Putting the economic environment to work

Towards planning for health and wellbeing through the economic environment

Southern Metropolitan Region Department of Health April 2010

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Acknowledgements This resource was developed and written by Ged Dibley and Michael Gordon of PDF Management Services Pty Ltd, in conjunction with the Southern Metropolitan Region Health Planning Forum. The authors would like to thank the members of the Forum who contributed to the development of the resource and members of the Western Local Government Health Planners Network who participated in a joint workshop with the Forum to discuss the economic environment. Thanks also to the staff of the Department of Health, Public Health Development team Southern Metropolitan Region who provided funding, inspiration and support for the project - Andrea Hay, Melissa Yong, Michelle Guille and Monica Bensberg. Note: This document is an unpublished ‘work in progress’. It is a record of work commenced with the Southern Metropolitan Region Health Planning Forum in 2008. It is anticipated that it will be altered or expanded as councils in the Southern Metropolitan Region continue to trial and investigate ways of working within the economic environment. The work has been compiled from a variety of sources including material generally available on the public record, reputable specialist sources and original material. Care has been taken to verify accuracy and reliability wherever possible. However, the material does not provide professional advice. Neither the authors nor the Victorian Government Department of Health give any warranty or accept any liability concerning the contents or use of this work.

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Contents Page

Executive Summary

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1. Introduction

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1.1 What is this resource trying to do?

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1.2 Background

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2. What is the economic environment?

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3. What is the relationship between the economic environment and

health and wellbeing?

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3.1 Individuals need an effective economy

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3.2 An effective economy needs healthy people

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3.3 The workplace as a health setting

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3.4 Private enterprises as partners in health

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3.4 Social enterprises as partners in health

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4. What is a local council’s role in the economic environment?

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4.1 Supporting an effective economy

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4.2 Focusing on workplaces as health settings

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4.3 Engaging enterprises as partners in health

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4.4 Managing the risks

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5. Planning for the economic environment

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6. References and resources

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Appendices

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A: Stakeholder characteristics

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B: Lingering questions

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Southern Metropolitan Region Health Planning’ Network Working Document

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Executive summary The Environments for Health: Municipal Public Health Planning Framework (DHS, 2001) uses four environments; the built, social, economic and natural, to support planning for community health and wellbeing. An evaluation of Environments for Health (Centre for Health through Action on Social Exclusion, Deakin University, 2006) and the observations of local health planning practitioners, suggested that there have been significantly less attention paid to the economic environment. As a result, PDF Management Services were engaged by the Southern Metropolitan Region of the Department of Health to develop a resource with aims: ‘...to explore the economic environment as it relates to local government public health planning. It attempts to clarify and illustrate the linkages between the economic environment and health and wellbeing, and stimulate ideas which might be pursued within individual councils’. The resource was developed with input from members of the Southern Metropolitan Local Government Health Planning Forum, including a workshop with health planners and economic development officers from councils within the region and a joint workshop with Forum members and members of Western Local Government Health Planners Network. The primary audience for this resource is health planners and those responsible for the development and implementation of Municipal Public Health and Wellbeing Plans. However, the resource might also assist other business units of council to gain a greater appreciation of their contribution to health and wellbeing through the economic environment. The economic environment is difficult to define, particularly as it relates to health and wellbeing and the role of local councils. It does not lend itself to being dissected neatly within the geographic nor political boundaries of a municipality. The resource therefore starts with a broad description of the economic environment before exploring the implications for health and wellbeing and subsequently for local councils. The resource suggests that the relationship between health and wellbeing and the economic environment is two-way, that is, a healthy population drives the prosperity of a community, just as a strong economic base supports the prospects of a healthier community. The particular vulnerability of low income people to poor health is clear and strategies that improve the economic environment are key to addressing these risks. Emerging challenges, such as, climate change, peak oil and the global financial crisis threaten to widen the health risks - increasing food insecurity, hampering transport access and limiting disposable income for a broader proportion of the population. Local solutions that mobilise local economies might become increasingly critical to the health and wellbeing of communities. The inextricable links between the economic, social, built and natural environments are acknowledged from each of these standpoints - sustainability requires an accord between all four. This is important as it can be argued that regarding them as separate systems can continue a disjointed response. Ideally therefore, each intervention at the local council level should aim to take into consideration all four environments for health.

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Just how this can be done and done consistently, remains a challenge. This resource is intended to take a step towards understanding the connections between health and wellbeing and the economic environment. It is intended to promote appreciation of the disparate but converging roles within councils and promote partnership in planning for healthier communities.

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1. Introduction 1.1 What is this resource trying to do? The aim of this resource is to explore the economic environment as it relates to local government public health planning. It attempts to clarify and illustrate the linkages between the economic environment and health and wellbeing, and stimulate ideas which might be pursued within individual local councils. The primary audience for this resource is health planners and those responsible for the development and implementation of Municipal Public Health and Wellbeing Plans. However, the resource might also assist other business units of council to gain a greater appreciation of their contribution to health and wellbeing through the economic environment. 1.2 Background Formal municipal planning for public health and wellbeing is a requirement of local councils first introduced in Victoria in 1988 with an amendment to the Victorian Health Act 1958. Following a pilot phase, all local councils were required to have a Municipal Public Health Plan from 1993. The new Public Health and Wellbeing Act 2008 continues the requirement for these plans, now termed Municipal Public Health and Wellbeing Plans (MPHWPs) and has moved them from a three year to a four year cycle. MPHWPs emphasise the key role that local councils play in creating communities and environments in which people can thrive. Local councils have a direct influence over some of the most powerful influences on health and wellbeing, such as, social support, land-use planning, transport, access to cultural activities and employment. Consequently each local council is ideally placed to have a profound impact on the quality of life of its citizens. The Environments for Health framework was launched in Victoria, 2001 to support local councils to become leaders in promoting community wellbeing using a cutting-edge approach to quality health planning. Focusing on the determinants of health that lie within the built, social, economic and natural environments, this ‘four environments for health’ framework guides the development of MPHWP strategies and actions. The four environments are broadly described as follows: Table 1: Environments of Health Built: Altering physical surroundings includes urban layout, building design, housing

