An inclusive recovery would mean the best is yet to come for Erie County

The twin challenges of economic growth and racial inequity are hardly unknown to residents here in the northernmost county of Pennsylvania — but neither are they insurmountable.

In 2016, Erie, the county seat, ranked 249 out of 274 cities on overall economic health. With the onset of the COVID-19 pandemic, the county's economy went into a tailspin, sending 26,000 workers to the unemployment line. Today, inflation has reached its highest point in 40 years, and county residents are feeling the impact when it comes to everything from gas prices to grocery bills.

At the same time, enduring patterns of racial inequity have brought the county’s economic uncertainty into sharp relief. According to Diverse Erie — the county's new commission for diversity, equity, and inclusion (DEI) — the median income for families with white heads of household is $63,235, compared with just $28,814 for families with Black heads of household. What’s more, the city of Erie ranked 259 out of 274 cities on racial inclusion even before the pandemic.

But it is wholly possible — and necessary — for Erie County to pursue an inclusive and equitable recovery from the pandemic. Many cities across the country have recovered from economic distress while also reducing gaps in access to opportunity, such as Augusta, Georgia; Columbus, Ohio; Jacksonville, Florida; and Lowell, Massachusetts. And, importantly, these cities have pointed to their inclusion efforts as catalysts for their overall growth.

Why equity and inclusion matter in Erie County

Erie County Council in 2021 voted to leverage $7 million in American Rescue Plan Act (ARPA) funds to advance an equitable recovery through the work of Diverse Erie. An inclusive and equitable recovery is the keystone of Erie County’s economic future, and there is overwhelming evidence that spurring economic growth and closing racial gaps are intertwined.

Inequity has negative impacts not only on the most vulnerable people in our communities, but also on all residents and the economy overall. For example, persistent racial and economic segregation cost Chicago $8 billion in gross domestic product (GDP), an amount 2½ times greater than the region's average annual GDP growth. And new research shows that persistent disparities have cost the United States trillions of dollars in GDP growth.

Three ways Erie County could use DEI to drive an inclusive recovery

If communities like Erie County are truly interested in increasing equity and inclusion, they should consider restructuring local governments' decision-making processes in the following three ways:

1. Advance DEI through humility and power shifting. Decision-makers who care about equity should be intentional about promoting DEI in high-level spaces. Shifting traditional power imbalances means that underrepresented groups should have political representation at the table where leaders design and plan policies and programs.

2. Engage directly with historically marginalized community members. Communities of color, people with low incomes, and other underrepresented groups can play a critical role in informing the ground-level planning and implementation of economic recovery programs. The Urban Institute recently published a guidebook that can equip local government agencies in working directly with community members toward the common goals of closing racial gaps and achieving other local priorities.

3. Leverage data to select equitable policies and programs and understand which policies are working. Local leaders can use equity scoring tools, like those used in King County, Washington, to ensure that equity is a key priority when it comes to choosing projects and investments. In addition, leaders can analyze various data and metrics to determine whether the policies and programs are successfully closing gaps in access to opportunity.

Economic uncertainties remain in the days ahead, but the best could be yet to come for Erie County. To lift the economy for everyone, county leaders should intentionally focus on DEI and strive toward an inclusive recovery. By doing so, the county can demonstrate what many other localities have learned: the twin challenges of boosting the economy and ending racial inequities are mutually inclusive goals that can, and should, happen at the same time.

Celina Barrios-Millner is co-vice president of the Urban Institute’s Office of Race and Equity Research, where she manages the Office's support for equity-oriented research and practice across Urban. Barrios-Millner brings 20 years of experience advancing transformational equity and inclusion strategies through the public sector.

Christina Stacy is a principal research associate in the Urban Institute’s Metropolitan Housing and Communities Policy Center, where she specializes in urban economics, equity, and inclusion. Her work focuses on the intersection of economics and urban spaces and how housing, transportation, local economies, health, and crime interact.

This article originally appeared on Erie Times-News: An inclusive recovery would mean best is yet to come for Erie County