{"id":35629,"date":"2020-02-08T12:02:21","date_gmt":"2020-02-08T20:02:21","guid":{"rendered":"https:\/\/careersingovernment.com\/tools\/?p=35629"},"modified":"2020-02-08T12:02:23","modified_gmt":"2020-02-08T20:02:23","slug":"rethinking-economic-development","status":"publish","type":"post","link":"https:\/\/www.careersingovernment.com\/tools\/gov-talk\/career-advice\/on-the-job\/rethinking-economic-development\/","title":{"rendered":"Rethinking Economic Development"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; admin_label=&#8221;section&#8221; _builder_version=&#8221;4.3.1&#8243; background_image=&#8221;https:\/\/www.careersingovernment.com\/tools\/wp-content\/uploads\/2020\/02\/econ3.jpg&#8221; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; padding_mobile=&#8221;off&#8221;][et_pb_row column_structure=&#8221;1_3,2_3&#8243; admin_label=&#8221;row&#8221; _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][\/et_pb_column][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_divider show_divider=&#8221;off&#8221; disabled_on=&#8221;on|on|off&#8221; _builder_version=&#8221;3.23.4&#8243; height=&#8221;200px&#8221;][\/et_pb_divider][et_pb_text _builder_version=&#8221;4.3.1&#8243; text_font=&#8221;PT Sans||||&#8221; text_text_color=&#8221;#ffffff&#8221; text_font_size=&#8221;72&#8243; text_line_height=&#8221;1.1em&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; max_width=&#8221;620px&#8221; custom_margin=&#8221;0px||0px|&#8221; text_font_size_tablet=&#8221;52&#8243; text_font_size_phone=&#8221;&#8221; text_font_size_last_edited=&#8221;on|tablet&#8221;]<strong>Rethinking Economic Development <\/strong><br \/>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; _builder_version=&#8221;3.22&#8243; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; padding_mobile=&#8221;off&#8221;][et_pb_row column_structure=&#8221;1_3,2_3&#8243; column_padding_mobile=&#8221;on&#8221; custom_padding_last_edited=&#8221;on|tablet&#8221; admin_label=&#8221;row&#8221; _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; max_width=&#8221;1200px&#8221; custom_padding=&#8221;20px||0px|&#8221; custom_padding_tablet=&#8221;0px|||&#8221; custom_padding_phone=&#8221;&#8221; use_custom_width=&#8221;on&#8221; custom_width_px=&#8221;1200px&#8221;][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;https:\/\/www.careersingovernment.com\/tools\/wp-content\/uploads\/2018\/01\/Rafael-Baptista-Headshot-.jpg&#8221; show_bottom_space=&#8221;off&#8221; align=&#8221;center&#8221; align_tablet=&#8221;center&#8221; align_phone=&#8221;&#8221; align_last_edited=&#8221;on|desktop&#8221; disabled_on=&#8221;on|on|&#8221; _builder_version=&#8221;3.23&#8243; animation=&#8221;off&#8221; sticky=&#8221;on&#8221;][\/et_pb_image][et_pb_text disabled_on=&#8221;on|on|&#8221; _builder_version=&#8221;3.27.4&#8243; text_font=&#8221;PT Sans|on|||&#8221; text_text_color=&#8221;#02b875&#8243; text_font_size=&#8221;20&#8243; text_line_height=&#8221;1.2em&#8221; header_text_color=&#8221;#000000&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; text_orientation=&#8221;center&#8221; max_width=&#8221;140px&#8221; module_alignment=&#8221;center&#8221; custom_margin=&#8221;20px||0px|&#8221;]<span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/www.careersingovernment.com\/tools\/author\/rafaelc\/\" target=\"_blank\" rel=\"noopener noreferrer\">RAFAEL BATISTA<\/a><\/span><br \/>\n[\/et_pb_text][et_pb_text disabled_on=&#8221;on|on|&#8221; _builder_version=&#8221;3.27.4&#8243; text_font=&#8221;PT Serif||on||&#8221; text_text_color=&#8221;#363636&#8243; text_font_size=&#8221;16&#8243; text_line_height=&#8221;1.4em&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; text_orientation=&#8221;center&#8221; max_width=&#8221;140px&#8221; module_alignment=&#8221;center&#8221; custom_margin=&#8221;10px||60px|&#8221;]Rafael Baptista is the Strategy and Performance Analyst for the City of Raleigh, North Carolina. He serves on the Engaging Local Government Leaders Management Team and is a contributing author to Careers in Government.