density, parks and recreation facilities, roads, paths and transport and the provision of other amenities, such as seating and toilets.

Social: Creating opportunities for people to participate in the life of the community includes providing a sense of place, belonging and safety, information, informal social support, health and community services, arts and culture, sport and recreation.

Natural: Looking after natural surroundings and ecosystems, includes clean water, air, soil, natural heritage, land care, waste recycling, energy consumption and climate control.

Economic: Encouraging sustainable economic development and equitable access to resources includes job creation, training, subsidies and incentives.

(Adapted from, Environments for health: municipal public health planning framework, Victorian Department of Human Services, 2001.)

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An evaluation of the Environments for Health framework (Centre for Health through Action on Social Exclusion, Deakin University, 2006) reinforced the value of the framework in supporting local government public health planning and evaluation. One of the findings of the evaluation was that of the four environments, the economic environment was the least developed in MPHWPs around Victoria. This finding is consistent with observations of the Southern Metropolitan Region Health Planning Forum. 2. What is the economic environment? The economic environment is difficult to define, particularly as it relates to health and wellbeing and the role of local councils. It does not lend itself to being dissected neatly within the geographic nor political boundaries of a municipality. It is useful therefore to start with a broad appreciation of the economic environment that sets the scene for examining its implications for health and wellbeing (section 3) and subsequently for local councils (section 4). At a broad level, the economic environment might be described as a complex convergence of human needs; human enterprise; formal systems of law, trade and practice; and informal mechanisms of volunteerism and mutual support. The inextricable link between the economy and political systems has seen diverse historical and cultural economic models encompassing slavery, market capitalism and socialism - to name a few. To understand what is meant by the economic environment in today’s Australia, it is a useful staring point to consider a simple model whereby the economy might be regarded as a system that connects human needs and the capacity to satisfy them:

People have needs ⇒ Enterprises emerge to meet these needs

⇒ Enterprises need people to produce its goods and services ⇒ Enterprises remunerate people for their work

⇒ People use this income to meet their needs. Of course, there is much human activity that contributes to economic prosperity but which is not remunerated. Examples include:

• the support of family and friends, for example, in child rearing and child care

• volunteerism, which delivers goods, services or support directly between people

• sports, arts and cultural pursuits, which might not have an immediate economic end but which might stimulate secondary economic activity, for example, tourism.

Figure 1 illustrates the relationship between demand (generated by individual and population needs), supply (delivered a range of disparate parties) and means (the resources used to meet needs). It can be seen that for many it is participation in supply-side activities (for example, employment in private enterprise) that provides them the means (in this case, income) to meet their needs.

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Nonetheless, it is important that the concept of the economic environment (and economic prosperity) is not limited to notions of business, finance and workforce participation. Figure 1: Interventions in a ‘demand – supply – means’ economy Figure 1 also illustrates the broad interventions commonly applied to support each element in the economy. There are many economic systems interventions, which are extremely wide and deep. For example, federal and state government laws prescribe critical aspects of corporation governance, labour provisions and trade; while nationally economic, fiscal and monetary policies shape the currency, interest rates and the markets. Many interventions, including local government activity, specifically target enterprise, encouraging business growth and job creation. Others respond to individual need as well as providing economic infrastructure, for example, communication and transport systems facilitate commerce while they also satisfy individual needs for social networks. In the interests of social justice and equity, interventions also include income support, taxation measures and subsidised services for those not ‘in work’ or not earning enough income.  Some argue that the economy should essentially run itself – that enterprises rise and fall based on demand and that the labour market re-shapes to meet skills gaps. However, history has shown unregulated or laissez-faire economies have a propensity for ‘booms’ and ‘busts’ and for ‘the rich to become richer while the poor to become poorer’. Therefore, despite long running debate over the need for, or the level of, intervention in the economy, all tiers of government in Australia, as well as non-government agencies, play active roles in influencing the economy.

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Just as health and wellbeing is derived from built, social, natural and economic determinants, so too, current concepts of economics draw the connection between economic, natural and social drivers. This is illustrated in concepts such as the triple bottom line (Elkington, 1997), which asserts that sustainable economic activity relies on:

An economic bottom line: focussing on the ‘financial capital' of an organisation; its ‘physical capital’ (buildings, plant and equipment); and ‘human capital’ (skills and knowledge) An environmental bottom line: focussing on ‘natural capital’, including preserving ecosystem integrity (for example, air and water quality), and incorporating renewable, replaceable, or substitutable natural capital (for example, via recycling, alternative energy sources and crop and livestock breeding) A social bottom line: focussing on ‘social capital’, including promoting social cohesion and trust between organisations and their external stakeholders. Social capital also takes into account ‘human capital’, in particular, public health, skills and education.

