OUR GOAL: IDENTIFYING MULTIPLE FORMS OF WEALTH IN YOUR COMMUNITY Developing Community Assets

Asset Development for Community Wealth Community Wealth Building: Respects the Earth. Includes the excluded. Brings under-utilized assets (people, place, property, ideas) into productivity. Creates multiple forms of wealth. Links to high demand. Keeps money circulating locally. Builds community self-reliance over the long haul.

How Is Wealth Typically Defined? Wealth is not just money. Wealth is the pool of assets that can contribute to the well-being of individuals and communities over time.

The Difference Between Income and Wealth Most economic development is about creating jobs and income. But jobs can end. Companies can leave. Wealth creation is about creating assets that communities control. The flow of water into a bathtub is like income. It can start or stop. When there’s more water going in than going out, a pool builds up. That’s like an asset. A pool of assets can create a flow of income over time.

Difference Between Wealth vs. Income INCOME EXPENSE WEALTH

Defining Forms of Wealth 1. Natural: Healthy, productive natural resources. 2. Individual: Skills, health, capacity to be productive. 3. Social: Trust, networks needed to solve problems. 4. Financial: Monetary resources and institutions. 5. Built: Well-functioning, maintained infrastructure. 6. Political: Voice in how decisions made. 7. Cultural: Traditions, customs, view of world. 8. Intellectual: Models, concepts that can be replicated.

Asset Mapping

Mapping Your Community’s Assets Productive Assets: What do you love about your community? What are the strengths you think you can build on? What key relationships can you build on? List all potentially usable assets you can think of – any type. List all these – one per sticky note. Assets needing investment: What could be improved in your community? What needs attention? List all these – one per note – on a different color note.

Turning Assets into Community Wealth When we invest in assets to create multiple forms of wealth that stay local – we’re creating community wealth.

Arkansas Green Energy Network Selecting opportunity with potential for Community Wealth Building: How alt.Consulting is building economic opportunity from farm to fuel in rural Arkansas.

Rural Arkansas: Liabilities and Assets Liabilities: 1. 1 in 4 live in poverty. 2. Many towns have lost 10-30% population. 3. Recession forced business closures. 4. Small farmers can’t compete with corporate ag. Jobs/profits leave region. Assets: 1. Rich ag history and experience. 2. Willingness to try something new. 3. Land fallow in winter. 4. Colleges working on energy, new crops, new technology.

Business Questions Alt.Consulting (nonprofit consulting/CDFI) asked: 1. Which sectors are important in our region or emerging in the economy that might offer opportunity? 2. What products do we –or could we – produce? 3. What market trends are changing what customers buy or want in the world? 4. Where do we have anchor buyer relations that might generate significant demand?

Community Questions 1. Which opportunities best include the excluded? 2. Which opportunities best respect the Earth? 3. Which opportunities generate the most community excitement and energy? 4. Which opportunities have the most wealth- building potential – the potential to develop community assets?

Community concerns determined the choice. 1.They convened community conversation to select sector. 2.Chose alternative energy. 3.Reasons: it benefited low-income people. And the community was jazzed. 4.Formed Arkansas Green Energy Network to work collaboratively.

Opportunity Sectors Explored Health care: Federal govt. investing for rural opportunities in medical records. But few locals could afford the training. Business technology: Technology centers at local college. But local stakeholders not excited. Green energy: Emerging across country. Community excited about good green jobs. Agriculture: Small family farms looking for good winter crop. Farmers open to something new.

3 Micro-refineries Being Launched; Goal 15. Turn waste oil and selected crops into energy. Dewitt setting up waste oil recycling for refinery. Camelina gives farmers winter crop, extra income. Seeds grown, purchased, refined locally. African-American farmers get TA to grow camelina. Small-scale biofuel now in state energy plan.

Forms of Institutional Demand FedEx. Valero. Local schools pledged to buy all they can produce.

Relationships Are a Key Asset Assets become opportunities when you add demand. An asset is something that demand wants.

Multiple Forms Community Wealth  Individual capital: farmers learning new skills.  Natural capital: waste oil into fuel.  Social capital: alternative energy network formed.  Financial capital: income to towns and farmers.  Political capital: impact on state energy plan.  Built capital: 3 micro-refineries built.