<br \/>\n[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.3.1&#8243; text_font=&#8221;PT Serif||||&#8221; text_text_color=&#8221;#363636&#8243; text_font_size=&#8221;24&#8243; text_line_height=&#8221;1.5em&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; max_width=&#8221;720px&#8221; custom_margin=&#8221;0px||0px|&#8221; text_font_size_tablet=&#8221;&#8221; text_font_size_phone=&#8221;&#8221; text_font_size_last_edited=&#8221;on|tablet&#8221;]<span style=\"font-weight: 400;\">When most people picture economic development, they think of smooth-talking men convincing companies to bring their jobs and investment to a community in exchange for infrastructure improvements and tax breaks. They think about backroom deals at the steakhouse and golf course. While this may be true to some degree in some communities, there is a growing movement towards equitable economic development. In today\u2019s Morning Buzz, I will talk about that growing movement through the following three points:\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Traditional Economic Development has become outdated<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Why we need to shift to equitable economic development\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Some quick tips and resources if you want to do equitable economic development<\/span><\/li>\n<\/ol>\n<h4><b>Traditional Economic Development Models Don\u2019t Work\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Traditional economic development has historically been focused on recruiting projects where the state and\/or local government compete with other regions to see who can provide the best offer (IE tax incentives) to a company to bring jobs and capital investment to a community. This model works great for larger corporations as they can play local governments against each other (IE Amazon HQ2) to get the best financial offer. It creates a race to the bottom for local government.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But there is an additional issue with traditional economic development when approaching it from an equity lens. These projects while focused on creating jobs in a community many times don\u2019t create jobs that fit the local workforce profile or they bring in workers from other communities so that local lower socioeconomic and communities of color may not benefit from the jobs.\u00a0<\/span><br \/>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;3.22&#8243; background_color=&#8221;#f7f7f4&#8243; custom_padding=&#8221;0px||0px|&#8221;][et_pb_row column_structure=&#8221;2_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; make_equal=&#8221;on&#8221; column_padding_mobile=&#8221;on&#8221; module_class=&#8221; et_pb_row_fullwidth&#8221; _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;100%&#8221; width_tablet=&#8221;100%&#8221; width_phone=&#8221;&#8221; width_last_edited=&#8221;on|desktop&#8221; max_width=&#8221;100%&#8221; max_width_tablet=&#8221;100%&#8221; max_width_phone=&#8221;&#8221; max_width_last_edited=&#8221;on|desktop&#8221; custom_padding=&#8221;0px||0px|&#8221; make_fullwidth=&#8221;on&#8221; custom_width_px=&#8221;680px&#8221;][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;https:\/\/www.careersingovernment.com\/tools\/wp-content\/uploads\/2020\/02\/econ.jpg&#8221; show_bottom_space=&#8221;off&#8221; align_tablet=&#8221;center&#8221; align_phone=&#8221;&#8221; align_last_edited=&#8221;on|desktop&#8221; _builder_version=&#8221;4.3.1&#8243; animation_direction=&#8221;off&#8221; animation=&#8221;off&#8221;][\/et_pb_image][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25&#8243; background_color=&#8221;#efefe9&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;https:\/\/www.careersingovernment.com\/tools\/wp-content\/uploads\/2020\/02\/econ2.jpg&#8221; show_bottom_space=&#8221;off&#8221; align_tablet=&#8221;center&#8221; align_phone=&#8221;&#8221; align_last_edited=&#8221;on|desktop&#8221; _builder_version=&#8221;4.3.1&#8243; animation_direction=&#8221;off&#8221; animation=&#8221;off&#8221;][\/et_pb_image][et_pb_text disabled_on=&#8221;off|off|&#8221; _builder_version=&#8221;4.3.1&#8243; text_font=&#8221;PT Serif||||&#8221; text_text_color=&#8221;#818178&#8243; text_font_size=&#8221;24&#8243; text_line_height=&#8221;1.4em&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; text_orientation=&#8221;center&#8221; module_alignment=&#8221;center&#8221; custom_margin=&#8221;20%|10%||10%&#8221; custom_margin_tablet=&#8221;|10%||10%&#8221; custom_margin_phone=&#8221;&#8221; custom_margin_last_edited=&#8221;on|desktop&#8221; text_font_size_tablet=&#8221;&#8221; text_font_size_phone=&#8221;&#8221; text_font_size_last_edited=&#8221;on|phone&#8221;]<span style=\"font-weight: 400;\">Think about programs that you can create to support small businesses.