economy . It is intentionally designed for leaders and practitioners who wish to make a qualitative and wellbeing shift to the economy and ensuring a greater reliability of outcomes as regards meaningful work , inclusion , economic stability and environmental sustainability . Above all CWB does not just assume social and environmental gains , but rather hotwires and plans for them through a consideration as regards to how and who the economy functions for and how wealth is achieved for all .
CWB uses a range of existing and new progressive elements across all sectors of a local economy , like social procurement , community land trusts , worker cooperatives , public banking , fair work etc . and ‘ supercharges their individual power , connecting and scaling them in a systemic way through policy development , institutional design , and ecosystems of support . It does so in coordination with local governments , economic development teams , anchor institutions , labor unions , and community leaders : helping them work in harmony , identify what elements are needed , and see the big picture as they replicate successful new tactics ’ ( McInroy , Mckinley and Sutton , 2022 )
THE IMPORTANCE OF ANCHOR INSTITUTIONS At the heart of Community Wealth Building are anchor institutions as economic agents and shapers of the economy . In essence they are core community wealth builders ( Jackson and McInroy 2017 ). Anchor institutions are large public , non-profit and social sector organisations . They can exert sizeable influence in the local economy through the purchase of goods and services , the employment of local people , and through the deployment of their land , property and financial assets . Most importantly , unlike large global corporations , they are place based and therefore highly unlikely to take up and leave . They are also susceptible to democratic pressure , accountability , oversight , and direction . Examples of anchor institutions include local government , educational and school systems , the health service cultural institutions , locally rooted business and large place-based non-profit organisations .
The role of anchor institutions is based around institutional economics , particularly the notion that institutions can shape economic activity and behaviour . This theoretical bedrock sparks a different way of thinking of institutions and the influence they have on people and society , positioning anchors as a potentially powerful force for social , economic , and environmental justice within a locality .
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 ).
THE MODEL FOR CWB Alongside Anchor Institutions is the fivepillar model for CWB . This model was first designed by myself in response to economic development practitioners , who sought an easy way to translate CWB into practical action in their economic strategy and plans . This work was progressed via a number of Action Plans now in evidence in the UK . This approach has subsequently been translated by myself and Democracy Collaborative colleagues within a USA context ( McInroy , McKinley and Sutton , 2022 ). Many of the elements within the pillars are not especially new . However , CWB places these individual elements within a broader , interconnected cohesive strategy , usually in the form of local area action plans . The pillars are as follows .
• Progressive procurement . The procurement and commissioning of goods and services by local councils and key anchor institutions is a crucial lever in the building of community wealth . It is vital that Councils and key partners use their purchasing power and convening abilities to deliver economic , social , and environmental justice to the local area through the progressive procurement and commissioning of goods and services .
By progressive procurement and commissioning , we mean a number of things . First , it is about increasing the importance of procurement as a corporate function . Procurement spend is a key tool and resource for economic development and should be thought of and used in that way . Second , it is about increasing levels of spend with local organisations and smaller enterprises . Third , it is about using procurement and commissioning levers to address the local economic , social , and environmental challenges faced within an area , through prompting net zero and innovation within the supply chains of the anchor institutions .
• Locally rooted finance . One necessary element in the institutional landscape of all successful Community Wealth Building efforts is a plurality of personal , enterprise and investment finance , including a network of diverse local banking forms , including public and community banks , credit unions and targeted use of superannuation funds .
Local investment should ensure that an economy is developed in a way in which local people and communities benefit , positive social outcomes are secured , and wealth grows and recirculates for local benefit . To support this , it is integral to cultivate thriving community development financial institutions ( CDFIs ) and community-focused banking / lending to ensure that monies flow into communities .
• Inclusive and democratic enterprise . As with all CWB activities and interventions , the aim is to make the overall economy less “ extractive ” and more “ generative ,” so that the benefits of asset ownership are broadly shared and recirculatory . There is a broad spectrum of inclusive ownership in enterprise , from more conventional locally owned to more democratic forms of worker-owned cooperatives .
There is no one-size-fits-all approach , and the best form depends on historical , cultural , and geographical context and needs . The aim of these forms of enterprise is not solely profit or efficiency , but wider values associated with achieving social stability , profit sharing and wealth distribution , participation and community control over decision-making and environmental sustainability .
ECONOMIC DEVELOPMENT JOURNAL VOL 15 NO 3 2022 07