Building wealth within a community is not easy especially when majority of the resources are owned by a small percentage of people. However, by working together as a community, you can achieve anything.
The five clear principles of community wealth-building
SUMMARY: Building wealth within a community is not easy especially when majority of the
resources are owned by a small percentage of people. However, by working together as a
community, you can achieve anything.
When it comes to inequality, the UK is the fifth most unequal country globally, with 44% of
its wealth being owned by just 10% of the population. This percentage is five times what is
held by the poorest half. Sadly, more than half of the Uk's population lives below the
poverty line, although most people are working regular jobs.
What is community wealth building?
The heart of community wealth building is to connect people with the places that create
wealth to reduce this poverty gap. In fact, community wealth building is against the current
economic model since it puts the accumulation of private wealth and profit above other
people's basic needs. To effectively do this, there are five strategies a community can
employ. These strategies were developed by CLES, the national organization for local
1. Plural ownership of the economy
The challenge here is the gap between the rich and the poor. As mentioned below, the UK
has the fifth largest gap globally, which means most people live below the poverty lines. It
also means that the wealth workers generate does not flow back to them but is held by a
The solution is to form locally owned and socially-minded enterprises. These enterprises
will employ, buy, and invest locally then use and invest resources within the community. As
a result, even the workers will feel the benefits and hold some of the resources.
2. Making financial power work for local places
Most small businesses use credit as their lifeblood since they would find it difficult to work
and compete fairly in the market. However, in the UK, the banking system uses global rates
instead of local rates. This makes it difficult for small businesses to access credit.
The solution is