Learning Lab: Creating Wealth in Regional Economies
Sponsored by the National Association of Development Organizations
Presented by:Melissa Levy
Introductions
• Name• Where you’re from• Your favorite thing to
do in the fall
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Objectives
• Introduce wealth creation principles.
• Learn about the WealthWorks approach.
• Understand how WealthWorks can be used in your economic development work.
• Think about equity in your work.
Introducing…WealthWorks…
is an approach to economic development that connects a region’s assets to market demand in ways that build rooted wealth for local people, places and firms.
brings together a range of public, private and non-profit sector partners who have self-interest in the outcomes and an openness to discovering shared or common interests.
focuses on building a sector rather than individual and unrelated businesses.
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Overview of WealthWorksGoal: Advance a region’s prosperity by building
wealth that sticks
WealthWorks is a bridge between community development (voice, empowerment, organizing) and
economic development (attraction, retention, entrepreneurship).
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Principles or Design Elements1. Focus on creating wealth, broadly defined, and
aspire to do no harm.2. Build lasting livelihoods by intentionally including
economically-marginalized residents.3. Root wealth in local people, places and firms
through local ownership and influence.4. Use a systems approach – WealthWorks Value
Chains – to build value in existing and emerging sectors. Demand-Driven
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#1: Investing in and Building 8 Capitals
Wealth is not just money.
Wealth is the reservoir of all assets that can
contribute to the well-being of people, places
or economies.Every place has wealth.
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Defining Wealth BroadlyThe Capital The DefinitionIndividual Skills, education, physical health, and mental wellness
Intellectual Knowledge, resourcefulness, creativity, and innovation
Social Trust, relationships, and networks
Cultural Traditions, customs, and ways of doing
Natural Natural resources
Built Infrastructure – for example, buildings, sewer systems, broadband, roads
Political Influence on decision makers and shakers
Financial Savings and investment
All are required to grow and sustain a healthy economy over the long-term!
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#2: Build Lasting Livelihoods
“Lasting livelihoods” means…- Low-income residents are doing better today, with
improved skills to qualify for higher-paying jobs.- They are earning more and building careers. - They are putting something aside for the future, e.g.,
building assets, so they are more resilient.- They have better future prospects so they can give back
their time, talent, and even treasure to the community.
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Recognize Your Assets, Including Those on the Margins
• Many places harbor underutilized assets ̶ people’s know-how and energy, natural resources, buildings, influence, connections… – that are not contributing to the broader economy.
• Underutilized assets can be connected, developed, and linked to markets in ways that create wealth.
• Economically-marginalized people and places are resources – and they (and everyone) will do better if they are connected to larger economies.
• Need to include all, but too often economically-marginal are excluded
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Many Roles for Low-income People and Firms
• As explorers helping to identify opportunity and demand
• As producers/entrepreneurs adding value to a good or service connected to market demand, and increasing skill and ability in the process
• As employees of businesses producing goods or services, or of organizations supporting WealthWorks value chains
• As consumers of higher quality/lower cost goods or services produced by or leveraged by WealthWorks value chains
• As investors, owners, or co-owners, gaining, retaining and building wealth that sticks
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#3: Wealth without Ownership isn’t Rooted
Capitals that are “owned” locally build wealth.
• Ownership means you capture and control the flow of benefits from the capitals over time. It creates enduring, stable benefits.
• Benefits – e.g., income, know-how, better technology – flowing from local ownership of capitals can be re-invested and re-circulated locally, enriching many.
• Preserving local ownership or control over your capitals can increase the chances of preserving local jobs.
• Local ownership is an anchor that helps wealth stick.
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#4: Tie wealth to place and connect regionally
WealthWorks Value Chains connect local assets and production to regional demand to bring fresh money into
rural communities, defined as:
A network of people, businesses, institutions, and non-profits
who collaborate to meet market demand for specific products or services –
each advancing individual self-interest while together creating greater local wealth.
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Relationships…Relationships…Relationships
• Build relationships with other community partners to focus on a sector
• Build relationships with demand• Build relationships with other producers, suppliers, etc. • Build relationships with support partners (e.g., educational
institutions, financial institutions, Cooperative Extension)• And many, many others!
Coordination role is central and critical!
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What Makes a Community Great?What are the positive assets in your community? What would land your community on a “Top 10
Places to Live” list?These are the assets you have to build upon.
• Take a few minutes to ponder this.• Write your two strongest ideas on post its – one per
post it.
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Remember Our Goal – Rooted WealthThe Capital The DefinitionIndividual Skills, education, physical health, and mental wellness
Intellectual Knowledge, resourcefulness, creativity, and innovation
Social Trust, relationships, and networks
Cultural Traditions, customs, and ways of doing
Natural Natural resources
Built Infrastructure – for example, buildings, sewer systems, broadband, roads
Political Influence on decision makers and shakers
Financial Savings and investment
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Exploring Value Chains
WealthWorks Value Chains connect local production to regional demand to bring fresh money into rural communities:A network of people, businesses, institutions, and non-profits who
collaborate to meet market demand for specific products or services - each advancing individual self-interest while together creating greater local wealth.
