Community wealth building is an economic strategy that aims to create, retain, and circulate wealth within a community. It recognizes that traditional approaches to economic development, focused primarily on attracting outside investors and businesses, can often lead to inequality and disinvestment in local communities. Instead, community wealth building seeks to empower and strengthen local economies by putting ownership and control of assets and resources into the hands of community members.
There are many successful examples of community wealth building programs that have been implemented in cities and towns across the world. These programs have helped to revitalize struggling communities, reduce poverty, and create more equitable and sustainable local economies. In this article, we will examine some of the most notable and successful community wealth building programs.
1. The Evergreen Cooperatives – Cleveland, Ohio, USA
The Evergreen Cooperatives in Cleveland, Ohio, were established in 2008 as a joint initiative between the Cleveland Foundation, the Cleveland Clinic, the University Hospitals, and the Case Western Reserve University. The cooperatives consist of a laundry, a solar panel installation company, and a commercial greenhouse. These worker-owned businesses provide good-paying jobs and training opportunities to low-income individuals in the city. The Evergreen Cooperatives have not only created economic opportunities but have also strengthened the local community by promoting local procurement practices and reducing carbon emissions through the use of renewable energy.
2. The Mondragon Corporation – Mondragon, Spain
The Mondragon Corporation, founded in 1956 in the Basque region of Spain, is the oldest and arguably the most successful example of community wealth building in the world. It is a federation of over 100 worker cooperatives, with over 80,000 employee-owners and annual revenue of over 12 billion euros. The corporation operates in various industries, including manufacturing, retail, finance, and education. The Mondragon model places a strong emphasis on democratic decision-making, cooperative ownership, and profit-sharing among its member cooperatives. This has led to higher wages, job security, and a more equitable distribution of wealth within the community.
3. The Anchor Institution Strategy – Preston, United Kingdom
In 2013, the city of Preston in the United Kingdom adopted an innovative community wealth building strategy that focused on leveraging the purchasing power of local “anchor institutions” such as hospitals, universities, and local government to support local businesses and social enterprises. The strategy has resulted in a 10% increase in procurement from local suppliers, creating jobs and supporting the local economy. It has also led to the establishment of worker cooperatives and social enterprises that provide goods and services to anchor institutions.
4. The Emilia Romagna Model – Emilia Romagna, Italy
The Emilia Romagna region in Northern Italy is home to a highly successful cooperative economy with over 8,000 cooperatives and a combined annual revenue of over 140 billion euros. The region has a strong culture of mutual aid and cooperation, and its cooperatives operate in a wide range of industries including manufacturing, agriculture, and banking. The cooperative model has been credited with creating a more resilient and equitable local economy, with high levels of employment and income distribution.
5. The Aravind Eye Care System – Madurai, India
The Aravind Eye Care System in Madurai, India, is a nonprofit organization that provides affordable and high-quality eye care to over 4 million patients annually. The organization operates on a cross-subsidization model, where patients who can afford to pay help to cover the costs of those who cannot. This has enabled the organization to provide free or highly subsidized services to low-income patients. The Aravind Eye Care System has not only improved the health of the local community but has also created employment opportunities and contributed to the local economy.
These examples demonstrate the power of community wealth building as a strategy for creating more equitable and sustainable local economies. By putting ownership and control of assets and resources into the hands of community members, these initiatives have not only improved economic outcomes but have also strengthened social ties and promoted democratic decision-making. As more communities adopt and adapt these models to their specific contexts, we can expect to see a more widespread and impactful shift towards a more inclusive and just economy.