Community Wealth Building

Where does Community Wealth come from? 

We used to talk about the economic multiplier effect – the extent to which money spent in a community remains in the community. But this doesn’t mean the resulting wealth is evenly distributed; historically economic growth has often accentuated disparities in communities. That’s where community wealth building comes in. In contract to the ‘trickledown model’ of economic growth, community wealth building aims to build an economic system which builds wealth for everyone, not just for those at the top of the pyramid. 

Sounds great, idealistic and utopian. How community wealth building might be achieved is another thing altogether. We’re far from having all the answers, but here’s a few things to look out for in checking whether economic activity might lead to community wealth building… 

Is it sensitive to natural capital, cultural capital and social capital? Like financial capital, if used properly these things are sustainable and renewable resources. Economic activity should make use of nature, culture and community in a way that strengthens rather than depletes them. If it does it can enable community wealth building; if it doesn’t it will ultimately make some people poorer. 

Is it community led? This doesn’t mean it needs to be delivered by a community-based social enterprise, but economic activity should be aligned with development plans set out by place-based community organisations. Almost every community has a development trust or community company of some sort. All produce a vision, authored by the community. The plans should inform all economic activity affecting that place. 

Does it have a long-time horizon? We all want to leave the world a better place for our children and grandchildren. We have a responsibility for ensuring intergenerational equity, and this means asking ourselves about the long-term costs and benefits of what we do. Community land ownership has been termed a ‘forever project’, since the fruit of our efforts today will remain in the community in perpetuity. Can we say the same of all economic development? 

These are not insignificant considerations; community wealth building is not low-hanging fruit. But the value to be derived from getting it right is worth the time taken to ask ourselves the hard questions.