It has been suggested that Community economic analysis be merged into this article. (Discuss) Proposed since December 2023. |
Community economic development (CED) is a field of study that actively elicits community involvement when working with government and private sectors to build strong communities, industries, and markets. [1] It includes collaborative and participatory involvement of community dwellers in every area of development that affects their standard of living.
Community economic development encourages using local resources in a way that enhances economic opportunities while improving social conditions in a sustainable way. It equally facilitates the effective exploration and utilization of local resources for optimal community advantages. Often CED initiatives are implemented to overcome crises and increase opportunities for communities who are disadvantaged. An aspect of "localizing economics," CED is a community-centered process that blends social and economic development to foster the economic, social, ecological, and cultural well-being of communities. For example, neighborhood business organizations target growth in specific commercial areas by lobbying government authorities for special tax rates and real estate developments. [2]
Community economic development is an alternative to conventional economic development. Its central tenet is that "problems facing communities—unemployment, poverty, job loss, environmental degradation and loss of community control—need to be addressed in a holistic and participatory way." [3]
Economic development has existed even at a basic level since the earliest recorded communities. However, in the US and several other countries, the concept of community economic development emerged "in response to tenacious poverty and the need for affordable housing, good jobs, affordable health care and quality of life matters needed for human existence." [4]
In the late 19th century, reformers discovered less-than-desirable areas of the country where communities were overcrowded, unhealthy, poor, and located near factories, docks, and other places of employment. In the early twentieth century during the Progressive Era, reformers began making connections between the condition of communities and "social ills" such as crime and poverty and proposing ways to improve upon them. [5] The Progressive agenda of political, social, and physical reform swept the nation and led to comprehensive antipoverty strategies, embodied by New Deal programs and other grants in the 1930s. Policies during this time were top-down, and citizens affected by them had very little input into the changes being made. Once communities began to be revitalized, segregation policy followed to determine who was allowed to live where. Housing policy and real estate practices stifled upward mobility for non-whites, and their communities developed with unique characteristics and problems as a result. These actions shaped communities until the 1960s, when President LBJ signed into law many anti-discriminatory laws, such as the Civil Rights Act of 1964, and declared a war on poverty, which brought renewal and upward mobility for many people. More loan programs, grants, and fair housing policies were implemented throughout the 1960s and 1970s but still failed to be non-discriminatory on the basis of race in some cases thus shaping communities in a particular fashion. Social investment gained momentum once again in the 1980s and 1990s, bringing change to communities across America. Municipal governments become more representative of the communities they serve, and the public is more involved and can interact with bureaucracies and elected officials with greater ease. Many initiatives existed at this time to renew inner cities and rural areas while also tackling social issues such as eradicating drugs and improving education. The modern-day CED movement is focused on renewing urban and rural communities. Social justice is a key component to policy and conversation about changes to be made[ citation needed ]. Citizens are engaged with bureaucracies and their elected officials through a variety of mediums such as social media. Input from the people has gained more value due to increased demands for transparency.
In Nigeria CED is approached with a central focus on sustainability referred to as Sustainable Community Development. This concept combines economic, social and environmental practices and policies that promote sustainability for future generations. Much of this began in the 1980s, 2 decades after gaining independence, when the World Bank declared Nigeria eligible to receive funds from the International Development Association (IDA).
In Asia for the last 60 years the Asian Foundation has supported Asian initiatives to foster inclusive economic growth and broaden economic opportunities. The Foundation designs and implements economic programs in three core areas business environments for private sector growth, Entrepreneurship Development and Regional Economic Cooperation.