These ideas coincide well with a wholistic view of health and wellbeing and reinforce the value of an integrated approach. They do not necessarily help to distinguish the economic environment from the built, social and natural but rather reinforce that social, economic and environmental factors are inter-active and mutually inter-dependent. This is important as it can be argued that regarding them as separate systems can continue a disjointed response. Ideally therefore, each intervention at the local council level should aim to take into consideration all four environments for health.

By distinguishing them [social, economic and environmental] as separate systems, they continue to fit with fragmented rather than collaborative frameworks for knowledge, in any one organisation competing with one another for resources, for power and for priority of action. The three circle approach assumes that the public’s health can be summed up by the titles of the three research and resource sectors. If the labels are changed to living, livelihoods and landscapes the meaning alters significantly towards a community interpretation, but still places the three in opposition to one another, implying a zero sum game, that is, more of this means less of that. Brown et al (2002)

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3. What is the relationship between the economic environment and

health and wellbeing? 3.1 Individuals need an effective economy The economic environment directly affects the health and wellbeing of every member of the community. Maslow’s hierarchy of needs (see Figure 2 below), proposes that an individual must satisfy their basic needs before they are able to address their needs at the next level up the hierarchy. For example, a person must meet their safety and security needs before they are able to fully address their need for social acceptance. Figure 2: Maslow’s Hierarchy The economic environment therefore has an impact on an individual’s capacity to:

• access healthy and nutritious food and water • buy or rent accommodation • access training and education opportunities • meet personal and family expenses, such as transport • access medical and health services • access support • maintain contact with family and friends • participate in the community • access entertainment and social events.

The social gradient: People further down the social ladder usually run at least twice the risk of serious illness and premature death as those near the top. Unemployment: Evidence from a number of countries shows that, even after allowing for other factors, unemployed people and their families suffer a substantially increased risk of premature death. Wilkinson and Marmot (2003)

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The particular vulnerability of low income people – lower on the social gradient and/or unemployed - is clear. However, emerging challenges, such as, climate change, peak oil and the global financial crisis threaten to widen the health risks - increasing food insecurity, hampering transport access and limiting disposable income increasing food insecurity, hampering transport access and limiting disposable income for a broader proportion of the population. (Dodson and Sipe, 2008). 3.2 An effective economy needs healthy individuals The relationship between the economic environment and health and wellbeing goes further than providing people with the means and the goods and services to meet their health and wellbeing needs (Bloom et al, 2004, 2005). It also takes a healthy, secure and productive population to build a strong economic environment. Figure 3 illustrates that economic outcomes, that is, goods and services and incomes, contribute to a range of determinants that lead to the health of a population - that is in turn, able to be productive and deliver economic outcomes. Figure 3: Health Inputs and Outputs

Poor health is likely to have an adverse effect on work performance and leads to lower productivity. As a result, people with poor health have a lower probability of being employed under prevailing wages. On the other hand, low productivity associated with poor health decreases individuals’ earning potential, the opportunity costs of leisure and therefore their willingness to participate in the labour force. Cai and Kalb (2006)

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Ill-health also impacts on the economy as a financial burden through lost productivity and through the financial impacts of medical and community care systems. 3.3 The workplace as a health setting Given that many people spend a significant portion of their time in a workplace, the workplace is regarded as a major health setting. Occupational health and safety requires minimum conditions for safe work practices and safe workplaces. However, scope exists for wider health and wellbeing activity. Work that is stressful can be also increase the risk of poor health outcomes. 3.4 Private enterprises as partners in health As part of their ‘social bottom line’, which includes promoting social cohesion, the private sector might be regarded as a resource of the economic environment. The private sector is therefore a potential partner in health. This might take the form of supporting workplace health initiatives such as described above, or philanthropic involvement in community-wide health promotion, for example, sponsorship of social marketing events. In addition, considering whether there is a private sector solution to health challenges can increase options and funding sources. 3.5 Social enterprises as partners in health Social enterprise can be broadly defined as ‘a market-based venture for a social purpose’ (Hughes, 2005). While the term gained strength in the late 1990’s alongside the concept of the ‘social entrepreneur’, such activity has been a part of the Australian economy from its earliest days. Examples which have been with us for decades include co-operatives, friendly

Work: Evidence shows that stress at work plays an important role in contributing to the large social status difference in health, sickness absence, and premature death. Wilkinson and Marmot (2003)

Social Enterprise is a means by which people come together and use market-based ventures to achieve agreed social ends. It is characterized by creativity, entrepreneurship, and a focus on community rather than individual profit. It is a creative endeavour that results in social, financial, service, educational, employment, or other community benefits. Talbot, Tregliga and Harrison, 2002 - in Barraket and Collyer (2009)

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societies and credit unions. The emergence of localism, social capital and partnership in recent times has revitalised the concept. Broadly social enterprises find a place in the market by:

• aggregating demand - enabling a particular group of people to participate in a market (in a particular way). For example, community banks and community telcos have supported rural communities to enjoy local banking services and accessible telecommunications.

• aggregating supply – enabling a particular group of people to participate in a

market. For example, indigenous art ventures have enabled indigenous artists to bring their work to the attention of buyers.

• specialising supply - enabling a particular group of people to participate in a

market in a certain way to overcome a particular disadvantage. For example, a neighbourhood house that brings together unemployed people to deliver home maintenance services to elderly people in the local community is overcoming barriers to employment for the workers and providing affordable services to the customers.

