A KIND OF A RESOLVE TO SAY MAYBE THE IDEA THAT WE SHOULD TRY TO -- THE IDEA THAT FORD WILL COME HERE TO HAVE A BIG PLANT MAYBE IS NOT GOING TO HAPPEN. AND THERE WAS A KIND OF A RESOLVE TO DO SOMETHING LOCALLY FOR THEMSELVES. AND IT IS UNCANNY WHAT'S HAPPENING NOWADAYS. ONCE THE SIROLLI INSTITUTE -- OUR WORK WAS SEEN VERY MUCH AS COMING FROM LEFT FIELD. IT WAS A KIND OF APPROACH TO ECONOMIC DEVELOPMENT THAT SEEMED TO CONTRADICT WHAT WAS THE NORM, ECONOMIC DEVELOPMENT, INFRASTRUCTURE DEVELOPMENT, STRATEGIC PLANNING, BUSINESS RECRUITMENT. AND NOW WE'RE DISCOVERING THAT MORE AND MORE COMMUNITIES, WHEN THEY UNDERSTAND THAT UNLESS THEY DO IT, UNLESS THEY TAKE THE LEAD, UNLESS THEY START TO LOOK AT THEIR ENTREPRENEURS -- WE NOW GET CALLED IN MORE AND MORE BY THE VERY SAME KIND OF PEOPLE, THE ESTABLISHMENT. YOU KNOW WHAT PEOPLE USED TO SAY, "THE OLD-BOYS NETWORK." WELL, THE OLD-BOYS NETWORK IS WAKING UP AND SAYING MAYBE WE OUGHT TO DO SOMETHING A BIT DIFFERENT.
Yepsen: PROFESSOR FLORA, I WANT TO ASK THE TWO OF YOU, AND I'LL START WITH YOU, TO WRITE US SOME PRESCRIPTIONS. WE ALL KNOW WE HAVE PROBLEMS IN IOWA AND IN SMALL TOWNS IN IOWA, VARIOUS KINDS. WRITE SOME PRESCRIPTIONS FOR THINGS YOU THINK SMALL TOWNS SHOULD DO FOR THEMSELVES OR THAT OTHERS SHOULD DO FOR SMALL TOWNS.
Butler Flora: WELL, I GUESS I COME FROM THE NOTION THAT SMALL TOWNS ARE GOING TO HAVE TO START DOING IT THEMSELVES AND WORKING WITH A LOT OF OTHERS IN ORDER TO DO THIS. THAT MEANS TWO THINGS. THIS IS SORT OF THE SOCIAL PIECE THAT WE'RE SEEING HAPPENING. PEOPLE ARE TRYING TO RID THEMSELVES OF THE VICTIM MENTALITY: "OH, THE FEDS ARE DOING THIS TO US AGAIN. IF THEY WOULD ONLY GET PRICES RIGHT, GUARANTEE ME A PRICE FOR MY CORN AND GET OUT OF MY FACE, EVERYTHING WOULD BE PERFECTLY FINE." OR THE CARGO CULT MENTALITY THAT ERNESTO WAS REFERRING TO THAT, "IF ONLY SOMEONE WOULD BUILD US AN AUTOMOTIVE MANUFACTURING PLANT, IF ONLY SOMEONE WOULD BUILD A CALL CENTER, IF ONLY SOMETHING FROM THE OUTSIDE WOULD COME IN." AND WE'RE LEARNING, YOU KNOW, THAT'S PROBABLY NOT EVER GOING TO HAPPEN, AND IF IT DID, WE PROBABLY WOULDN'T LIKE IT.
Yepsen: DR. SIROLLI, YOU DO THAT SORT OF THING. IT'S CALLED ENTERPRISE FACILITATION. GIVE US A SHORT EXPLANATION OF JUST WHAT IT IS YOU DO WHEN YOU GO INTO A SMALL TOWN.
