Sample Article Review On Community Economic Development

The article opens with definitions. “Community Economic Development” is presented as “a strategy that includes a wide range of economic activities and programs for developing low-income communities such as affordable housing and small business development.” A focus on job creation whether working with neighborhood businesses or industrial parks is central to the programs.
Economic development was a response to perceived problems of poverty. Associated with poverty is poor housing, lack of access to health care, a lack of jobs and a generally poor quality of life. Efforts to address these problems are very local. Community Development Corporations have developed to focus these efforts. As not-for-profit organizations they can put people above profits and deliver services to those in need while retaining a close local identity.
The activism of the 1960s saw a rise of Community Economic Development. With government and Ford Foundation support the movement grew and became more organized. By the 1970s the problems in deteriorating communities, both urban and rural, were exacerbated by a wave of “deindustrialization.” As traditional manufacturing jobs were lost the Community Development Corporations came to be seen as a source to address the problems of poverty with its associated social costs.
One important aspect of the movement was to make legal services available. This support assisted businesses to develop and supported low-income housing efforts. They were also important in establishing the legal documents as Community Development Corporations were formed. Legal support ensured that the credits and subsidies available through the tax system could be accessed. Low Income Housing Tax Credits and New Market Tax Credits, for example, were important sources for funding for community development efforts.
The article notes that the history of the Community Economic Development movement predates its expansion into the national consciousness in the 1960s. The debates between Booker T. Washington and W.E.B. DuBois in the early 20th Century can be seen as the origins of the movement. This gave rise to such things as the National Business League’s “buy black” campaign.
When the American civil rights movement exploded onto the scene in the late 1950s and the 1960s, Community Economic Development was part of it. Dr. Martin Luther King, the embodiment of the movement launched the Poor People’s Movement for example. Besides King’s non-violent Southern Christian Leadership Conference, other, more militant groups came to the forefront. The Congress of Racial Equality and the Student Nonviolent Coordinating Committee exemplify these.
With Lyndon Johnson’s “war on poverty,” Community Economic Development became a true national priority. The Economic Opportunity Act and the Community Action Program started the Community Action Agencies which deliver public funds and support at the local level.
Public involvement with government support found a public face with the Bedford Stuyvesant Restoration Corporation in Brooklyn, New York. This predominantly African-American community became the model for local self-help efforts. Under this program, attempts were made to break the problems of “community isolation.” Essentially, the program sought to get the citizens of that community into the mainstream of American commercial life. The involvement of the Federal government was cemented with the Community Development Block Grant program.
With the 1980s intermediary organizations were established. Local Initiatives Support Corporations were the first step to a “consolidation and institutionalizing of the best of the early programmatic experiments.” This was also the era of a backlash against public entitlement programs. Under Reagan and Bush programs were cut and the very success of such federal programs as Aid to Families with Dependent Children was questioned. As programs were rolled back the role of the Community Development Corporations actually became more important as a well organized way to use scarce resources. Under Clinton a more pro-business, market driven approach came to the fore including Enterprise Zones to promote private sector development.
Community economic development is alive and well, just changed. Community Development Corporations are intermediaries providing expertise and technical support along with funding. Indeed, the movement is strong with leadership that is better educated and more experienced than ever.
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