Publication: CHARLESTON DAILY MAIL
Published: 06/08/2004
Byline: DMEDIT

WEST Virginians are shaken by the damage to the pillars of their economy. Coal production is holding steady, but the industry employs far fewer people. Natural gas prices threaten the chemical industry, and there have been job losses there. The steel and aluminum industries have taken a hit as well.

But Richard Lester of the Massachusetts Institute of Technology is right. The industries that have shaped the state's past also hold opportunities for its future.

Lester recently told members of the West Virginia Council for Community and Economic Development that transforming and upgrading six existing industry segments is the way to improve the state's economy.

"It's not a good idea to only look in the rear view mirror, he said, "but growth is rarely unrelated to what has gone on before."

This common-sense observation clears the air of mumbo-jumbo. The state should act on it promptly.

Lester suggests focusing on the energy industry, hospitality and tourism, chemicals and plastics, metals manufacturing, heavy construction, and forestry and wood products.

The only other options are long shots. The state should not devote much dithering to those.

It makes more sense to work with what we've got, starting with "energy."

Let's just call that "coal." The state should get off the dime, work out clear rules for the industry, work any kinks out of its permitting process, and simply proceed.

West Virginia coal will be needed domestically and internationally for some time. The state should end its mine wars and adopt policies that promote profitability and environmental and social responsibility.

That's the challenge of the future, and West Virginia is up to it.

And as Lester points out, West Virginians' expertise in mining, mining equipment, services and environmental management is marketable internationally. With China's economy growing rapidly, largely fueled by coal production, West Virginia companies have a future in coal consulting, as some have already discovered.

Tourism? Chemicals and plastics? Metals? Heavy construction? Forestry and wood products?

West Virginians can do all of that.

The state needs to fix its workers' compensation problems, fund its obligations, and fix its weasely legal climate to build investors' confidence.

It also needs to set its tax policies to encourage growth - this time not in the public sector but in the private sector. In addition, the state should focus its educational system sharply on its possibilities in these six areas.

The faster the state's political leadership does that, the faster the recovery will be.