COMMUNITY WEALTH BUILDING
RESETTING ECONOMIC DEVELOPMENT
Neil McInroy
In the face of climate crisis , and growing inequality , local economic development needs to change . Community Wealth Building ( CWB ) is a theory , model and practice that is already recalibrating the practice of economic development . In a growing number of places across the world , CWB is becoming the means by which we ensure that the economy truly works for people , place and the planet .
BRINGING ECONOMIC DEVELOPMENT BACK ‘ HOME ’ The word ‘ economy ’ can be traced back to the Greek word oikonomos , – ‘ one who manages a household ’. However , the idea that the economy is about nurturing our planetary ‘ home ’, is often detached and lost from modern day economic development discussions . Indeed , all too often the social and environmental sphere is seen as an assumed outcome of economic activity , rather than a planned for and locked-in necessity .
As we tackle the climate emergency , with attendant economic , social and racial injustices we need to fundamentally develop the character and structure of economy . For too long economic development has become over synonymous with growth rather than ‘ development ’ ( McInroy ( 2017 ). This focus on economic growth is problematic and limited , in that it broadly refers to an increase in quantity ( i . e greater GVA , higher GDP ) rather than quality i . e . better jobs and greater general wellbeing .
Furthermore , when we in economic development think about growth , we often turn to questions around how we entice investment capital into our location . From this we make assumptions that wealth creation will then flourish , the business supply chain will benefit and long-lasting local jobs will be secured . However , this pathway fails to fully acknowledge the climate emergency and is often found wanting in its own terms : ‘ trickle down ’ and a geographic ‘ trickle outward ’ of wealth does not often work at scale required . Indeed , many Australians now suffer from poverty and an inequality of income and wealth is now entrenched : with the poorest 50 % of Australians sharing only 6 % of national personal wealth , whereas the middle 40 % and top 10 % own around 38 % and 56 % respectively ( World Inequality Lab 2022 ).
In addition , in an era of global capital flows , financial investment can come with little or no attachment , connection or affinity to local places , with subsequent returns extracted into the ether of the global economy . In this , investment and stakeholder demand and dividend often drive up the price of land and property , adding to the growing housing affordability crisis and weakening the Australia dream of a property-owning democracy .
A RESET TO ECONOMIC DEVELOPMENT- COMMUNITY WEALTH BUILDING First articulated by The Democracy Collaborative ( TDC ) in 2005 . CWB transforms the economic development model and practice by giving communities more of a direct ownership stake in the
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