Sirolli: FIRST OF ALL, THE FIRST CONDITION IS THAT YOU ONLY GO IF INVITED, AND YOU HAVE TO BE INVITED BY THE LEADERSHIP. THERE HAS TO BE CIVIC LEADERSHIP. THIS IS NOT SOMETHING YOU CAN IMPOSE ON PEOPLE. IF THE LOCAL LEADERSHIP HAS DONE THE MAIN STREET BEAUTIFICATION, HAS BUILT THE INDUSTRIAL PARK, AND HAS BEEN TRYING TO DO SOME RECRUITMENT, AND ALL THESE THINGS ARE THERE BUT THEY'RE NOT FULLY UTILIZED, BUSINESS RECRUITMENT IS TOO EXPENSIVE FOR THE MAJORITY OF RURAL COMMUNITIES, IF THEY CALL US IN, WHAT WE DO IS BASICALLY SAY TO THE LOCAL LEADERSHIP SAY, LOOK, RIGHT NOW IN YOUR COMMUNITY THIS VERY MINUTE, THERE IS SOMEBODY WHO IS SCRIBBLING FIGURES ON A KITCHEN TABLE ON HOW TO SURVIVE, HOW TO IMPROVE, HOW TO FEED THE FAMILY. IF YOU COULD LEARN HOW TO HELP THAT ONE PERSON IN YOUR COMMUNITY TO GO FROM SOLITUDE AND DESPONDENCY AND POVERTY TO HAVE THE ABILITY TO FEED THE FAMILY, TO MAYBE EMPLOY SOMEBODY, TO HAVE A SMILE FROM EAR TO EAR, YOU WILL BE HALFWAY THERE TO CHANGE THE ECONOMIC FORTUNE OF THE ENTIRE COMMUNITY. AND THEY'LL SAY, "WHAT ARE YOU TALKING ABOUT? HELPING ONE PERSON IS NOT GOING TO HELP." AND I SAY, "WELL, THIS IS WHAT WE'RE GOING TO DO. WE ARE GOING TO EMPLOY A PERSON WHO IS SOMEBODY WHO COMES FROM THE PRIVATE SECTOR, SOMEONE WHO HAS WHITE HAIR, NO HAIR, OR A COMBINATION OF BOTH, SOMEBODY HAS STARTED BUSINESSES, MANAGED BUSINESSES IN HER OWN LIFE, IN HIS PREVIOUS LIFE, AND WE'RE GOING TO EMPLOY THIS PERSON TO BECOME A FAMILY DOCTOR OF BUSINESS." THE FAMILY DOCTOR LIVES IN THE VILLAGE, LIVES IN THE COMMUNITY, MAYBE SERVICES A COUNTY AREA OR, YOU KNOW, 20-, 30,000 PEOPLE POPULATION, AND THIS PERSON BECOMES HIGHLY VISIBLE IN THE COMMUNITY, WORKS IN BLUE JEANS, HE OR SHE, 50/50 MALE/FEMALE IN THIS BUSINESS. AND THE ROLE OF THE FAMILY DOCTOR OF BUSINESS IS, ON REQUEST, GO TO THE HOUSE OF PEOPLE, MEET THEM AT THE CAFE, MEET THEM IN THE PLACE OF BUSINESS, AND HELPS PEOPLE WITH THEIR IDEA, TRANSFORMING THEIR IDEA WHICH HAD BEEN A DREAM FOR THESE PEOPLE FOR MANY YEARS, BUT THEY DON'T KNOW HOW TO TAKE IT ALL THE WAY.
Yepsen: SO INSTEAD OF GETTING FORD MOTOR COMPANY TO BUILD A FACTORY IN A SMALL TOWN, YOU HELP SOMEONE START A WELDING SHOP OR A BAKERY AND EMPLOY TWO OR THREE PEOPLE.
Sirolli: THERE ARE TWO THINGS THAT WE DO. NOT ONLY DO WE HELP THIS PERSON TO GO FROM THE IDEA TO SET UP A SUCCESSFUL BUSINESS, WE TELL THE STORY WITH THE HELP OF THE CLIENT. SO AS SOON AS WE HAVE HELPED THE FIRST CLIENT, WE GO TO MARY AND SAY, "MARY, WERE YOU HAPPY WITH IT?" AND MARY SAYS, "OH, YOU CHANGED MY LIFE." "CAN YOU TELL THE STORY"? AND WHEN THE STORY IS TOLD IN THE LOCAL PAPER, TEN FRIENDS OF MARY OR TEN PEOPLE FROM THE COMMUNITY COME TO US TO SAY, "WE SAW WHAT YOU'VE DONE WITH MARY. I HAVE A DREAM. CAN YOU HELP ME"?
