Socio-Economic Impact Analysis As Wisconsin communities continue to grow, local officials and community members are constantly challenged by the need to balance fiscal, social, economic, and environmental goals. One aspect of this challenge is deciding how much and what types of new development the community can accommodate without compromising the day-to-day quality of life for residents. Socio-economic impact assessment is designed to assist communities in making decisions that promote long-term sustain-ability, including economic prosperity, a healthy community, and social well-being. Assessing socio-economic impacts requires both quantitative and qualitative measurements of the impact of a proposed development. For example, a proposed development may increase employment in the community and create demand for more affordable housing. Both effects are easily quantifiable. Also of importance, however, are the perceptions of community members about whether the proposed development is consistent with a commitment to preserving the rural character of the community. Assessing community perceptions about development requires the use of methods capable of revealing often complex and unpredictable community values. This chapter provides an overview of socio-economic impact assessment, including what it is, why it is important and guidance on how to conduct a socio-economic impact assessment. WHAT IS SOCIO-ECONOMIC IMPACT ASSESSMENT? A socio-economic impact assessment examines how a proposed development will change the lives of current and future residents of a community. The indicators used to measure the potential socio-economic impacts of a development include the following: Changes in community demographics; Results of retail/service and housing market analyses; Demand for public services; Changes in employment and income levels; and Changes in the aesthetic quality of the community. Quantitative measurement of such factors is an important component of the socio-economic impact assessment. At the same time, the perceptions of community members about how a proposed development will affect their lives is a critical part of the assessment and should contribute to any decision to move ahead with a project. In fact, gaining an understanding of community values and concerns is an important first step in conducting a socio-economic impact assessment. The socio-economic impacts of a proposed development on a community may actually begin the day the project is proposed. Changes in social structure and inter-actions among community members may occur once the new development is pro-posed to the community. In addition, real, measurable and often significant effects on the human environment can begin to take place as soon as there are changes in social or economic conditions. From the time of the earliest announcement of a pending policy change or development project, attitudes toward the project are formed, interest groups and other coalitions prepare strategies, speculators may lock up potentially important properties, and politicians can maneuver for position. WHO SHOULD BE INVOLVED IN THE PROCESS? Because socio-economic impact assessment is designed to estimate the effects of a proposed development on a community’s social and economic welfare, the process should rely heavily on involving community members who may be affected by the development. Others who should be involved in the process include community leaders and others who represent diverse interests in the community such as community service organizations, development and real estate interests, minority and low income groups, and local environmental groups. In addition, local agencies or officials should provide input into the process of assessing changes in the social environment that may occur as a result of the proposed development (e.g., providing estimates and information demographics, employment and service needs). WHY CONDUCT A SOCIO-ECONOMIC IMPACT ASSESSMENT? Conducting a social impact assessment is important for several reasons. In general, it is used to alert the community, including residents and local officials, of the impact and magnitude of the proposed development on the community’s social and economic well-being. The assessment can help communities avoid creating inequities among community groups as well as encourage the positive impacts associated with the development. The impact assessment provides estimates of expected changes in demographics, housing, public services, and even the aesthetic quality of the community that will result from the development. Equally important, the assessment provides an opportunity for diverse community values to be integrated into the decision-making process. Together, these components of the assessment provide a foundation on which decisions about whether to alter or change a proposed development can be made. Development constitutes a significant change in the type and intensity of use on a parcel of land. In Wisconsin, development often means conversion of productive agricultural land. Development may occur in the form of a residential subdivision, industrial park, or commercial center. Depending on the location chosen for the new construction and the type of development, the social impact on the community may affect one group of residents more significantly than another (e.g., farmers, the elderly, low income or minority groups). It is critically important to devote attention to the potential impacts of development on vulnerable segments of the human population. Hopefully, the proposed development will not require investigation into such possibilities, yet the staff con-ducting the socio-economic impact assessment should be aware of social equity concerns. Other demographic groups that may be disproportionately affected by a pro-posed development include adolescents, the unemployed, and women; members of groups that are racially, ethnically or culturally distinctive; or