©National Consumer Law Center 2013Melissa LevySenior AssociateYellow Wood AssociatesJessica HiemenzNational Consumer Law C...
Presenter – Melissa Levy2• Senior Associate, has been with Yellow WoodAssociates, Inc. since May 2003.• Yellow Wood is the...
RuralXChangewww.ruralxchange.netandfacebook.com/ruralxchangeWe’ll post updates and follow-updiscussions related to this we...
National Alliance for Rural Policy WebinarJune 20, 2013Melissa LevyYellow Wood AssociatesConnecting CommunityAssets with M...
A Presentation in 4 parts1. Introduction to2. Defining Wealth3. WealthWorks Value Chains4. Components of the Practice on t...
Part 1: Introduction to
What is it?WealthWorks is a bridge between CommunityDevelopment & Economic Development
Community DevelopmentCommunity Development is about voice andempowerment and uses organizing strategies toachieve these ou...
Economic DevelopmentConventional economic development is aboutcreating jobs by:● Attracting businessesthrough tax breaks a...
LimitationsNeither one● Takes a systems approach to development ofcommunities and economies● Addresses the underlying dyna...
improving the livelihoods of low-wealthpeople and communities by creatingwealth through market interactions that isowned, ...
is about economic development that ….LastingLivelihoodMarketDemandCommunityAssetsBrings underutilizedassets – people, plac...
Where are we working on the ground?WealthWorks Value Chains in:Central AppalachiaEnergy efficient housing construction, en...
Why should we care aboutWealthWorks?● The WealthWorks approach expands your economicdevelopment toolkit, building on strat...
Guiding Principles#1 Wealth creation is demand driven.#2 Wealth creation is intentionally inclusive.#3 Wealth is tied to p...
Part Two: Defining Wealth
Wealth is not justmoney.Wealth is the stockof all assets thatcan contribute tothe well-being ofpeople, places oreconomies....
What is wealth?We define wealth broadly as the stock of all assets,net of liabilities, that can contribute to the well-bei...
IndividualcapitalSocialcapitalFinancialcapitalNaturalcapitalBuiltcapitalIntellectualcapitalPoliticalcapitalWhat are the fo...
Cultural Capital in theWealthWorks FrameworkIn the WealthWorks framework, cultural capital isbuilt or preserved investment...
21Wealth & Livelihood: The Relationship● Livelihood: Being able toovercome vulnerability,rebound from life’semergencies, m...
22Community Wealth: ImportantTakeaway Points● Investments in multiple forms of capital are neededto create sustainable wea...
Part 3: WealthWorks Value Chains
What do we mean by a“WealthWorks Value Chain?”A WealthWorks value chain is:a business model based onshared economic, socia...
Traditional Supply Chain● Chain starts with producersupply● Measured by net incomeproduced● Everyone is in it for him/hers...
Generic WealthWorks Value Chain
What’s Different about aWealthWorks Value Chain?Begins with demand — Responds to demand attwo levels:– Demand for the prod...
Part 4: Components ofWealthWorks Practice on theGround
ConnectingCommunityAssets1. Identify an Opportunity Sectorand product.To MarketDemand2. Explore market potential andanchor...
Identifying Opportunity Sectors andSub-sectors● Understanding underutilized resources and theirpotential contributions to ...
● Identifying demand side partners. Ask whatpeople want.● Understanding value propositions.● Look for early adopter anchor...
Constructing WealthWorks value chains● Technical assistance● Training & certifications● Product development, Marketing● Tr...
Making wealth stickResearch, design, and guide implementation ofinnovative structures for ownership and control ofwealth s...
Four roles for low-wealth people inWealthWorks value chains● As producers/entrepreneurs adding value to agood or service c...
The WealthWorks ApproachProduces and Sustains Robust ResultsIt brings underutilized community assets – people,place, prope...
Learning about your strengths increating or impacting different formsof wealth.
Intellectual capital is the stock ofknowledge, innovation, and creativity orimagination in a region.Seven Forms of Capital...
Natural capital is the stock of unimpairedenvironmental assets (e.g. air, water, land,flora, fauna, etc.) in a region.Seve...
Financial capital is the stock ofunencumbered monetary assets invested inother forms of capital or financialinstruments.Se...
-3 A significant and lasting negative impact on individual capital(exploitation)-2 Creates significant new barriers to pos...
For More InformationPlease visit:www.creatingruralwealth.organdhttp://www.yellowwood.org/wealthcreation.aspxTo Join the Na...
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Connecting Community Assets with Market Demand for Lasting Livelihoods

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A webinar from NARP

Original event date: 06/20/2013 01:00 PM - 02:00 PM Eastern time zone

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Presenter is Melissa Levy, Senior Associate, Yellow Wood Associates, Inc. Yellow Wood is the managing grantee of the Ford Foundation's Wealth Creation in Rural Communities initiative; as part of that work, Melissa currently coaches grantees on wealth creation and measurement.

