Soren Anderson talks about the economic benefits of funding clean-up projects for the Great Lakes. His presentation, based on reports by the Brookings Institution and the Great Lakes Regional Collaboration, says that investing in the Great Lakes will create a regional economic revival.
Globally, nations are now looking for ways to move ahead economically without diminishing natural resources. "The Great Lakes and their abundant fresh water offer a doorway to this new economy."
In 2005, the Brookings Institution joined with various organizations to launch the Great Lakes Economic Initiative. "Healthy Waters, Strong Economy" is actually the second major product of this initiative, the first being a study published in 2006, The Vital Center: A Federal-State Compact to Renew the Great Lakes Region.
Most of the intentions of this publication are already embodied in the Great Lakes Regional Collaboration Strategy - a $26 billion federal-state plan to clean up and preserve the Great Lakes.
The Great Lakes account for 90 percent of the U.S.'s and 20 percent of the world's surface fresh water. They also directly impact the lives of about 35 million people living near them.
The co-authors of Healthy Waters, Strong Economy used the (Great Lakes Regional Collaboration) GLRC Strategy as the basis for their cost/benefit analysis of cleaning up the Great Lakes. The strategy recognizes how much it will cost (about $26 billion) to clean up the Great Lakes as well as how much economic gain will show in the region (more than $50 billion). It also details how legislators and policymakers should allocate the money given for the project.
The Brookings Institution report states how the Great Lakes region benefits economically from healthy Great Lakes while the GLRC Strategy advises how much money should go to each project.
"Healthy Waters, Strong Economy" suggests taking the total cost of the GLRC Strategy ($26 billion) and subtracting that from gross economic benefits (from the Developing America's North Coast publication) to arrive at a net economic gain. These estimates are factored for both the immediate and long-term future:
Restoring the lakes will lead to direct economic benefits from $6.5 billion to $11.8 billion from tourism, fishing and recreation
By fixing Areas of Concern, coastal property values will rise $12 billion to $19 billion
Restoring the Great Lakes will reduce costs to municipalities by $50 million to $125 million dollars
Making the region more attractive to business, workers and residents will produce unquantifiable economic activity
Ultimately, direct economic benefits from restoring the Great Lakes will total at least $50 billion in the long-term and between $30 billion and $50 billion in short-term multiplier benefits
Healthy Waters, Strong Economy ultimately suggests that significant change in the Great Lakes region can only occur in two major ways:
If federal policymakers understand the economic significance of the region and its restoration and do so by enacting legislation. Importantly, this should happen soon, as the cost to restore the Great Lakes will increase as they continue to deteriorate.
Federal, state, local and tribal policymakers should work together ensuring Great Lakes restoration produces superior technology that will benefit problems throughout the world.
"The Great Lakes can be a key asset in this process (of finding its niche in a changing global economy) - serving as a platform for sustainable economic growth, a crucible for freshwater protection and technology development, and the foundation for this region to thrive anew as a magnet for skilled workers. The potential is there to be tapped, provided that federal, state, local and tribal leaders work together to commit the resources needed..."
