Appalachia in TransitionBuilding Sustainable Communities
A Convening of Funders for Learning and Collaboration
Abingdon, Virginia | March 10–11, 2010
ConvenersAppalachian Regional Commission, Washington, D.C.Blue Moon Fund, Charlottesville, VirginiaClaude Worthington Benedum Foundation, Pittsburgh, PennsylvaniaFord Foundation, New York, New YorkMary Reynolds Babcock Foundation, Winston-Salem, North Carolina
White Paper
CONTENTS
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Ron Eller, University of Kentucky
Transition in Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Anthony Flaccavento, Consultant and Organic Farmer, VirginiaDavid Carrier, Appalachian Regional Commission, Washington, D.C.Rory McIlmoil, Downstream Strategies, West VirginiaJim Baldwin, Cumberland Plateau Planning District, Virginia
Emerging Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Ray Daffner, Appalachian Regional Commission, Washington, DCJustin Maxson, Mountain Association for Community Economic
Development (MACED), KentuckyMichelle Decker, Rural Action, OhioKent Spellman, West Virginia Community Development HubGwenda Adkins, Elliott County Cooperative Extension, KentuckyTed Boettner, West Virginia Center on Budget and Policy Burt Lauderdale, Kentuckians for the Commonwealth
Funder Conversation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Planning Team/Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
The MeetingOver two days in March 2010, representatives from 25 philanthropic and governmental fundersin Appalachia took part in a landmark gathering in Abingdon, Virginia. The group met to shareinformation about the historic and current forces that are shaping Appalachia, along with someof the promising initiatives that are paving the way to new economic opportunity. The funderrepresentatives also began to discuss ways to collaborate, including the possibility of creating aregional funders’ network that could leverage resources and help increase prosperity throughoutthe Region.
ConvenersAppalachian Regional Commission, Washington, D.C.Blue Moon Fund, Charlottesville, VirginiaClaude Worthington Benedum Foundation, Pittsburgh, PennsylvaniaFord Foundation, New York, New YorkMary Reynolds Babcock Foundation, Winston-Salem, North Carolina
Appalachia in TransitionBuilding Sustainable CommunitiesA Convening of Funders for Learning and Collaboration
INTRODUCTION
Appalachia is “not the other America… it is America.”
At a gathering of philanthropic funders working in Appalachia, this
premise struck a chord. It was part of a dinnertime address by
Appalachian scholar Ron Eller, who gave the keynote remarks at a two-
day meeting of representatives from 25 funders—a mix of staff and
board members of regional and national foundations and community
funds, along with several governmental funding partners. The room
buzzed with conversation. The funders had gathered in Abingdon,
Virginia, to consider possibilities for collaboration, including the poten-
tial for a funder network for Appalachia. If created, it would be the first
such network for the Region.
Appalachia is entering its third major transition of the past century, Eller
told the group. With widespread attention on Appalachia as coal and
other energy sources are in the national spotlight, there is a window of
opportunity to chart a new future for the Region. But first, we must deal
with the false assumptions about Appalachia found in popular culture—
that Appalachia is less socioeconomically diverse than other parts of the
country, that it’s more isolated, that it’s “backward” and lacks modern
thought and culture. Eller, author of Uneven Ground: Appalachia since
1945, argued that Appalachia should not blame its people and the land
for its challenges. Rather, the structure of the regional economy is what’s
largely at fault—the inherent limits of past transitions that embraced
extractive industries and manufacturing characterized by absentee own-
ership and low-skilled jobs. Such economic development brought indus-
trial job growth but neglected the development of people, communities,
and natural and cultural assets of the Region.
In the current, third transition, Appalachia has the opportunity to do
things differently, Eller contended. This is the era of sustainability, and
Appalachia has untapped human and environmental assets. To prosper,
new structures will have to be created to invest in people and communi-
ties. Organizations need to link together around common objectives. If
they do, and proceed with hope, energy, and a shared vision, Appalachia
may even lead the nation this time.
2Appalachia in Transition—Building Sustainable Communities
HART
G E O R G I A
A L A B A M A
T E N N E S S E E
K E N T U C K Y
O H I O
V I R G I N I A
N O R T H C A R O L I N A
S O U T H C A R O L I N A
N E W Y O R K
MA RY L A N D
P E N N S Y L V A N I A
MISSISSIPPI
WEST VIRGINIA
Distressed County
ARC-Designated Distressed Counties, 2010
Appalachia is “not
the other America…
it is America.”—Ron Eller, Appalachian
scholar
PANEL DISCUSSIONS—March 11, 2010The next day’s discussion built on the themes of Ron Eller’s remarks.
