By Dan McCue
Staff Writer

If the atmosphere surrounding the first-in-the-South Democratic presidential debate in Orangeburg two weeks ago was that of an all-out party, their Republican counterparts’ gathering on the campus of the University of South Carolina in Columbia May 15 was all business, if not exactly about business.

Absent were the marching bands and cheerleaders who had done so much to pump up the volume of MSNBC’s broadcast from South Carolina State University. Instead, Fox News strove for sobriety, emphasizing organization over bombast and security above just about all else.

The nearest one could find to students enthusiastically waving placards for their candidate of choice, for instance, were a half dozen supporters of Texas Rep. Ron Paul, the former Libertarian staking out a position as the “true conservative” in the race.

But Paul’s supporters weren’t outside USC’s Kroger Center for the Arts, where the debate was held. They were several blocks away standing in the shadow of the Confederate flag that flies on the grounds of the state Capitol.

“We were told the area around the Kroger Center was a designated no-protest zone,” said Matt Kneece, a 19-year-old USC student, as he beckoned to passersby to accept a flier, DVD or a pocket copy of the U.S. Constitution and Declaration of Independence from the campaign.

With a shrug and a cheerful smile, however, he quickly added, “to me the real import of this event is that it gives lesser known, dark horse candidates a chance to get their names and points of view out there,” he said.

“The media all talk about McCain and Giuliani and Romney; this debate will serve to introduce South Carolinians to the rest of the field, and that’s important whether you’re a student like myself or someone in business.”

Getting the nod

For the generation since Ronald Reagan was first elected president in 1980, the South Carolina primary has been of singular importance to the Republican Party.

Not only has the Republican winner of the primary gone on to secure his party’s nomination in every race since, but, with the exception of the contests against former President Bill Clinton, winning the primary also has led to securing the Southern vote and winning the White House.

Former Arkansas Gov. Mike Huckabee acknowledged as much when he said he considers the state a “must do.”

“As a Southerner, as a former Southern governor, I have to do well in South Carolina if I’m to have a real chance in this race,” he said.

Beyond the statistical considerations—the need to stack up well against the nine competitors in his party—Huckabee said the embrace of voters in the state will undoubtedly position the Republican candidate well in a general election that’s still more than 500 days away.

“I think this country has a good history of understanding and responding to the heart of America, and I think that’s what South Carolina represents,” he said. “South Carolina is a place were people believe, as I do, that life is still about the little league ball game and the dance on Saturday night and those kinds of very American things. In that way, I think it’s a particularly defining state.”

However, he said he doesn’t believe that the average South Carolinian had connected with the primary contest.

“I’m not so sure the average person is interested or engaged at this point. These debates and the appearances we’ve been making throughout the state are really more for the political activities at this point,” Huckabee said. “The hope, of course, is that you’ll get them excited about your campaign and your message and they’ll talk to friends, who’ll continue to talk about you to other friends, momentum building over the next several weeks.”

Although he’s a Democrat, Columbia Mayor Robert D. Coble also was hoping to gain some traction from the debate. That would be traction for a new image for his city in the eyes of the media as much as those of the candidates and their campaigns.

“There’s no question this debate is a very important political event for the nation, but at the same time, it’s also a great economic development event for Columbia,” Coble said.

The mayor said he didn’t expect the debate to have a direct economic impact on par with a USC home football game—a number he pegged at between $6 million and $8 million—but nonetheless suggested it could come close.

Not only were the Republican candidates and members of their campaign staffs in town, but the city was also playing host to the Republican National Committee’s annual State Chairman’s meeting and the state party was hosting gatherings to span the two events, he said.

“The hotels are full, the restaurants are doing well, but most importantly, this is an opportunity to reintroduce Columbia to many people who may not have been here since the last presidential contest four years ago,” Coble said. “Right next door to the Koger Center, for instance, construction is well underway on the Innovista site, a $250 million investment by USC that will bring hydrogen and fuel cell research to Columbia and serve as a magnet for attracting significant private-sector investment to the city.

“At the same time, since the last presidential campaign, there have been numerous streetscaping and infrastructure projects throughout the city, and a major effort has been made to revitalize our downtown,” said Coble.

Candidates’ pro-business stances

Prior to the 90-minute debate and a full eight months before the first primary votes are cast, it was the Giuliani campaign that did the most to prove his pro-business bonifides, electronically distributing copies of a National Review article headlined “Giuliani brought pro-growth policies to liberal New York,” and a statement by former Republican Presidential candidate Steve Forbes that praised the former mayor for exercising “years of fiscal discipline” while in office.

Previously, Giuliani told the Business Journal that he’s keenly aware of how government can help, and in some cases, hurt economic development.

“Most of the ways that government hurts is by interfering,” he said. “I think the clear message from communities where economic development and redevelopment have been successful is don’t interfere with business too much. If you adopt only that philosophy, a lot of business owners will tell you you’re giving them the best break you possibly can.

“The other thing you have to do to foster a pro-business, pro-economic development environment is keep taxes moderate or at least keep them competitive. Holding the line on tax rates and fees—hidden taxes—are very, very important. The other thing is to do all you can to have a first-rate education system.”

Former Massachusetts Gov. Mitt Romney emphasized his state’s history of leveraging its research universities when it comes to economic development.

“What we have found in Massachusetts (is that) with 120 colleges and universities we are able to develop technologies and take the lead in innovation that affects communities throughout the state,” he said. “In a state in which there’s a relatively high cost in doing business, where we have a high cost of electricity, a high cost of labor, the most effective way for us to compete is in industries that require innovation and technology.”

And, he said, the federal government can help encourage high tech companies to locate in rural areas, such as those in South Carolina.

“I don’t think you can force people to go places they don’t want to go. What you can do is encourage the development of new technologies at your universities, and places like Clemson and USC can be the laboratories from which a number of new businesses spring,” Romney said.

“The Massachusetts Institute of Technology alone develops 25 to 30 new companies a year. And the other universities and colleges in the state are also helping to stimulate new economic development and private enterprise.”

The federal government’s role should be to encourage the development of research institutions, which in turn leads to the development of new businesses, he said.

Also prior to the debate, Arizona Sen. John McCain said he sees national defense, homeland security and intermodal transportation as at least some of keys to South Carolina’s economic future.

Of the former, he said tremendous opportunities exist in the realm of homeland security for South Carolina’s traditional defense contractors.

“It’s not an either-or situation for companies in the military, security or intelligence realms,” he said. “Many of the products and areas of expertise of these companies are valuable to government purchasers in both the military and homeland security area — remote sensors, software and data management, to name a few.

“Remember, our adversaries are determined to attack us whether overseas or at home, and our vigilance and determination to defend ourselves will mean continued opportunities for South Carolina companies and their employees.”

Dan McCue is a staff writer for the Business Journal. E-mail him at dmccue@charlestonbusiness.com.

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