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chapter 1 by Pillips and Pittman.pdf
1.
Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing :
eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
2.
AN INTRODUCTION TO COMMUNITY
DEVELOPMENT Beginning with the foundations of community development, An Introduction to Community Development offers a comprehensive and practical approach to planning for communities. Road-tested in the authors’ own teaching, and through the training they provide for practicing planners and community developers, it enables students to begin making connections between academic study and practical know-how from both private and public sector contexts. An Introduction to Community Development shows how planners and community developers can utilize local economic interests and integrate finance and marketing considerations into their strategy. Most importantly, the book is strongly focused on outcomes, encouraging students to ask: what is best practice when it comes to planning for communities, and how do we accurately measure the results of planning and development practice? This newly revised and updated edition includes: • increased coverage of sustainability issues; • discussion of localism and its relation to community development; • quality of life, community well-being, and public health considerations; and • content on local food systems. Each chapter provides a range of reading materials for the student, supplemented with text boxes, a chapter outline, keywords, reference lists, and new skills-based exercises at the end of each chapter to help students turn their learning into action, making this the most user-friendly text for community development now available. Rhonda Phillips, Ph.D., AICP, is Dean of Purdue University’s Honors College, USA, and a Professor in the Agricultural Economics Department. Previously, at Arizona State University, USA, she served as Professor in the School of Community Resources and Development; Senior Sustainability Scientist at the Global Institute of Sustainability; and Affiliate Faculty in the School of Geographical Sciences and Urban Planning. Rhonda is author or editor of 18 books, including Sustainable Communities: Creating a Durable Local Economy (Routledge Earthscan, 2013, co-editor). She is editor of the book series Community Development Research and Practice (Community Development Society and Routledge) and serves as the President of the International Society for Quality-of-Life Studies (www.isqols.org). Robert H. Pittman, Ph.D., PCED, is Founder and Executive Director of the Janus Institute and Janus Forum, USA, whose mission is to advance the community and economic development profession and help communities in new and innovative ways. Attendees include leading community and economic developers from around the country and overseas, state directors, corporate executives, and other stakeholders in community and economic development. Pittman has held a number of executive positions in the field of community and economic development, including Director of the Global Business Location and Economic Development Consulting Group at Lockwood Greene, USA, and Deputy Director of the International Development Research Council (now Corenet). He also served as Associate Professor of Economics and Director of the Community Development Institute at the University of Central Arkansas, USA. Pittman is a widely published author and frequent speaker in the field of community and economic development, and an Honorary Life Member of the Southern Economic Development Council. Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
3.
“While there are
plenty of books on community development, this book is very comprehensive, covers most of the aspects of community development, and is perfect for undergraduate courses on community development. The authors are well respected in the area of community development with extensive experience and expertise.” Muthusami Kumaran, Assistant Professor, Nonprofit Management & Community Organizations, University of Florida, USA “The topics are excellent and cover almost every facet of community development.” Joan Wesley, Associate Professor, Urban and Regional Planning, Jackson State University, USA “The chapters are eloquent and accessible and provide a good introductory insight into the key considerations associated with this subject.” Adam Sheppard, JDL Course Director and Senior Lecturer, Department of Geography and Environmental Management, University of the West of England, UK “I am attracted first by the sustentative content of the book. I especially like the first two parts that cover the theoretical foundations of community development and the how-to’s of preparation and planning. The numerous case studies are also essential to illuminate the theoretical points and show that they work in practice.” Martin Saiz, Professor, Political Science, California State University, Northridge, USA Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
4.
AN INTRODUCTION TO COMMUNITY
DEVELOPMENT Second Edition Edited by Rhonda Phillips and Robert H. Pittman Routledge Taylor & Francis Group LONDON AND NEW YORK Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
5.
First published 2015 by
Routledge 711 Third Avenue, New York, NY 10017 and by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2015 Taylor & Francis The rights of Rhonda Phillips and Robert H. Pittman to be identified as the authors of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging in Publication Data An introduction to community development / edited by Rhonda Phillips, Robert H. Pittman. -- 2 Edition. pages cm Includes bibliographical references and index. 1. Community development. 2. Economic development. I. Phillips, Rhonda, editor of compilation. II. Pittman, Robert H., editor of compilation. HN49.C6I554 2014 307.1’4--dc23 2014015459 ISBN: 978-0-415-70356-7 (hbk) ISBN: 978-0-415-70355-0 (pbk) ISBN: 978-0-203-76263-9 (ebk) Typeset in Futura by Saxon Graphics Ltd, Derby Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
6.
Contents List of Figures
viii List of Tables ix List of Boxes x List of Contributors xiii Acknowledgements xix Editors’ Introduction xx PART I Foundations 1 1 A Framework for Community and Economic Development 3 RHONDA PHILLIPS AND ROBERT H. PITTMAN 2 Seven Theories for Seven Community Developers 22 RONALD J. HUSTEDDE 3 Asset-Based Community Development 45 ANNA HAINES 4 Social Capital and Community Building 57 PAUL MATTESSICH 5 Sustainability in Community Development 72 STEPHEN M. WHEELER 6 The “New” Local 89 JENI BURNELL AND RHONDA PHILLIPS 7 Community Development Practice 103 JOHN W. VINCENT II Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
7.
CONTENTS vi PART II Preparation and
Planning 123 8 Community Visioning and Strategic Planning 125 MICHAEL MCGRATH 9 Establishing Community-Based Organizations 154 MONIECA WEST, PATSY KRAEGER, AND TIMOTHY R. DAHLSTROM 10 Leadership and Community Development 178 ALAN PRICE AND ROBERT H. PITTMAN 11 Community Development Assessments 190 JOHN W. VINCENT II 12 Community Asset Mapping and Surveys 213 GARY PAUL GREEN 13 Understanding Community Economies 225 HAMILTON GALLOWAY PART III Programming Techniques and Strategies 239 14 Human Capital and Workforce Development 241 MONIECA WEST 15 Marketing the Community 256 ROBERT H. PITTMAN 16 Retaining and Expanding Existing Community Businesses 267 ROBERT H. PITTMAN AND RICHARD T. ROBERTS 17 Entrepreneurship as a Community Development Strategy 278 JOHN GRUIDL AND DEBORAH MARKLEY 18 Arts, Culture, and Community Development 295 RHONDA PHILLIPS 19 Housing and Community Development 313 RHONDA PHILLIPS 20 Neighborhood Planning for Community Development and Revitalization 324 KENNETH M. REARDON Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
8.
CONTENTS vii 21 Measuring
Progress 345 RHONDA PHILLIPS AND ROBERT H. PITTMAN PART IV Issues Impacting Community Development 361 22 Perspectives on Current Issues 363 PAUL R. LACHAPELLE 23 Community-Based Energy 375 RHONDA PHILLIPS 24 Community and Economic Development Finance 383 JANET R. HAMER AND JESSICA LEVEEN FARR 25 Conclusions and Observations on the Future of Community Development 398 RHONDA PHILLIPS AND ROBERT H. PITTMAN Index 403 Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
9.
Figures 1.1 Community Development
Chain 9 1.2 Community and Economic Development Chain 17 3.1 Community Needs Map 47 3.2 Community Assets Map 47 3.3 A Community Development Process 50 6.1 Springhill Cohousing Project 92 6.2 Committee of Lost Memories Pop-Up Shop 96 6.3 Framework for Food Cooperatives and Community Development 98 13.1 Less than High School Education Attainment 228 13.2 Community Economic Development Leaky Faucet 234 16.1 Economic Development Activities Performed by SEDC Members 270 21.1 Sustainable Seattle Happiness Initiative 352 Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
10.
Tables 2.1 Concerns and
Related Theories 24 8.1 Civic Index Worksheet 144 9.1 Some Federal Programs for Community Development 159 9.2 Charitable Foundations 167 9.3 Faith-Based Organizations 167 9.4 Public–Private Partnerships 170 11.1 Subjective Rating of Location Factors for Anytown 207 11.2 Factor Rating: Bayshore County 211 13.1 NAICS Hierarchy 226 13.2 Example of Levels in NAICS Coding 226 13.3 Sample Region Data and Analysis 230 17.1 Rate Your Community Support for Entrepreneurs 290 19.1 Housing Typology 315 20.1 Proposed Action Plan 333 21.1 Functions of Indicators 348 21.2 Sample Best Practices Survey Instrument 356 24.1 Summary of Sources and Uses of Funds 394 Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
11.