<\/span><br \/>\n[\/et_pb_text][et_pb_text _builder_version=&#8221;3.27.4&#8243; text_font=&#8221;PT Sans|on|||&#8221; text_text_color=&#8221;#888888&#8243; text_font_size=&#8221;12&#8243; text_letter_spacing=&#8221;2px&#8221; text_line_height=&#8221;1.2em&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; text_orientation=&#8221;center&#8221; module_alignment=&#8221;center&#8221; custom_margin=&#8221;20px||20%|&#8221; custom_margin_tablet=&#8221;20px|||&#8221; custom_margin_phone=&#8221;&#8221; custom_margin_last_edited=&#8221;on|tablet&#8221;]RAFAEL BATISTA<br \/>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;3.22&#8243; custom_padding=&#8221;0px||0px|&#8221;][et_pb_row use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;4&#8243; column_padding_mobile=&#8221;on&#8221; custom_padding_last_edited=&#8221;on|tablet&#8221; admin_label=&#8221;row&#8221; _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; max_width=&#8221;1200px&#8221; custom_padding=&#8221;20px||0px|&#8221; custom_padding_tablet=&#8221;0px|||&#8221; custom_padding_phone=&#8221;&#8221; use_custom_width=&#8221;on&#8221; custom_width_px=&#8221;1200px&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.3.1&#8243; text_font=&#8221;PT Serif||||&#8221; text_text_color=&#8221;#363636&#8243; text_font_size=&#8221;20&#8243; text_line_height=&#8221;1.4em&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; custom_margin=&#8221;60px||0px|&#8221; custom_margin_tablet=&#8221;40px||0px|&#8221; custom_margin_phone=&#8221;&#8221; custom_margin_last_edited=&#8221;on|tablet&#8221; text_font_size_tablet=&#8221;&#8221; text_font_size_phone=&#8221;&#8221; text_font_size_last_edited=&#8221;on|tablet&#8221;]<\/p>\n<h4><b>We Need to Shift Focus onto Prosperity for All, Economic Mobility\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Fortunately, there is a new trend in economic development that is the movement for equitable economic development. Econsult Solutions describes this movement as being able to, \u201cunlock the full potential of the local economy by dismantling barriers and expanding opportunities for low-income people and communities of color.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Equitable economic development tends to focus on identifying ways to support economic development within the existing community and population, many times by focusing on small businesses and entrepreneurs. This approach allows you to create tailored approaches for the diverse communities within your broader community and build the economy with and for your residents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This approach brings with it many benefits. The first is that it tends to be significantly cheaper than traditional economic development. The below chart from the Center for American Progress shows the cost breakdown per job of various economic development strategies.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"HiaYvf-SmKAyb\" draggable=\"false\" src=\"https:\/\/lh3.googleusercontent.com\/GckGN04bx9dWr-LpIQPAuLFSpjMg1uQJWDlUYoSzNequKfR09tfrF2bW_R-qfkwknjRM89BYoZkET40ZkRqDQYrrsDSrw1TO5uorxHsb\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Another benefit is that small businesses tend to keep more money in the community versus larger companies. The American Independent Business Alliance estimates that 13.6% of revenue generated by chains remains local compared to 48% of independent revenue.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"HiaYvf-SmKAyb\" draggable=\"false\" src=\"https:\/\/lh4.googleusercontent.com\/PXrQQ6wggAv6ybh2j68Tp-NRkfIu_dFsioEsbVpy9lpL3T-XDhsdwTp4V6gxb7zqVAKTBAY5LjwQeLTaxYdct1Oiot47CLGkSIyUR8t2B0-c7ZK1HL9nLw_FAMC7IFZOPslNwaVJeME7RhLxgQ\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">A third benefit is that small businesses are statistically much more likely to be minority and\/or woman-owned versus larger corporations. CNN reports that 6.2% of fortune 500 CEOs are women while data shows that 40% of privately held companies are owned by women and women-owned businesses are more likely to be minority-owned then other businesses.\u00a0<\/span><\/p>\n<h4><b>A Couple of Quick Tips\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">You might be thinking that sounds great but how do I do it? I have a few quick tips and strategies that you can apply to your community and daily life.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first tip is to shop locally. Instead of buying businesses meals or supplies from larger companies can you purchase them from local companies. Can you break down your five facility janitorial contract into 5 separate contracts to make it easier for local firms to win those contracts?