Yepsen: AND PEOPLE WHO WANT MORE INFORMATION ABOUT WHAT YOUR BUSINESS AND WHAT YOU DO -- SIRILLO.ORG, IS THAT YOUR WEB SITE?
Sirolli: SIROLLI.COM.
Yepsen: DOT-COM. I'M SORRY.
Yepsen: DR. FLORA, WHAT'S YOUR REACTION TO THAT APPROACH?
Butler Flora: I THINK ONE OF THE THINGS THAT IS REALLY IMPORTANT ABOUT THIS IS THOSE NETWORKS THAT ARE BEING DONE. OUR TRADITIONAL WAY OF WORKING WITH BUSINESSES HAS BEEN THIS NOTION OF WE'LL LOOK AT AN INDIVIDUAL BUSINESS AND WE WILL TAKE THAT BUSINESS TO SCALE, OR WHATEVER. THIS IS WHY THIS APPROACH IS VERY DIFFERENT. IT IS NOT SAYING WE'RE GOING TO WORK WITH AN INDIVIDUAL BUSINESS ONLY, BECAUSE YOU START OUT WITH THAT GREAT IDEA. BUT PEOPLE WHO HAVE A GREAT IDEA FOR MAKING SOMETHING MAY REALLY HATE MARKETING, MAY REALLY NOT LIKE VERY MUCH AT ALL ACCOUNTING, SO YOU HAVE TO LINK THEM TO THESE OTHER FOLKS. SO YOU BEGIN BUILDING PARTNERSHIPS. YOU BEGIN LINKING SKILLS WITHIN THE COMMUNITY. AND THEN -- THIS SOUNDS VERY TRIVIAL BUT WHAT YOU'RE DOING IS YOU'RE HELPING THE SELF-ESTEEM OF NOT ONLY THAT INDIVIDUAL BUT THAT COMMUNITY, TO BEGIN TO SAY WE CAN TRY SOMETHING MORE.
Borg: DR. FLORA, THE BASIC QUESTION I'M GOING TO ASK IS, IS GAMBLING AN INDUSTRY THAT WILL HELP RURAL IOWA. NOW, THAT'S A DECISION THAT IOWA LEGISLATORS WERE MAKING THIS WEEK, SO IT'S ESPECIALLY RELEVANT RIGHT NOW. AND MANY IOWA COMMUNITIES ARE PETITIONING, THEY'VE PASSED REFERENDUMS SAYING WE WANT GAMBLING IN OUR STATE. YOU SERVE ALSO AS A DIRECTOR OF AN INSTITUTE THAT SERVES SEVERAL MIDWEST STATES, I THINK ALL THE WAY FROM MAYBE INDIANA TO NORTH DAKOTA, IF I UNDERSTAND IT CORRECTLY, INCLUDING NEBRASKA, IOWA, AND THE REST. IT'S HAPPENING ALL OVER. THE BASIC QUESTION IS, IS GAMBLING A SOLUTION FOR RURAL AMERICA.
Butler Flora: THERE IS NO SINGLE SOLUTION FOR RURAL AMERICA.
Borg: IS IT A HELP?
Butler Flora: WELL, I'VE LOOKED AT A LOT OF THE LITERATURE ON THIS BECAUSE THIS IS SOMETHING PEOPLE HAVE BEEN STRUGGLING WITH. AND IN SOME CASES IT IS HELPFUL IF THERE IS VERY CLEAR HOW THOSE GAMBLING WINNINGS GO BACK INTO THE COMMUNITIES. IN INDIAN GAMING, WHEN THOSE WINNINGS ARE INVESTED BY THE TRIBE TO MAKE THE TRIBE STRONGER IN THINGS LIKE COMMUNITY CENTERS, POWWOW GROUNDS, EDUCATION, THEN THIS IS THE CASE. BUT IF THE NOTION IS THAT GAMBLING IS JUST ANOTHER SOURCE OF JOBS THEN, FRANKLY, IT'S A VERY PROBLEMATIC INDUSTRY.
Borg: WHY? IT DOES CREATE JOBS. IT DOES PUT SOME CAPITAL IN THE COMMUNITY. WHY DON'T YOU RATE THAT HIGHER?