WealthWorks is an innovative approach to meeting the complex challenge of building wealth in areas of persistent poverty. WealthWorks is a bridge between community development and conventional economic development that creates and maintains inclusive non-exploitative demand-driven economic opportunities through investment in the assets of rural places to meet the needs of larger markets. The WealthWorks approach, developed in partnership with the Ford Foundation, intends to improve the livelihoods of poor people by creating wealth that is owned, controlled, and reinvested in their places, so that they become valued partners in resilient regions. This webinar will share the approach and its main concepts, and how it has been used on the ground.

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Connecting Community Assets with Market Demand for Lasting Livelihoods

  1. 1. ©National Consumer Law Center 2013Melissa LevySenior AssociateYellow Wood AssociatesJessica HiemenzNational Consumer Law CenterJune 20, 2013ConnectingCommunity Assets withMarket Demand forLasting Livelihoods
  2. 2. Presenter – Melissa Levy2• Senior Associate, has been with Yellow WoodAssociates, Inc. since May 2003.• Yellow Wood is the managing grantee of the FordFoundation’s Wealth Creation in Rural Communitiesinitiative; as part of that work, Melissa currentlycoaches grantees on wealth creation andmeasurement.• Melissa is the co-author of a paper on communitywealth indicators, Measuring CommunityWealth. Melissa’s other work involves research andfacilitation around various natural resource basedrural economic development initiatives.
  3. 3. RuralXChangewww.ruralxchange.netandfacebook.com/ruralxchangeWe’ll post updates and follow-updiscussions related to this webinar here.Please join us!
  4. 4. National Alliance for Rural Policy WebinarJune 20, 2013Melissa LevyYellow Wood AssociatesConnecting CommunityAssets with Market Demandfor Lasting Livelihoods
  5. 5. A Presentation in 4 parts1. Introduction to2. Defining Wealth3. WealthWorks Value Chains4. Components of the Practice on the Ground
  6. 6. Part 1: Introduction to
  7. 7. What is it?WealthWorks is a bridge between CommunityDevelopment & Economic Development
  8. 8. Community DevelopmentCommunity Development is about voice andempowerment and uses organizing strategies toachieve these outcomes. It tends to be issue-based.
  9. 9. Economic DevelopmentConventional economic development is aboutcreating jobs by:● Attracting businessesthrough tax breaks andincentives andsometimes● Encouragingentrepreneurs and● Strengthening existingbusinesses
  10. 10. LimitationsNeither one● Takes a systems approach to development ofcommunities and economies● Addresses the underlying dynamics of economicexploitation by offering an alternative approach tomarket connections● Explicitly connects economic, social andenvironmental conditions and opportunities
  11. 11. improving the livelihoods of low-wealthpeople and communities by creatingwealth through market interactions that isowned, controlled, and reinvested in place.
  12. 12. is about economic development that ….LastingLivelihoodMarketDemandCommunityAssetsBrings underutilizedassets – people, place,property and know-how – to light and intoproductivityLinks what local peopleand businesses can dowith higher returndemand in their regionsand beyondTakes the best next step from any starting placeBuilds regional prosperityand self reliance.Increases upward mobilitySticks to place and lastsWeaves self-interest of people,places, firms and organizations ina region for mutual benefit.Builds partnerships that can flex for new uses.
  13. 13. Where are we working on the ground?WealthWorks Value Chains in:Central AppalachiaEnergy efficient housing construction, energyefficiency retrofits, renewables, food, forestryAlabama Black Belt and Mid-SouthRenewable energy, social impact investment,forestry, food, Community Based Tourism (CBT)Lower Rio Grande Valley region in TexasGreen housing/neighborhoods
  14. 14. Why should we care aboutWealthWorks?● The WealthWorks approach expands your economicdevelopment toolkit, building on strategies and ideasalready in play.● It brings underutilized ideas, skills, and other assets intoproductive use within a region.● It maximizes local wealth retention and creation.● It minimizes negative impacts from development that canjeopardize the future.● It helps low-income people, places, and businesses getahead.● It builds a region’s resiliency and self-reliance by producingmore sustainable results.