occupational, cultural, political or value based groups for whom a given community, region or use of the biophysical environment is particularly important. No category of persons, particularly those that might be considered more sensitive or vulnerable as a result of age, gender, ethnicity, race, occupation or other factors, should have to bear the cost of adverse social impacts. Socio-economic impact assessment can help avoid future inequities associated with new development by pre-emptively considering the potential impacts of a project. In thinking about vulnerable populations, it is also useful to examine the consequences of a no-development option. For example, if the proposed development is a residential care facility for senior citizens, what are the consequences for the community if the facility is not built? Socio-economic impact assessment also provides a foundation for assessing the cumulative impacts of development on a community’s social and economic resources. For example, a community may not recognize a change in their quality of life if a small strip mall goes up on the edge of town. In fact, their quality of life may improve if the businesses located in the strip mall provide services which would otherwise not be available to residents. However, if the construction of a small strip mall on the edge of town sets a precedent for constructing additional commercial establishments on the outskirts of town, the socio-economic impacts on a community may become significant indeed. Small, family-owned businesses located downtown may begin to close as competition lures consumers to the outskirts, where accessibility to more diverse commercial establishments is greater. The result may be a loss in the sense of community and cohesion among residents that existed prior to development because the focal point or “common meeting place” for residents has shifted to a new location. The change is subtle, yet may have a profound impact on the long-term sustainability of the community. It is necessary to conduct the socio-economic impact assessment in the context of the other impact assessment components (i.e., fiscal, environmental, transportation). The relationship between the socio-economic impacts and other impacts of a pro-posed development is a close one. For example, changes in the physical environment or fiscal expenditures required of the community as a result of the development may directly influence community perceptions about whether to proceed with the project. Unfortunately, socio-economic impact assessment often takes a backseat to other types of impact assessment such as fiscal and environmental impact analysis because the impacts are often more difficult to measure, and the social impacts associated with a development are generally more subtle than impacts on a community’s fiscal balance sheet or local natural resources. However, it is important to consider, as early in the planning process as possible, whether the proposed development will have a significant effect on the social and economic welfare of the community. HOW TO CONDUCT A SOCIO-ECONOMIC IMPACT ASSESSMENT The following section provides a two-step process for conducting a socio-economic impact analysis. The process is designed to establish a framework for evaluating cur-rent and future proposed developments in a community. TWO PHASES OF SOCIO-ECONOMIC IMPACT ASSESSMENT Defining the scope of the Socio-Economic Impact Assessment Identifying and Evaluating Development Impacts A. Quantitative Changes B. Community Perceptions PHASE 1. DEFINING THE SOCIO-ECONOMIC IMPACT ASSESSMENT Carefully defining the socio-economic assessment can save considerable and scarce resources (i.e., time and money). Since it is often impossible to assess every socio-economic impact associated with a proposed development, local officials are encouraged to refine the scope of the assessment based on the most important social and economic priorities of the community. The most reliable sources of information about community concerns and needs are residents and community leaders. Surveys and interviews are two excellent methods for identifying priority social and economic goals of the community. If time permits, a survey of community members can guide the design of an assessment for a single proposed development. Such surveys can also provide a foundation for local officials in designing and conducting future assessments, provided that the survey is representative of the diverse community values, concerns, and interests. Box 4.1 provides a sample of the types of survey questions that may be used to gauge community perceptions. Questions that are specific to community perceptions about a particular proposed development are provided later in this chapter. Interviews with community leaders (e.g., civic group representatives, religious leaders, citizen action groups) can also provide valuable information about what social, economic and other issues are important to community members. The design of the impact assessment also needs to reflect the specific characteristics of the proposed project. The development impacts associated with a new development will vary depending on the proposed project’s type, size, location, socio-economic characteristics of the community. As such it is important to be familiar with both the project characteristics and the social and economic resources of the community. The better one understands the proposed project, the more accurate will be the assessment in estimating potential impacts. If you have the time to complete a general survey, you may use the answers to the above questions to define the scope of the assessment. What are the most significant issues facing the community? If you do not have the resources for such a comprehensive survey, you may refine the scope of the analysis based on the specifics of the project.
Posted on: Thu, 18 Dec 2014 08:30:58 +0000
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