Butler Flora: BECAUSE GENERALLY IT'S NOT SOMETHING THAT IS LOCALLY CONTROLLED. GENERALLY IT ALSO TAKES A LOT OF MONEY OUTSIDE THE COMMUNITY, SO IT'S NOT LIKE IT'S A TERRIBLE THING BUT IT IS NOT GOING TO BE THE SOLUTION FOR ANY IOWA COMMUNITY. WHAT WORRIES ME IS WHEN WE SPEND ALL OUR TIME LOOKING FOR THAT SILVER BULLET, WE ARE IGNORING ALL THOSE OTHER OPTIONS THAT ALLOW US A DIVERSIFIED ECONOMY TO BEGIN TO EMERGE.
Henderson: DAVE ASKED YOU FOR SOME PRESCRIPTIONS. LET'S TALK ABOUT WHAT MAY BE THE IMPEDIMENTS TO PEOPLE WHO MAY HAVE LISTENED TO YOUR MESSAGE, DR. SIROLLI, AND SAID, "HEY, I'VE GOT AN IDEA. I WANT TO PURSUE IT." IN RURAL IOWA, WHAT ARE THE IMPEDIMENTS THAT PERHAPS NEED TO BE CHANGED OR ADDRESSED?
Sirolli: WELL, FIRST OF ALL, IT'S VERY, VERY DIFFICULT FOR INDIVIDUALS IN ISOLATION TO START A SUCCESSFUL ENTERPRISE. NOBODY HAS EVER BEEN BORN WHO PASSIONATELY EQUALLY LOVES TO PRODUCE THE PRODUCT, TO MARKET IT, AND TO KEEP THE FINANCE... NOBODY, BECAUSE NOBODY HAS EVER BEEN BORN WITH A PASSION FOR THOSE THREE THINGS. AND IF YOU DON'T LOVE IT, EVEN IF YOU LEARN IT, YOU WILL NEVER EXCEL AT IT. IN A SMALL BUSINESS, THESE THREE THINGS HAVE TO BE DONE EQUALLY BEAUTIFULLY. SO THE FIRST IMPEDIMENT IS SOLITUDE. IF PEOPLE DON'T HAVE SOMEBODY THAT THEY CAN ADVISE THEM IN CONFIDENCE, THEY WILL NOT GO AND TELL ABOUT THEIR IDEAS. SO YOU HAVE TO HAVE A SYSTEM, A SERVICE THAT IS CONFIDENTIAL. WHY WOULD SOMEBODY GO AND TELL THEIR MONEY MAKING IDEA TO SOMEBODY ELSE. SO YOU HAVE TO PROVIDE SOMETHING THAT ALLOWS THEM TO COME FORWARD IN CONFIDENCE. THE OTHER THING IS IT HAS TO BE FREE, BECAUSE THE MAJORITY OF THE PEOPLE WHO ARE STRUGGLING TO START A NEW ENTERPRISE DON'T HAVE THE MONEY TO PAY $100 PER HOUR TO AN EXPERT ADVISOR, SO SOMEBODY HAS TO PROVIDE A FREE CONFIDENTIAL SERVICE. AND THEN NETWORK... YOU HAVE TO RECARVE THESE PEOPLE INTO THEIR LOCAL COMMUNITY AND SOCIETY BY HAVING A STRUCTURED NETWORK. AND WE DO THAT WITH 50 LOCAL VOLUNTEERS SWORN TO SECRECY WHO MEET EVERY MONTH WHO HELP TO FIND THE MARKETING PERSON OR THE FINANCE PERSON FOR THAT SINGLE CLIENT. SOME OF THE PROBLEM, HOWEVER, ARE STRUCTURAL PROBLEMS, TAXATION FOR SMALL BUSINESS, HEALTH CARE. IT'S VERY DIFFICULT FOR A FAMILY TO START A SMALL BUSINESS. USUALLY WHAT THEY DO IS THEY SPLIT: ONE KEEPS THEIR JOB SO THAT THE FAMILY HAS HEALTH COVERAGE, AND THE OTHER PARTY -- THE OTHER SPOUSE STARTS THE SMALL BUSINESS UNTIL THAT ENTERPRISE CAN PAY FOR HEALTH CARE.
