The purpose of this paper is to establish a method of regional development design which can generate sustainable economic development. The concept of sustainable economic development is expanded beyond its traditional ecological boundaries to include development that is resistant to social degradation as well as insulated from macroeconomic fluctuations. The paper examines the psychological and community core issues that follow economic transformation. It then offers a portfolio-planning option that treats a local economy as if it were a “portfolio” which can be actively managed to avoid unnecessary market risks.