Economic development is not just limited to developing countries. Canada's provincial governments have been encouraging and funding municipal economic development efforts for decades. [6]
The most significant aspect of community economic development, aside from the fact that it focuses on economic development in specific localities, is that focuses on the process of community building. This “community” aspect of CED assumes that the community will play a dynamic role in economic development processes and that community development will contribute to sustained economic development and vice versa. In this understanding, the community is considered both an input and an output in CED. [7]
From an economic viewpoint, the initial purpose of such a CED approach is the creation of local jobs and the stimulation of business activity. Integrally linked to these purposes are strategies to increase access to capital, stimulate asset building, improve the general business climate, and link citywide economic development efforts to specific community development efforts. [7]
Increasing access to capital is an extremely important strategy for community economic development. Historically, residents in poor neighborhoods have experienced great difficulty finding access to capital because they are traditionally viewed as credit risks. In places where banks do offer services, these residents face other structural barriers such as minimum deposit requirements, high service fees, and complex paperwork. To solve these problems, a community economic development approach would develop alternate neighborhood community development financial institutions such as community development credit unions, community development banks, and community development venture capital funds. [7]
Improving the general business climate is also integral to community economic development. Strategies to do so would include improving the infrastructure and physical appearance of commercial areas, the quality of quantity of residential housing, and the transportation systems in a neighborhood. While these may not directly effect economic activities, they serve to strengthen the economic well being of an area because it encourages businesses to locate there. [7]
Community economic development exists in all developed countries but varies in the way it functions with the different systems of governments around the world. Research makes it apparent that there are common goals and objectives such as economic activities and programs that develop low-income communities. [5] Community Development Corporations, reformers and other agencies have other common initiatives including services to fight homelessness, lack of jobs, drug abuse, violence and crime as well as quality medical and childcare and home ownership opportunities while also bringing economic prosperity. [5] Another increasingly common objective is to preserve the character of communities and strong support for local business.
Countries across the globe participate in reinvestment and development through a bank such as the Community Reinvestment Act, World Bank and the IDA amongst many others. Another commonality for nations international is need to incorporate sustainability and the natural environment into the growth of societies.
Redlining is a discriminatory practice in which financial services are withheld from neighborhoods that have significant numbers of racial and ethnic minorities. Redlining has been most prominent in the United States, and has mostly been directed against African-Americans. The most common examples involve denial of credit and insurance, denial of healthcare, and the development of food deserts in minority neighborhoods.
The U.S. Economic Development Administration (EDA) is an agency in the United States Department of Commerce that provides grants and technical assistance to economically distressed communities in order to generate new employment, help retain existing jobs and stimulate industrial and commercial growth through a variety of investment programs. EDA works with boards and communities across the country on economic development strategies.
The Inter-American Development Bank is an international financial institution headquartered in Washington, D.C., United States of America, and serving as the largest source of development financing for Latin America and the Caribbean. Established in 1959, the IDB supports Latin American and Caribbean economic development, social development and regional integration by lending to governments and government agencies, including State corporations.
The United Nations defines community development as "a process where community members come together to take collective action and generate solutions to common problems." It is a broad concept, applied to the practices of civic leaders, activists, involved citizens, and professionals to improve various aspects of communities, typically aiming to build stronger and more resilient local communities.
The Community Reinvestment Act is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.
Poverty reduction, poverty relief, or poverty alleviation is a set of measures, both economic and humanitarian, that are intended to permanently lift people out of poverty.
Private sector development (PSD) is a term in the international development industry to refer to a range of strategies for promoting economic growth and reducing poverty in developing countries by building private enterprises. This could be through working with firms directly, with membership organisations to represent them, or through a range of areas of policy and regulation to promote functioning, competitive markets.
Capacity building is the improvement in an individual's or organization's facility "to produce, perform or deploy". The terms capacity building and capacity development have often been used interchangeably, although a publication by OECD-DAC stated in 2006 that capacity development was the preferable term. Since the 1950s, international organizations, governments, non-governmental organizations (NGOs) and communities use the concept of capacity building as part of "social and economic development" in national and subnational plans. The United Nations Development Programme defines itself by "capacity development" in the sense of "'how UNDP works" to fulfill its mission. The UN system applies it in almost every sector, including several of the Sustainable Development Goals to be achieved by 2030. For example, the Sustainable Development Goal 17 advocates for enhanced international support for capacity building in developing countries to support national plans to implement the 2030 Agenda.
The term "sustainable communities" has various definitions, but in essence refers to communities planned, built, or modified to promote sustainable living. Sustainable communities tend to focus on environmental and economic sustainability, urban infrastructure, social equity, and municipal government. The term is sometimes used synonymously with "green cities," "eco-communities," "livable cities" and "sustainable cities."
