Wealth Creation in Rural Communities

Summary

Wealth Creation in Rural Communities is an approach to create multiple forms of wealth that are owned and controlled locally. This systems approach links together assets, producers, and consumers in ways that encourage economic development in rural a

Tool Description

Wealth Creation in Rural Communities is a systems approach rural communities can use to facilitate their own economic development. Many rural communities have become dependent on outside developers and businesses, allowing much of the wealth to flow out of these communities. To prevent the outward-flow of wealth and to encourage development done by and for the communities, Wealth Creation in Rural Communities suggests four key principles:

1. Focus on place. By recognizing the assets inherent to a place, a community realizes their capacity to overcome challenges and gains a respect for the place.
2. Incentivize collaboration. Rural communities must work together and learn from each other and connect with markets, primarily in urban areas.
3. Create multiple forms of wealth. A combination of the following 7 forms of community wealth increases the stock of individual knowledge: financial capital, natural capital, social capital, individual capital, built capital, intellectual capital and political capital.
4. Emphasize local ownership. Keeping wealth local helps communities gain control of many forms of wealth, allowing for permanent changes in the institutional frameworks of wealth and power.

By using this toolbox, rural communities can realize their ability to build on local assets and facilitate economic development.

Strengths

  • Encourages communities to recognize their capacity to spark economic development
  • Builds on local assets

Limitations

  • Communities must be willing to invest a significant amount of time in order to achieve a long-term gain.
Submitted By: emilyroach
Last Updated: December 16, 2012, 9:53 pm

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