Introduction to Community Economic Development

Introduction to Community
Economic Development
What it is and the case for it
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)
A holistic approach
It links economic development with a wider
social and economic process.
small scale economic activities
provision of local needs and demand
a microeconomic approach
No universally accepted definition of CED
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 community’s
Conference Board of Canada 1994
• A strategy by which local development
organizations mobilize local resources for a
multi-faceted development campaign.
CED in the economic context
• polar opposite of capitalist forms of
• capitalist development typically brings the
“development” to a community from the
• CED promotes development from the “inside”
CED in the economic context
• people in a community are to be the authors,
architects and builders of their development
CED in the economic context
• The people of a community may need
assistance and supports in building their
community’s future.
What is a community?
What is the case for CED?
The concept of the “Social
Economy” is relevant to CED
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
Why is the federal government
interested in social economy
Governments are increasingly turning to
community-based processes and initiatives to
address local problems with local solutions.
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
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
Social economy enterprises provide a
flexible and sustainable tool that can
help communities to achieve their own
such as:
– stimulating job creation and skills development;
– enhancing community capacity for social supports;
– supporting economic growth and neighbourhood
– protecting the environment;
– mobilizing disadvantaged groups.
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).