Yepsen: PROFESSOR FLORA, IS ONE OF THE PROBLEMS THAT WE HAVE IN IOWA AN ATTITUDINAL PROBLEM? WE HAVE A LOT OF VERY TRADITIONAL PEOPLE HERE, A STABLE COMMUNITY, WE LIKE OUR STATUS QUO. THERE ARE A LOT OF NAYSAYERS IN TOWN, YOU KNOW THOSE CRABBY PEOPLE THAT SIT AROUND THE COFFEE SHOP AND RUN EVERYTHING DOWN. IS ONE OF OUR PROBLEMS IN THIS STATE OUR OWN ATTITUDE?
Butler Flora: I THINK WE ARE VERY NEGATIVE ABOUT THE RESOURCES THAT WE HAVE HERE. AND WHEN WE TALKED ABOUT CAPITALIZING RURAL AMERICA AND PARTICULARLY CAPITALIZING RURAL IOWA, IT'S SAYING THAT CAPITAL ARE RESOURCES INVESTED TO CREATE NEW RESOURCES. AND WE TEND TO BE REALLY GOOD AT TELLING PEOPLE WHY THINGS WON'T WORK, WHICH IS ANOTHER REASON FOR THE CONFIDENTIALITY. WE'RE REALLY -- "WE TRIED THAT TWENTY YEARS AGO AND IT DIDN'T WORK" OR "THAT'S NOT THE WAY WE DO THINGS HERE." AND NEITHER -- AND WHEN WE FALL BACK INTO THOSE OLD PATTERNS WE, THEREFORE, STIFLE INNOVATION.
Borg: IS A PART OF THAT THE RESISTANCE ALSO TO BRINGING PEOPLE INTO IOWA THAT MAY BE NOT JUST LIKE OURSELVES? GOVERNOR VILSACK TRIED A FEW YEARS AGO TO FLOAT THE IDEA OF PROMOTING IMMIGRATION. HE DROPPED IT.
Butler Flora: YOU KNOW, I THINK THIS SAYS THAT BECAUSE I, IN FACT, THINK A LOT OF PEOPLE, PARTICULARLY IN RURAL IOWA, LOVE LEARNING NEW THINGS BY MEETING NEW PEOPLE AND, IN FACT, ON A ONE-ON-ONE BASIS, REALLY WELCOME DIVERSITY. I THINK THAT PEOPLE ARE KIND OF OVERWHELMED. AND WE HAVE SOME VERY GOOD STUDIES THAT SAY PEOPLE ALWAYS OVERESTIMATE THE PROPORTION OF PEOPLE DIFFERENT THAN THEM THAT EXIST IN A COMMUNITY.
Yepsen: DR. SIROLLI, IS ONE OF THE ISSUES IN THIS WHOLE GAME ALMOST LIKE NATURE, DARWINIAN, A SPECIES EITHER ADAPTS OR IT DIES? ISN'T THAT TRUE FOR COMMUNITIES IN IOWA, YOU EITHER ADAPT OR YOU DIE?
Sirolli: I HAVE TO TELL YOU SOMETHING THAT I SAID DURING A TELEVISED DEBATE FROM WASHINGTON, D.C., WITH THE DEPARTMENT OF COMMERCE. IT JUST CAME TO ME -- I'M ITALIAN... ITALIAN BORN, ITALIAN EDUCATED, AND THEN I'VE WORKED ALL OVER THE WORLD IN AUSTRALIA, NEW ZEALAND, CANADA, THE UNITED STATES, ENGLAND. AND OVER THE LAST TWENTY YEARS, I REALIZED THAT I WORKED IN AUSTRALIA, A NEW COUNTRY COMPARED TO OLD EUROPE, NEW ZEALAND, CANADA, THE UNITED STATES. THEY'RE ALL NEW COUNTRIES COMPARED TO ITALY. AND WHAT I CAME TO REALIZE IS THAT IN AUSTRALIA, ENTIRE TOWNS WERE BORN AROUND A MINE. SO YOU HAVE A GOLD MINE, 40,000 PEOPLE, 40 PUBS AROUND A TOWN. AS SOON AS THE GOLD WAS EXHAUSTED, THE TOWN WILL DISAPPEAR. SO YOU GO THERE NOW AND THERE IS NOTHING THERE, ONLY A FEW BUILDINGS. AND WHEN I SPEAK TO AUSTRALIANS OR CANADIANS OR EVEN IN A CERTAIN SENSE IN AMERICA, THERE IS THIS FEELING THAT THE RURAL TOWN IS BUILT AROUND A NATURAL RESOURCE. SO WHEN THE NATURAL RESOURCE IS EXTINGUISHED, WHAT IS THE USE FOR THE TOWN? THE TOWN DOES NOT NEED TO BE THERE. BUT THE NATURAL RESOURCE UPON WHICH THE CITY OF FLORENCE WAS BUILT WAS EXHAUSTED 2,000 YEARS AGO, AND YET THE CITY OF FLORENCE IS THERE AND IT'S PROSPERING, AND SO IS ALL THE RURAL COUNTRYSIDE IN ITALY EVEN THOUGH THE NATURAL RESOURCE IS LONG GONE. AND IT CAME UP TO ME THAT IN ITALY WE KNOW THAT EVERY GENERATION HAS TO REINVENT THE ECONOMY. SO WHAT ARE WE TALKING ABOUT HERE? THE COMMODITY PRICES ARE DOWN. ARE WE GOING TO CLOSE RURAL AMERICA?
