Updated: Jun 23
Traditional economic development methods are failing to address the economic challenges of our time. Community wealth building is a new people-centred approach to local economic development, which redirects wealth back into the local economy, and places control and benefits into the hands of local people.
People matter more than profits
We need a local economy where people matter more than profit. This is fundamental to building community wealth. For example, if a crisis hits we need to preserve jobs rather than bailing out big business.
A broad-based, local ownership is fundamental to thriving local economies. Where the control and economic prosperity of ownership are spread amongst the community. Absentee and concentrated ownership are not what local economies need to thrive.
Rebuild the fabric of active communities
To build real community wealth we need to rebuild the fabric of communities, we need to encourage real community engagement where people participate and make collective decisions at all levels of the economy.
Spending locally means money stays in a community longer
When you spend with a local business, they circulate that money back into the community through local services that help them to run their business or that they source from. In real terms spend £10 locally it generates £50 for your community
There are vast pools of capital in the portfolios of local institutions, people and pension funds … we need to start thinking about what these investments could do if they were put to work locally rather than working hard for The City.
Building lasting relationships
Community wealth isn’t just about more money it’s about fostering a truly collaborative local economy between anchor institutions, local businesses, local government and community members.
Intentional strategy to keep wealth in the community
Don’t expect wealth to trickle down. Without an intentional place-based strategy to ensure local assets work to build local wealth, there’s nothing stopping wealth from leaving your community.