This week it was reported that a pathetic 1.5 percent of the $1.6 billion awarded in Hurricane Katrina recovery contracts issued by the Federal Emergency Management Agency has gone to minority businesses. That’s less than one-third of the 5 percent that is usually required. This should serve as a stark reminder that the level of minority business inclusion is dependent not only on stated government policy, but also on the resolve and commitment of those responsible for enforcing that policy.
Downtown St. Louis Partnership estimates that $3.2 billion has been spent in the impressive revival of Downtown St. Louis in just the last five years. Meanwhile, major new construction projects continue to be announced. Importantly, a great deal of public money and tax concessions have made these projects possible. Yet there has been meager participation in this windfall by African-American businesses, professional services firms and workers.
Public officials would likely respond that there was enough difficulty attracting private firms to Downtown without firm insistence that minorities (who often are regarded largely as “unwanted partners”) be included. Whatever merit that argument might have had in the past, that excuse has lost credibility now that there is growing interest among investors in a reviving Downtown.
There is a great deal at stake for the African-American community. African- American business growth with an accompanying creation of more job opportunities is imperative to decrease the disparity in jobs and income between blacks and whites in St. Louis. African-American contractors will continue to struggle vainly to win contracts unless there is greater proactive effort from elected officials who are decision makers.
While some Downtown developers have sought to include African Americans – e.g., the St. Louis Baseball Cardinals, as well as African-American developers the Kwame Building Group and the Roberts Companies – the overall inclusion situation needs to be addressed more aggressively.
One of the reasons many young African Americans are unwilling to consider St. Louis as a place to live and work is the feeling that the area offers less opportunity than other communities. This situation undermines efforts to build greater capacity among African Americans and exacerbates racial sensitivities that have long been an impediment to greater regional cooperation, economic competitiveness and progress.
There must be specific action and greater accountability from decision makers if progress is to be made in achieving the goal of advanced social and economic parity in St. Louis.