Boxes 1.1 Evolution of
Community Development 4 1.2 The Underrepresented 5 1.3 Community Well-Being: The Next Generation for Community Development? 10 1.4 Growth vs. Development 11 1.5 Osceola, Arkansas: Community Development Turns a Declining Community Around 15 1.6 Different Definitions of Community Economic Development 16 Case Study: Vermont Sustainable Jobs Fund 18 2.1 Theory to Inform Action 23 2.2 Social Justice and Community Development In a Changing World 27 2.3 Power 38 Case Study: Community Development and International Conflict Resolution 40 3.1 Vision Statement from Ruidoso, New Mexico 51 3.2 Online Support for Placemaking 53 Case Study: Asset Building on the Shores of Lake Superior 55 4.1 Capacity Factors 59 4.2 Building Community Capacity, Capital, and Development via Philanthropy 60 4.3 Appreciative Inquiry (AI): A Brief Overview 63 4.4 28 Factors that Influence the Success of Community Building 66 Case Study: The Good News Garage 69 5.1 The United Nations’ (UN) Millennium Development Goals—Striving for Sustainability across Dimensions of Well-Being 74 5.2 Gauging Sustainability in the Regional Vancouver Urban Observatory 75 Case Study: City of Santa Monica, California’s Sustainable City Program 84 6.1 The History of Slow Food and a Delicious Revolution: How Grandma’s Pasta Changed the World 97 Case Study: Creating Small Change in Stirchley Park, Birmingham, UK 99 7.1 “Peace Corps for Geeks”—Technology for Community Governance 104 7.2 Community and Economic Development Training and Certification 104 7.3 Crowdsourcing for the Common Good: A Community Development Approach 105 7.4 Community Development Values and Beliefs 107 7.5 A Place-Based Community Economic Development Approach via the Resource Center for Raza Planning 110 7.6 How Community Development Created Economic Development in Slovakia 115 Case Study: Mayville and Lassiter County 119 8.1 Heart & Soul Community Planning 127 Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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xi BOXES 8.2 The Civic
Index: A Tool to Qualitatively Assess Civic Infrastructure 142 Case Studies: Eau Claire, Wisconsin 150 Dubuque Iowa’s Vision 151 9.1 Change Agents: Social Entrepreneurs: Meet Doug Rauch, Founder of the Daily Table 156 9.2 University—Community Development Connection: The Great Cities Institute 160 9.3 Community Development Corporations (CDCs) In Massachusetts 163 9.4 The Acenet Cooperative 164 9.5 Cooperatives and Community Development 165 9.6 Council of Foundations 166 9.7 Community Foundations 166 9.8 New Ideas: Social Benefit and Profit Merge-Hybrid Corporations 168 9.9 Faith-Based CDCs 169 Case Study: The Future Melting Pot: From Community Action to the Formation of A Cooperative Community Interest Company Bringing Change to NEET Youth in Birmingham, England 173 10.1 Youth Leadership Development: The UNESCO Chair Program in Rural Community, Leadership and Youth Development 178 10.2 Leadership in Community Development 180 10.3 What Does it Mean to Be a Leader? 181 10.4 Community Development Values and Beliefs 186 Case Study: Bayshore County Competitive Assessment 210 12.1 Capturing Community with Storytelling 220 Case Study: Hazelwood Community Asset Map: Assessing the Services, Needs, and Strengths of Hazelwood’s Community Service Providers 223 13.1 The Creative Class at the Local Level 227 13.2 Some Limitations of Economic Base Theory 233 13.3 Industry Clusters and Supply Chains 235 Case Study: Plugging the “Leaks” in a Community’s Economy—The Case of Martha’s Vineyard 237 14.1 A Pressing Global Issue: Youth Unemployment 243 14.2 Vermont Works for Women 244 14.3 The Mississippi Band of Choctaw Indians 249 Case Study: Collaborating to Develop a High-Tech Workforce in Tulsa, Oklahoma 252 15.1 Examples of Economic Development Marketing Slogans 259 15.2 Suggestions for Effective Economic Development Websites 262 15.3 Some Success Factors for Development Marketing 264 15.4 Some Failure Factors for Development Marketing 264 Case Study: Buffalo Niagara Region 265 16.1 Job Growth in US Driven Entirely By Start-Ups, According to Kauffman Foundation Study 268 16.2 Can Potholes Cause Local Businesses to Relocate? 270 16.3 Strengthening Communities with Locally Owned Businesses 272 16.4 Early Warning Signs of a Possible Business Relocation, Downsizing or Closure 273 16.5 How to Conduct BRE Interviews and Surveys 275 Case Study: The Center for Continuous Improvement 276 Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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xii BOXES 17.1 Two
Ideas about Entrepreneurship 279 17.2 Meet a Business Entrepreneur 280 17.3 Meet a Civic Entrepreneur 281 17.4 Change Agents: Social Entrepreneurs 282 Case Study: Fairfield, Iowa: An Entrepreneurial Success Story 292 18.1 Indigenous Community Development 296 18.2 Arts and Culture in Rural Development 297 Case Study: Leitrim Sculpture Centre and Design House 298 18.3 Elements for Attracting Heritage Tourists 302 18.4 Tourism Destination Planning 303 18.5 Creative Placemaking 305 Case Study: Agritourism: Connecting Farms, Communities, and Consumers 308 19.1 Housing Policy Innovation in Europe 315 19.2 Housing Affordability 317 19.3 Burlington, VT, Cohousing East Village 319 Case Study: Springhill Cohousing, Stroud, England (as Told by Resident Max Comfort) 320 20.1 Crowdsourcing 337 Case Study: Promoting Citizen Participation in Neighborhood Planning 337 21.1 Community Outcome Measurement Practices 346 21.2 Perspectives on Indicators Research 348 Case Study: The Art of Being Happy: The Story of Costa Rica’s APOT (Asociación de Productores Orgánicos de Turrialba) 357 22.1 Community Development and Democracy 364 22.2 Marginalized Communities 365 22.3 Governance and Power 366 22.4 Holistic Approach 366 22.5 Control and Inequities 367 22.6 Rural Community Vitality 367 22.7 Community Sustainability 368 22.8 The Spiritual Divide 368 22.9 Defining Community Development 369 22.10 Evaluation and Measurement 369 22.11 Financing Community Development 370 22.12 Leadership 371 22.13 Tokenistic Approaches 371 23.1 Fort Collins, Colorado’s Net Zero Energy District Planning 378 Case Studies: Cooperative Energy 379 24.1 A Little Bit about Microfinance 385 24.2 “Crowdfunding” for the Community 391 Case Study: Tangerine Plaza 393 Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
14.
Contributors Jeni Burnell studied
architecture at the University of New South Wales in Sydney, Australia, before pursuing a career in participatory arts, community development, and design. She has a Master’s in Development and is Research Associate at the Centre for Development and Emergency Practice (CENDEP) based at Oxford Brookes University, UK. Jeni is Chair of the development initiative, the Small Change Forum, and Director of the architecture practice, Space Program Ltd. Timothy R. Dahlstrom, Ph.D. is a faculty asso- ciate in the School of Public Affairs at Arizona State University, USA. His research interests include entrepreneurial development programs, the nexus of business and government, and organizational leadership. He has practice experience in public entrepreneurial financing programs, small organization consulting, and public–private partnerships. Jessica LeVeen Farr is Regional Community Development Manager for Tennessee for the Federal Reserve Bank of Atlanta, Nashville Branch, USA. She works with banks, nonprofit organizations, and government agencies to develop programs that promote asset building, affordable housing, job creation, and other related community development initiatives. Previously, Farr was Assistant Vice President at Bank of America in Nashville in the Community Development Corporation (CDC), where she oversaw the single family housing development program. Farr received her Master’s in City Planning from UNC-Chapel Hill with an emphasis on community economic development in 1999. She graduated from University of California, San Diego, USA, in 1993 with a BA in urban studies. Hamilton Galloway is an economist and consultant with extensive experience working in the US as well as the UK on economic research and labor market analysis. Mr. Gallo- way’s primary focus is on helping organiza- tions understand economic development opportunities, workforce needs and education linkages through economic modeling tech- niques. He has led numerous strategic planning and development projects, ranging from work- force development to comprehensive economic development strategies. Galloway has also provided research and assistance in areas of international business finance and large-scale adjustments, including NASA’s shuttle program shutdown and Maytag’s closure. He has authored numerous academic papers and several book chapters. Galloway is a frequent speaker at national conferences about know- ledge economies, data-driven analysis for regional decision making and new methods of estimating the impacts of further and higher education. Gary Paul Green is a professor in the Department of Community and Environmental Sociology at the University of Wisconsin– Madison, USA, and a community development specialist at the University of Wisconsin– Extension. Green’s teaching and research interests are primarily in the areas of Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
15.
