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The Canadian Community Economic Development Network
3. Invest in Sustainable Communities
Many regions are struggling. Our
villages, towns, and cities, are
increasingly struggling to maintain
standards of living. Rural municipalities,
schools, and health boards are unable
to invest in necessary infrastructure.11
We need to invest in the future of our
communities so that we all benefit
from Canada’s prosperity. CCEDNet
encourages government to support
Community Economic Development
initiatives that create social, economic,
and environmental sustainability.
Give newcomers tools to contribute.
Canada’s economy, culture, society and
labour market benefit immensely from
immigrants and refugees. Yet, newcomers
to Canada face an increasingly
difficult time with their settlement and
integration. We call for the Minister of
Citizenship and Immigration Canada to
focus immigrant settlement programs
and agreements on effective supports to
community economic and co-operative
development so that immigrant and
refugee communities can realize their
aspirations for integration and self
sufficiency.
Support rural and urban revitalization.
We need to focus on rural and urban
Community Economic Development
through extending and expanding the
Canadian Rural Partnership Initiative and
creating a new federal partnership with
NGOs, municipalities and the Federation
of Canadian Municipalities focusing on
social development and the revitalization
of urban neighbourhoods.
Promote local food production and
distribution. Canadians are demanding
more sustainable food and agriculture
systems. Local farmers are trying to
respond. However, Canada’s Agricultural
Policy Framework has done little to
support these initiatives. We call on
the Government of Canada to include
CED approaches to local food security
and agriculture in the development of
Canada’s Agricultural Policy Framework.
Empower communities to tackle climate
change. Individual Canadians are
already tackling climate change by
shifting towards green business models
and changing personal consumption
patterns. These localized efforts
need to be combined with a tangible
federal commitment to honouring
Canada’s Kyoto Accord and supporting
community-led approaches to sustainable
development.
Invest in children. We advocate for a
universal and comprehensive national
child-care program to reduce child
poverty and support full social and
economic participation for all Canadians.
We believe that a national child-care
strategy that re-instates significant
investment in creating and sustaining
non-profit and co-operative child care
spaces is essential to easing the pressure
on working families.
Strengthening Canada’s Communities Communities Strengthening Canada
Canadian
CED Network
This is our case for change.
CED is local action that creates
economic opportunities and enhances
the social and environmental conditions
in communities. It understands that
sustainable development requires
an integrated approach to complex
2
3
4
5
Armine Yalnizyan. The Rich and the Rest of Us: The Changing Face
of Canada’s Growing Gap. Canadian Center for Policy Alternatives.
March 2007.
Urban Poverty Project Neighbourhood Poverty. Canadian Council on
Social Development. October 2007.
Micheal Toye and Jennifer Infanti, Social Inclusion and Community
Economic Development. Pan-Canadian Development Learning Network Project/ Canadian Community Economic Development Network.
August, 2004.
Government of Canada Co-operative Secretariat, Co-operatives in
Canada. December, 2003.
Armine Yalnizyan. The Rich and the Rest of Us: The Changing Face
of Canada’s Growing Gap. Canadian Center for Policy Alternatives.
March 2007.
Toll-free: 1-877-202-2268
Tel: (819) 795-3056
Fax: (819) 758-2906
6
7
8
9
10
11
Caryl Arundel, Falling Behind: Our Growing Income Gap Federation of
Canadian Municipalities. August, 2003.
Income Statistics Division. Low Income Cut-Offs for 2006. Income
Series Research Papers, Statistics Canada. 2007.
Ekuwa Smith, Does a Rising Tide Lift All Boats? Labour Market
Experiences and Incomes of Recent Immigrants 1995-1998. Canadian
Council on Social Development. February, 2002.
World Bank. New Paths to Social Development. 2000. http://econ.
worldbank.org/wdr.
Sophie Lefebvre, “Housing: An Income Issue.” Perspectives on Labour
and Income (Vol 3.2) 2002.
Raphael, Dr. Dennis. Poverty, Income Inequality and Health in Canada.
School of Health Policy and Management, York University. June 2002.
A Communities Agenda
1. Build Fairer and Stronger Local Economies
2. Tackle Poverty and Homelessness
3. Invest in Sustainable Communities
Become a member, visit:
www.ccednet-rcdec.ca
CCEDNet is a registered charitable
organization with Revenue Canada.
Donations are welcomed. Charitable
Number: 868801341 RR 0001
community problems. Strategic
priorities include structural economic
change, local ownership of resources,
social development, environmental
stewardship, labour market
development, and access to capital.
CED encourages people to take charge
of their future through systematic
renewal that is conceived and
directed locally.
Community Economic Development
works.
59, rue Monfette, CP. 119E
Victoriaville, QC G6P 1J8
1
Community Economic Development
is proven to build wealth, create jobs,
foster innovation and productivity,
and improve social well-being.
