Community Wealth Building is a concept that has been gaining momentum in various communities around the world, especially in the wake of the 2008 financial crisis. It offers a different approach to economic development that focuses on building wealth and assets within a community, rather than solely focusing on attracting outside investments and companies. In this article, we will explore the definition and principles of Community Wealth Building, and provide examples of how it has been successfully implemented.
What is Community Wealth Building?
Community Wealth Building can be defined as a people-centered approach to economic development that aims to create long-term, sustainable wealth and assets within a community. It challenges the traditional economic model that prioritizes growth and profits for corporations and the wealthy, often at the expense of the local community. Instead, it focuses on empowering and uplifting the community as a whole, particularly those groups that have historically been marginalized or excluded from the economy.
The concept of Community Wealth Building was first introduced by the Democracy Collaborative, a research and advocacy organization that seeks to promote a more equitable and sustainable economy. It is based on the belief that economic development should benefit everyone in a community, not just a select few. Therefore, it advocates for a more inclusive and democratic economy that is owned and controlled by the people.
Principles of Community Wealth Building
There are six core principles that guide the practice of Community Wealth Building:
1. Building community ownership: This principle emphasizes the importance of democratizing ownership of assets and businesses within the community. This can be achieved through employee ownership, community land trusts, cooperatives, and other forms of community ownership.
2. Localizing economic activity: Community Wealth Building seeks to keep economic activity within the community, rather than relying on outside investments. This can be achieved by supporting local businesses, promoting local production and consumption, and developing local supply chains.
3. Building an inclusive economy: This principle focuses on breaking down barriers to economic success and providing opportunities for all members of the community, regardless of race, gender, or socioeconomic status. This can be achieved through targeted hiring policies, workforce development programs, and other initiatives.
4. Prioritizing environmental sustainability: Community Wealth Building recognizes the need for environmental sustainability and advocates for businesses and projects that have a positive impact on the environment. This can include promoting renewable energy, sustainable agriculture, and environmentally friendly practices.
5. Building economic resilience: This principle emphasizes the importance of creating a diverse and resilient local economy that can withstand economic shocks and crises. This can be achieved by diversifying industries and promoting local businesses that are not dependent on large corporations.
6. Fostering cooperation and collaboration: Lastly, Community Wealth Building emphasizes the power of collaboration and cooperation within the community. This can involve forming partnerships between local businesses, community organizations, and government agencies to achieve shared economic goals.
Examples of Community Wealth Building in action
Community Wealth Building has been successfully implemented in various communities around the world, with tangible results. Here are a few examples:
1. The Evergreen Cooperatives in Cleveland, Ohio: This initiative was launched in 2010 to address the economic disparities in Cleveland, a city that had been hit hard by the recession. The cooperatives are owned and operated by local residents, providing jobs and opportunities for low-income individuals. They focus on building wealth and assets within the community through employee ownership and community ownership structures.
2. Community-led revitalization of Preston, UK: The city of Preston in the UK has been a pioneer in Community Wealth Building. The local government has focused on supporting and investing in local businesses, as well as promoting employee ownership. This has led to an increase in local spending and economic resilience, and has also created hundreds of jobs within the community.
3. Worker-owned cooperatives in Spain: In Spain, worker-owned cooperatives, known as “cooperativas integrales,” have become a popular model for Community Wealth Building. These cooperatives are owned and operated by their workers, who share profits and decision-making power. They focus on providing goods and services to the local community, creating a self-sufficient and sustainable economy.
In conclusion, Community Wealth Building offers a new approach to economic development that focuses on building wealth and assets within a community, rather than solely relying on outside investments. Its principles of community ownership, local economic activity, inclusivity, and collaboration have been proven to create sustainable and resilient economies. As more communities recognize the importance of creating a fair and equitable economy, we can expect to see the continued growth of this innovative approach.