CONTRIBUTORS xiv community and economic
development. He received his Ph.D. at the University of Missouri-Columbia, USA, and has taught at the University of Wisconsin–Madison, USA, for the past 20 years. His recent books include Mobilizing Communities: Asset Building as a Community Development Strategy (Temple University Press, 2010); Introduction to Community Development: Theory, Practice, and Service-Learning (Sage, 2011); Asset Building and Community Development, 3rd ed. (Sage, 2012); and Handbook of Rural Development (Edward Elgar, 2014). In addition to his work in the US, he has been involved in research and teaching in China, New Zealand, South Korea, Uganda, and Ukraine. John Gruidl is a professor in the Illinois Institute for Rural Affairs at Western Illinois University, USA, where he teaches, conducts research, and creates new outreach programs in community and economic development. Gruidl earned a Ph.D. in Agricultural and Applied Economics from the University of Wisconsin- Madison in 1989, with a major in the field of community economics. Gruidl has created and directed several successful programs in community development. From 1994–2005, he directed the award-winning Peace Corps Fellows Program, a community-based internship program for returned Peace Corps volunteers. Gruidl also helped to create the MAPPING the Future of Your Community, a strategic visioning program for Illinois communities. He currently serves as Director of the Midwest Community Development Institute, a training program for community leaders. Anna Haines is a professor in the College of Natural Resources at the University of Wisconsin–Stevens Point, USA, and a land use and community development specialist with the University of Wisconsin–Extension. Haines received her Ph.D. from the University of Wisconsin–Madison, USA, in the Department of Urban and Regional Planning. Her research and teaching focuses on planning and community development from a natural resources or environmental perspective. Her research has focused on factors that influenced land division in amenity-rich areas of Wisconsin, understanding how zoning codes affect future build out scenarios, examining sustainable zoning, and understanding the origination and resilience of local food clusters. Her extension work has focused on compre- hensive planning and planning implementation tools and techniques, sustainable communities, and property rights issues. Janet R. Hamer is Senior Community Devel- opment Manager with the Federal Reserve Bank of Atlanta, Jacksonville Branch, USA. Her primary geographic areas of responsi- bility are north, central, and southwest Florida. Hamer has over 20 years of experience in housing, community and economic devel- opment, and urban planning. Prior to joining the Federal Reserve, she served as Chief of Housing Services for the Planning and Devel- opment Department of the City of Jacksonville for three years. For the previous 18 years, she served as Deputy Director of the Community Development Department of the City of Daytona Beach. Before moving to Florida, Hamer was employed as a regional planner in Illinois. She has a BA from Judson College, Elgin, Illinois and an MA in Public Affairs from Northern Illinois University, DeKalb, Illinois. Ronald J. Hustedde is a professor in the department of community and leadership development at the University of Kentucky, USA. He teaches graduate courses in community development and has an Extension (public outreach) appointment. He is a past president of the Community Development Society and has served on the board of directors of the International Association for Community Development (based in Scotland). His community development work has focused Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
16.
CONTRIBUTORS xv on public
issues deliberation, public conflict analysis and resolution, leadership devel- opment, and rural entrepreneurship. He has a Ph.D. in sociology from the University of Wisconsin–Madison, USA, with three other graduate degrees in community development, agricultural economics, and rural sociology. Patsy Kraeger received her Ph.D. in Public Administration from the School of Public Affairs at Arizona State University (ASU), USA. She has worked in the public, nonprofit, and private sectors. She is also a faculty associate at the ASU School of Public Affairs. She has published in academic and practitioner journals and presented at scholarly and professional confer- ences; her area of focus is on strategic nonprofit management and social enterprise devel- opment. Paul R. Lachapelle is Associate Professor in the Department of Political Science at Montana State University–Bozeman (MSU), USA, and serves as the Extension Community Development Specialist. Working in partnership with the MSU Local Government Center, his responsibilities involve providing research, technical assistance and training on various community development topics including community strategic visioning, local governance, and leadership development. Paul earned his Ph.D. at the University of Montana’s College of Forestry and Conser- vation with a focus on natural resource policy and governance. He has conducted research and taught in both Montana and internationally, doing applied research in Nepal as a U.S. Fulbright Scholar, working with Inuit in several arctic national parks with Parks Canada in the Canadian Territory of Nunavut, and working in South Africa and Guinea, West Africa. Paul is author of many peer-reviewed journal articles on local governance and strategic planning. Michael McGrath is Chief Information Officer of NCL and Senior Editor of the National Civic League. He edits the award-winning National Civic Review, a 99-year-old quarterly civic affairs journal, and is the organization’s chief blogger. Before joining NCL, he was a reporter and feature writer for Westword newspaper in Colorado and an associate editor of the East Bay Express in Berkeley/Oakland, California, USA, covering environmental policy and local and state government. His freelance articles have appeared in magazines, newspapers, and online publications. Recently, he researched and authored a report on local government and civic engagement for PACE: Philanthropy for Active Civic Engagement. He has a Master’s degree from UC Berkeley’s Graduate School of Journalism and a Bache- lor’s degree (general and comparative studies) from the University of Texas, Austin, USA. Deborah Markley is Managing Director and Director of Research for the Rural Policy Research Institute’s Center for Rural Entrepre- neurship, a national research and policy center in Lincoln, Nebraska, USA. Her research has included case studies of entrepreneurial support organizations, evaluation of state industrial extension programs, and consideration of the impacts of changing banking markets on small business finance. She has extensive experience conducting field-based survey research projects and has conducted focus groups and inter- views with rural bankers, entrepreneurs, business service providers, venture capitalists, small manufacturers, and others. Her research has been presented in academic journals, as well as to national public policy organizations and congressional committees. Paul Mattessich is the Executive Director of Wilder Research, one of the largest applied social research organizations in the United States, dedicated to improving the lives of indi- viduals, families, and communities. Dr. Mattessich has done research, lecturing, and consulting with nonprofit organizations, foun- dations, and government in North America, Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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CONTRIBUTORS xvi Europe, and Africa
since 1973. His book on effective partnerships, Collaboration: What Makes It Work, (Wilder Publishing 2001, 2nd ed.) is used worldwide, along with the online Wilder Collaboration Factors Inventory. His 1997 book, Community Building: What Makes It Work (Wilder Publishing) is widely recog- nized and used by leaders and practitioners in community and neighborhood development. He received his Ph.D. in sociology from the University of Minnesota, USA. Rhonda Phillips, Ph.D., AICP, is Dean of Purdue University’s Honors College, USA, and a Professor in the Agricultural Economics Department. Previously, at Arizona State University, USA, she served as Professor in the School of Community Resources and Devel- opment; Senior Sustainability Scientist at the Global Institute of Sustainability; and Affiliate Faculty in the School of Geographical Sciences and Urban Planning. Rhonda is author or editor of 18 books, including Sustainable Commu- nities: Creating a Durable Local Economy (Routledge Earthscan, 2013, co-editor). She is editor of the book series Community Devel- opment Research and Practice (Community Development Society and Routledge) and serves as the President of the International Society for Quality-of-Life Studies (www.isqols.org). Robert H. Pittman, Ph.D., PCED, is Founder and Executive Director of the Janus Institute and Janus Forum, USA, whose mission is to advance the community and economic development profession and help communities in new and innovative ways. Attendees include leading community and economic developers from around the country and overseas, state directors, corporate executives, and other stakeholders in community and economic development. Pittman has held a number of executive positions in the field of community and economic development, including Director of the Global Business Location and Economic Development Consulting Group at Lockwood Greene, USA, and Deputy Director of the International Development Research Council (now Corenet). He also served as Associate Professor of Economics and Director of the Community Development Institute at the University of Central Arkansas, USA. Pittman is a widely published author and frequent speaker in the field of community and economic devel- opment, and an Honorary Life Member of the Southern Economic Development Council. Alan Price is the founder of Falcon Leadership, LLC. Since his retirement from Delta Air Lines in 2004, Captain Price has worked with clients across the country and overseas in areas relating to leadership development/crisis lead- ership, strategic planning, safety systems, communications, and team development. As Chief Pilot for Delta’s Atlanta base, Capt Price led the recovery efforts for the Atlanta base following 9/11. His particular passion, which grew out of these experiences, is leadership during a time of crisis, a topic upon which he has spoken extensively. Price was a first-in-class facilitator for Delta Air Lines CRM program, and Pilot Manager of the Human Factors department. He developed and led Delta’s new captain’s leadership program for five years while conducting classes for over 2,000 new captains. He was for many years a regular contributor to Delta’s flight operations safety magazine, Up Front, and has written exten- sively in many publications on the topics of leadership, safety, and CRM. Capt. Price is a frequent speaker, workshop developer, and master facilitator for a range of topics dealing with leadership/crisis leadership, teamwork, communications, and strategic planning. He holds a BS degree in engineering science from the USAF Academy and a Master’s in Decision Science from Georgia State University, USA, and he has done postgraduate work at the Georgia Institute of Technology in Man-Ma- chine Systems Engineering. Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
18.
