ECONOMIC-DEVELOPMENT STRATEGIES FOR THE INNER-CITY - THE NEED FOR GOVERNMENTAL INTERVENTION

Federal inner-city programs have always been based on the assumption t hat the private sector holds the key to urban revitalization. Michael Porter's critique of existing programs, therefore, incorrectly accuses them of failing to nurture private business. Nevertheless, he does pr ovide useful direction in stressing the importance of strategic locati on, regional clusters, and human resources. The example of Hunts Point Food Distribution Center in the South Bronx is used both to indicate that Porter does identify the comparative advantage of such areas and also to show the need for a much stronger governmental role than Porte r describes.