The planning team for “Appalachia in Transition” invited practitioners
and regional experts to share insights about current economic, social,
environmental, and political trends and how local communities are
responding. They wanted participants to learn about promising initia-
tives to build a diverse economy, as well as challenges to expanding and
sustaining such efforts.
Transition in Context—Panel IThis panel explored the economic, social, environmental, and political trends inAppalachia. How is national energy policy affecting the Region? What is theimpact on local communities, including local and state politics, as the Regionresponds to these trends?
Facilitator: Anthony Flaccavento, organic farmer, consultant, and
founder of Appalachian Sustainable Development, Abingdon, Virginia
Presenters: David Carrier, senior economist, Appalachian Regional Commission,
Washington, D.C.
Rory McIlmoil, research analyst for energy and climate change,
Downstream Strategies, Morgantown, Virginia
Jim Baldwin, executive director, Cumberland Plateau Planning District
Commission, Lebanon, Virginia
Appalachia “is entering the best of times, and the worst of times,” said
Anthony Flaccavento as he introduced the panel. Appalachia has a
growing local foods movement and growth in the creative economy. Yet
coal is “still king politically,” and there are huge disparities in land
ownership and wealth.
EconomyDavid Carrier further described some of the current economic trends—
including the below-average rates of personal income (about 20% less
than the nation as a whole), adding that the recession has caused the
loss of 800,000 jobs in Appalachia, the same number of jobs as had
been gained since 2000. “While Appalachia is still different from the
rest of the country, it’s a lot less different than it used to be.” Carrier
sees potential in several economic sectors: alternative energy, sustainable
forestry, tourism based on cultural and natural assets, and trade devel-
opment to export Appalachian goods.
3Appalachia in Transition—Building Sustainable Communities
“While Appalachia is
still different from the
rest of the country,
it’s a lot less different
than it used to be.”—David Carrier, senior econo-
mist, Appalachian Regional
Commission
“Appalachia is
entering its third
major trasition of
the past century”—Ron Eller, Appalachian
scholar
Flaccavento added that there are opportunities for niche markets for
local and organic foods. He cited a study that showed a potential $2
billion boost to the local economy if people in Virginia bought food
from local farmers at least one day a week.
EnergyRory McIlmoil reviewed research that demonstrates that Appalachia
must face the reality and urgency of the decline in coal production,
which will significantly reduce jobs and tax revenue. Coal production
in Appalachia will decline by nearly 50% in the next decade because
of higher standards in the Clean Air Act and Clean Air Interstate Rule,
market forces favoring coal mined in the western U.S., and the
increased use of other energy sources like natural gas. He noted the
opportunity to address structural issues, such as land ownership and
corporate control, through the development of community-owned
energy. He cited examples of local Appalachian communities exploring
the development of wind energy, which has been successful in other
regions across the country.
Community CollaborationJim Baldwin described successful collaborative efforts coordinated by the
Planning District Commission in southwest Virginia. A major initiative
to create a 400-square-mile rural broadband network has allowed south-
west Virginia hospitals, schools, nonprofits and government offices to
have “the same online connectivity as anyone in America.” Since the
network was created, information technology employers have situated in
the region adding some 1,000 high-tech jobs. Baldwin described other
initiatives where the district’s 19 counties worked together to create and
promote cultural heritage trails, including the ‘Round the Mountain (a
network of artisans) and the Crooked Road (historic music venues).
Other successful collaborations have supported sustainable forestry and
helped tobacco farmers transition into organic farming by developing
farmers’ markets, building regional packing houses, and connecting
farmers with local grocery stores and restaurants.
Follow-up DiscussionFor the past century, Appalachia followed the rest of the country in
adopting the economic philosophy of “comparative advantage.” The
Region’s dominant industries, coal and timber, eventually became
overused and undervalued commodities. Now, Appalachia has the
4Appalachia in Transition—Building Sustainable Communities
“There will be a lot
of opportunity for
Appalachia as the
world shifts to
cleaner energy.”—Justin Maxson, president,
Mountain Association for
Community Economic
Development
opportunity to create an economy that is more diversified and sus-
tainable. “We’re now shifting to an asset-based economy, to maxi-
mize what we have… the forests, music, farms, the wind, etc.,” said
Anthony Flaccavento.