Through holistic, participatory
development, CED enables
communities to transform into
attractive places to live and work.
Community Economic Development: An Integrated Approach to Improving Communities
Detailed background papers on each of these recommendations are available on our web site at www.ccednet-rcdec.ca
References
The Canadian Community Economic
Development Network is a national
association of community-based
organizations. CCEDNet represents
hundreds of Community Economic
Development (CED) organizations
and practitioners across Canada
and promotes CED as an alternative
economic development model that
integrates social, economic, and
environmental goals.
The Canadian Community
Economic Development
Network (CCEDNet) joins
with others concerned about
growing social and economic
inequality in Canada. These
are our recommendations for
implementing a Community
Economic Development
approach to eliminating
poverty and revitalizing
communities.
Inequality is growing in Canada.
Our economy is prosperous, but
the gap between the rich and poor
continues to rise. In a recent
survey, 49% of Canadians stated
they were one to two paychecks
away from poverty.1 Many
rural, urban, and marginalized
communities are struggling to stay
afloat. We need to do something.
CED in Canada
Accessible
Credit
Equity &
Local
Ownership
Planning,
Research &
Advocacy
Infrastructure
Safety &
Security
Community
Development
Culture &
Recreation
Social
Supports
Human
Resource
Development
Economic Functions
Education
Affordable
Housing
Source: The Centre for Community Enterprise
Social Functions
rams must be delivered through a coordinated strategy across government
d agencies. We are not encouraging more and bigger government, or increasing
her, we seek funding strategies that devolve resources in order to 1) increase the
xisting CED organizations and allow them to deliver greater results and 2)
for the development of new organizations.
focuses on social returns. This leaves a gap
in financing for many community-based
enterprises.
1. Build Fairer and Stronger Local Economies
Financial products currently available
(except for direct grants and member shares
in cooperatives) are confined to loans that
must be paid back within 3 to 10 years. This
In many
rural
and urban
areas across
Create a Social Enterprise Capital Fund.
Support local procurement policies. In the
organizations
with
multi-year,
coordinated
funding
means that community economic developCanada local economies are suffering.
Recent research on social enterprise
traditional business model, profit rarely
ment enterprises
havea almost
no financial
oses multi-year
funding
recognizes
nature of CED,
They federal
lack access
to that
markets
and the long-termillustrates
thatthe
onedifferent
of the most serious
stays within
community.
When regions
product
that
allows
for
the
investment
2
lopment among
CED organizations,
and the broad range of services
and
required
sustainable
business opportunities.
barriers
toactivities
sustainability
is access to
implement procurement policiesofthat
capital contracts,
in the organization.
mplement CED. This involves grant support for initial community
mobilisation
and planning,
long-term
patient
capital.3 A Social permanent
purchase
goods, and services
Community Economic Development
grants for presents
community
development
organizations.
This
type of funding
critical Fund would
Enterprise
PatientisCapital
aneconomic
opportunity
to reverse
these
of other human
capital
and
community
investment
measures.
allow
communities
to
overcome funding
disturbing trends. Multiple communities
challenges
and
optimize
effort through
acrossproposes
Canada that
havethe
already
livery, CCEDNet
Federalcountered
Government fundamentally alter its approach to
a
specialized,
long-term
patient
capital
bydevelopment
implementing
policiesan
that
ommunity decline
economic
by adopting
integrated funding model. This model
fund
that
encourages
stability
and
economies
However,
these
coordinateput
withlocal
existing
provincialfirst.
programs
and be
formulated to better meet the
growth.
efforts
to
rebuild
and
revitalize
need
ding needs of CED organizations.
legislative support.
Implement an RRSP eligible CED tax
credit. CED organizations need access
CCEDNet advocates for policy that
to long-term capital. To overcome this
builds fair and strong local economies.
challenge we propose a RRSP eligible
We recommend
in federal
mmends changes
in federal changes
government
policies to ensure that all Canadians can obtain
CED tax credit for Canadians wishing
and provincial
policy that
d other supports
needed togovernment
participate effectively
in today’s economy. We support
to invest in Community Economic
support
and encourage
our Ministers,
who recently
called forlocal
$700economies
million in additional federal investment in EI.
Development investment funds operated
socialthose
enterprise
nvestmentthrough
will not reach
who doand
not cohave access to EI funds. Additional funds
by local non-profit corporations.
rginalized operative
populationsdevelopment.
are essential to the success of community renewal initiatives.
uman Capital Development
mmunity Investment
CED in Action
commending three main initiatives intended to encourage community investment by the
– that is, investment into community enterprises and/or investment funds by financial
rporations, and
individuals.