  15. 15. Guiding Principles#1 Wealth creation is demand driven.#2 Wealth creation is intentionally inclusive.#3 Wealth is tied to place by WealthWorks valuechains.#4 Measurement is integrated into the entireprocess as a tool for planning and adaptivemanagement.#5 Wealth sticks in places through attention tostructures of ownership and control.#6 The wealth creation approach is strategicallyflexible while doing no harm.
  16. 16. Part Two: Defining Wealth
  17. 17. Wealth is not justmoney.Wealth is the stockof all assets thatcan contribute tothe well-being ofpeople, places oreconomies.KEY IDEA: What is Wealth?
  18. 18. What is wealth?We define wealth broadly as the stock of all assets,net of liabilities, that can contribute to the well-being of an individual or group.As a stock of assets, wealth is durable and can beaccumulated or depleted through investment andconsumption decisions.Wealth stocks generate flows of goods and services(“income” or “earnings”) that contribute to well-being, though not all of these flows can bemonetized.
  19. 19. IndividualcapitalSocialcapitalFinancialcapitalNaturalcapitalBuiltcapitalIntellectualcapitalPoliticalcapitalWhat are the forms of capital that arethe focus of WealthWorks?Creating wealth that sticks is rarely an intentional goal ofdevelopment even when we define wealth broadly.Intention matters.
  20. 20. Cultural Capital in theWealthWorks FrameworkIn the WealthWorks framework, cultural capital isbuilt or preserved investments in the other 7forms of capital – e.g., a valued cultural traditionsuch as quilting in Gees Bend, AL is maintained andincreased by building the artistic skills of the nextgeneration
  21. 21. 21Wealth & Livelihood: The Relationship● Livelihood: Being able toovercome vulnerability,rebound from life’semergencies, maintain dignityand control, get ahead, andtake risks to seizeopportunities.● You cannot achieve livelihood and sustain it ̶ a family’s, afirm’s, a community’s or a region’s ̶ with financial capitalalone.● You must have the other capitals to actually producesomething.● Increasing all the capitals sets regions, communities,firms and families up for better livelihood outcomes overtime.
  22. 22. 22Community Wealth: ImportantTakeaway Points● Investments in multiple forms of capital are neededto create sustainable wealth.● The capitals critical to your place are best understoodand defined by and for your community.● Good economic development strategies strive to thestock of as many capitals as possible while none.● Livelihoods are at the heart of what we want toimprove. That means we must be concerned withbuilding wealth that sticks – that is locallyowned, controlled and invested.
  23. 23. Part 3: WealthWorks Value Chains
  24. 24. What do we mean by a“WealthWorks Value Chain?”A WealthWorks value chain is:a business model based onshared economic, social, and environmental values,in which buyers, processors, producers and otherswork together for mutual benefitto create valuein response to market demandwhile building community wealth.
  25. 25. Traditional Supply Chain● Chain starts with producersupply● Measured by net incomeproduced● Everyone is in it for him/herself● Power determines who gets paidhow much for their role● Participants try to pass on coststo others within or outside ofchain● Tries to influence policy to createadvantage and maximize short-term incomeWealthWorks Value Chain● Chain starts with consumerdemand● Measured by wealthcreated/retained● Everyone is in it together● Intentionally balances mutualbenefit of all in chain● All known costs are consideredand addressed● Tries to influence policy to levelthe playing field and maximizelong-term and widely sharedwealthWealthWorks Value Chains vs. SupplyChains
  26. 26. Generic WealthWorks Value Chain
  27. 27. What’s Different about aWealthWorks Value Chain?Begins with demand — Responds to demand attwo levels:– Demand for the product/service– Demand for secondary benefits createdBuilds relationships — Information, self-interest,opportunities for mutual benefit openly shared,managed by a coordinator.Focus on building wealth — Intentional focusdrives how the chain gets built, who benefits, andhow impacts are measuredCreates sustainable capacity — Potential for thesocial, intellectual, and political capital built throughthis process to be applied to other sectors over time
  28. 28. Part 4: Components ofWealthWorks Practice on theGround
  29. 29. ConnectingCommunityAssets1. Identify an Opportunity Sectorand product.To MarketDemand2. Explore market potential andanchor demand.For LastingLivelihoods3. Construct a WealthWorksValue Chain and make wealthstick.It takes Practice(s):