Butler Flora: OR IF COMMODITY PRICES ARE UP, THAT'S GOING TO SOLVE EVERYTHING. AND BOTH ANSWERS ARE WRONG.
Henderson: ONE OF THE SOLUTIONS THAT MANY FOLKS IN RURAL IOWA HAVE DECIDED UPON IS BIGGER IS BETTER. IN ONE OF THE INSTANCES, IT'S HOG CONFINEMENTS. SOME OF THOSE HOG CONFINEMENTS ARE NOT WELCOMED IN PARTS OF RURAL IOWA. WHAT IS THE ANSWER IN TERMS OF THAT DILEMMA THAT FACES RURAL AMERICA?
Butler Flora: IF YOU ARE -- IF WHAT YOU'RE TRYING TO DO IS PRODUCE A HIGH-VOLUME, LOW-VALUE CROP, BIGGER IS ALWAYS BETTER. IF YOU'RE TRYING TO BECOME COMPETITIVE IN A HIGH-VALUE MARKET, FLEXIBILITY AND INNOVATION IS BETTER.
Sirolli: AND QUALITY.
Butler Flora: AND QUALITY. SO I THINK THIS IS SORT OF OUR DILEMMA THAT IF -- AND WE HAVE, FOR A WHOLE VARIETY, I BELIEVE, OF REASONS THAT ARE NOT INTRINSIC IN IOWANS, FELT MUCH MORE COMFORTABLE IN THE HIGH-VALUE -- OR HIGH-VOLUME, LOW-VALUE NITCH, BECAUSE WE FEEL THERE'S SOME SORT OF GUARANTEE THERE. EVEN IF WE DON'T EARN VERY MUCH, WE'LL AT LEAST GET SOMETHING. IF WE HAVE A CONTRACT EITHER WITH THE FEDERAL GOVERNMENT WITH FARM PROGRAMS OR WITH A PACKER IN OUR OTHER PROGRAMS THAT THEN KEEP US FROM MOVING INTO THIS NOTION OF REINVENTING OUR ECONOMY, TRYING THAT QUALITY, INNOVATION --
Yepsen: PROFESSOR, WE DON'T HAVE A LOT OF TIME LEFT, SO I WANT TO FOCUS OUR REMAINING FEW MINUTES ON SORT OF GOVERNMENTAL AND PUBLIC POLICY ISSUES. WHAT SHOULD THE LEGISLATURE DO? SHOULD WE BE REWORKING THE STRUCTURE OF OUR GOVERNMENTS IN IOWA? DO WE HAVE TOO MANY? SHOULD WE BE DOING THINGS WITH OUR TAXES, HEALTH CARE, EDUCATION? WHAT ARE THE MOST IMPORTANT THINGS THAT STATE GOVERNMENT SHOULD BE DOING TO HELP RURAL COMMUNITIES RIGHT NOW?
