Energy projects and an East-West highway could provide reliable prosperity for generations.

With looming budget deficits, declining tax revenues, an aging population, a weakening national economy and a global financial system in crisis, one is forgiven for concluding that Maine faces bleak economic times, at least short-term.

Soon, an economic stimulus package will likely inject significant dollars into myriad projects and programs around the country. Beyond such extraordinary measures, however, Maine’s prosperity also depends on the development of a vibrant and sustainable economy that can withstand turbulent conditions.

Consolidation, administrative efficiency and prudent tax policy are essential to fundamental solvency and stability, but growing the “top line” (in other words, increasing economic activity) is key to taking Maine beyond survival mode and into an era of relative prosperity.

This is easy to say, of course, and much harder to do. But economic growth is possible, and can be achieved without giving away the kitchen sink or compromising Maine values. Policies and investments to capitalize on trends and discernible opportunities can move us in the right direction, more quickly and productively than we might imagine.

So, with tax coffers declining and higher expenses all but assured, what can Maine offer and what policies can be shaped to encourage investment and build the foundation for a more vibrant state economy?

Let’s take a look at the big picture before we “drill down” to specifics – no pun intended, as we’ll see.

Nearly a decade ago, I called for serious, creative thinking and innovative funding to make the long-overdue East-West Highway a reality. Today, given anticipated global surges in energy demand and a compelling need to diversify our energy sources, this highway is no longer option, but necessity.

What’s changed? To the east, New Brunswick is positioning itself as a global energy hub, working to attract billions of dollars in investment that will find its way into an established and growing energy infrastructure. Thousands of jobs are being created, materials will be needed and labor shortages are anticipated.

To the north and west, Quebec’s abundant hydroelectric resources and its announced intention to produce 4,000 megawatts of wind energy (up from 312 megawatts today) by 2015 confirm our other provincial neighbor will be busy building capacity, as well.

Clearly, given these massive energy investments, Maine can be at the crossroads of a region that bridges energy production and energy consumption. These major and ongoing projects will demand labor, construction materials and equipment. The movement of people and goods demands effective transportation links, and Maine can profit by virtue of its strategic location.

With investment on both sides of us, consumption increasing in key global markets, and with a blend of public and private financing, the East-West Highway is a project whose time has come.

As for our own capacity for energy production, wind and tidal power generation are vital pieces of the puzzle. We know there are developers ready to explore the feasibility of additional wind power in Maine. There are researchers keen to demonstrate undersea turbine technologies that harness the power of the waves and tides, and proposals are on the table to enhance Maine’s traditional energy infrastructure, as well. Yet, far too often, we shoot ourselves in the foot and discourage these developers and investors from taking the risks of pursuing major projects in our state.

Development has consequences – we all know that. I am fortunate to live on the coast, and enjoy the view as much as anyone. I know it’s difficult to ask the people of Maine to consider changes to our landscape and lifestyles.

I’d trade the view in a heartbeat for the financial stability that would enable us to care for our most vulnerable citizens. We can strike a balance between resource development and preservation, but we mustn’t wait until children go to sleep hungry, or families huddle together for warmth, before we take these bold steps.

Maine is poised on a razor’s edge, as is our country.

Jobs and regional economic activity would support the East-West Highway for a generation and beyond. Global, and local, demand for energy is only going to increase, placing demands on our infrastructure, but creating opportunity, as well. We have the opportunity to leverage location and resources that few other states possess.

So, build the highway, and capitalize on energy demand trends that favor us in ways we could not have imagined a generation ago. Pursue these two objectives and Maine’s future is noticeably brighter.

There’s no time to waste.

Perry B. Newman is an international business consultant and director of Atlantica Group, a division of Pierce Atwood LLP in Portland.