There is tremendous scope for social enterprise to be a partner in health. By their nature they are likely to have a focus on the health and wellbeing of those benefitting from their ventures. There are many examples of social enterprises active in the health arena, for example, health services co-operatives and community gardens and fresh food outlets. See websites in section 6 for more examples.

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4. What is a local council’s role in the economic environment? Local councils play a number of roles in the local economic environment. As a large local enterprise, a local council is a significant employer and purchaser of goods and services. It is also a regulator, for example, responsible for licensing food businesses and premises serving alcohol, as well as applying local laws, which influence community safety. Perhaps most importantly in terms of the economic environment, it is a facilitator – supporting local enterprise and social connection; learning and skills development; and market access; and pursuing equity. Figure 4 illustrates some specific ways local council intervene in the economic environment. Figure 4: Local council influences on the local economic environment Key ways in which local councils can influence health and wellbeing through the economic environment are:

• supporting an effective economy • focusing on workplaces as health settings • engaging enterprises as partners in health.

Often the responsibility for the economic environment within council is assigned to the economic development business unit. This unit plays an important part, particularly in:

• attracting and encouraging new business • supporting and assisting current business through networking professional

development

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• expanding local markets • developing local and regional branding and tourism • assisting with attracting, marketing, promoting and staging events • supporting investment in infrastructure, such as business district revitalisation and

access to a natural asset.

However, most business units of council contribute to the economic environment in some way. Given that the economic environment is a major influence on individual and community health and wellbeing, there is also a clear role for the business units within health, welfare and community services; planning; environment; infrastructure and assets; and general public services. ‘Navigating for Health and wellbeing: A resource for integrating health planning in local councils, DoH, June, 2009 provides some useful insights into these roles and relationships. 4.1 Supporting an effective economy Given that local councils have a range of regulatory, planning and community building functions that influence the economic environment, it can be a challenge for them to balance these different and at times, competing functions. For example, industrial developments can be perceived as in conflict with residential developments: some commercial developments can bring a tension between economic opportunity and risks such as problem gambling or harmful alcohol consumption. Local councils are active in each of the four intervention areas described in Figure 4: support for enterprise and social connection; support for learning and skill development; pursuit of equity for all; and support for access to markets. The following list provides examples of initiatives and actions undertaken by local councils to develop the economic environment in their municipalities.

Historically, there was a public health imperative to separating residential areas from employment zones in cities. In particular, industrial point-sources of air pollution were adversely affecting health. In post-industrial societies such as Australia, this is no longer the case. Arguably, there are now public health and environmental imperatives to reintegrate life and work. If people live close to where they work, there can be benefits to their health and the health of the environment. Long commuting times can be a source of stress, can adversely affect health and increase carbon dioxide emissions. Local economic development is a tool to create locally based jobs. Each community needs to find ways that it can incubate new ideas and new jobs. Communities should have local job generation programs and measure job creation as a central tenet of community well-being not simply the number of people employed. Capon and Blakely (2007)

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4.1.1 Support for enterprise and social connection Actions in this area are largely concerned with promoting and supporting locally based private sector businesses but might also involve support for social enterprise. To support local enterprise, local councils might:

• support the establishment of community banking services • provide business mentoring and support programs to improve business administration

and overall performance • facilitate networks and meetings to share ideas and information between entrepreneurs • introduce awards and competitions which recognise and reward economic achievement • provide grants to stimulate business activity • connect the business and community sectors with the community to develop and

support initiatives • support the establishment of specific businesses such as food co-operatives and/or

farmer’s markets • engage with health insurance companies on large partnerships and joint programs for

mutual benefit of the businesses and the community. • assist local community events to grow, for example fashion, food and wine and retail

festivals • make council venues available at low or no cost to initiate activities – for example an

art show • promote tourism initiatives in parks, reserves and public gardens • undertake or facilitate projects to demonstrate the value of workplace health – for

example, workplace based health programs such as health checks which improve productivity and reduce absenteeism.

Support for social connection is likely to be pursued through a range of social rather than economic goals. Nonetheless, it is worth considering how such connections can strengthen economic participation. 4.1.2 Support for learning and skill development Actions in this area are largely concerned with skill identification; competency development and job readiness. To support learning and skill development local councils might:

• facilitate networks and meetings to share ideas and information between employers, job network and training organisations

• work with partners to mobilise labour to match skills gaps • offer or support employment scholarships or traineeship programs within council • support the development of language skills for migrants and refugees to assist with

their access to training and employment • introduce awards and competitions which recognise and reward skill development and

training outcomes • provide grants to stimulate activity in training and development • facilitate volunteerism, for example, get togethers of seniors to generate participation

and utilise their skills and experience.

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4.1.3 Pursuit of equity for all Actions in this area are largely concerned with income support which is primarily a federal responsibility. However, it is also concerned with providing for the needs of people who despite efforts to generate income through work or through income support, do not have sufficient means to satisfy their needs. To pursue equity local councils might:

• provide subsidised council services to assist low income earners • work with partners to develop affordable housing strategies • introduce or support programs to address problem gambling.

4.1.4 Support for access to markets Access to markets is predominantly concerned with the location and ease of access of market places. To support access to markets local councils might:

• support the establishment of specific markets, such as food co-operatives and/or farmer’s markets

• support social enterprises that provide goods and services to local communities • develop solutions to transport barriers, including affordable transport for low income

earners and accessible, walkable and cycle friendly surroundings that support active transport.

