An economic development model that transform local economies based on communities having ownership and control of their assets. It aims to restructure the economy to make it more democratic.
Name of Method
Brief description
CWB redirects flows of wealth to benefit workers, residents and consumers to get better pay, more secure jobs and locally rooted businesses thatshare the wealth with the community.
It uses the economic power of locally-rooted organisations such universities, hospitals, councils, colleges (entities that are tied to their lcoation, here termed anchor institutions) to redirect the flows.
CWB aims to empower local governments and communities through participation, social responsibility and democrtaic accountability to create and retain weatlh locally.
Type/Level of Method
Challenges
Problem, Purpose and Needs
Community wealth building creates an economy that produces equity as its everyday function. There are growing concerns over environmental degradation and increased inequality; CWB looks at possible ways to suport communities to become more resilient.
Relevance to Climate Neutrality
Challenges
Thematic Areas
Impact Goals
Issue Complexity
Issue Polarisation
Enabling Condition
Essential Considerations for Commissioning Authorities
In the UK, CWB has mostly been implemented at the municipal level.
Possible ways to support CWB locally:
- Making connections with local businesses, organisations and community groups and advocate for their involvement.
- Investigating/questioning how one's own community maximises community benefits and what available support is there for local businesses.
- Creating a cabinet community wealth portfolio.
Elements that are interventions to help democraticise local economies:
- Community land trusts
- Social wealth funds
- Community development financial institutions
- Worker-owned enterprises and co-operatives
- Employee stock ownership plans
- Local government partnership with anchor institutions
Engagement Journey
Governance Models and Approaches
Enabling Conditions
Democratic Purpose
Spectrum of participation
Communication Channels
Actors and Stakeholder Relationships
Participant Numbers
Actors and Stakeholders
Participant Recruitment
Interaction between participants
Format
Social Innovation Development Stage
Scope
Time commitment
Resources and Investments
Typical duration
Resources and Investments
In-house
Step by Step
1. Co-operative political leadership
- Realising that local leadership is curcal for the culture of change toward CWB.
- Making a long-term commitment to CWB by for example embedding it in the economic strategy.
- Appointing a cabinet lead/manager for co-operatives and community wealth.
- CWB must be properly resourced with a sufficient amount of staff. Promoting croww-department work.
2. Anchor institutions
- Creating a network of anchors, and decide a framework of basic behaviours.
- These anchors should be significant employers in the location.
- Commissioning a study on the impact of eisitng anchor institutions to get evidence on where CWB could have the greatest impact.
3. Progressive procurement
- Making judgements on goods and tenders not only based on the assessment of cost but also on the community benefit and value for momey.
- Mapping local businesses, co-operatives and social enterprises and provide them with support to tender for work.
- Increasing the spend with lcoal organisations, and small and medium enterprises.
- Supporting anchor institutions to revisit procurement strategies.
- Providing training on how good s and services an enhance local economies.
4. Co-operative development
- Establishing a co-operative commission to expand the co-operative sector.
- Creating an investment fund using the capital from anchors.
- Providing guidance to businesses on co-operative business models.
5. Local investment
- Setting up regional banks which can lend to SMEs and co-operatives to help them grow.
6. Assests and services working for the community
- Ensuring that people can afford housing, energy and other expenses in their lives.
- Supporting the development of credit unions.
- Local assets and services should be owned by the community.
Evaluation
Connecting Methods
Systems change-
Flexibility and Adaptability
Existing Guidelines and Best Practice
Democracy Collaborative. (2022, April). Community wealth building. A toolkit for local councillors. Retrieved from https://peoplesmomentum.com/wp-content/uploads/2022/04/CWB_MTM_11_April.pdf
References and Further Resources
Community wealth building. A guide for new council members. CLES. Retrieved from https://cles.org.uk/wp-content/uploads/2022/05/New-Councillor-Briefing-FINAL.pdf
Community wealth building. Democracy Collaborative. Retrieved from https://democracycollaborative.org/community-wealth-building
Community wealth building in neighbourhoods. A St George’s House consultation. Local Trust. Retrieved from https://localtrust.org.uk/wp-content/uploads/2020/02/St-Georges-House-consultation_community-wealth-building-in-neighbourhoods.pdf
Democracy Collaborative. (2022, April). Community wealth building. A toolkit for local councillors. Retrieved from https://peoplesmomentum.com/wp-content/uploads/2022/04/CWB_MTM_11_April.pdf
Birley, A. (n.d.). 6 steps to build community wealth. Using what we already have to generate local economic growth cooperatively. The Co-operative party. Retrieved from https://party.coop/wp-content/blogs.dir/5/files/2017/06/Community-Wealth-Building-FINAL-WEB.pdf