Running head: COMMUNITY ECONOMIC DEVELOPMENT 1
Community Economic Development
Your Name (First M. Last)
Name of School or Institution
COMMUNITY ECONOMIC DEVELOPMENT 2
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
COMMUNITY ECONOMIC DEVELOPMENT 3
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.
COMMUNITY ECONOMIC DEVELOPMENT 4
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.
COMMUNITY ECONOMIC DEVELOPMENT 5
References
Lastname, C. (2008). Title of the source without caps except Proper Nouns or: First word after
colon. The Journal or Publication Italicized and Capped, Vol#(Issue#), Page numbers.
Lastname, O. (2010). Online journal using DOI or digital object identifier. Main Online Journal
Name, Vol#(Issue#), 159-192. doi: 10.1000/182
Lastname, W. (2009). If there is no DOI use the URL of the main website referenced. Article
Without DOI Reference, Vol#(Issue#), 166-212. Retrieved from http://www.example.com
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