Community Economic Development
Community Economic Development considers the overall development of a community. A community may be defined within a geographical location, or as a group of people sharing common elements such as economic situations.
An organization working in Community Economic Development should:
- Respond to or emerge from community level issues.
- Include a broad range of people within the community, bringing together disadvantaged people, and those who can help.
- Build capacity through economic development.
- Merge social and economic goals of the community.
- Seek to build local capacity to revitalise the community.
- Link economic, social, cultural, environmental and other resources in the community.
- Concentrate on medium and longer-term approaches instead of short-term quick fixes.
- Ensure that benefits go directly to the community at large rather than to individuals within the community.
- Use as many local resources as possible.
- Manage finances in a responsible way, having a wide range of supporters.
CED is an alternative to conventional approaches to economic development, founded on the belief that problems facing communities – unemployment, poverty, job loss, environmental degradation and loss of community control – can best be addressed by a community-led, grassroots, holistic approach. Action by people locally to create economic opportunities and enhance the social and environmental conditions of their communities, particularly with those most marginalized, on a sustainable and inclusive basis.
CED works on all levels:
Individual – enhancing individual capacities
Community – enhancing community capacity and capital
Systemic – building supportive economic and social environments
There is a growing body of evidence that the CED approach is effective in:
- Ensuring solutions ‘fit’ local needs and priorities.
- Improving the lives of marginalized residents.
- Strengthening the capacity of local institutions.
- Expanding the local economy.
- Generating a ‘return’ to the taxpayer.