The traditional economic model which focusses on maximising shareholder value and profit, has left many communities struggling with inequality. Community Wealth Building (CWB) has emerged as a realistic alternative, aiming to shift power and resources back to local people and organisations. ACVO is exploring the core principles of CWB with local partners and investigating into the potential benefits it holds for the third sector in Aberdeen.
CWB operates on five key pillars, each playing a crucial role in fostering a more equitable and sustainable local economy:
- Workforce: Promoting fair work, decent wages, secure working conditions, and opportunities for jobs which support the wellbeing of the community.
- Inclusive Ownership: Encouraging the development of cooperatives, employee-owned businesses, and community businesses, placing ownership and decision-making power directly in the hands of local stakeholders.
- Spending: Encouraging large institutions, such as councils, universities and hospitals, to buy goods and services locally, thereby keeping a significant portion of financial resources circulating within the community.
- Finance: Promoting financial mechanisms like community owned finance institutions to channel investments towards local businesses and initiatives, ensuring local control over financial resources.
- Land and property: Supporting the acquisition of land, buildings, and other assets by community organisations, fostering a sense of local ownership and control over key resources.
The Scottish Government has adopted a Community Wealth Building (CWB) approach to economic development as a means by which they believe the country can achieve its wellbeing economy objectives outlined in the National Strategy for Economic Transformation. Aberdeen City Council has its own Community Wealth Building Action Plan and a working group of “Anchor Organisations” has been set up to look at how best to develop the approach in the city and wider region.
As you would expect, CWB presents a range of beneficial opportunities for the third sector in terms of strengthening capacity, impact and resilience. By encouraging local procurement and creating a more dynamic local economy, CWB can generate additional funding streams for third sector organisations. This could involve partnering with local businesses on social impact projects or bidding for contracts that prioritise social value alongside cost-effectiveness. CWB can involve the development of Community Development Finance Institutions, Credit Unions and other innovative finance mechanisms, offering the third sector access to more flexible and mission-aligned funding sources. This can help organisations move away from overreliance on traditional grants and contracts, often restrictive and competitive.
This approach to economic development is based on collaboration among various sectors – public, private, and community. This can create opportunities for the third sector to co-create solutions with other stakeholders, build capacity through knowledge exchange, and access expertise and resources outside the usual ways of working. The whole CWB philosophy aligns with the core values of the third sector, promoting social justice, community empowerment, and equity. This creates a firm base for collaboration and co-creation, allowing organisations to leverage their expertise and networks to further the community’s goals.
“Most of all, CWB empowers communities to take ownership of their economic destiny. This creates a space for third sector organisations to act as facilitators, educators, and advocates, fostering greater community engagement and a sense of collective ownership of the future.”
Community Wealth Building presents a very promising framework for building more equitable and resilient local communities of place and of people. This fits well with the ambition for a Just Transition in the North East of Scotland. A transition that needs to ensure it does not leave behind communities who are already at a disadvantage.
50 years of North Sea Oil wealth has barely impacted the most vulnerable in our city, now is the time to do things differently. By fostering collaboration, empowering people, and prioritising shared values, it offers significant potential to strengthen the third sector and contribute to a more just and sustainable future for all. The responsibility now lies with all stakeholders – community organisations, public bodies, and businesses – to work together to unlock the transformative potential of CWB and build a future where wealth and opportunity in Aberdeen are shared equitably.