Economic transition will require people, projects, and politics. The
Region is beginning to see new leadership and demonstration projects,
but the most significant challenge will be political. The powers and
structures in place still support traditional manufacturing and industry,
and new economic solutions must compete with the old for scarce pub-
lic support and resources. Another challenge is changing perceptions.
People in Appalachia have been told they are among the poorest, most
unhealthy, and most apt to fail. Many residents and leaders react out of
fear and denial of coal’s demise. Networks of farmers, artisans, non-
profits and others can be an effective new tool, but they’ll need support
to build confidence and competence. There is a need for a positive and
hopeful story to be told, and a unified vision to be created.
Emerging Opportunities—Panel IIPromising efforts are underway across the Region to capitalize on Appalachia’sassets to build a regional economy characterized by opportunity, diversity, andsustainability. Participants learned about examples of local and regional intia-tives, what factors have allowed these to emerge, and what challenges remain toexpand and sustain these efforts.
Facilitator: Ray Daffner, Appalachian Regional Commission,
Washington, D.C.
Presenters:Justin Maxson, president, Mountain Association for Community
Economic Development (MACED), Berea, Kentucky
Michelle Decker, executive director, Rural Action, The Plains, Ohio
Kent Spellman, executive director, West Virginia Community
Development Hub, Stonewood, West Virginia
Gwenda Adkins, county extension agent, Elliot County Cooperative
Extension, Sandy Hook, Kentucky
Ted Boettner, executive director, West Virginia Center on Budget &
Policy, Charleston, West Virginia
Burt Lauderdale, executive director, Kentuckians for the
Commonwealth, London, Kentucky
5Appalachia in Transition—Building Sustainable Communities
“We’re now shifting
to an asset-based
economy to maximize
what we have... the
forests, music, farms,
the wind, etc.”—Anthony Flaccavento, organic
farmer, founder of Appalachian
Sustainable Development
Ray Daffner introduced the panel, expressing excitement about various
ways nonprofits and communities are building on long-overlooked
assets as promising growth sectors for the Region’s economy. He high-
lighted ARC’s focus on asset-based development, particularly opportuni-
ties around energy efficiency and renewable energy. He asked the pan-
elists to discuss approaches to economic development, community devel-
opment and civic engagement, sharing what is working and what else
needs to be in place to take the work to scale.
Economic DevelopmentThere will be a lot of opportunity for Appalachia as the world shifts to
cleaner and renewable energy, said Justin Maxson. Other economic sec-
tors—food and forestry—also offer potential for building on the
Region’s natural assets in a way that encourages community wealth and
environmental sustainability. What will it take for there to be a serious
transition in the economy? He said the first challenge will be to get law-
makers and others to agree that Appalachia is indeed in a transition,
and then to shift public investment from the old economy to the new.
Another key will be to build capacity and leadership to develop new
expertise in local communities. Michelle Decker talked of Rural Action’s
work in sustainable agriculture and water restoration, noting national
trends emphasizing “local” and “green.” She says the Wall Street crisis
and recession have people thinking that “small is beautiful,” opening
the door for community-supported agriculture (CSAs), farmers’ markets,
etc. Now the challenge is to scale up some of these enterprises—to link
small farmers and green wood producers with urban markets.
Differences in state policies and nonprofit infrastructure across the
Appalachian Region create uneven progress in moving to scale.
Community DevelopmentKent Spellman talked of his West Virginia group’s work to create
community leadership teams, focusing “not on programs but on
process.” The capacity building most needed is to convene groups
around community assets (like local foods or tourism), introduce and
connect people, develop leadership, increase civic engagement, and
provide ongoing coaching. In rural Kentucky, Gwenda Adkins helped
her community to determine its assets—natural beauty, artists, peo-
ple—and then build a community plan around those assets. “People
were beaten down by statistics and needed something to be proud
of.” Over several years, the community designed and built a cultural
6Appalachia in Transition—Building Sustainable Communities
“People were beaten
down by statistics and
needed something to
be proud of.”—Gwenda Adkins, extension
agent, Elliot County, Kentucky
center, built a handicapped accessible hiking trail (the first in
Kentucky), and developed and marketed a five-county plan for eco-
agritourism. She said the successes were possible after providing leader-
ship training, taking community members on research trips to see what
other communities have accomplished, securing grants, and asking peo-
ple for specific help based on their talents.