CONTRIBUTORS xvii Kenneth M.
Reardon is Professor of City and Regional Planning at the University of Memphis, USA, and engages in research, teaching, and outreach activities focused on issues related to neighborhood planning, community devel- opment, community/university partnerships, and municipal government reform. Prior to joining the Memphis faculty, Ken was Asso- ciate Professor and Chair of Cornell Univer- sity’s Department of City and Regional Planning. He began his academic career as Assistant Professor in Urban and Regional Planning at the University of Illinois at Urbana- Champaign where he helped establish the East St. Louis Action Research Project. Richard T. Roberts is a graduate of the University of Alabama, who has practiced economic development in three Southeastern states and worked for a variety of communities in Alabama, Mississippi, and Northwest Florida. During the past 30 years, he has managed both rural and metro chambers of commerce, economic development authorities, and a convention and tourism organization. He has written marketing plans and existing industry programs and has established and organized multi-county as well as local economic development programs. Mr. Roberts currently resides in Dothan, Alabama and is employed by the Covington County Economic Development Commission. John W. Vincent II is currently President of Performance Development Plus of Metairie, LA, a consulting company that he co-founded in 1993. The firm specializes in community devel- opment, economic development and organiza- tional development consulting. Mr. Vincent has over 35 years’ experience in various profes- sional and technical positions, and he is currently an owner and board member of a homeland security company. He holds a Bach- elor’s degree in government from Southeastern Louisiana University, USA, and a Master’s degree from the University of New Orleans, USA, in curriculum and instruction (adult learning and development). He is a graduate of the University of Central Arkansas’ Community Development Institute in Conway, Arkansas, USA, and is a certified Professional Community and Economic Developer. Monieca West is an experienced economic and community development professional. In 2001, she retired from SBC-Arkansas where she had served as Director of Economic Development since 1992. She is a past chair of the Interna- tional Community Development Society and the Community Development Council and has received numerous awards for services to community organizations and public education. In 2004, West returned to full-time work for the Arkansas Department of Higher Education where she is a program manager for the Carl Perkins federal program which funds career and technical education projects at the post- secondary level. She also does freelance work in the areas of facilitation, leadership devel- opment, technical writing, association management, and webmaster services. Stephen M. Wheeler joined the Landscape Architecture faculty at the University of Cali- fornia at Davis, USA, in January 2007. He is also a member of UCD’s Community Devel- opment and Geography Graduate Groups. He previously taught in the Community and Regional Planning Program at the University of New Mexico, USA, where he initiated a Physical Planning and Design concentration, and the University of California at Berkeley, USA, where he received his Ph.D. and Master of City Planning degrees. He received his Bach- elor’s degree from Dartmouth College, USA. Professor Wheeler’s areas of academic and professional expertise include urban design, physical planning, regional planning, climate change, and sustainable development. His current research looks at state and local planning for climate change, and evolving built landscape patterns in metropolitan regions. Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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left blank Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
20.
Acknowledgements Like community development
itself, creating a book on the subject is a team effort. We are thankful first of all to the chapter authors who have graciously consented to share their professional knowledge and experience with the readers. While the editors’ and authors’ names appear in the book, so many other community and economic development scholars and practitioners have played important roles in bringing this book to fruition. One of the most rewarding aspects of studying and practicing the discipline is learning from others along the way. This volume reflects the collective input over decades of countless community developers who may not be cited by name in the book but have nonetheless had a profound impact on it. We also wish to express our thanks to Routledge and the Taylor & Francis Publishing Group. Their expert assistance throughout the process of updating this book is acknowledged and appre- ciated. And finally we owe our families much grat- itude, for without their support and encouragement this book would not exist. Rhonda Phillips and Robert H. Pittman Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
21.
Editors’ Introduction In this
edition, we continue to explore community development as a complex and interdisciplinary field of study—one that is boundary spanning in its scope and multidimensional in its applications. Why is this? It’s because community development concerns not only the physical realm of community, but also the social, cultural, economic, political, and environmental aspects as well. Evolving from an original needs-based emphasis to one that is more inclusive and asset-based, community devel- opment is a now a distinct and recognized field of study. Today, scholars and practitioners of community development are better equipped to respond to the challenges facing communities and regions. Because its applications are wide-ranging yet always aimed at improving quality of life and overall community well-being, it is important to understand the underlying foundations and theory of community development as well as the variety of strategies and tools used to achieve desired outcomes. This text seeks to address the challenging and exciting facets of community development by presenting a variety of essential and important topics to help students understand its complexities. The chapter authors represent perspectives from both academe and practice, reflecting the applied nature of the discipline. Importantly, this book emphasizes the strong link between community development and economic development which is all too often overlooked in the literature. We believe a discussion of one is incomplete without a discussion of the other. We hope that this book will serve to more closely align the study and practice of these two inextricably related disciplines. This text is presented in the spirit of community development as planned efforts to improve quality of life. With this goal in mind, 25 chapters covering a range of issues have been selected and organized into four major categories: (1) foundations; (2) preparation and planning; (3) programming techniques and strategies; and (4) issues impacting community development. Part I: Foundations, provides an introduction and overview of the discipline as well as its under- lying premises. In Chapter 1 we present the basic concepts and definitions of community devel- opment and how it relates to economic devel- opment, a central theme of this book. Additionally, we explore the history and foundations of community development, including a rich legacy of social action and advocacy. Chapter 2, Seven Theories for Seven Community Developers, distills a variety of ideas from different fields into a theo- retical underpinning for community development. Hustedde offers seven contextual perspectives that provide this theoretical core: organizations, power relationships, shared meanings, rela- tionship building, choice making, conflicts, and integration of paradoxes. Chapter 3, Asset-Based Community Development, focuses on the concept of capacity building, both inside and outside the community. Haines explains the value of adopting an asset-based approach, and how it is dramati- cally different from the needs-based approaches of the past. Mattessich explains in Chapter 4, Social Capital and Community Building, how social capital (or capacity) lies at the heart of community development. Analogous to other forms of capital, social capital constitutes a Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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xxi EDITORS’ INTRODUCTION resource that
can be used by communities to guide outcomes. Chapter 5, Sustainability in Community Development by Wheeler, provides background on the concept of sustainability and how it applies to both the theory and practice of community development and its relations to planning. It also gives examples of strategies that can be imple- mented to help increase sustainable approaches. Chapter 6, The “New” Local by Burnell and Phillips addresses newer ideas of the local economy movement, along with small change approaches. It includes a discussion of local foods and community development. Chapter 7, Community Development Practice, is the final chapter in this section and outlines the foundation of processes and applications introducing students to community development as a practice. Part II: Preparation and Planning covers the variety of ways in which communities organize, assess, and plan for community development. McGrath’s Chapter 8, Community Visioning and Strategic Planning, takes the reader through the process of establishing goals and a vision for the future—essential activities for success in com- munity development. Without this foundation, it is difficult to accomplish the desired outcomes. Chapter 9, Establishing Community-Based Organ- izations, by West, Kraeger, and Dahlstrom addresses the all-important question, “How should we be organized?” They outline different types of community-based organizations and their struc- tures, including social enterprise, and show examples in practice. Chapter 10, Leadership and Community Development by Price and Pittman, discusses the need for communities to effectively integrate skill development into their activities. The premise is that great leadership leads to the most desirable community devel- opment outcomes. Vincent’s second contribution, Chapter 11, Community Development Assess- ments, provides a broad perspective on the total community assessment process. It discuses comprehensive assessments and the areas that should be considered, including a community’s physical, social, and human infrastructure and capital. Chapter 12, Community Asset Mapping and Surveys by Green provides information on techniques such as asset inventories, identifying potential partners and