  30. 30. Identifying Opportunity Sectors andSub-sectors● Understanding underutilized resources and theirpotential contributions to demand● Start with the sectors that you know are or could beviable in your region.● Determine which of these sectors has potential togrow more and better jobs for people already in theregion.● Think about which sector offers opportunity to generatemore locally owned and controlled resources (e.g.,firms, rights, community and individual property,patents)● Pay close attention to the energy and excitementthat people have about growing this sector.
  31. 31. ● Identifying demand side partners. Ask whatpeople want.● Understanding value propositions.● Look for early adopter anchor customers who canhelp you get up and running.● Framing inclusive business● Building reciprocal relationships over time● Developing agreements that make wealth stick● Presenting investment opportunitiesExploring the Demand Side
  32. 32. Constructing WealthWorks value chains● Technical assistance● Training & certifications● Product development, Marketing● Training, Best practices in building different formsof wealth● Identifying partners, making introductions● Measuring baseline conditions and developinginformation systems that add value
  33. 33. Making wealth stickResearch, design, and guide implementation ofinnovative structures for ownership and control ofwealth such as:● Cooperatives● Community land trusts● Community Benefits Agreements● Municipal Land Trusts● Balanced contracts that include shared risk● And more...
  34. 34. Four roles for low-wealth people inWealthWorks value chains● As producers/entrepreneurs adding value to agood or service connected to equitable markets● As employees of businesses engaged in producinggoods or services, or organizations supportingWealthWorks value chains● As consumers of higher quality/lower cost goodsor services produced by WealthWorks value chains● As co-producers able to access goods or servicesthat increase productivity, and/or reduce or avoidcost (e.g. energy efficiency, group certification)
  35. 35. The WealthWorks ApproachProduces and Sustains Robust ResultsIt brings underutilized community assets – people,place, property and know-how – into participationand production.It creates wealth that is owned, controlled, andreinvested locally.It increases the upward mobility of low-incomepeople, firms and places while building a more self-reliant regional economy.It forges valued partnerships within a network ofpeople and resources ̶ so that they can more ablyand flexibly connect again and again to fuelincreasingly resilient regions.
  36. 36. Learning about your strengths increating or impacting different formsof wealth.
  37. 37. Intellectual capital is the stock ofknowledge, innovation, and creativity orimagination in a region.Seven Forms of CapitalSocial capital is the stock of trust,relationships, and networks that supportcivil society.Individual Capital is the stock of skills andphysical and mental healthiness of people ina region.
  38. 38. Natural capital is the stock of unimpairedenvironmental assets (e.g. air, water, land,flora, fauna, etc.) in a region.Seven Forms of CapitalBuilt capital is the stock of fully functioningconstructed infrastructure.
  39. 39. Financial capital is the stock ofunencumbered monetary assets invested inother forms of capital or financialinstruments.Seven Forms of CapitalPolitical capital is the stock of power andgoodwill held by individuals, groups, and/ororganizations that can be held, spent orshared to achieve desired ends.A wealth creation approach intentionally createsseven forms of wealth without undermining anyone to build another.
  40. 40. -3 A significant and lasting negative impact on individual capital(exploitation)-2 Creates significant new barriers to positive and equitableimpacts on individual capital-1 A slightly negative impact on individual capital0 No discernible impact – neither creates nor removes barriers oropportunities+1 A slightly positive impact with no new barriers, but no alleviation ofexisting barriers+2 Builds the stocks of individual health and skills in parts of an existingorganization or community and/or removes existing barriers+3 Intentionally creates new opportunities for individual wealthcreation on a systemic institutionalized basisIndividual CapitalWhat is your impact on the stock of skills, physicaland mental health of people?
  41. 41. For More InformationPlease visit:www.creatingruralwealth.organdhttp://www.yellowwood.org/wealthcreation.aspxTo Join the National Community of Practice, visitwww.ruralwealth.orgOr contact:Melissa LevyYellow Wood Associates802-524-6141melissa@yellowwood.org

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