An IllinoisCommunity Wealth BuildingAction AgendaPresentation to the Governor’s Task Force on SocialInnovation, Entrepreneurship and EnterpriseTed HowardThe Democracy CollaborativeApril 24, 2013 – Chicago, IL
The Prevailing EconomicDevelopment ParadigmSome 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- andmoderate-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 WealthBuilding 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 ApproachKey ComponentsPutting the Pieces Together Help individuals build wealthand savings Create community-ownedbusinesses and other entitiesthat provide living wage jobsand root wealth in communities Link community businesses withanchor procurement needs andpublic expendituresFamilyWealthBuildingBroaderOwnershipAnchorInstitutions
Retaining Jobs and Building Wealththrough Employee OwnershipAction Agenda:• Develop an Illinois Employee Ownership Center to retain existing jobs• Assist Illinois banks to refinance employee ownership
Deploying State and Other Public Assets toReinvest in IllinoisAction Agenda:• Leverage Hospital investment• Promote greater community investment by universities in Illinois• Invest state pension fund dollars in Illinois
Investing in Resident-owned AffordableHousingAction Agenda:• Convert manufactured housing into resident-owned communities• Redirect housing dollars to support permanently affordablehousing.
Supporting Cooperative Business DevelopmentAction Agenda:• Reform Illinois’ Cooperative Statute• Support cooperative development in rural Illinois• Catalyze cooperative job creation strategies in low-incomecommunities
Promoting a New Paradigm of EconomicDevelopment for IllinoisAction Agenda:• Convene Community Wealth Building Roundtables in key Illinoiscities
For more information:firstname.lastname@example.org.Community-Wealth.org
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