collaborators, various survey instruments, and data collection methods. The final chapter in this section, Chapter 13 Understanding Community Economies by Galloway, discusses how to assess the underlying strengths and weaknesses of the local economy. It provides an overview of economic impact analysis and how it can be used to allocate scarce community financial resources. Part III: Programming Techniques and Strategies gives several specific application areas for community development and how these areas can be approached. Chapter 14, Human Capital and Workforce Development, addresses the vital question of how to develop a quality workforce and educational components in the community. It provides examples of initiatives that communities have used to address this need. Pittman’s Chapter 15, Marketing the Community, provides an overview of how to attract new businesses into a community to strengthen the local economy. Creating recognition for the community, identi- fying the appropriate target audience and the most effective marketing message are discussed. In Chapter 16, Retaining and Expanding Existing Community Businesses, Pittman and Roberts explain the importance of focusing on businesses already present in communities. An existing business program can help communities in many direct and indirect ways and is often more effective in job creation than other approaches. Gruidl and Markley present Entrepreneurship as a Community Development Strategy in Chapter 17 as a vital component driving economic growth and job creation. The fundamentals for implementing a strategy of supporting entrepreneurs and creating a nurturing environment are outlined. Phillips’ Chapter 18, Arts, Culture and Community Devel- opment, explores ways communities can build on cultural assets to develop approaches around historic preservation, arts and culture. A variety of models and approaches are reviewed. Chapter Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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xxii EDITORS’ INTRODUCTION 19,
Housing and Community Development by Phillips, provides a basic understanding of how housing typology, density, and affordability affect housing and community development. It also includes innovative approaches to housing, such as ecovillages and cohousing. Reardon’s Chapter 20, Neighborhood Planning for Community Development and Revitalization, discusses the model of participatory neighborhood planning. This model seeks to improve quality of life with comprehensive revitalization strategies grounded in an asset-based approach. Our final contribution to this part, Chapter 21, Measuring Progress, by Phillips and Pittman, begins with the premise that progress evaluation is not only challenging but vital and organizations must be able to asses and demonstrate the value and outcome of their activ- ities. Community indicators are presented, as well as a discussion of quality of life and happiness considerations for communities. Part IV: Issues Impacting Community Devel- opment focuses on a few of the many and diverse issues relevant to community development theory and practice. Chapter 22, Perspectives on Current Issues by Lachapelle, provides a summary of responses from community development scholars and practitioners from across the globe. They discuss challenges and opportunities, and provide a wealth of insight into both theory and practice. Chapter 23 by Phillips, Community-Based Energy, addresses issues emerging in alternative energy sources from a community economic development perspective. Chapter 24, Community and Economic Development Finance by Hamer and Farr, gives an overview and explanation of the different types of community development financing from public and private sources. It includes definitions of key terms as well as ideas on structuring funding partner- ships. The final chapter offers some concluding observations on issues and challenges facing our communities, as well as discussing the important role of community development in helping shape the future of our society. As stated at the outset, community development is indeed a complex and interdisciplinary field, as evidenced by the breadth and scope of the chapters presented. We encourage students of community development to embrace the “ethos” of the community development discipline as one that focuses on creating better places to live and work and increasing the quality of life for all. Rhonda Phillips Purdue University, USA Robert H. Pittman Janus Institute, USA Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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PART I Foundations Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing
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left blank Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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1 A Framework
for Community and Economic Development Rhonda Phillips and Robert H. Pittman Overview Community development has evolved into a recognized discipline of interest to both practitioners and academicians. Community development is defined in many different ways; some think of community development as an outcome—physical, social, and economic improvement in a community—while others think of community development as a process—the ability of commu- nities to act collectively and enhancing the ability to do so. This chapter defines community development as both a process and an outcome and explains the relationship between the two. A related area, economic development, is also defined in different ways. This chapter offers a holistic definition that includes not only economic dimensions but vital other dimensions impacting community quality of life and well-being. The model of the community and economic development chain shows the links, causal relationships, and feedback loops between community and economic development. Introduction Community development has many different defi- nitions. Unlike mathematics or physics where terms are scientifically derived and rigorously defined, community development has evolved with many different connotations. Community development has probably been practiced for as long as there have been communities. Many scholars trace the origin of community devel- opment as a discipline and known profession to post-World War II reconstruction efforts to improve less-developed countries (Wise 1998). In the US, some cite the “war on poverty” of the 1960s with its emphasis on solving neighborhood housing and social problems as a significant influence on contemporary community development (Green and Haines 2011). A major contribution of community development has been the recognition that a city or neighborhood is not just a collection of buildings but a “community” of people facing common problems with untapped capacities for self-improvement. Today community is defined in many different ways: in geographic terms, such as a neighborhood or town (place-based or communities of place definitions); or in social terms, such as a group of people sharing common chat rooms on the internet, a national profes- sional association, or a labor union (communities of interest definitions). Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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RHONDA PHILLIPS AND
ROBERT H. PITTMAN 4 BOX 1.1 EVOLUTION OF COMMUNITY DEVELOPMENT Community development as a profession has deep roots, tracing its origins to social movements (it is, after all, about collective action) of earlier times throughout the globe. Activism such as the Sanitary Reform movement in the 1840s and housing reforms a bit later helped push forward positive changes at community levels. For example, in the 1880s, Jane Addams was among the first to respond to deplorable housing conditions in tenements by establishing Hull House in Chicago, a community center for poor immigrant workers. Beyond North America, community development may be called “civil society,” or “community regeneration,” and activities are conducted by both government and nongovernmental organizations (NGOs). There may or may not be regulation of organizations, depending on different countries’ policy frameworks (for a review of community development, see Hautekeur 2005). The Progressive movement of the 1890s through the first few decades of the twentieth century was all about community development (von Hoffman 2012), although the term itself did not arise until mid-century. During the 1950s and 1960s, social change and collective action again garnered much attention due to the need to rectify dismal conditions within poverty-stricken rural and areas of urban decline. The civil rights and anti-poverty movements led to the recognition of community development as a practice and emerging profession, taking form as a means to elicit change in social, economic, political, and environmental aspects of communities. During the 1960s, literally thousands of community development corporations (CDCs) were formed, including many focusing on housing needs as prompted by U.S. Federal legislation providing funding for nonprofit community organizations. This reclaiming of citizen-based governing was also prompted in response to urban renewal approaches by government beginning with the U.S. Housing Act of 1949. The richness of the CDC experience is chronicled in the Community Development Corporation Oral History Project by the Pratt Center for Community Development. This includes one of the first CDCs in the US, the Bedford Stuyvesant Restoration Corporation in New York City. Today, there are about 4,000 CDCs in the US, with most focusing on housing development as well as other related activities for improving community quality of life. However, many also include a full range of community development activities, with about 25% providing a comprehensive array of housing development, home ownership programs, commercial and business development, community facilities, open space/ environmental, workforce, and youth programs, and planning and organizing activities (Walker 2002). Throughout the world, many organizations practice community development, including the public sector as well as the private, for-profit and other nonprofit groups. As the variety of topics in this book attests, community development continues to be built on social activism and housing to encompass a broad spectrum of processes and activities dealing with multiple dimensions of community including physical, environmental, social, and economic factors. Sources G. Hautekeur (2005) Community Development in Europe. Community Development Journal 40(4): 385–398. A. von Hoffman (2012) The Past, Present, and Future of Community Development in the United States. In Andrews, N.O. & Erickson, D.J. (eds), Investing in What Works for America’s Communities. San Francisco: Federal Reserve Bank. C. Walker (2002) Community Development Corporations and Their Changing Support Systems. Washington, D.C.: Urban Institute. For more details on the CDC Oral History Project, see www.prattcenter.net/cdcoralhistory.php To learn more details on the history of community development in the US, see Alexander von Hoffman’s, The Past, Present, and Future of Community Development in the United States, published by the Joint Center for Housing Studies, Harvard University, 2012. www.jchs.harvard.edu/sites/jchs.harvard.edu/files/w12-6_von_hoffman.pdf Civil and social activism throughout the world has served as a basis for community development approaches, including those built upon works by Paulo Freire, a noted activist educator inspiring many with his classic 1970 Pedagogy of the Oppressed. See Margaret Ledwith’s 2005 Community Development: A Critical Approach for discussion of Freire’s ideas in community development theory and practice. For a history of community development in the UK, see The Community Development Reader, History, Theory, and Issues, by Gary Craig, Marjorie Mayo, Keith Popple, Mae Shaw, and Marilyn Taylor (2011). Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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A FRAMEWORK FOR