Rural development is the process of improving the quality of life and economic well-being of people living in rural areas, often relatively isolated and sparsely populated areas. Often, rural regions have experienced rural poverty, poverty greater than urban or suburban economic regions due to lack of access to economic activities, and lack of investments in key infrastructure such as education.
Social finance is a category of financial services that aims to leverage private capital to address challenges in areas of social and environmental need. Having gained popularity in the aftermath of the 2008 global financial crisis, it is notable for its public benefit focus. Mechanisms of creating shared social value are not new; however, social finance is conceptually unique as an approach to solving social problems while simultaneously creating economic value. Unlike philanthropy, which has a similar mission-motive, social finance secures its own sustainability by being profitable for investors. Capital providers lend to social enterprises, who in turn, by investing borrowed funds in socially beneficial initiatives, deliver investors measurable social returns in addition to traditional financial returns on their investment.
Urban sociology is the sociological study of social life and human interaction in metropolitan areas. It is a normative discipline of sociology seeking to study the structures, processes, changes and problems of an urban area and by doing so providing inputs for planning and policy making.
Local economic development (LED) is an approach to economic development, of note in the developing world that, as its name implies, places importance on activities in and by cities, districts and regions. Local economic development combines economic development activities, urban planning, infrastructure development and social development activities to improve local conditions. LED encompasses a range of disciplines including physical planning, economics and marketing, all with the goal of building up the economic capacity of a local area to improve its economic future and the quality of life for all.
Social protection, as defined by the United Nations Research Institute for Social Development, is concerned with preventing, managing, and overcoming situations that adversely affect people's well-being. Social protection consists of policies and programs designed to reduce poverty and vulnerability by promoting efficient labour markets, diminishing people's exposure to risks, and enhancing their capacity to manage economic and social risks, such as unemployment, exclusion, sickness, disability, and old age. It is one of the targets of the United Nations Sustainable Development Goal 10 aimed at promoting greater equality.
Jewish Council on Urban Affairs (JCUA) is a nonprofit organization based in Chicago that mobilizes the Jewish community of the region to advance racial and economic justice. JCUA partners with diverse community groups across the city and state to combat racism, antisemitism, poverty and other forms of systemic oppression, through grassroots community organizing, youth education programs, and community development.
A sustainability organization is (1) an organized group of people that aims to advance sustainability and/or (2) those actions of organizing something sustainably. Unlike many business organizations, sustainability organizations are not limited to implementing sustainability strategies which provide them with economic and cultural benefits attained through environmental responsibility. For sustainability organizations, sustainability can also be an end in itself without further justifications.
Armenia was admitted into the United Nations on 2 March 1992, following its independence from the Soviet Union. In December 1992, the UN opened its first office in Yerevan. Since then, Armenia has signed and ratified several international treaties. There are 20 specialized agencies, programs, and funds operating in the country under the supervision of the UN Resident Coordinator. Armenia strengthened its relations with the UN by cooperating with various UN agencies and bodies such as the International Monetary Fund, the World Bank, the World Food Programme, and with the financial institutions of the UN. Armenia is a candidate to preside as a non-permanent member of the UN Security Council in 2031.
The Nigerian Capital Development Fund (NCDF) is an independent social investment financial intermediary institution. This hybrid organization was set up mainly to address the challenges of poverty in low income rural communities in Nigeria. The institution mobilizes capital from the public and private sectors to invest in projects, businesses and social enterprises with the intention to generate good financial returns and measurable positive social-environmental impact, as well as act as a champion to help increase awareness and confidence on the advantages of impact investing.
Environmental issues in Yemen are abundant and are divided into the categories of land and water. In the aspect of water, Yemen has limited natural fresh water resources and inadequate supplies of potable water. As for the land, two main issues of Yemen are overgrazing and desertification. Yemen has signed several international agreements: Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, and Ozone Layer Protection.
Sustainable Development Goals and Lebanon explains major contributions launched in Lebanon towards the advancement of the Sustainable Development Goals SDGs and the 2030 agenda.
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