The
Core Neighbourhood Youth Co-operative in Saskatchewan
offers
unique experience
for low-income
youth to community
develop skills,
Net recommends
theadevelopment
of a national
seed fund to capitalize
leadership,
and
gain
experience.
funds across the country. Existing community development financial institutions (CDFIs)
se run by workers co-operatives, credit unions, labour funds, ethical funds, and community
nt organizations could cooperatively establish one community investment fund in each
he rollout of this program should be incremental and flexible in order to meet differing
climates and community needs across the country.
EDNet recommends a 30% tax credit and guarantee of capital attached to financial
(shares, bonds, etc.) to be defined by community investment funds in each province or
e tax credit should be available to both retail and institutional investors, and not preclude
lity.
itable tax credits should also be extended to CED organizations focused on not-for profit
uch that they can effectively raise capital intended to help declining communities by
social enterprise.
offered locally, tax dollars reverberate
instead of flowing away.
Create an enabling environment for cooperatives and social enterprise growth.
In recent years, funding through grants
and contributions has created more and
more bureaucracy and impediments to
the sector. We call for accelerating the
implementation of reforms to grants and
contributions to the community nonprofit sector and recommend extending
and expanding the Co-operative
Development Initiative to increase
support for co-operatives.
Canadian
CED Network
Suite 211, 620 View Street
Victoria, BC V8W 1J6
Social enterprises
Toll-free: 1-877-202-2268
and co-operatives
Tel: 250-386-9980
Fax: 250-386-9984
impact large sectors
of our population.
www.ccednet-rcdec.ca
Membership applications
are available on our website
at
The co-operative sector has assets of
CCEDNetover
is a$215-billion
registeredand
charitable
is a source of jobs,
organization
with
Revenue
Canada.
income and community stability in many
4
Donations
are welcomed.
regions.
The diverse Charitable
activities of coNumber:operatives
868801341
0001
andRR
social
enterprises include
grocery stores, large agriculture suppliers,
training and labour market
ground papers on each of these recommendations are available on our web site atimmigrant
www.ccednet-rcdec.ca.
integration, wind energy distribution,
It’s so easy to get lost in the system.
credit-provision,
business
support
18 Statistics Canada.
Impact of Income
on Mortality in
13 Organisation for Economic Co-operation and
7 Yalnizyan, A., Ide, T.R., and Cordell, A. Shifting Time:
ock. Macroeconomic
is Policy
giving
anof Work. Between the
Canada. The Daily. Thursday, September 26, 2002.
Development. The Policy Agenda for Growth: An
Social
andpeople
the Future
ibution in Canada.The Co-op
and
training,
housing,
and
municipal
Overview of the Sources of Economic Growth in
Lines.to
Toronto.
1994. to school or
ces Development opportunity
19 Ibid.
get back
OECD Countries. 2003.
ch. June 1997.
catering.
They
skills, Health
opportunity,
8 Bezanson, Kate and McMurray, Susan. Booming for
20 Health
Policyprovide
Research Bulletin.
Canada. March
credits
school
14 Infanti, Jennifer. An Inventory of Provincial and
Whom?
Peopleoutside
in OntarioofTalk
About Incomes, Jobs
and Marie Drolet. to
Theget their
2003.
and
pride
in
place.
Social
enterprises
Territorial
Government
Support
to
Community
and
Social
Programs.
The
Caledon
Institute
of
Social
in Canada, 1984-1999.
if they want. This then sets people
21 Ibid.
Economic Development in Canada. CCEDNet. May and 22
Policy. 2000.
Labour Market Analysis.
co-operatives
World Bank. Newcreate
Paths to stronger
Social Development:
up with9 work,
builds
their
skills,
2003.
Smith, Ekuwa and Jackson, Andrew. Does a Rising Tide
Community and Global Networks in Action. 2000.
communities.
15 Esperanza Vera-Toscano, Euan Phimister and Alfons
Lifton
Alltheir
Boats? The
Labourand
Market
Experiences and
hes: Wealth Inequality
putsin a job
resume,
can
http://econ.worldbank.org/wdr.
Weersink. The Dynamics of Income and Employment
Incomes of Recent Immigrants, 1995 o 1998. Canadian
olicy Alternatives.
23 Lilia Godfarb Initiatives. The Power of CED
potentially
get on
them
into school.
in Rural Canada: The Risk of Poverty and Exclusion.
Council
Social back
Development.
2002.
arbara. Depressing
both the welfare and
e for Policy Alternatives.
hields. “The Job-Poor
the Canadian Labour
ing Network. May 1999.
10 Canadian Council on Social Development. CCSD’s
— Allysha
Larsen,
Disability
Information
Sheet.CNYC
No 5, 2002.