4.2 Focusing on workplaces as health settings As an employer local councils influence health and wellbeing through the way they operate as places of work. By providing healthy workplaces, local councils contribute to the specific health and wellbeing of their officers and councillors. This also provides a role model for other organisations and workplaces in the community. Examples of workplace health and wellbeing initiatives include:

• encouraging active transport options with incentives, such as providing showers and other facilities to encourage walking and cycling to work

• adding facilities that encourage people to take exercise before or during the working day, or providing membership incentives to gymnasiums

• entering teams in local cycling, running or walking events.

4.3 Engaging enterprises as partners in health Engaging enterprises in health issues can be challenging but effective. Examples include:

• hosting a networking night of health professionals to generate ideas for streamlining services and support for community benefit

• conducting an awards program to reward and acknowledge restaurants with healthy

food and healthy food for children

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• providing healthy choice to food businesses offering nutritious and affordable food options

• providing hotels and clubs rewarded with health credits for supporting health in the community – for example for removing happy hours and discounted alcoholic drinks for women

• preserving space for food production as part of residential developments

• conducting trader and stakeholder surveys about employing marginalised groups, such as young people, ex-offenders, seniors and newly arrived refugees

• working with businesses to create affordable options in key determinant areas, such as

shared taxi services augmenting community transport and subsidised gym membership or mall-walking assisting physical activity participation.

4.4 Managing the risks Given their buying power and influence, local councils dealing with enterprises need to:

• Ensure impartiality – so that council does not favour or is not seen to favour, one business or organisation over another

• Practice competitive neutrality – so that new competitors are not supported to compete

with existing businesses and services

• Manage conflicts of interest – so that councillors or staff members with business interests that might benefit from council initiatives act in a transparent and ethical fashion

• Manage expectations – so that council business and community assumptions regarding

council initiatives in the economic environment remain realistic

• Manage liability – so that council is not seen to be providing business advice or information. (Businesses and community organisations might make commercial decisions based on council advice and hold the council accountable if the outcomes are different to those suggested.)

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5. Planning for the economic environment Planning for the economic environment will have similar features to other planning processes within local councils. Incorporation into MPHWPs is likely to follow the general course of planning through the MPHWP cycle (see Figure 5). However, there might be other plans or strategies, for example, an economic development plan or an arts and culture strategy, that would benefit from a health and wellbeing perspective applied to it.

Figure5: Municipal Public Health and Wellbeing Plan Cycle

Adapted from the Environments for Health: Framework for Municipal Public Health Planning, DHS, 2001 Since local councils are experienced in planning processes, this section does not aim to suggest approaches to planning as such, but looks at some of the specific planning issues arising in the economic environment. The following nine steps are an expansion of the planning cycle and should be considered when planning for the economic environment, regardless of the specific plan in question. The following prompting questions have been developed to strengthen economic initiatives and actions in the MPHWP and other identified plans and to assist local councils elevate the economic environment in council planning processes.

 

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Step 1: Gaining management support to incorporate strategies to develop the economic environment in a range of plans and strategies across council

This involves: Prompting questions: • preparing key data and evidence to

support the case for goals, strategies and actions in the economic environment

• identifying and working with key

managers to open the of key people and business units within council

• gaining the required endorsement to

engage external stakeholders in the development of goals, strategies actions and potential partners.

• What is the current level of interest in the economic environment within council?

• Who are the potential leaders or champions for the economic environment within council management and senior staff?

• What economic and other data and information is available to make the case for council support to planning for the economic environment?

• Who are the managers and key staff who might have the inclination and influence to elevate the profile and importance of the economic environment in the MPHWP and other council plans and strategies?

Step 2: Determine which plan or plans that economic environment goals, strategies and actions will feature in This involves: Prompting questions: • working with other council

managers/staff to seek broader contribution to developing and implementing goals, strategies and actions relating to the economic environment within the MPHWP

• gaining an understanding of the

range of plans and strategies council produces and the potential for goals, strategies and actions relating to the economic environment to fit within them.

• What other council plans and strategies are produced where there is potential to improve or increase outcomes in the economic environment?

• What is the best way to get relevant council business units involved in planning for the economic environment within the MPHWP?

• What is the best way for planners involved in the MPHWP to work with other council business units to increase outcomes in the economic environment through other council plans and strategies?

Examples of plans and strategies where the economic environment might feature include:

• Municipal Public Health and Wellbeing Plan • Positive Ageing Strategy • Economic Development Strategy • Youth Strategy • Tourism Strategy • Parks and Garden Strategy • Arts and Cultural Development Strategy • Urban Renewal Plan.

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Step 3: Assess the economic environment needs of the whole community and in

particular the needs of vulnerable population groups This involves: Prompting questions: • looking for areas where the economy

and business is performing well and seek ways to grow these areas

• determining areas where the whole

community can benefit from an improved economic environment

• identifying ways to develop the

economic environment so that opportunities are created for vulnerable people within the community.

• What are the types, locations and sizes of businesses are in our municipality?

• What needs in the municipality are not being met by the current businesses?

• What are the strengths in the current economic environment and where are the opportunities to develop new initiatives for the benefit of the whole community?

• Is their scope to support initiatives to respond to gaps in services?

• Who are the major employers in the area – and how can we support them to grow their business?

• What scope is there for home based businesses in our municipality – and how can we facilitate opportunities in this area?