COMMUNITY AND ECONOMIC DEVELOPMENT 5 The rich and diverse history of community devel- opment has roots in many areas, evolving into a recognized discipline drawing from a wide variety of academic fields including urban and regional planning, sociology, economics, political science, geography, and many others. Today there is a variety of academic and professional journals focusing on community development. The interest of researchers and practitioners from many different disciplines has contributed greatly to the growth and development of the field. However, community development’s growth and interdisciplinary nature have led to the current situation where it is defined and approached in a great variety of ways. Given community development’s origins in social advocacy and calls to social action, the emphasis on equity is a common thread. The need for social reform and social justice has always been present, and continue to be critical across communities globally. See Box 1.2 for more information about some of the history of social equity. This chapter takes a broad approach to community development. While it is impossible in one chapter (or book) to completely cover such a large field, many different aspects of community development are included. In particular, we have observed that the strong interrelationship between community and economic development is often overlooked in research and practice. This inter- relationship is one focus of this chapter and book. Economic development focuses predominately on the monetary aspects of the processes and outcomes—generating wealth in a community. It is, by default, often centered on issues of effi- ciency. This is counter to community development’s emphasis on equity, yet balance can be sought between these two elements. It is our intent to explore this balance, bringing together both community and economic development to explore ways to foster better outcomes or community well- being and improved quality of life for our towns, cities, regions, and beyond. BOX 1.2 THE UNDERREPRESENTED More than a century prior to the Occupy Wall Street movement, Upton Sinclair, in The Jungle (1906), described the horrible conditions of the meatpacking factories and the poverty and hopelessness prevalent in the Back of the Yards neighborhood in Chicago. Inspired by the work of Sinclair, the other Muckrakers, and the labor organizer John Lewis, Saul Alinsky became a community organizer and took it to the streets, convinced that the interests of workers and the poor were not being represented and protected by traditional political processes and institutions. Alinsky “walked the talk,” served many jail terms for nonviolent demonstrations and, shortly before his death, published his seminal work, Rules for Radicals in 1971. The book is a primer for community organizing and extols the importance and justification of using non- conventional means to close the gap between the “haves” and “have-nots.” Martin Luther King, Jr. and the early civil rights movement adopted Alinsky’s and other nonviolent protesters’ methods. In his eloquent “Letter from a Birmingham Jail,” King wrote: You may well ask: “Why direct action? Why sit ins, marches and so forth? Isn’t negotiation a better path?” You are quite right in calling for negotiation. Indeed, this is the very purpose of direct action. Nonviolent direct action seeks to create such a crisis and foster such a tension that a community which has constantly refused to negotiate is forced to confront the issue. The Mavis Staples video (www.youtube.com/watch?v=0ZWdDI_fkns) dramatically captures the bravery of the civil rights protesters. Why has there been a long tradition of community activism in the United States? The reason is that traditional institutions and political processes have not always given sufficient voice and a “seat at the table,” for the nation’s poor and minorities. As the urban planning theorist and activist for social justice and equity Paul Davidoff has written: Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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RHONDA PHILLIPS AND
ROBERT H. PITTMAN 6 the “great issues” in economic organization, those resolving around the central issue of the nature of distributive justice, have yet to be settled. The world is still in turmoil over the way in which the resources of the nations are to be distributed. (1965: 50) These issues are as relevant today as when first written by Davidoff 50 years ago. Although economic growth and development can bring many benefits, those benefits are not evenly distributed and the costs are often paid by the poorest members of our society. One noteworthy attempt at the local level to address these issues is the Cleveland experiment from late 1969–1979 in the practice of equity planning. Norman Krumholz and his staff of professional planners instituted progressive programs and policies that resulted in property law changes, improvements in public service delivery, protection of transit services for the most transit-dependent, and the rescue of city parklands and beaches to serve the poor. The Cleveland experience is well worth reviewing for a politically effective and savvy approach to progressive economic development and growth. Jay M. Stein, Ph.D., FAICP Arizona State University, USA Sources Saul Alinsky (1971) Rules for Radicals. New York: Random House. Paul Davidoff (1965) Advocacy and Pluralism in Planning, Journal of the American Institute of Planners, 31(4): 331–338. Dr. Martin Luther King, Jr. (1963) Letter from a Birmingham Jail. Accessed December 21, 2013 at: www.africa. upenn.edu/Articles_Gen/Letter_Birmingham.html Norman Krumholz and John Forester (1990) Making Equity Planning Work. Philadelphia: Temple University Press. Upton Sinclair (1906) The Jungle. Chicago: Doubleday, Jabber and Company. The terms community development and economic development are widely used by academicians, professionals, and citizens from all walks of life and have almost as many definitions as users. Economic development is perhaps more familiar to laypersons. If random individuals on the street were asked what economic development is, some might define it in physical terms such as new homes, office buildings, retail shops, and “growth” in general. Others might define it as new busi- nesses and jobs coming into the community. A few thoughtful individuals might even define it in soci- oeconomic terms such as an increase in per capita income, enhanced quality of life, or issues around equity such as reduction in poverty. Ask the same individuals what community devel- opment is, and they would probably think a while before answering. Some might say it is physical growth—new homes and commercial buildings— just like economic development. Others might say it is community improvement such as new infra- structure, roads, schools, or improving quality of life in areas such as reducing poverty or improving housing conditions. Most respondents would probably define community and economic devel- opment in terms of an outcome—physical growth, new infrastructure, better housing, or jobs. Probably no one would define them in terms of a process and many would not understand how they are inter- related. This is unfortunate because some of these passers-by are probably involved in community and economic development efforts serving as volunteers or board members for community-ori- ented nonprofit organizations, economic devel- opment agencies, or charitable organizations. The purpose of this introductory chapter is to provide meaningful descriptions of community development and economic development as both processes and outcomes, explore what they entail, and understand them as distinct but closely related disciplines. First the focus will be on community development, followed by a discussion of economic development and, finally, an exami- nation of the relationship between the two. Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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A FRAMEWORK FOR
