A people-centred approach

Community wealth building is about creating a fairer and more sustainable economy. It is a people-centred approach to local economic development, which aims to place control into the hands of local people and redirect wealth back into local economies.

In their community wealth building work CLES focus on five linked pillars:

1. socially virtuous procurement of goods and services by so-called ‘anchor institutions’ which are the major entities such as councils, hospitals and universities in towns, cities and regions
2. ensuring the employment practices and wages paid by anchor institutions and their suppliers are fair and provide opportunities for disadvantaged workers and communities
3. using the land and property of anchor institutions for positive community outcomes
4. harnessing wealth and savings for local community and economic benefits
5. encouraging plural and democratic models of business ownership to build wealth that stays in local communities.

The Preston Model

The ‘Preston Model’ has been a flagship for the community wealth building agenda and is now being implemented in regions and cities across the UK, led by CLES. Patrick Fensham reconnected with Preston Council leaders and procurement officers during his recent sabbatical, following a previous visit in March 2018.

Authored by Patrick Fensham, the paper Community Wealth Building in Australia: A New Focus for Economic Development summarises the origins of community wealth building and the key pillars as defined by CLES. It identifies how community wealth building ‘fits’ given models and theories of regional development, with particular reference to anticipated critiques of the concept from neo-liberal economic perspectives. It further highlights how community wealth building represents practical action in favour of fairer economic outcomes, where the alternative accepts continued uneven development and socially and politically destructive disadvantage.

The paper proposes a community wealth building agenda for Australia based on the five pillars, plus complementary ideas or initiatives including:

• guaranteeing minimum standards for community infrastructure and services in recognition of the essential role of functioning communities in successful economic development
• increased devolution of policy making powers and responsibilities to local communities
• vesting ownership of land development rights with the community as a source of value to fund investment in beneficial community infrastructure.