Economic Independence? Why has Portland turned away from its progressive, 1970s reputation to pursue a traditional industrial model of development when other alternatives are available? Three factors have played a part in shaping this response to the challenge of the 1980s: the history of our whole region as an economic colony; the structure of our city government, unique among major U.S. cities; and the policies of our elected officials themselves. A Resource Colony ■ he Pacific Northwest originally developed as a resource colony for outside interests, and the relatively few industries that have grown up here (the electronics field excepted) have been controlled by capital from outside the area and mainly devoted to harvesting, primary processing and transport of those resources, whether they have been fish, timber, or wheat. The arrival of Japanese industries may indeed be seen as a continuation of this process of colonial development. Portland’s position as a deepwater port, financial center, and communications and distribution focus for the entire region means that to a large extent it must reflect the economics of the region’s industries, while at the same time it will necessarily have an economy greater than the sum of these individual parts. Its diverse manufacturing base, in fact, has made it at times appear to be “an oasis in the Pacific Northwest,” as a consultant to Moody’s Investor Services proclaimed recently. Portland has always been a city of small businesses with no “chief industry” comprising more than 26 percent of its economic base. Nevertheless, the fate of Portland cannot be separated from the rest of the region, where the 1970s stand out as a somewhat aberrant decade in which our “livability" (dramatically declining in other parts of the country) suddenly became more valuable than our raw materials, and spending by the federal government more than made up for the lack of investment by private industry. Who’s in Charge? The second factor that has hindered the pursuit of a bold, alternative development strategy in Portland is the structure of the city government. Always susceptible to surges of populist sentiment, the citizens of Portland reformed their governmental structure in the early part of this century to limit the power of city hall political machines. Today, however, Portland is the only major city in the country that has retained the commission form of government, where the mayor is one of five equal members of the city council with but one vote and no veto. This system hinders the concentration of power in one official’s hands, but it also diffuses responsibility and limits the mayor’s ability to direct city policy except by force of his or her personality or vision, as Neil Goldschmidt’s leadership demonstrated in the mid-1970s. “It requires," Tom Higgins believes, “somebody to fill the office in a fashion larger than life almost, where he or she uses the presence of the office to draw the major players together and to compel them to cooperative and coordinated action.” Responsibility for economic development policy, moreover, rests not solely with the mayor and the city council, but also with several quasi-public agencies like the PDC, whose commissioners set development policy but are not elected and jealously guard their independence from council oversight. Since the mayor appoints the PDC’s corhmissioners, and the city council reviews the agency’s budget, the council has the ability to direct PDC policy but has been less than zealous in doing so. Less than 5 percent of the PDC budget comes from city funds, however, with the majority tied to specific projects funded by federal grants or revolving funds controlled by the agency itself, and its projects often continue through a change in administration. The PDC, in effect, acquires a vested interest in a particular set of development goals, and a new mayor may need to consider a thorough housecleaning or the creation of a separate city office to carry out his own development agenda. The Port of Portland, whose commissioners are appointed by the governor, is another quasi-public agency that controls vast amounts of land within the city and carries on its own development projects while remaining virtually unaccountable to voters. And one cannot ignore the influence of the state Office of Economic Development and the state’s tax policies — or lack of such — on the city’s programs. Even when Governor Atiyeh and Mayor Ivancie have appeared to share a common set of assumptions about development, there has been a marked lack of cooperation between them. A Risky Business ■ he appeal of the traditional model of economic development to our political • DELICATESSEN • SPECIALTY FOODS • IMPORTED BEER • FINE WINES Mon-Fri 8:30-6:00 Sat 8:30-3:00 7901 S.E. Stark 253-9436 Buttertoes Unique dining amidst Victorian Charm H Now serving Breakfast Monday-Saturday Hours: M-F 7!30AM-9:00PM Sat 9:00AM-9:00PM Sun 12 Noon-3:00PM 3244 SE Belmont ‘Where everything is just a little bit different. ” 239-9205 Summer Sense Summer Makeup Bare Escentuals natural-base make-ups come in cool and sizzling color for your eyes, face, and lips. 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