COMMUNITY AND ECONOMIC DEVELOPMENT 7 Community Development The first step in defining community development is to define “community.” As mentioned previously, community can refer to a location (communities of place) or a collection of individuals with a common interest or tie whether in close proximity or widely separated (communities of interest). A review of the literature conducted by Mattessich and Monsey (2004) found many definitions of community such as: People who live within a geographically defined area and who have social and psychological ties with each other and with the place where they live. (Mattessich and Monsey 2004: 56) A grouping of people who live close to one another and are united by common interests and mutual aid. (National Research Council 1975, cited in Mattessich and Monsey 2004: 56) A combination of social units and systems which perform the major social functions … the organization of social activities. (Warren 1963, cited in Mattessich and Monsey 2004: 57) These definitions refer first to people and the ties that bind them and second to geographic loca- tions. They remind us that without people and the connections among them, a community is just a collection of buildings and streets. Given these definitions, the term community devel- opment takes on the context of developing stronger “communities” of people and the social and psycho- logical ties that they share. Indeed this is how community development is defined in much of the literature. Again Mattessich and Monsey found many such definitions in their literature review: Community development is an educational process designed to help adults in a community solve their problems by group decision making and group action. (Long 1975, cited in Mattessich and Monsey 2004: 58) Community development is the “active voluntary involvement in a process to improve some identifiable aspect of community life; normally such action leads to the strength- ening of the community’s pattern of human and institutional relationships.” (Ploch 1976, cited in Mattessich and Monsey 2004: 59) These definitions imply that community devel- opment is the process of teaching people how to work together to solve common problems. Other authors define community development more in terms of an action, result, or outcome: Local decision making and the development of programs designed to make the community a better place to live and work. (Huie 1976, cited in Mattessich and Monsey 2004: 58) A group of people in a locality initiating a social action process to change their economic, social, cultural and/or environ- mental situation. (Christenson and Robinson 1989, cited in Mattessich and Monsey 2004: 57) A series of community improvements which take place over time as a result of the common efforts of various groups of people. (Dunbar 1972, cited in Mattessich and Monsey 2004: 59) All of these definitions are valid in that community development should be considered both a process and an outcome. However, as mentioned previously, the person on the street would probably think of community development in terms of a Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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RHONDA PHILLIPS AND
ROBERT H. PITTMAN 8 physical result (improved infrastructure, better health care, etc.). Therefore, a definition of com- munity development in simple but broad terms is: A process: developing the ability to act collec- tively, and An outcome: (1) taking collective action and (2) the result of that action for improvement in a community in any or all realms: physical, environmental, cultural, social, political, economic, etc. Having arrived at a comprehensive definition of community development, the focus can now be on what facilitates or leads to community development. The community development literature generally refers to this as social capital or social capacity: The abilities of residents to organize and mobilize their resources for the accomplishment of consensual defined goals. (Christenson and Robinson 1989, cited in Mattessich and Monsey 2004: 61) The resources embedded in social relation- ships among persons and organizations that facilitate cooperation and collaboration in communities. (Committee for Economic Development 1995, cited in Mattessich and Monsey 2004: 62) Simply put, social capital or capacity is the extent to which members of a community can work together effectively to develop and sustain strong relation- ships; solve problems and make group decisions; and collaborate effectively to plan, set goals, and get things done. There is a broad literature on social capital, with some scholars making the distinction between bonding capital and bridging capital (Agnitsch et al. 2006). Bonding capital refers to ties within homogeneous groups (e.g. races, ethnicities, social action committees, or people of similar socio- economic status) while bridging capital refers to ties among different groups. There are four other forms of “community capital” often mentioned in the community devel- opment literature (Green and Haines 2002: viii): • Human capital: labor supply, skills, cap- abilities and experience, etc.; • Physical capital: buildings, streets, infra- structure, etc.; • Financial capital: community financial institutions, microloan funds, community devel- opment banks, etc.; • Environmental capital: natural resources, weather, recreational opportunities, etc. All five types of community capital are important. However, it is difficult to imagine a community making much progress without some degree of social capital or capacity. The more social capital a community has, the more likely it can adapt to and work around deficiencies in the other types of community capital. When conducting community assessments (see Chapter 11), it is useful to think in terms of these five types of community capital. So far, working definitions of community, community development, and social capital have been provided. To complete the community devel- opment equation, it is necessary to identify how to create or increase social capital or capacity. This process is generally referred to as social capital building or capacity building. Here is one definition from the literature: An on-going comprehensive effort that strengthens the norms, and supports the problem solving resources of the community. (Committee for Economic Development 1995, cited in Mattessich and Monsey 2004: 60) Notice that this sounds exactly like the definitions of the process of community development given above. We have come full circle. The process of community development is social capital/capacity building which leads to social capital which in turn leads to the outcome of community development. Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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A FRAMEWORK FOR
COMMUNITY AND ECONOMIC DEVELOPMENT 9 Figure 1.1 depicts the community development chain. The solid lines show the primary flow of causality. However, there is a feedback loop shown by the dotted lines. Progress in the outcome of community development (taking positive action resulting in physical and social improvements in the community) contributes to capacity building (the process of community development) and social capital. For example, better infrastructure (e.g. public transportation, internet access, etc.) facili- tates public interaction, communications, and group meetings. Individuals who are materially, socially, and psychologically better off are likely to have more time to spend on community issues because they have to devote less time to meeting basic human and family needs. Success begets success in community development. When local citizens see positive results (outcome), they generally get more enthused and plow more energy into the process because they see the payoff. Research has shown there are certain characteristics of communities that influence their ability to do capacity building and create social capital (Mattessich and Monsey 2004). Chapter 4 of this book discusses some of these community characteristics. Now that the components of community devel- opment and their relationships have been identified, we can return to the random individuals on the street and ask them what the difference is between growth and development. From the definitions above, it would seem that development is a more encom- passing term than growth. Green and Haines (2002: 5) define growth as: Increased quantities of specific phenomena such as jobs, population and income, whereas development involves structural change in a community including: 1) how resources are used; and 2) the functioning of institutions. By these definitions, a community can have growth without development and vice versa. The important point to note, however, is that devel- opment not only facilitates growth but also influ- ences the kind and amount of growth a community experiences. Successful communities control their own destiny through the successful practice of community development. Community devel- opment empowers communities to change. Economic Development As with community development, economic devel- opment has its origins in efforts to improve less developed countries and the American war on poverty (Malizia and Feser 1999). Immediately after World War II and certainly before, parts of the US were not unlike developing countries with rampant poverty and unemployment due to the decline of agricultural jobs. Many southern states developed programs to recruit industries from the northern US with cheap labor and government incentives (e.g. tax breaks) as bait. In the 1960s, the emphasis on economic development was at the federal level with Great Society programs aimed at eliminating pockets of poverty such as Capacity building community development process Developing the ability to act Social capital The ability to act Community development outcome Taking action Community improvement Q Figure 1.1 Community Development Chain Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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RHONDA PHILLIPS AND
ROBERT H. PITTMAN 10 BOX 1.3 COMMUNITY WELL-BEING: THE NEXT GENERATION FOR COMMUNITY DEVELOPMENT? Aristotle’s term eudaemonia consists of the words “eu” and “daimon,” meaning “good” and “spirit.” Modern scholars have seized on this concept in the context of communities and use it to explain renewed interest in promoting improvements in well-being (Lee and Kim 2014). Common frameworks of concepts and measures can assist communities in prioritizing goals and values (Phillips 2014); community well-being can then be thought of as encompassing “the broad range of economic, social, environmental, cultural and governance goals and priorities identified as of greatest importance by a particular community, population group or society” (Cox et al. 2010: 72) or, “the concept of community well-being is focused on understanding the contribution of a community in maintaining itself and fulfilling the various needs of local residents” (Haworth and Hart 2007: 95). It is further described as a way to bring together social relationship and social organization with the idea that community “well-being is something that we do together, not something that we each possess” (Haworth and Hart 2007: 128). The underlying idea is that this broader concept is an umbrella concept, encompassing ideas of sustainability, happiness, quality of life, and other social domains. Community and economic development, along with urban and regional planning are seen as approaches to helping foster improved community well-being in this context. See for example Chicago’s efforts toward “Quality of Life Planning,” in conjunction with the Local Initiatives Support Corporation (LISC). Sources Cox, D., Frere, M., West, S., and Wiseman, J. (2010) Developing and Using Local Community Wellbeing Indicators: Learning from the Experiences of Community Indicators Victoria. Australian Journal of Social Issues 45(1): 71–89. Haworth, J. and Hart, G. (2007) Well-Being, Individual, Community and Social Perspectives. Hampshire, UK: Palgrave. Lee, S.J. and Kim, Y. (2014). Community Wellbeing: Concepts and Measurements. In S.J. Lee, Y. Kim, and R. Phillips (eds.), Community Wellbeing: Conceptions and Applications. Dordrecht: Springer, forthcoming. LISC New Communities