DARLA MOORE SPEECH TO THE

AFRICAN AMERICAN ECONOMIC SUMMIT

Claflin University

Orangeburg, SC

January 21, 2006

First, I want to personally thank Senator John Matthews for extending me an invitation to speak at what I hope will be the first of many economic summits. 

[Allow me a personal moment to tell you about the first time I met John….] 

I also want to applaud Claflin, the South Carolina Legislative Black Caucus, and the State Conference of the NAACP for sponsoring a statewide economic summit with the goal of finding solutions to the economic challenges facing the African American community.

Tuesday, I spoke to over 800 people in Charleston celebrating the life and legacy of Dr. Martin Luther King, Jr.  It was a celebration of honor and respect for Dr. King, but it was also a moment of reflection and concern.  It is unchallenged that the name of Dr. Martin Luther King, Jr. is rightfully secure as one of our great American heroes, regardless of the opposition of some die-hard racists.  His name will endure in our hearts and minds not only for his fearless struggle for equality and justice but also for the courageous and dignified manner in which he pursued these goals.  But, the question we have to address today is whether his vision will endure.  I believe our greatest challenge in realizing his vision is the economic disparity we suffer in South Carolina.  To be sure, we all could list a multitude of ills that force so many people to live in a disconnected underclass.  But, if we cannot address the fundamental issue of economic disparity, then every other issue will not matter.  I commend to you a report entitled “The State of the South 2004” published by MDC, a North Carolina research foundation. The basic theme of this work was “Fifty years after Brown v. Board of Education, race still matters but poverty, regardless of race, matters more.”   

If we cannot overcome the economic disparity in South Carolina, if we cannot find ways to collaborate to find real, meaningful, economic solutions and not just political solutions, then we will fail.  We will fail Martin Luther King, Jr., but, more important, we will fail the people of our own state.  It is economic empowerment that we must strive for, not just for the African Americans but for every South Carolinian who lives in poverty.  In South Carolina over 600,000 people – both black and white – do not have a high school diploma or lack the literacy and technical skills needed to locate and keep a good job.  That is one-third of our workforce.  These numbers are simply not acceptable -- they have to be addressed.  And, to address them, we must start with leadership.  That is why I am so excited about your efforts today. 

All across the state I see and hear about small success stories, programs that are making a difference in the ability of people to enjoy a better life.  Senator Matthews told me about his program “LOUD” (Lower Orangeburg, Upper Dorchester) that is using a Duke Endowment grant to train and retrain local residents for real jobs, available now, in the region.  Last week I visited Roche Carolina in Florence to view an apprentice program where participants were receiving intensive training for six months while being paid a salary.  If they completed the program, they automatically were given a job with Roche with a salary increase.  They also continued their training with the chance to become a registered apprentice after 3 years and further opportunity for advancement.  These programs are working, yet, we do not have the capability to offer these and other similar, successful programs statewide.  This summit can be the catalyst to begin such an effort.  It can be the first step in building a real, meaningful coalition between the business community and the African American community.  Collaboration can give us the tools to develop a substantive plan and the support to address the economic disparity in our state.  Let me say up front, however, it cannot be a white imposed plan for African Americans nor can it be a buy-in for a unilateral African American plan.  It must be a plan that compels both the business community and the African American community to find competitive advantages for our businesses and, at the same time, build wealth for our low income people. 

But, before I begin to preach too much, let me briefly speak to what you asked me to address today.  You wanted to hear from Ed and me on what our strategies are for South Carolina’s future economic success.

The mission of the Palmetto Institute is quite simple and to the point.  We want to increase the wealth of all South Carolinians.  We believe if we can make South Carolina more prosperous, we can improve the quality of life for all of our citizens.  We use per capita income as our metric; increasing per capita income requires raising the wealth of everyone – not just a selected segment.  We are a research foundation not a grants foundation.  Our job is to provide independent, sound research to support ways to increase our wealth. 

The founding research conducted by the Palmetto Institute gave us a clear picture of South Carolina and its economic standing vis-à-vis its readiness for the new economy and global competition.  In this baseline study of the structural components of South Carolina’s economy, we compared South Carolina to our neighboring states and certain other benchmark states, as well as the nation.  While results of the study were not unanticipated, they were blunt and to the point in the assessment of the competitiveness of South Carolina.  In a nutshell, the report concluded that South Carolina could not compete vigorously in the new global, knowledge-based economy with its existing mix of industries and the quality of its economic foundations.