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Connecting a Value Chain• Demand: Buying side of the market – Intermediate
buyers/Final consumers… you will need to talk to them to find out what they need!
• Functions: Those things that have to happen to deliver the product or service
• Transactional partners: Those people, businesses, or organizations that play a direct role in sourcing, aggregating, distributing, processing, purchasing the product, etc.
• Support: Those people, businesses, or organizations that provide the infrastructure that helps the transactional partners to produce
We are really talking about a Value Chain System!
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Exercise: Potato Chip Value Chain
• You’ll each receive a role in the chain.
• Figure out where you fit in the chain.
• Who do you connect with?
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Disadvantaged Farmers grow seed
Restaurants generate used oil
Waste Vegetable
Oil Collection Biz
Researchers test seed
Seed collection, storage, cleaning Micro-
Refinery
Two-Year College Training Program
Meal Collection / Processing
Glycerin Collection /
Refining
MidSouth ASTM Testing
Fuel Aggregator
Non-Commercial Use
FedEx
Biodiesel Stations
Farmers On /Off Road
Livestock Farmers
Cosmetic Mfgs
Green Financing Network
Bioenergy Value Chain
Manufacturer of Micro-
Refinery
Value Propositions
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• Understand what the other player wants and needs
• Understand what you want and need
• Find the connecting values
Value PropositionsCommon interest
Self interest
CEDS and Wealth
• How can the 8 forms of wealth be part of your comprehensive planning process?
• How do typical sections of a comprehensive plan align with the 8 forms of wealth? What other sections might be needed to address the various forms of wealth?
Precursor to the SWOT
• Analysis of the eight capitals in your region. • Where are you strong? • Where are you weak? • What do you use? • What is underutilized, and could be brought
into productive use with appropriate and creative investment?
Underutilized Resources
Evaluating Your Community
Evaluating Your Community• What are your strengths as a
community?• What are your weaknesses?
Assessing Your Existing Infrastructure
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• Individual • Natural
• Social• Built
People’s know-how
Natural Resources
ConnectionsBuildings
Assessing Your Infrastructure
• What have you got? – Natural– Built– Financial– Social– Political– Individual– Intellectual– Cultural
Sections of a CEDS
1. Summary Background of economic conditions in the region;
2. SWOT Analysis to identify regional Strengths, Weaknesses, Opportunities, and Threats;
3. Action Plan incorporating tactics identified through planning process, other plans, and stakeholder feedback to develop the priority strategies for the region; and
4. Evaluation Framework to identify and monitor performance measures associated with the plan.
Background of Economic Conditions
Conditions Capitals
Financial
Natural
Cultural
Individual
Economy
Environment
Culture
Workforce
SWOT
Strengths
Weaknesses
Opportunities
Threats
SWO
T
SWOT TemplateStrengths
Weaknesses
Opportunities
Threats
Strengths
• Capitals we have, use & could use more• Energy and enthusiasm • Partnerships between business, government,
and organizations
Weaknesses
• Capitals we are missing, or are weak• People, firms and organizations on the
economic margins• Lack of partnerships between business,
government, and organizations
Opportunities
• Underutilized capitals we can invest in• Upward mobility for all• Emerging Markets/Demand• Gaps in activities needed to meet demand for products
and/or services in specific emerging markets where investment will have the greatest impact (leverage)
• Repurposed by-products or residuals• Local, broad ownership• Potential to go to scale
Threats
• Policy Barriers• Ownership by those outside of the region• Negative opinion shapers and parties unwilling
to collaborate
Action Plan
• What are your actions over the next 5-10 years?
• Are there actions that can be taken to create impact on the eight forms of wealth?
Evaluation FrameworkAction Indicator
(what needs to change)
Measure Methodology Baseline
Natural
Built
Financial
Social
Individual
Intellectual
Political
Cultural
Equity
• What underserved or vulnerable populations do you have in your region?
• How would you connect with them to better understand their needs and how you might include them in the value chain?
Assessing and Planning Your Work
The forms of wealth offer a framework for assessing your work and planning for greater impact.
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Example: A Tool for Land Trusts: 3 Ways to Use
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Assess your work
Plan to amplify your impact
Evaluate your work
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Assessing Your Impact Importance Ratings Impact Ratings
Next Steps
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What are some logical next steps to move from discussion to action in your organization?
• Who else has a self-interest or a shared interest in being engaged further?• What else do you need to know before you can move forward,
i.e., research needs?• Are there gaps or barriers identified today that could be
addressed next?• What are concrete next steps you might take coming out of
this workshop?
For More Information
Melissa Levy802-318-1720Melissa@community-roots.comwww.community-roots.com
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