An Illinois Community Wealth Building Action Agenda

Presentation to the Governor’s Task Force on Social Innovation, Entrepreneurship and Enterprise

Ted HowardThe Democracy CollaborativeApril 24, 2013 – Chicago, IL

The Prevailing Economic Development Paradigm

Some of its characteristics and elements include:• Subsidies and tax breaks to entice corporations to relocate ($80B)

• Workforce training not linked to actual jobs ($37B)

• Regional trickle down strategies that do not reach low- and

moderate-income neighborhoods

• Growth & GDP – toward what end?

• Low-wage (non-living wage) job creation, often without benefits

• Exclusion of ex-offenders and others with barriers to employment

• Gentrification and dispersal of traditional residents

• “Throwaway cities” and their infrastructure

• Privatization of publicly owned goods

What is the Community Wealth Building Paradigm?

A New Approach to Economic Development that:• emphasizes democratization of wealth• focuses on place & local economy• promotes broader ownership of capital

• anchors jobs locally• stops the leakage of dollars from

communities• supports individual & family wealth

building• reinforces stewardship over capital• generates revenues to finance public

services• leverages anchor institutions for local

benefit• contributes to local economic stability• total cost accounting of economic

decisions

An Integrated Community Wealth Approach

Key ComponentsPutting the Pieces Together

Help individuals build wealth and savings

Create community-owned businesses and other entities that provide living wage jobs and root wealth in communities

Link community businesses with anchor procurement needs and public expenditures

FamilyWealth Building

BroaderOwnership

Anchor Institutions

Retaining Jobs and Building Wealth through Employee Ownership

Action Agenda:• Develop an Illinois Employee Ownership Center to retain existing jobs

• Assist Illinois banks to refinance employee ownership

Deploying State and Other Public Assets to Reinvest in Illinois

Action Agenda:• Leverage Hospital investment

• Promote greater community investment by universities in Illinois

• Invest state pension fund dollars in Illinois

Investing in Resident-owned Affordable Housing

Action Agenda:• Convert manufactured housing into resident-owned communities

• Redirect housing dollars to support permanently affordable

housing.

Supporting Cooperative Business Development

Action Agenda:• Reform Illinois’ Cooperative Statute

• Support cooperative development in rural Illinois

• Catalyze cooperative job creation strategies in low-income

communities

Promoting a New Paradigm of Economic Development for Illinois

Action Agenda:• Convene Community Wealth Building Roundtables in key Illinois

cities

For more information:thoward1@umd.edu

www.Community-Wealth.org