Program, Chicago. Quality of Life Planning Handbook, www.newcommunities.org/tools/ qofl.asp Phillips, R. (2014) Building Community Well-Being across Sectors: “For Benefit” Community Business. In S.J. Lee, Y. Kim and R. Phillips, Community Wellbeing: Conceptions and Applications. Dordrecht: Springer. the southern Appalachian Mountains region. In the 1970s and 1980s, the emphasis shifted to states and localities. If they did not already have them, many communities created economic devel- opment organizations with public as well as private funding. In many communities, economic development was part of city or country government, while in other communities it was under the auspices of the private nonprofit sector such as local chambers of commerce. Initially, most economic development agencies focused on industrial recruitment or on enticing new companies to locate in their communities. State and local departments of economic development aggressively courted industry and increased the amount and variety of incentives. Soon it became apparent that tens of thousands of economic devel- opment organizations were chasing a limited number of corporate relocations/expansions and playing a highly competitive game of incentives and marketing efforts. This highly competitive situ- ation became known as a “zero sum game” after Lester Thurow’s description of macroeconomics in the now classic The Zero-Sum Society Distribution and the Possibilities for Economic Change (1980). In other words, there are no true winners, given a tendency toward a “beggar thy neighbor approach” to enticing industry. The benefit to communities or regions of giving expansive tax incentives to keep or lure industry into the area is not often clear. Timothy Bartik addressed this question in Who Benefits from State and Local Economic Devel- opment Policies? in 1991; policy makers, scholars, and practitioner alike are still debating. Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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A FRAMEWORK FOR
COMMUNITY AND ECONOMIC DEVELOPMENT 11 As communities realized that there were other ways to create jobs, they began to focus on internal opportunities such as small business devel- opment and ensuring that businesses already located in the community stayed and expanded there. Many communities also realized that by improving education, aesthetics and amenities to make life better, environmental conditions, government services, local labor skills and supply, and the business climate in general, they could make themselves more attractive to both internal and external investments. These wider approaches help encourage better quality-of-life conditions. Like community development, economic devel- opment has evolved into a broad and multi- disciplinary field. In earlier decades, economic development was synonymous with growth, not necessarily a positive correlation. A more holistic definition of economic development includes an emphasis on increasing the quality of life (the general well-being of individuals and collectively as community) through opportunities and improvement. From this perspective, economic development is undertaken for the purposes of increasing standards of living through attaining greater per capita income, quality and quantity of employment opportunities, and enhanced quality of life for the persons represented within the devel- opment district. BOX 1.4 GROWTH VS. DEVELOPMENT Growth by itself could be either an improvement or detriment. For instance, a facility that paid very low wages might open in an area. As a result, the population and overall size of the economy might increase, but per capita incomes might fall, and the quality of life might suffer (Blair 1995: 14). Of course many communities would be happy to get any new facility regardless of the wage rate. A minimum wage job may be better than no job in some situations, and there is a portion of the labor force in most communities that is a good match for minimum wage jobs (e.g. teenagers and adult low-skilled workers). Since growth does not always equate with a better standard of living, Blair suggests a higher-order definition of economic development: Economic development implies that the welfare of residents is improving. Increases in per capita income (adjusted for inflation) is one important indicator of welfare improvements (1995: 14). There are many other indicators of welfare and quality of life for community residents such as poverty rates, health statistics, and income distribution, but per capita income or income per household is a common measurement of wealth. Whether wealth equates to a good quality of life depends on the individual, although there are basic levels needed to have a decent standard of living. Moreover, per capita income is not necessarily a measure of purchasing power. The cost of living varies from place to place, and a dollar goes farther where prices are low. Like community development, these descriptions portray economic development as both a process and an outcome—the process of mobilizing resources to create the outcome of more jobs, higher incomes, and an increased standard of living, however it is measured. From this discussion it should be apparent that development has a very different connotation than growth. Development implies structural change and improvements within community systems encompassing both economic change and the functioning of institutions and organizations (Boothroyd and Davis 1993; Green and Haines 2011). Development is a deliberate action taken to elicit desired structural changes. Growth, on the other hand, focuses on the quantitative aspects of more jobs, facilities construction, and so on—within the context that more is better. One should carefully distinguish then between indicators that measure growth versus development. By these definitions, a community can have growth without development and vice versa. The important point to note, however, is that development not only facilitates growth but also influences the kind and amount of growth a community experiences. Development guides and directs growth outcomes. Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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RHONDA PHILLIPS AND
ROBERT H. PITTMAN 12 Economic development centers on creating wealth and other economic outcomes. One way to view the relationship between these two areas is that community development can be thought of as producing assets and capacities while economic development mobilizes these assets for economic benefits. As noted, traditional or main- stream economic development has focused on economic outcomes, sometimes to the detriment of ecological or social dimensions of community. Now that we have defined economic deve- lopment, we can discuss what it entails in practice. Most economic developers concentrate on creating new jobs. This is generally the key to wealth creation and higher living standards. Many economic developers refer to the “three-legged stool” of job creation: recruiting new businesses, retaining and expanding businesses already in the community, and facilitating new business start-ups. As discussed previously, economic developers originally concentrated on recruiting new businesses. Stiff competition for a limited number of new or expanded facilities in a given year led some communities to realize that another way to create jobs is to work with companies already in the area to maximize the likelihood that if they need to expand existing oper- ations or start new ones, they would do so in the community and not elsewhere. Even if an expansion is not involved, some businesses may relocate their operations to other areas for “pull” or “push” reasons (Pittman 2007). They may relocate to be closer to their customers, closer to natural resources, or for any number of strategic business reasons (pull). Businesses may also relocate because of problems with their current location such as an inadequate labor force, high taxes, or simply lack of community support (push). Although communities cannot influence most pull factors, they can act to mitigate many push factors. If the problem is labor, they can establish labor-training programs. If the problem is high taxes, they can grant tax abate- ments in return for creating new jobs. Business retention and expansion has become a recognized sub-field of economic development, and there are many guides on the subject such as those by Entergy and other utility companies, for example. Chapter 16 of this book addresses business retention and expansion in more detail. There is also much communities can do to facil- itate the start up of new local businesses. Some communities create business incubators where fledgling companies share support services, benefit from reduced rent, or even get free consulting assis- tance. Financial assistance, such as revolving loan funds at reduced interest rates, is also a common tool used to encourage small business start-ups. Making a community “entrepreneurial friendly” is the subject of Chapter 17 of this book. While the majority of new jobs in most regions are created by business retention and expansion and new business start-ups (Roberts 2006), many communities continue to define economic devel- opment in terms of recruiting new facilities. Some communities are stuck in the old paradigm of “smokestack chasing”—relying solely on recruiting a new factory when manufacturing employment is declining nationally and many companies are moving offshore. These communities may have historically relied on traditional manufacturing companies for the bulk of their employment, and when these operations shut down, the only thing they knew to do was to pursue more of the same. Elected officials, civic board members, and citizens in these communities need to be educated and enlightened to the fact that the paradigm has long ago shifted. They should be recruiting other types of businesses such as call centers or service industries while practicing business retention and expansion and creating new business start-up programs. Growing businesses and enterprise locally will result in better outcomes for communities. While economic development today is often defined by the “three-legged stool,” there is much more to the profession. As shown in a survey by a large regional professional association (SEDC 2006), economic developers get involved in work- force development, permitting assistance, and many other issues, some of which are better defined as community development. Copyright © 2014. Routledge. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 2/6/2019 5:56 AM via UNIVERSITY OF KWAZULU NATAL AN: 882770 ; Phillips, Rhonda, Pittman, Robert H..; An Introduction to Community Development Account: s7246381
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