• Are there skills shortages in the area – where council can assist facilitate responses or solutions to these?

• Which population groups are vulnerable

due to their economic circumstances? • What data and information is available

about these groups? • Where are they and what are the best

ways to consult and engage them? • What initiatives can council facilitate or

nurture to create opportunities for these groups?

• What funding sources can we identify

– and how can we assist businesses and organisations to access and benefit from these resources?

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Step 4: Engage stakeholders who have an interest and/or who are able to

influence the economic environment This involves: Prompting questions: • identifying the specific motivators

and interests of stakeholders and customise approaches to them

• developing a consultation and

engagement approach to gain ownership, commitment, and involvement of key stakeholders undertaking consultation and following through on the outcomes of the consultation.

• Which council business units are critical to developing the economic environment in the municipality?

• What language relating to the economic environment is used in other council business units and what is the best way to develop common understanding of key terms and concepts?

• Which external individuals, businesses, community organisations and government departments are critical to developing the economic environment in the municipality?

• Who needs to be consulted and engaged in the planning process?

• What are the best ways to consult and engage stakeholders?

• What are the motives or areas of interest for stakeholders to potentially be involved?

• What level of interest is there from key internal and external stakeholders?

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Step 5: Identify and agree goals and strategies to develop and strengthen the

economic environment This involves: Prompting questions: • determining what council wishes to

achieve, how it is to be achieved and who will be involved – both within council and externally

• determining priorities and timeframes

for goals, strategies and actions

• formalising partnerships, co-operative arrangements and commitments of key stakeholders.

• What are the desired outcomes in the economic environment?

• How are these outcomes to be achieved?

• What are the partnership options? • Are there other organisations that

council can assist to achieve outcomes in the economic environment?

• What scope is there to work with other local councils to develop the economic environment of the region?

Step 6: Write the goals, strategies and actions for the economic environment

into the appropriate plans and strategies This involves: Prompting questions: • drafting the goals, strategies and

actions • determining where these goals,

strategies and actions will sit within other council plans and strategies incorporating the goals, strategies and actions into the relevant plans and strategies and obtaining the required endorsement and sign-off.

• What are the goals, strategies, actions and priorities for the MPHWP?

• What are the goals, strategies, actions and priorities for other council plans and strategies?

• How can the completed plan be used to elevate the profile and activities of the economic environment within council and externally?

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Step 7: Design evaluation strategies to monitor and assess the impact and

outcomes of goals, strategies and actions in the economic environment This involves: Prompting questions:

• determining what will be measured in relation to the goals, strategies and actions relating to the economic environment

• establishing how this information

and data will be collected and analysed

• ensuring that those responsible for collecting and analysing data are aware of what is required and that the appropriate tools and resources are in place to support them

• What is being evaluated – inputs, impacts or outcomes?

• What needs to be measured to determine the degree to which goals, strategies and actions are achieved?

• What resources are needed to enable the required data and information to be collected and analysed?

• Who needs to be involved in the evaluation process?

• How are the outcomes of the evaluation going to be reported and used?

The indicators below, developed by Community Indicators Victoria, provide an idea of the types of measures that might be considered in this step of planning.

Dynamic, Resilient Local Economies

Economic Activity Income and Wealth Skills Retained Retail Spending Income Educational Qualifications Highly Skilled Workforce Distribution of Income Business Growth Per Capita Wealth Distribution of Wealth Employment Financial Stress Work-Life Balance Employment Rate Food Security Adequate Work-Life Balance Unemployment Local Employment

Community Indicators Victoria, see: www.communityindicators.net.au

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Step 8: Implement the economic environment goals, strategies and actions This involves: Prompting questions:

• undertaking the strategies and actions as detailed in the relevant plans and strategies

• How will the goals, strategies and actions regarding the economic environment be implemented?

Step 9: Evaluate the economic environment goals, strategies and actions This involves: Prompting questions:

• implementing the evaluation strategy.

• How can the findings of the evaluation be distributed and used to further develop the economic environment?

• What is the current evidence base in the economic environment and how can this be extended through the initiatives implemented in the MPHWP and other council plans and strategies?

• How will our practice and activities change as a result of the learning from the evaluation of outcomes in the economic environment?

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6. References and resources Barraket J., 2005, Community and Social Enterprise: What Role for Government? Paper prepared for Department for Victorian Communities Barraket J., and Collyer N., 2009, Defining and operationalising the idea of social enterprise: a brief discussion paper, Australian Centre for Philanthropy and Nonprofit Studies Queensland University of Technology Blakely EJ, Bradshaw TK. Planning local economic development: theory and practice. 3rd Edn. Thousand Oaks: Sage Publications, 2002. Bloom D.E., Canning D., Sevilla J., 2004, The effect of health on economic growth: a production function approach. World Development, 32:1–13 Bloom D.E., Canning D., 2005, Health and Economic Growth: Reconciling the Micro and Macro Evidence, Harvard School of Public Health Bohr R. (Ed), 2006, Health and Economic Development in South-eastern Europe, WHO, Paris Brown V.A., Grootjans J., Ritchie J., Townsend M., and Verrinder G. (Eds), 2002, Sustainability and Health, 2002, Developing Linked Learning Cai, L. and Kalb, G., 2006 Health Status and Labour Force Participation, Health Econ.; 15: 241–261. Capon A.G. and Blakely E.J., 2007 Checklist for healthy and sustainable communities Vol. 18(3–4) NSW Public Health Bulletin Centre for Health through Action on Social Exclusion, Deakin University in association with the Program Evaluation Unit, University of Melbourne, 2006, Evaluation of the Environments for Health Framework, Final Report, Melbourne. (see report at http://www.health.vic.gov.au/localgov/) Defourny, J. and Nyssens M. (eds.), 2008, Social enterprise in Europe: Recent trends and developments, EMES European Research Network, Belgium Dodson, J. and Sipe, N., 2008, Shocking the suburbs: Oil vulnerability in the Australian city, Sydney, UNSW Press Elkington, J. 1997. Cannibals with Forks: The Triple Bottom Line of 21st Century Business: Capstone. Grootjans, J, Brown V.A, and Ritchie, J. and Verrinder,G. (2002) Sustainable development: A cornerstone of public health. Environmental Health 2. 1. 71-75 Hughes, V. (2005) ‘Social Enterprise in Australia’ presentation to City of Swan, Western Australia.