Policy and Civic EngagementTed Boettner described how tax incentives used to attract industries
have been a poor tool for economic development. Industries often leave
after multi-million dollar tax incentives have been awarded, taking the
jobs with them and leaving little in terms of a trained workforce or
community capacity. More effective alternatives include subsidized
employment and transitional job training. He cited successful programs
in other states for using coal severance tax revenues to support economic
transition by creating permanent funds for economic revitalization. He
noted that people and communities need to let their state officials know
that they want and need these policy changes. Burt Lauderdale called
this one of the most important moments in Appalachia in the past cen-
tury and cited the need for broad, progressive commitment to a just
transition. Change is possible, but it’s going to be hard. The extraction-
based economy (coal) is not going to “go out quietly.” There are serious
barriers of politics and power. And people’s fears of Appalachia without
coal are real and must be addressed. The conversation should be built
from the community level, not the state/federal level, and will require
sustained efforts by broad-based alliances and coalitions. A collective
vision is needed to inform a series of choices. He closed with this chal-
lenge: Change is going to happen, but what will it look like?
Follow-up DiscussionThere was a lively discussion of whether and how the coal industry can
be included in the conversation about economic transition. Unions
know that coal jobs are waning, and they are open to discussions on
ways to develop non-coal jobs. Everyone agreed that the public sector
needs to be at the table, and that solutions will require a restoration of
the balance between public and private sectors. The public has become
less trusting of government and looks to the market to solve economic
and social problems, but the market does not support equity or environ-
mental sustainability.
7Appalachia in Transition—Building Sustainable Communities
This is “one of the
most important
moments in
Appalachia in the
past century...
change is going to
happen, but what
will it look like?”—Burt Lauderdale, executive
director, Kentuckians for the
Commonwealth
Appalachia’s transition will require a change in hearts and minds in the
Region. A communication strategy is needed to share ideas and create
more advocates. People are paying attention to green jobs and are more
open to hearing about new ideas. There is an opportunity at this
moment to coalesce around a vision and promote the conversation.
FUNDER CONVERSATIONIn an afternoon funder-only session, there was resonance in the room
about the ideas and opportunities discussed earlier and about the future
possibilities for funder collaboration. In lively, small group discussions,
representatives from the funders talked about the social, economic and
environmental values that they all share. There was talk of building
wealth and a sustainable economy in Appalachia; developing social cap-
ital, hope and community capacity; and finding ways to create and
retain an intact, healthy environment.
Developing a common agenda based on such values could be a future
goal, but the group discussed how that might be too big a step for now.
Rather, according to session facilitator Vicki Creed, “it feels like the
room is in the beginning stages of courtship.” Creed led the day’s final
discussion among the full group, and cited a recent GrantCraft publica-
tion that outlines the four stages of funder collaboration: Courtship,
Getting Serious, Commitment, and Leaving a Legacy. (This is based on
observations of funder networks that have been formed in other parts of
the country.)
To move through and beyond the “courtship” stage, the group agreed
that a first step is agreeing on common language to describe a vision for
transition, specific goals and projects. (This document begins to create
that common language.) Other starting points would be to invite other
funders who might wish to be involved, to map “who’s doing what and
where,” and to determine simple and effective ways to communicate
and share information—perhaps through online social media, or
through a series of learning conversations via conference calls.
This information-sharing could be about grants, program strategies, co-
funding opportunities, etc. There was also the suggestion of collaborat-
ing on new research efforts, such as “straw research on how Appalachia
might look in 20 years, if various different choices were made now.”
8Appalachia in Transition—Building Sustainable Communities
“We must restore the
proper balance
between ‘public and
private’ in order to
both reign in the
market’s worst
excesses and to
achieve the social
and ecological goals
we share.”—Anthony Flaccavento, organic
farmer, founder of Appalachian
Sustainable Development
Creed noted that many such ideas have been described by GrantCraft in
its publication, “Why and How Funders Work Together.” In the piece,
collaboratives are described to typically include: information sharing,
options for leveraging grants, mutually-developed structures and guide-
lines, and attention to systemic solutions. All funder collaboratives are
not alike, though, Creed said. Some are primarily learning networks,
others are strategically aligned, and some use pooled funds for grants
and initiatives.
Based on what they had heard and learned at the Appalachia in
Transition meeting, Creed asked if participants would like to further
explore the idea of working collaboratively. An official vote was not
taken, but there was widespread agreement among the funders to keep
the conversation going, and to explore possibilities. One person said,
“I’m completely comfortable in continuing the discussion. Just today, I
found three potential collaborators.”