As a logical next step, the major business organizations retained Dr. Michael Porter of Harvard, a leading expert on competitiveness, along with the Monitor Group to help develop a long-term economic development strategy for South Carolina.  Professor Porter recommended that the state change its focus.  Change from simply recruiting large manufacturing companies with offers of abundant low-cost labor, low taxes, and high financial incentives to an approach focused on building our own assets through developing and nurturing industry clusters around the state.  This does not mean we stop recruiting foreign companies to locate in South Carolina but we need to find ways to add value and build our own assets. We do this through innovation, collaboration, and, most important, through improving our economic foundations, such as workforce quality.  These clusters would, by their success, draw companies to South Carolina as well as improve the competitiveness of companies already located in the state. 

Guided by the report, the Council on Competitiveness was created to support and help find ways to implement the new strategy.  Ed will talk about the efforts and direction of the Council next, but before I relinquish the floor, I want to speak to you briefly about what I believe are some basic goals we have to achieve in order for us to make progress.  These thoughts not only come from my experience and the research of the Institute but, more important, from a fervent desire to see progress being made toward a more prosperous South Carolina.

First, as I mentioned earlier, I believe the only way to empower you to achieve a better life is through economic empowerment.  It is not political power – it is not social power – it is economic power.  I know that I would not be standing before you today if I did not have economic power.  I also know you cannot achieve your goals without economic power. 

Second, we have got to find meaningful, real ways to address the disadvantaged and distressed areas in our state.  Not only is it the right thing to do, but it is the only way we can improve the competitiveness of South Carolina.  Do not take my word for it, read Professor Porter’s comments.  Unless we have a successful strategy for these areas of poverty, we cannot make the state more competitive.

Third, as Dr. Martin Luther King, Jr. said, “We cannot walk alone.”  It must be a collaborative effort, but for it to be a successful collaborative effort, we need leadership. 

As I speak across the state I meet people, particularly young people, who want to be a part of a greater purpose – they have ideas – they want to help – they want to participate – yet, they tell me they have no where to turn for their thoughts to be heard.  That is very distressing.  If we do not have the leadership to show them the way to economic power, how will they ever achieve it?  How will they participate? 

Fourth, we must support existing programs and efforts to help us improve our state even if they are not directly related to African Americans.  The two that immediately come to mind are the Education and Economic Development Act and the expansion of the 4-year-old kindergarten program.

The General Assembly, with the considerable help of Senator Matthews and other key members of the House and Senate, has made a tremendous stride in the passage of the Education and Economic Development Act.  This legislation gives South Carolina the opportunity to fundamentally change the framework of our education system.  With this tool, we can now connect our young people to the education pathway that will prepare them with the knowledge and skills to find and fill higher wage jobs all across the state.  It integrates academic and career-technical education into a unified system that will helps students connect education to careers of their choice – choices made with appropriate student counseling and parental involvement. In other words, early in their education, students will have a vision or goal of how to achieve a successful career of their choice.  The legislation also increases the number of guidance and career counselors to achieve a 300 students to 1 counselor ratio.  Today the state average is closer to 600 to 1.

Another vital component will, from all accounts, be a part of this year’s legislative debate, namely, 4-year-old kindergarten.  The research is simply too compelling not to do everything possible to make sure children, particularly children at risk, enter the first grade at a readiness level necessary to succeed and progress.  It is an issue the Palmetto Institute deems critical to this state’s future.  Presently, there are approximately 17,000 4K children being served by the state’s public schools, which is approximately 10,000 short of serving all at-risk children.  We must find the resources and the means to serve, at the very least, all at-risk children.  I certainly do not have to tell you, the road out of poverty runs right by the schoolhouse. 

I ask you today, as a framework for future collaboration, to establish a leadership council [consisting of 8 to 10 members] which can represent and give a structured voice to this effort and serve as the conduit for communication with the Institute, the Council on Competitiveness, and other business leaders. This is a necessary and prudent step for joint activity to develop and implement strategies to give rise to the economic empowerment we all want to see.  As I stated earlier, for strategies to work, they cannot be urged or simply accepted, they must be mutually developed.  It is time we put aside turf battles and fights over who gets credit and provide the leadership necessary to make all our citizens more prosperous. 

It is a challenge Ed and I will take back to the business community.  It is a challenge I ask you to take back to your community. I know you understand there is an urgency about our tasks.  North Carolina and Georgia are not standing still.  China and India are not standing still.  We cannot wait any longer.  That is why we are here today and that is what will drive us to make South Carolina a better state for all its citizens to live and prosper.  But, we must act now.

Thank you.