Study citing ‘culture of distrust’ ruffles feathers

A recent Eastern Washington University study about the problems Spokane faces in rebuilding its economy has whipped up controversy among area leaders who are disputing its unflattering conclusions.

Semiretired EWU professor Shane Mahoney’s study, published two weeks ago, concludes that Spokane’s economic development groups share a culture permeated by distrust, that most of their leaders don’t appreciate the role of government and that serious public discussion of important issues doesn’t occur due to fear of ruffling feathers.

Mahoney’s study is the seventh published by the EWU Institute for Public Policy and Economic Analysis. Mahoney, who taught government at EWU for more than 20 years, retired earlier this year but still teaches there on a part-time basis.

His 39-page report has generated angry attacks from some who say his methods are flawed and his conclusions are outdated.

Others who’ve read the report call it an accurate portrayal and a reminder that community leaders here have not developed a coherent economic development road map.

Retired Spokane banker Phil Kuharski, who follows the local economy closely, said he read most of Mahoney’s study and generally found things he agreed with. “What he’s saying, without quantification, is that this community is not positioned to get where we’d like to be,” Kuharski said.

He’s not surprised Mahoney’s report has irritated some community officials. “This kind of tough analysis is a sore subject among some leaders,” he said.

Mahoney reached his conclusions after face-to-face interviews with about 30 people in Spokane and Boise. His report compares Spokane with Boise, since both cities have similar roots in a resource-based economy and have tried to reinvent themselves, he said.

Mahoney writes that Spokane’s efforts to invigorate its business climate are connected to its culture, its set of “operating codes” that make it different from other metropolitan areas.

“In particular, Spokane’s culture is distrustful; and this diminishes the capacity to build industrial networks that assist product evolution and innovation,” Mahoney concludes in his study.

Another conclusion is that policy debate and disagreement are halted by a trait he described as “Spokane-nice” – a term he heard in interviews, referring to a belief that opening up touchy topics threatens others and often leads to repercussions.

Mahoney, who has never written about economic development before this study, received between $4,000 and $5,000 to produce the paper, said Patrick Jones, executive director of EWU’s economic policy institute.

Jones said it was Mahoney’s idea the study include a disclaimer that the conclusions don’t reflect the views of EWU administrators. The disclaimer is the first added to any of the seven studies the institute has funded, Jones said.

Since the report came out, Jones said, he’s received more than 20 e-mails or phone calls. Most have been in favor of the report or were generally supportive of the institute’s role in funding research on such topics, he said.

Several responses, however, have been strongly negative.

Jones said he wants the critics to understand that he regards the findings as “highly preliminary.”

Among those with critical reactions were the president of Gonzaga University and the president of the Spokane Regional Chamber of Commerce.

Gonzaga’s president, the Rev. Robert Spitzer, called into question Mahoney’s research methods, saying it needed to be broader to be valid.

“I’m pretty well-connected, and I don’t know anyone who was included in the survey,” said Spitzer, who’s an active participant in local economic development efforts.

He also said the number of Spokane respondents used in the study – fewer than 25 – was too small for Mahoney’s conclusions.

“It’s poor research,” he said in a phone interview.

Mahoney countered that he tried to interview as many community leaders as he could. Those interviewed were told they wouldn’t be identified.

He added that Spokane is unlike other larger cities in that it has a well-defined base of key people.

“The community of leading authorities in Spokane is not that large,” Mahoney said.

Spokane Regional Chamber of Commerce President and CEO Rich Hadley also disagreed with Mahoney’s findings, saying the traits he listed “were more reflective of five years ago than today.”

Hadley said anyone involved in economic development in Spokane would find great progress since then in terms of cooperation, focus and agreement on discussing issues openly.

The chamber, the Spokane Area Economic Development Council and the EWU institute want to host a public discussion with Mahoney to air the topics his study identified, Hadley said.

“If not talking about tough issues is a real problem, then we feel this is the right time to have this public dialogue, solve what needs to be solved and move on,” he said.

Mahoney said he plans to meet first with Hadley, then decide if he’ll take part. “I am interested in exploring the issues raised, especially if people really read this report,” he said.

No date for that meeting has been set, and Hadley said it likely wouldn’t occur until after the general election in November.

Among those endorsing Mahoney’s conclusions is John Stone, a developer and frequent critic of what he’s called a downtown Spokane-centric economic development agenda.

Stone said he found Mahoney’s comments “hit the problem right on the nail.”

Four years ago, Stone helped organize a community-wide discussion about economic development and why Spokane was not making as much progress as cities such as Boise.

That series, called “Symposium,” led to efforts to spur the creation of more technology-based and high-paying jobs.

“That comment about the fear factor of talking – that hasn’t changed since four years ago,” Stone said. “There is a group of people in Spokane who run things who don’t want others involved. I don’t feel much has changed since the Symposium series,” he added.

One area businessman, however, said another round of public disagreement on economic development will be less than productive.

“We went through all this before with the Symposium series,” said Peter Allison, a venture capitalist who moved from Spokane to Coeur d’Alene two years ago.

Allison said the Symposium discussion didn’t solve as many problems as hoped, and actually caused deeper fissures among some business and economic development leaders.

“This will open up World War III around here,” he said, adding, “I lived through World War II, and I think we should move on.”