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11/13/2018
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Bringing Co-operatives Back In To The
Community Economic Development
Toolbox
North Central Regional Center for Rural Development
Dr. Keith TaylorCommunity Economic Development Specialist
November 13, 2018
Old Way: Smokestack chasing
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General Policy Model of Economic Development Classic Approach• Unicorn & Smokestack Chasing
• The factory will save us!• Technology as Solution
• Farm Automation• Public Pledges of Economic Development Impacts
• Sports stadiums• Amazon HQ
General Policy Model of Economic Development Poverty Challenge• Declining homeownership• 1099 Gig Economy• Declining small business entrepreneurship
• Ma & Pa’s retirement parachute gone!• Increasing household debt + declining household wealth
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General Policy Model of Economic Development Poverty Challenge• Intergenerational economic warfare
• Increasingly shaky pension systems• Grandfather clause
• Decreasing civic participation• How do we change this?!
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Features of Economic Development PolicyWho & What Is Excluded/Lost?
In-equitable. No….
• Sharing in the spoils
• Governance rights– No “Affective Control” in public private
partnerships• 50%+1
– No accountability
– No clawback provisions
• Outflow of collective wealth– Firehose model of investment built on public
goods (Amazon)
How do we create equity?
• Enhance citizen public entrepreneurship?
– Root wealth and development locally?
• Go beyond one-off economic development?
– Turn-key C.E.D. systems?
Community Economic Development
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How do we create equity?
• Access capital?
• Create spillover from prosperity?
• Scale community policy to state/national/global?
Community Economic Development
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Extension: Vehicle for Delivering New CED Strategies
Approaches
• Rooting wealth
– Anchor institution development• Cleveland model
• Saving local enterprise
– Buying groups
– Business conversions• ESOPs, worker co-ops
• Leveraging Partner Institutions for Enhanced Gains
• Democracy Collaborative
• Cooperative associations
• Foundations & Pension funds
Photo by ricky_artigas - Creative Commons Attribution License http://www.flickr.com/photos/11139979@N06 Created with Haiku Deck
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Cooperatives Across America
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Extension Opportunities in Wicked Problems
• Utilities
– Community Choice Aggregation
– Broadband
– Water
• Food Systems
– Demand for local foods
– Amazonification
• Housing
– Harnessing subsidy programs
• Equity Creation
– Collective assets
– Institution fitness
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DEVELOPING CO-OPERATIVES
Philanthropy
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Philanthropy
Self-Help Collective Action
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Public Policy + Community Development
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Stop chasing unicorns!
• We can get far more bang for the buck from methodical, nuts & bolts CED
Invest in local entrepreneurship
• Develop associations for economic scale and power
• Apply the correct institution
– Skin-in-the-game inclusion is key (Automation + investor-owner = limited community spillover)
We Can, So We Must!
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Bringing Co-operatives Back In To The
Community Economic Development
Toolbox
North Central Regional Center for Rural Development
Dr. Keith TaylorCommunity Economic Development Specialist
November 13, 2018
