Community capitalism

Community capitalism is an approach to capitalism that places a priority on the well-being and sustainability of the community as a whole. The community could be a metropolitan area, region, or an entire country.

Overview

In 1997, The American Assembly published a report titled "Community Capitalism: Rediscovering the Markets of America's Urban Neighborhoods",[1] which they distributed to business leaders, President Clinton, cabinet members, members of Congress and governors, and the general public.

In 2013, George R. Tyler published the book What Went Wrong: How the 1% Hijacked the American Middle Class ... and What Other Countries Got Right,[2] which describes the community capitalism models (which Tyler calls family capitalism) used by countries that have helped their citizens to prosper, despite the forces of globalization. He contrasts the experience of the U.S. over the past 30 years to that of Australia and the major nations of northern Europe (Austria, Belgium, Denmark, France, Germany, the Netherlands and Sweden).

In the United States, there is a growing opinion by some citizens across the political spectrum that the laissez-faire model of capitalism might be fundamentally flawed in some way.[3] By re-framing the debate around how people can leverage the positive aspects of capitalism to strengthen communities, the hope is that the country can move beyond partisan politics and towards a collective plan of action.

In Kalamazoo, Michigan

Community capitalism is the long-term strategy for economic growth of Kalamazoo, Michigan. The system uses focused and organized philanthropy and business investment occurring simultaneously. It focuses community resources into five key areas: place, capital, infrastructure, talent and education.

After a long period of corporate downsizings and results of mergers and acquisitions (most notably by Upjohn/Pharmacia/Pfizer, General Motors, First of America/National City and the paper industry), the Kalamazoo region went about changing the face of its downtown. It set up one of the nation's only community-based venture funds; establishing the "Southwest Michigan First Life Science Fund";[4] refurbishing a 2,200,000-square-foot (200,000 m²) abandoned automotive stamping plant; building a 58,000-square-foot (5,400 m²) life science accelerator; embracing the concept of talent-driven organizations; and funding the Kalamazoo Promise scholarship program.[5] The community has since seen resurgence in job creation and overall economic growth.

The term community capitalism was used by Fast Company magazine in naming Kalamazoo in its "Fast 50" list in 2007.[6][7]

References

1. "Community Capitalism: Rediscovering the Markets of America's Urban Neighborhoods | The American Assembly". americanassembly.org. Archived from the original on 2016-03-04. Retrieved 2018-08-07.
2. "What Went Wrong". Kirkus Reviews. 26 May 2013. Retrieved 2020-05-24.
3. Costly, Andrew. "BRIA 19 2 b Social Darwinism and American Laissez-faire Capitalism - Constitutional Rights Foundation". www.crf-usa.org. Retrieved 2018-08-07.
4. "Southwest Michigan First Life Science Fund formalizes management ties with Open Prairie Ventures". MLive.com. Retrieved 2018-08-07.
5. Bennett, Jeff (July 28, 2008). "Class act: Kalamazoo's lesson: Educate and they will come". Wall Street Journal.
6. Salter, Chuck (December 20, 2007). "Kalamazoo – Michigan". Fast Company. Retrieved 2020-05-24.
7. Kitchens, Ron (December 2010). "Community Capitalism: The Local Response to the Need for Economic Growth and Diversification". Local Economy: The Journal of the Local Economy Policy Unit. 25 (8): 691–698. doi:10.1080/02690942.2010.533418.

Further reading

• Kitchens, Ron; Gross, Daniel; Smith, Heather (2008). Community Capitalism: Lessons from Kalamazoo and Beyond. Bloomington, IN: AuthorHouse. ISBN 9781434381729. OCLC 232300129.CS1 maint: ref=harv (link)