Introduction to Community Economic Development

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Introduction to Community Economic Development

• What it is and the case for it

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Community Economic Development

• a.k.a. Community-based development
• An approach emphasizing local self-sufficiency,
  local decision-making, and local ownership.
• A strategic response that might assist
  communities to take up development opportunities
  and challenges. (Loxley, 2000)

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A holistic approach

• It links economic development with a wider
  social and economic process.

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• small scale economic activities
• provision of local needs and demand
• a microeconomic approach

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• No universally accepted definition of CED

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United Nations 1955

• A process designed to create conditions of
  economic and social progress for the whole
  community with its active participation and the
  fullest reliance upon the communitys initiative.

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Conference Board of Canada 1994

• A strategy by which local development
  organizations mobilize local resources for a
  multi-faceted development campaign.

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CED in the economic context

• polar opposite of capitalist forms of development
  
• capitalist development typically brings the
  development to a community from the outside
• CED promotes development from the inside

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CED in the economic context

• people in a community are to be the authors,
  architects and builders of their development

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CED in the economic context

• The people of a community may need assistance and
  supports in building their communitys future.

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• What is a community?

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• What is the case for CED?

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The concept of the Social Economy is relevant
to CED
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What is the social economy?

• The social economy is a grass-roots
  entrepreneurial, not-for-profit sector, based on
  democratic values that seeks to enhance the
  social, economic, and environmental conditions of
  communities, often with a focus on their
  disadvantaged members.
• (Human Resources and Social Development Canada)

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Why is the federal government interested in
social economy enterprises?

• Governments are increasingly turning to
  community-based processes and initiatives to
  address local problems with local solutions.

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What are social economy enterprises?

• Social economy enterprises are run like
  businesses
• Produce goods and services for the market economy
• Manage their operations and redirect their
  surpluses in the pursuit of social and community
  goals
• Often grow out of broad-based community
  development strategies

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What benefits do the social economy bring to
communities?

• It contributes to a range of community goals and
  has the potential to create collective wealth
  through the production of goods and services.

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Social economy enterprises provide a flexible
and sustainable tool that can help communities to
achieve their own objectives, such as

• stimulating job creation and skills development
• enhancing community capacity for social supports
  
• supporting economic growth and neighbourhood
  revitalization
• protecting the environment
• mobilizing disadvantaged groups.

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Is the social economy important in other parts of
the world?

• Several of OECD countries have developed
  strategies to promote social enterprises.
• The European Union includes the social economy in
  its entrepreneurship pillar.
• The UK launched a strategy with the Department of
  Trade and Industry to support the growth of the
  social economy (2002).