Butler Flora: ONE OF THE REALLY IMPORTANT THINGS IS TO ALLOW FLEXIBILITY IN LOCAL GOVERNMENTS USING MULTIJURISDICTIONAL KINDS OF ACTIVITIES. MY FEELING IS THAT IF THINGS COME CENTRALLY, THAT WE'RE GOING TO CUT THE NUMBER OF COUNTIES, FOR EXAMPLE, THIS WOULD BE TERRIBLE. BUT IF COUNTIES CAN FIGURE OUT GREAT WAYS TO COLLABORATE, THEN I THINK WHAT WE NEED TO DO IS SAY WHAT ARE THE BLOCKAGES TO MULTIJURISDICTIONAL COLLABORATIONS.
Yepsen: DR. SIROLLI, SAME QUESTION TO YOU. WHAT SHOULD -- IF YOU WERE TALKING TO THE GOVERNOR, WHAT WOULD YOU ADVISE THAT WE DO? FIX ALL THOSE GOVERNMENTS? PROVIDE VENTURE CAPITAL? WHAT'S IMPORTANT?
Sirolli: MANAGEMENT. MANAGEMENT, COACHING AT THE GRASS ROOT, TECHNICAL ASSISTANCE, LINK -- PROVIDE TECHNICAL ASSISTANCE TO PEOPLE WHO WANT TO DIVERSIFY. THE REASON WHY PEOPLE PREFER TO PRODUCE -- MASS PRODUCE LOW QUALITY IS ALSO BECAUSE THEY HAVE NO ABILITY TO MARKET HIGH-QUALITY ITEMS. AND THE MOMENT THAT YOU CAN MARKET HIGH-QUALITY FOOD TO RESTAURANT CHAINS AT A HIGHER PRICE, YOU WOULD SPECIALIZE IN THAT. BUT SO MANY FARMERS AND RANCHERS, THEY DON'T KNOW HOW TO MARKET TO NITCH MARKETS THAT MAKES THEM LOTS OF MONEY. SO IF WE COULD TAKE VERY GOOD MANAGEMENT TO THE GRASS ROOTS, I THINK IT WOULD BE FANTASTIC.
Yepsen: WHAT ABOUT START-UP CAPITAL? I MEAN YOU TALK ABOUT GETTING PEOPLE WITH IDEAS, GETTING THEM SOME MANAGEMENT HELP. WHAT ABOUT GETTING THEM THAT $5,000 THAT THEY NEED TO START A WELDING SHOP?
Sirolli: I THINK THAT, FIRST, MANAGEMENT ADVICE AND THEN ACCESS TO VENTURE FINANCE.
Butler Flora: THE OTHER THING IS WE ARE BLESSED IN IOWA WITH A LOT OF VERY SMART LOCAL BANKERS WHO ARE WILLING TO INVEST IN A WINNING ENTERPRISE.
Yepsen: A LOT OF PEOPLE DON'T THINK THEY WANT TO MAKE LOANS.
Sirolli: WELL, THEY --
Butler Flora: WELL, IF THEY HAVE -- IF YOU HAVE A GOOD MARKETING PLAN, THEN YOU CAN MAKE A LOAN. THIS GOES BACK -- THIS IS SOMETHING I THINK WE FORGET. WE THINK, OH, -- AND ANY BUSINESSMAN WILL SAY, "WELL, YOU KNOW, MY REAL PROBLEM WAS I NEVER HAD ENOUGH CAPITAL TO GET STARTED." THE FACT IS THAT PEOPLE DON'T INVEST IN SOMETHING UNLESS THEY THINK IT'S GOING TO WORK. THEREFORE, YOU NEED TO HELP PEOPLE GET THAT MARKETING PLAN, GET THE BUSINESS PLAN THAT CAN THEN CONVINCE FOLKS THAT YOU NEED THE CAPITAL --
Sirolli: AND BREAK THE SOLITUDE OF THESE PEOPLE. DON'T GO IN BUSINESS ALONE. GET TOGETHER. FORM A WONDERFUL TEAM. FORM A COMPANY TO DO THIS AND THEN YOU -- THE MONEY IS IN AMERICA FOR THIS -- FOR A WELL-MANAGED COMPANY.
Henderson: ONE WAY TO BREAK THE SOLITUDE IS GET ON THE INTERNET, DEVELOP A COMMUNITY ON THE INTERNET. ONE OF THE THINGS THAT THE PRESIDENT TALKED ABOUT THIS PAST WEEK IN IOWA WAS THAT THERE NEEDS TO BE DEVELOPMENT OF BROADBAND TECHNOLOGY. IS THAT, DR. FLORA, SOMETHING THAT GOVERNMENT NEEDS TO GET MORE INVOLVED IN?
