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International Community-Building Models

A broad range of new forms of significant scale, community-benefitting economic entities are active throughout Asia, Africa, Europe and the Americas. These little-studied community-based asset building experiments occur in a variety of forms: hybrid consumer-producer enviro-cooperatives, community-owned and -operated businesses, new local municipal enterprises, alternative financial institutions, nonprofit businesses, worker-owned firms, public-private and government-community partnerships, and more.

The most innovative and far-reaching among them are locally-anchored models that empower people and build communities not only by producing jobs and improving equity, but by structurally embedding or "rooting" economic assets (such as capital, land and natural resources) in institutions which are accountable to the community. Many models, particularly in developing countries, combine community asset building with local responsibility for sustainable resource management. Most models also share in common a consideration for social values in addition to profit, and fostering popular, democratic participation in decision-making. Distinct from more traditional, one-off development projects funded by bilateral and multilateral aid agencies, many of these institutional developments are distinguished by having reached significant and sustainable levels of economic expertise, experience, skills and technology. Their four central characteristics may be defined as: (1) significant scale; (2) some form of "embeddedness" in community-based institutions; (3) a focus on developing assets that are in some way collectively held within the community; and (4) some capacity to help conserve and manage the local natural resource base on a sustainable basis.

Among the many innovations the National Center is surveying are:

  • AMUL Dairy Cooperative (India)
  • Cheticamp (Canada)
  • Curitiba (Brazil)
  • Federation of Free Farmers (Philippines)
  • Fundacion Social (Colombia)
  • Grameen Enterprises (Bangladesh)
  • Kagiso Trust (South Africa)
  • Mondragon (Spain)
  • OPAP (Zimbabwe)
  • Seikatsu Club Consumers Cooperative (Japan)
  • Van City (Canada)

In moving to levels of scale, these innovations have developed along a number of pathways:

  • For some, the starting point is community-level economic development. Some innovative community development corporations in the United States, for example—and their analogues abroad—have moved squarely into programs designed to build capital and asset ownership within the community.
  • Another approach adopted by large-scale (million member) enviro-consumer cooperatives in Japan has succeeded in generating markets and then moving back to control of production.
  • A third approach is being pioneered in Canada, where large-scale worker cooperatives are taking over government service delivery as an alternative to privatization.
  • Still another avenue, illustrated by the Spanish worker cooperative Mondragon and other worker-owned co-ops and businesses, starts with production and moves outward into the community.
  • A fifth little-studied strategy begins at the level of municipal government. In many cities, local governments are quietly establishing business enterprises—particularly in such urban environmental areas as waste management, energy production and water and sanitation. These in turn generate revenues which are plowed back into city services and community-building efforts.

Of particular interest is how various enterprises have gotten beyond the modest scale common in many U.S. experiments. In Japan, for instance, more than a million citizens are organized on a block-by-block basis as part of the democratic decision-making structure of some consumer cooperatives. In Bangladesh, millions of people participate in the many programs of Grameen Enterprises. More than 40,000 workers are employed by the Mondragon cooperative in Spain. Colombia's Fundacion Social has assets of $2.7 billion.

Understanding how—precisely and practically—these efforts have developed along various and diverse paths into institutions that produce serious economic activity, increase equity, achieve environmental goals and spread asset ownership within the community can provide a wealth of relevant experience and data of value to many other communities, including within the United States. The larger scale models could prove particularly important given the new pressures which globalization is generating around the world.

Other Models & Innovations include:

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