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Maslow A. H., 1943, A Theory of Human Motivation, Originally Published in Psychological Review, 50, 370-396. Suhrcke M. et al, 2005, The contribution of health to the economy in the European Union. European Commission, Brussels Victorian Department of Human Services, 2001, Environments for health: municipal public health planning framework, DHS, Melbourne. Victorian Department of Human Services, 2005, Evaluating Neighbourhood Renewal: passing the first test, DHS, Melbourne Victorian Department of Health, 2009, Navigating for Health and Wellbeing: A resource for integrating health planning in local councils, DoH, Melbourne available at www.dhs.vic.gov.au/operations/regional/southern/regional-programs/public-health Victorian Department for Victorian Communities, 2006, Indicators of Community Strength: A framework and evidence, State Government of Victoria, Melbourne. West S. and Badham M., 2008. A Strategic Framework for Creating Liveable New Communities. Report, McCaughey Centre, University of Melbourne, Melbourne. Wilkinson and Marmot, 2003, Ten Solid Facts, WHO Websites dealing with social enterprise in Australia Australian Centre for Cooperative Research and Development http://www.accord.org.au Social Enterprise Partnership (SEP) www.partnership.org.au Social Ventures Australia

http://www.socialventures.com.au Social Traders www.socialtraders.com.au

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Appendix A

Stakeholders in the economic environment In addition to the internal stakeholders within council, there are a number of external players with an interest in the economic environment. These generally fit within the following categories – private sector businesses, community and not-for-profit organisations, federal and state government agencies, peak bodies and industry associations, and interested individuals. Being clear about who they are and their potential motives for getting involved in council facilitated initiatives is important when constructing the consultation and engagement process with them. A.1 Private sector businesses a) Manufacturers, retailers, wholesalers and suppliers b) Sole traders, home based businesses and franchises c) Food outlets – both fresh produce/grocers and fast food/restaurant providers d) Employment agencies e) New employment and self employment support providers f) Training and education providers g) Transport companies and taxi operators h) Property developers i) Entertainment and event providers j) Banks and financial service providers. Interests might include:

• generating income and profit • positioning against competitors • brand building • acknowledgement of good corporate citizenship • sustainability and long term viability • access to grants and financial/business support • publicity and promotion • business growth and development • partnership (by some and maybe not others) • networks and new business relationships • association with and/or support from council (some, maybe not all) • access to council, councillors and/or council business • knowledge and information of potential support schemes available.

A.2 Community and not-for-profit organisations a) Service clubs such as Lions, Apex and Rotary b) Churches

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c) Community organisations such as the student associations, cultural associations, sporting clubs, walking groups, garden clubs and so on

d) Community service providers such as Australian Red Cross, the Brotherhood of St Lawrence, Migrant Resource Centres and so on

e) Employment service providers including support schemes for new employer and self employment initiatives

f) Training and education providers g) Community transport providers h) Aged care providers. Interests might include:

• positive outcomes for vulnerable individuals and families – particularly the ones they work with

• development of the community and the capacity for the community to identify needs and respond effectively to those needs

• projects and partnerships with opportunities to work with other organisations • innovation and stimulation of developing creative solutions to the needs of

individuals and the community • generating income and surplus funds • positioning against competitors • brand organisational profile building • acknowledgement of good corporate citizenship • sustainability and long term viability • access to grants and financial support • publicity, promotion and recognition • organisational growth and development • partnership (by some and maybe not others) • networks and new organisational relationships • association with and/or support from council (some, maybe not all) • access to council, councillors and/or council services and support • knowledge and information on the working of council • knowledge and information of potential support schemes available.

A.3 State and National Government agencies with relevant portfolios a) Employment b) Education c) Training d) Community development e) Tourism f) Access and equity g) Aged services h) Services for young people i) Planning j) Environment k) Infrastructure and assets l) Utilities – electricity, communications, water, waste management.

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Interests might include:

• positive outcomes for vulnerable individuals and families – particularly the ones they work with

• development of the community and the capacity for the community to identify needs and respond effectively to those needs

• accountability and effective use of public funds • effective engagement of Government Departments and the community • political mileage and recognition • publicity and promotion • projects and partnerships with opportunities to work with other organisations • association with and/or support from council • access to council, councillors and/or council services and support • whole of government and inter-departmental co-operative efforts.

A.4 Peak body and industry associations a) Chambers of Commerce and Industry b) Traders Associations c) Business networks d) Business co-operatives e) Associations of people with disabilities f) Arts and cultural associations g) Migrant and refugee associations h) Victorian Council of Social Services.

