Appalachia in transition

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.


“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


“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


“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


“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.


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.”


“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]


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


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


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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