For decades, Arizona was one of the national leaders in aggregate economic growth, as measured by the percent change in measures such as gross product and employment. However, its growth rate always has been highly cyclical. During expansionary periods, Arizona always has been among the top states on the rate of growth. During recessions, the Arizona economy generally slumped at a rate similar to the national average, but would experience a rapid recovery. This pattern continued through the economic expansion of the mid-2000s.

Arizona faces some big challenges if it is to compete regionally, nationally and globally for the cutting-edge jobs that will help determine our economic future. As hard as state and community leaders are working, the report suggests that Arizona needs even more participation in economic development leadership, more collaboration among economic development groups and a greater sense of urgency. This report identifies a number of important issues that are key to advancing economic development in Arizona.

In February of 1998, the Pima County Board of Supervisors launched what has evolved into the Sonoran Desert Conservation Plan (SDCP) -- a comprehensive effort to protect the Sonoran Desert, guide growth and rationalize land development in the metropolitan Tucson region. Proponents of this planning process maintained that the project would reconcile conflicts between human activities and conservation, providing benefits for both wildlife and economic development. Critics, however, have increasingly alleged that implementing such an initiative will adversely affect land and housing markets, increase taxes and create problems of housing affordability. Over time a pressing need has consequently grown for objective information about the possible fiscal and economic impacts of the conservation programs being assembled by Pima County. This report addresses that need. It is a tool in the form of an impartial framework for assessment that government officials, environmentalists, business people and the general public can use for debate and decision-making.

Arizonans have gained a reputation for their low opinion of government, despite -- or perhaps because of -- the major role played by all governmental levels in residents’ daily lives. This view was reflected in the responses to this segment of the survey, as panelists generally gave low ratings to the government services they were asked to judge. This was especially true of lower-income panelists. But the respondents’ low ratings might not always have been based upon personal experience: Few panelists said they had sought information from government or community agencies. This may be due to the increasing popularity of the Internet as a self-help source, but it could also mean that relatively few residents need the services or know they are available. In any case, more than half of those who did seek information said they were satisfied with the result. Panelists were not dismissive of all collective efforts at social betterment. They expressed high levels of agreement that good community-based programs can prevent many social problems, from drug and alcohol addiction to child abuse and juvenile delinquency. Asked how they themselves would distribute public funds for social problems, most respondents choose programs for children, affordable housing, and health insurance.

States have always administered federal programs. But, states usually have had very little say in how they carried out programs. All states could generally do was follow the rules laid out by federal agencies. But now, devolution is giving states more power over programs. And, in general, Americans have said that they approve of the idea. A 1998 nationwide poll, funded by The W. K. Kellogg Foundation, showed that a majority of Americans perceive devolution to be a positive development for the country.

Arizona Ideas includes notions large and small, homegrown and borrowed, current and historical. From A-Z, every one -- whether originally born here or adapted from elsewhere-- contributes to the state’s competitive position. Arizona Ideas also explores the roots of Arizona’s tradition of self-criticism --some call it a sense of insecurity or inferiority in comparison to other places -- that often surfaces in discussions of public policy. This observation has provoked considerable debate, but few would deny that this perspective exists. It is time to debate this idiosyncrasy out in the open and find better ways of moving the state ahead.