1. An Illinois Community Wealth Building Action Agenda
Presentation to the Governor’s Task Force on Social Innovation, Entrepreneurship and Enterprise
Ted Howard
The Democracy Collaborative
April 24, 2013 – Chicago, IL

2. The Prevailing Economic Development Paradigm
Some of its characteristics and elements include:
Subsidies and tax breaks to entice corporations to relocate ($80B)
Workforce training not linked to actual jobs ($37B)
Regional trickle down strategies that do not reach low- and moderate-income neighborhoods
Growth & GDP – toward what end?
Low-wage (non-living wage) job creation, often without benefits
Exclusion of ex-offenders and others with barriers to employment
Gentrification and dispersal of traditional residents
“Throwaway cities” and their infrastructure
Privatization of publicly owned goods

3. What is the Community Wealth Building Paradigm?
A New Approach to Economic Development that:
• emphasizes democratization of wealth
• focuses on place & local economy
• promotes broader ownership of capital
• anchors jobs locally
• stops the leakage of dollars from communities
• supports individual & family wealth building
• reinforces stewardship over capital
• generates revenues to finance public services
• leverages anchor institutions for local benefit
• contributes to local economic stability
• total cost accounting of economic decisions

6. An Integrated Community Wealth Approach
Key Components
Putting the Pieces Together
Help individuals build wealth and savings
Create community-owned businesses and other entities that provide living wage jobs and root wealth in communities
Link community businesses with anchor procurement needs and public expenditures
Family
Wealth
Building
Broader
Ownership
Anchor
Institutions

7. Retaining Jobs and Building Wealth through Employee Ownership
Action Agenda:
Develop an Illinois Employee Ownership Center to retain existing jobs
Assist Illinois banks to refinance employee ownership

8. Deploying State and Other Public Assets to Reinvest in Illinois
Action Agenda:
Leverage Hospital investment
Promote greater community investment by universities in Illinois
Invest state pension fund dollars in Illinois

9. Investing in Resident-owned Affordable Housing
Action Agenda:
Convert manufactured housing into resident-owned communities
Redirect housing dollars to support permanently affordable housing.

10. Supporting Cooperative Business Development
Action Agenda:
Reform Illinois’ Cooperative Statute
Support cooperative development in rural Illinois
Catalyze cooperative job creation strategies in low-income communities

11. Promoting a New Paradigm of Economic Development for Illinois
Action Agenda:
Convene Community Wealth Building Roundtables in key Illinois cities

12. For more information: thoward1@umd.edu www.Community-Wealth.org