To design the next steps, the group asked the funders on the planning
team for the Abingdon meeting to work with three new volunteers, all
listed below. The Steering Committee invites ideas and suggestions from
participants and new partners. To provide input and guidance regarding
next steps please contact:
Becky Ceperley, The Greater Kanawha Valley Foundation, Charleston,West Virginia, [email protected]
Shannon Cunningham, West Virginia Grantmakers, Weston, WestVirginia, [email protected]
Ray Daffner, Appalachian Regional Commission, Washington, D.C.,[email protected]
Wayne Fawbush, Ford Foundation, New York, New York,[email protected]
Terry Holley, East Tennessee Foundation, Knoxville, Tennessee, [email protected]
Mary Hunt-Lieving, Claude Worthington Benedum Foundation,Pittsburgh, Pennsylvania, [email protected]
Stefan Jirka, Blue Moon Fund, Charlottesville, Virginia, www.bluemoonfund.org
Sandra Mikush, Mary Reynolds Babcock Foundation, Winston-Salem,North Carolina, [email protected]
9Appalachia in Transition—Building Sustainable Communities
PLANNING TEAM FOR APPALACHIA IN TRANSITIONVictoria Creed, Learning Partners, Knoxville, Tennessee
Ray Daffner, Appalachian Regional Commission, Washington, D.C.
Wayne Fawbush, Ford Foundation, New York, New York
Mary Hunt-Lieving, Claude Worthington Benedum Foundation,
Pittsburgh, Pennsylvania
Stefan Jirka, Blue Moon Fund, Charlottesville, Virginia
Burt Lauderdale, Kentuckians for the Commonwealth, London,
Kentucky
Justin Maxson, Mountain Association for Community Economic
Development (MACED), Berea, Kentucky
Sandra Mikush, Mary Reynolds Babcock Foundation, Winston-Salem,
North Carolina
PARTICIPATING FUNDERSAppalachian Community Fund, Gaye Evans
Appalachian Regional Commission, Ray Daffner
Blue Moon Fund, Anthony Flaccavento
Cherokee Preservation Foundation, Susan Jenkins
Claude Worthington Benedum Foundation, Mary Hunt-Lieving
Community Foundation of Hazard & Perry County, Gerry Roll
Community Foundation of Western North Carolina, Tim Richards
East Tennessee Foundation, Terry Holley
Federal Home Loan Bank of Pittsburgh, Laura Rye
Ford Foundation, Wayne Fawbush
Georgia Department of Community Affairs, James Thompson
Heifer International, Tom Dierholf
Jessie Smith Noyes Foundation, Millie Buchanan
Kentucky Philanthropy Initiative, Inc., Mike Hammons
Mary Reynolds Babcock Foundation, Dee Davis, Lavastian Glenn,
Sandra Mikush
New World Foundation, Heeten Kalan
One Foundation, Tom Attar
Parkersburg Area Community Foundation, Judy Sjostedt
The Greater Kanawha Valley Foundation, Becky Ceperley and Sheri Ryder
The Sugar Bush Foundation, Carol Kuhre and Hylie Voss
USDA Rural Development, Vernon Brown (Kentucky) , Ellen Davis and
Travis Jackson (Virginia), Robert Lewis (West Virginia)
Virginia Department of Housing and Community Development,
Denise Ambrose
West Virginia Development Office, James Bush
West Virginia Grantmakers, Shannon Cunningham
10Appalachia in Transition—Building Sustainable Communities
RESOURCES
Appalachian Transition Initiative website (collaboration of Mountain Association for
Community Economic Development and Kentuckians for the Commonwealth)—data, resources
and essays by a range of leaders on options and opportunities for transition
http://appalachiantransition.net/
“Funder Collaboratives: Why and How Funders Work Together,” a publication of GrantCraft
http://www.grantcraft.org
“Socioeconomic Overview of Appalachia, 2010,” Appalachian Regional Commission,
http://www.arc.gov/images/appregion/SocioeconomicOverviewofAppalachiaMarch2010.pdf;
other reports available at http://www.arc.gov/research
Uneven Ground: Appalachia since 1945, Ronald D. Eller, PhD., The University Press of
Kentucky, 2008
“Imagining the Future of Philanthropy: Looking Back from 2025,” an article by Katherine
Fulton, http://www.futureofphilanthropy.org/files/philTom_1ImaginingFuture.pdf, and a related
speech, http://www.ted.com/talks/katherine_fulton_you_are_the_future_of_philanthropy.html
11Appalachia in Transition—Building Sustainable Communities
Written by Sandy Lang
On the Cover: View of Cold Mountain in North CarolinaPhoto courtesy of National Scenic Byways Online (www.byways.org)
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