Interests might include:

• potential member benefits • potential benefits to the customers and participants in member organisations • opportunities to develop relationships with key players • projects and partnerships with opportunities to work with other organisations • generating income and surplus funds • positioning against competitors • brand organisational profile building • acknowledgement of good corporate citizenship • sustainability and long term viability • access to grants and financial support • publicity, promotion and recognition • organisational growth and development • partnership (by some and maybe not others) • networks and new organisational relationships • knowledge and information of potential support schemes available.

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A.5 Other interested individuals and groups a) Economic development programs b) Neighbouring and other local councils c) Shopping centre management groups d) Farmer’s markets e) Individuals with specific needs such as someone to walk their dog, or the need for a

cleaner or carer f) Ratepayers associations g) Coast care groups h) Media i) Business and personal mentors and coaches.

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Appendix B

Paper prepared for a joint workshop of the Southern and Western Region Local Government Health Planning Networks - 13th October 2009

The Economic Environment of Environments for Health Lingering Questions

Background Since 2001 the Department of Health’s policy for municipal public health planning was based on a social model of health.  In ‘Environments for Health’ (DHS, 2001) the Department defined four environments that need to be made support of health and wellbeing, rather than a source of harm.  These included: 

• The built environment: altering physical surroundings such as urban layout, building design, housing density, parks and recreation facilities, roads, paths and transport and the provision of other amenities, such as seating and toilets. 

• The social environment: creating opportunities for people to participate in the life of the community such as providing a sense of place, belonging and safety, information, informal social support, community services, arts and culture, sports and recreation. 

• The natural environment: looking after natural surroundings and ecosystems, including clean water, air, soil, natural heritage, land care, waste recycling, energy consumption and climate control. 

• The economic environment: encouraging sustainable economic development and equitable access to resources including job creation, training, mentoring, subsidies and incentives. 

An evaluation (Deakin University & the University of Melbourne, 2006) of this approach showed that ‘Environments for Health’ has had a major impact on the way local government thinks about municipal public health planning.  Planners are considering the actions they can take in each of the built, social, natural and economic environments to improve the health and wellbeing of their local communities.  Although the economic environment is an under‐developed area for health planning and councils have requested more practical examples of actions that could be undertaken in the economic domain.  These interventions ought to be based on evidence. 

 

A Healthy Economy Consultants, PDF Management Services are currently preparing a resource, ‘A Healthy Economy: promoting health through the economic environment’.  This was commissioned by the Southern Metropolitan Region of the Department of Health in response to the gap in the information available about the role of economic strategies in health and wellbeing plans.  The content to be covered in ‘A Healthy Economy’ includes: 

• Why is the economic environment important? 

• Where does the responsibility for the economic environment sit within council? 

• Stakeholders in the economic environment, including the private sector. 

• Planning for the economic environment. 

• Strategies and actions to develop the economic environment, by economic development units and other business units. 

• Examples of council strategies and actions. 

During the development of this practical resource, questions have been raised about the economic environment that were beyond its scope and ought to be addressed else where. 

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Lingering Questions 1. While ‘Environments for Health’ broadly describes the components (economic policy, industrial 

development and employment) and characteristics (sustainable) of the economic environment, no other definition exists for local government.  Other terms are also used (income distribution, community economic development, economic participation, economic development, community capitalism and economic conditions) regarding the economic environment.  Discussions about the economic environment have become confusing as people are not certain they are talking about the same things when clear definitions do not exist. Key questions:  What is the definition of the ‘economic environment’ for local government.  What does it (and other terminology) mean for health planning? 

2. Local sustainable employment (income security) and job creation are identified as important components of the economic environment.   Key questions: What is the role for local government?  How can councils influence local economies?  Employment services?  Support for people from disadvantaged groups?  Local government is a large employer. Key questions: What is the evidence about healthy (paid and voluntary) and unhealthy work?  How does it apply to local government? For example, unemployment puts health at risk.  As does work that has low job control and high demands.  People with more control over their work conditions, fewer stress‐related demands on the job and greater workplace social supports are generally healthier. Key questions:  Is local government a healthy employer?  Are there family‐friendly work practices?  Work‐life balance? 

3. Income equality and income distribution impacts on health. Key questions:  Which local economic growth policies create healthier communities?  Subsidies? Incentives? 

4. Case studies in the economic environment are sometimes available. Key questions:  Have they been evaluated?  Are they evidence‐based?  How can success be measured in the economic environment?  Use of economic impact assessment?   What are the true success stories?  

5. Local government has a role in regulating gambling. Key questions:  Does a business case or health impact assessment exist for different scenarios in the provision of gaming?  Are there other examples, like gaming that relate specifically to local government and the economic environment?   E.g.  Tourism?   

6. An equity focus for health planning. Key questions:  How is affordability taken into account?  E.g. food / food security?  Housing?  Transport?  Financial counselling?  Life long learning?  Childcare?  Recreational activities and other services? 

Where to from here?  

References Deakin University & The University of Melbourne 2006, Evaluation of the Environments for Health 

Framework Final Report, Deakin University, Melbourne. 

Department of Human Services 2001, Environments for Health: promoting health and wellbeing through built, social, economic and natural environments.  Municipal public health planning framework, Victorian State Government, Melbourne. 

The Institute of Public Health in Ireland 2005, Health impacts of employment: a review.