An Illinois Community Wealth Building Action Agenda
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Transcript of An Illinois Community Wealth Building Action Agenda
An Illinois Community Wealth Building Action Agenda
Presentation to the Governor’s Task Force on Social Innovation, Entrepreneurship and Enterprise
Ted HowardThe Democracy CollaborativeApril 24, 2013 – Chicago, IL
The Prevailing Economic Development Paradigm
Some of its characteristics and elements include:• Subsidies and tax breaks to entice corporations to relocate ($80B)
• Workforce training not linked to actual jobs ($37B)
• Regional trickle down strategies that do not reach low- and moderate-income neighborhoods
• Growth & GDP – toward what end?
• Low-wage (non-living wage) job creation, often without benefits
• Exclusion of ex-offenders and others with barriers to employment
• Gentrification and dispersal of traditional residents
• “Throwaway cities” and their infrastructure
• Privatization of publicly owned goods
What is the Community Wealth Building Paradigm?
A New Approach to Economic Development that:• emphasizes democratization of wealth• focuses on place & local economy• promotes broader ownership of capital
• anchors jobs locally• stops the leakage of dollars from
communities• supports individual & family wealth
building• reinforces stewardship over capital• generates revenues to finance public
services• leverages anchor institutions for local
benefit• contributes to local economic stability• total cost accounting of economic
decisions
An Integrated Community Wealth Approach
Key ComponentsPutting the Pieces Together
Help individuals build wealth and savings
Create community-owned businesses and other entities that provide living wage jobs and root wealth in communities
Link community businesses with anchor procurement needs and public expenditures
FamilyWealth Building
BroaderOwnership
Anchor Institutions
Retaining Jobs and Building Wealth through Employee Ownership
Action Agenda:• Develop an Illinois Employee Ownership Center to retain existing jobs
• Assist Illinois banks to refinance employee ownership
Deploying State and Other Public Assets to Reinvest in Illinois
Action Agenda:• Leverage Hospital investment
• Promote greater community investment by universities in Illinois
• Invest state pension fund dollars in Illinois
Investing in Resident-owned Affordable Housing
Action Agenda:• Convert manufactured housing into resident-owned communities
• Redirect housing dollars to support permanently affordable housing.
Supporting Cooperative Business DevelopmentAction Agenda:• Reform Illinois’ Cooperative Statute
• Support cooperative development in rural Illinois
• Catalyze cooperative job creation strategies in low-income communities
Promoting a New Paradigm of Economic Development for Illinois
Action Agenda:• Convene Community Wealth Building Roundtables in key Illinois
cities
For more information:[email protected]
www.Community-Wealth.org