Butler Flora: THIS IS -- I MEAN THIS SEEMS A PERFECTLY ACCEPTABLE ROLE FOR GOVERNMENT, WHICH IS TO SAY WE PROVIDE BASIC INFRASTRUCTURE. BUT AGAIN, TO BELIEVE THAT ANY INFRASTRUCTURE WITHOUT GOOD SOCIAL ORGANIZATION AND BUILDING THE SKILLS AND NETWORKS AROUND IT WILL FAIL -- OUR NOTION THAT IF WE JUST BUILD IT, THEY WILL COME, REALLY IGNORES THE FACT THAT YOU HAVE TO HAVE A GOOD KIND OF ORGANIZATION AROUND IT TO UTILIZE IT FULLY. WE, I THINK, IN IOWA ARE VERY QUICK TO ADOPT TECHNOLOGIES, BUT WE STILL HAVE TO FIGURE OUT THE BEST WAYS TO USE THEM. GENERALLY WE DO THAT BY WORKING TOGETHER.
Yepsen: DR. FLORA, WE HAVE LESS THAN A MINUTE LEFT. PEOPLE WHO WATCH THIS PROGRAM TEND TO BE OPINION LEADERS IN THEIR COMMUNITIES. WHAT SHOULD AN INDIVIDUAL WATCHING THIS PROGRAM WHO WANTS TO HELP HIS OR HER COMMUNITY TOMORROW MORNING, WHAT'S THE FIRST THING THEY SHOULD DO?
Butler Flora: THEY SHOULD GET TOGETHER WITH A BUNCH OF OTHER PEOPLE IN THEIR COMMUNITY WHO SHARE THEIR SORT OF VISION OF A CHANGED COMMUNITY AND BEGIN TALKING ABOUT WHAT IS IT THAT WE CAN DO IN TERMS OF UNEARTHING THE ASSETS THAT ARE HERE SO THAT WE CAN RECOMBINE THEM IN NEW WAYS TO BUILD OUR COMMUNITY.
Yepsen: DR. SIROLLI, FIFTEEN SECONDS. WHAT'S YOUR ANSWER TO THAT QUESTION?
Sirolli: LOOK FOR PASSION. LOOK FOR PASSION. THE PEOPLE IN YOUR COMMUNITY WHO HAD ENOUGH OF BEING POOR, ENOUGH THEY WANT TO DO SOMETHING, HELP THOSE PEOPLE NOW. START NOW.
Borg: THANK YOU VERY MUCH FOR SHARING YOUR INSIGHTS WITH US TODAY. AND WE CLOSE WITH THIS PROGRAM REMINDER. THE BLUE RIBBON SYMPOSIUM IN WHICH DRS. SIROLLI AND FLORA PARTICIPATED LAST THURSDAY WILL BE REBROADCAST NEXT WEEKEND. YOU'LL SEE THAT SOCRATIC DIALOGUE WITH HARVARD LAW PROFESSOR ARTHUR MILLER, ENTITLED "CAPITALIZING ON RURAL AMERICA." THAT WILL BE SEEN FROM 4 TO 6 IN THE AFTERNOON NEXT WEEKEND, SUNDAY, APRIL 25. YOU'LL FIND IT ENTERTAINING AND INFORMATIVE. THAT'S IT FOR THIS WEEKEND'S EDITION OF "IOWA PRESS." WE'LL BE BACK AT OUR REGULAR AIRTIME: 7:30 FRIDAY, SUNDAY AT NOON, NEXT WEEKEND. I'M DEAN BORG. THANKS FOR JOINING US TODAY.
FUNDING FOR THIS PROGRAM WAS PROVIDED BY "FRIENDS," THE IOWA PUBLIC TELEVISION FOUNDATION... GENERATIONS OF FAMILIES AND FRIENDS WHO FEEL PASSIONATE ABOUT THE PROGRAMS THEY WATCH ON IOWA PUBLIC TELEVISION;
AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS;
AND BY THE ASSOCIATED GENERAL CONTRACTORS OF IOWA... THE PUBLIC'S PARTNER IN BUILDING IOWA'S HIGHWAY, BRIDGE, AND MUNICIPAL UTILITY INFRASTRUCTURE.
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