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The second tip is to ask your local small businesses and aspiring entrepreneurs what their barriers to starting, operating and growing their businesses are. While there are general barriers that they will face regardless of community, the magnitude of those barriers will vary, and each community will have its own unique barriers. Some of those barriers may include permitting, access to capital, available and affordable real estate, business acumen, and talent pool. Additionally, ask them what you can do to help them overcome those barriers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The third tip is to think about what other organizations can help you support small businesses. In many communities, you will affinity business groups and local business alliances that can help you support their members. Also, consider engaging non-traditional economic development groups such as ones that support freelancers and the arts community. Also, think about engaging with anchor institutions in your community like hospitals and universities. Work with them to support community development efforts and to encourage them to have a strong diversity within their supplier and vendor pipeline.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lastly, think about programs that you can create to support small businesses. This can include grant and loan programs for small businesses. Something to consider when creating these programs is that many small businesses (especially women and minority-owned businesses) struggle to get traditional loans because of an inability to have a down payment, local governments can step in and provide low-interest gap loans to provide small businesses with down payments. Also, research if your state provides grants to launch main street programs and consider ways to use CDBG funds to support economic development.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In summary, equitable economic development focuses on building up a community and it starts by deciding to focus on your community and listening to challenges and needs.\u00a0<\/span><\/p>\n<p>&nbsp;<br \/>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;3.22&#8243;][et_pb_row column_padding_mobile=&#8221;on&#8221; _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; max_width=&#8221;780px&#8221; custom_padding=&#8221;0px|0px|73.90625px|0px&#8221; use_custom_width=&#8221;on&#8221; custom_width_px=&#8221;780px&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;3.27.4&#8243; text_font=&#8221;PT Serif||||&#8221; text_text_color=&#8221;#363636&#8243; text_font_size=&#8221;36&#8243; text_line_height=&#8221;1.4em&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; text_orientation=&#8221;center&#8221; module_alignment=&#8221;center&#8221; custom_margin=&#8221;||70px|&#8221; text_font_size_tablet=&#8221;26&#8243; text_font_size_phone=&#8221;&#8221; text_font_size_last_edited=&#8221;on|tablet&#8221;] Want new articles before they get published? 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[\/et_pb_text][et_pb_contact_form captcha=&#8221;off&#8221; module_id=&#8221;et_pb_contact_form_0&#8243; _builder_version=&#8221;3.0.87&#8243; custom_button=&#8221;on&#8221; button_text_color=&#8221;#ffffff&#8221; button_bg_color=&#8221;#02b875&#8243; button_border_width=&#8221;8&#8243; button_border_color=&#8221;#02b875&#8243; button_border_radius=&#8221;4&#8243;][et_pb_contact_field field_id=&#8221;E-mail Address&#8221; field_title=&#8221;E-mail Address&#8221; _builder_version=&#8221;3.23&#8243; form_field_background_color=&#8221;rgba(0,0,0,0)&#8221; form_field_text_color=&#8221;#adadab&#8221; form_field_font=&#8221;PT Sans||||&#8221; form_field_font_size=&#8221;20&#8243; form_field_line_height=&#8221;1.4em&#8221; form_field_font_size_tablet=&#8221;20&#8243; form_field_font_size_phone=&#8221;20&#8243; form_field_line_height_tablet=&#8221;1.4em&#8221; form_field_line_height_phone=&#8221;1.4em&#8221; custom_css_main_element=&#8221;height:64px;&#8221; border_width_all=&#8221;1&#8243; border_color_all=&#8221;#adadab&#8221; 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They think about backroom deals at the steakhouse and golf course. While this may be true to some degree in some communities, there is a growing movement towards equitable economic development.<\/p>\n","protected":false},"author":308,"featured_media":35630,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","_cbd_carousel_blocks":"[]","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[32],"tags":[35],"class_list":["post-35629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-on-the-job","tag-government-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Rethinking Economic Development - Careers in Government<\/title>\n<meta name=\"description\" content=\"When most people picture economic development, they think of smooth-talking men convincing companies to bring their jobs in exchange for infrastructure improvements and tax breaks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.careersingovernment.com\/tools\/gov-talk\/career-advice\/on-the-job\/rethinking-economic-development\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rethinking Economic Development - 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