11 Klein,et al (2001).
12 Ellen M. Gee and Steve G. Prus. Income Inequality in
Canada: A “Racial Divide”. Ethnicity in Canada: A
Reader. Toronto: Harcourt Brace. December 1998.
Statistics Canada. February 2001.
16 Raphael, Dr. Dennis. Poverty, Income Inequality and
Health in Canada. Schoool of Health Policy and
Management, York University. The CSJ Foundation for
Research and Education. Toronto. June 2002.
17 Ibid.
Throughout Canada: Thirteen Inspiring Stories.
Canadian CED Network. March 2003.
24 Ference Weiker and Company. Impact of Community
Futures in Western Canada. 2002. www.communityfutures.ca/provincial/index.html
25 National Congress for Community Economic
Development. Coming of Age: Trends and
Achievements of Community-Based Development
Canada’s Communities
Income Inequality and Poverty is a Canadian Issue:
Towards a New Community Agenda
• The gap between the wealthiest and
poorest in society is growing.
• From 1976 to 2004 close to 80% of
families saw their earnings and after-tax
incomes stay the same or decrease,
• In 1976, the richest 10% of families
holding
back from
he
Canadian
Community
Economic
with the
poorestcommunities
experiencing falling
earned 31 times more than the
6
reaching
their potential.
Development
Network
(CCEDNet) incomes.
poorest
10%; in 2004
they earned
82 times
almostwho
tripleare
theconcerned
• In 2005,
2 million
Canadians
joinsmore
with-others
Atover
the same
time,
some communities are
ratio
of
1976.
were
living
in
Poverty,
as
ned environments
about growing social and economic inequalcreating vibrant,defi
healthy
by
Statistics
Canada’
s
Low
Income
From 1976
to 1979
half
ity• across
Canada.
Thistheis bottom
our case
for a new
through a community economic developCut Off. 7
of income earners earned 27% of
T
local action to create economi
nity and enhance the social an
environmental conditions of c
Its strength lies in its long-term
integrated approach – CED co
addresses multiple issues. Stra
priorities include but are not l
structural economic change, l
ship of resources, social develo
environmental stewardship, la
development and access to cap
From rural coastal communiti
seen their fishing industry dec
mining and forestry towns tha
through major changes, to urb
bourhoods with high family p
apparently wealthy suburbs th
increasingly marginalized pop
CED is being used to make a d
around the world.
ment (CED) strategy – a multi-purpose
“communities agenda” that uses the strengths
total earnings. Despite working more
• In 1998,
annual
and salaries
of for systemsocial
andwages
economic
strategy
of Community Economic Development
that percentage dropped to 20.5%
recent atic
immigrants
were
one-third
less
conceived and directed
(CED)
to address
the social and economic than that ofrenewal,
between
2001-2004.
other Canadians. Hourly
locally. By taking a CED approach to
challenges facing our country.
wages were 18% less. 8
• In 1984 the wealthiest 20% of
development, these communities are
families
held 69 %rated
of totalashousehold
Canada
is regularly
one of the best
making Canada stronger as they transform
wealth.
In 2005
percentage
had
places
in world
to that
live
by
organizations
themselves into attractive places to live
to 75%. 5
suchincreased
as the OECD.
However, Canada is
and work that are full of opportunity.
also a society where these benefits are
CCEDNet represents hundreds of CED
often limited to certain sectors and
organizations and practitioners across the
geographic areas. In the last 15 years,
country. We believe that CED has the
inequality has grown in Canada, creating a
potential to dramatically reduce inequality,
widening gap that is ever-more difficult for
foster innovation and raise productivity.
marginalized groups to cross. Innovation
Reform Federal
Child
Benefits, EI,
Support employment development
For this
to happen,
broader and more
and
have suffered
In productivity
a nation as prosperous
as and real and Pension
programs
so
they
provide
Economic
sustained support is needed – a through Community
Across Canada, we are seeing
incomes
have
declined.
manybecommu-better income
support for low-income
Development approaches to poverty
Canada,
every
citizen In
should
communities agenda in Canada.
disturbing
trends
nities, destructive cycles of poverty are Canadians.
These programs need to
reduction. CCEDNet
advocates
for in persistent
able to meet their basic needs
be able to support those affected by
increased fundingunemployment
to employment numbers and
for healthy food, safe, affordable
1
changes in their circumstances so they
development organizations
that promote
wealth inequality.
A recent stu
have security to make transitions to selfholistic development
for
marginalized
housing, clean water, and access
Statistics Canada found that w
sufficiency.
unemployed individuals, enhancing their
to education. Yet many do not.9
inequality significantly increa
ability to enter and remain
Shift taxfor
structure
to benefi
t low-income
Poverty
reduction
shouldlong-term
be our
1984 through 1999 – while the
Provide
sustained,
funding
effective
CED
organizations.
in the labour force.
Canadians
so
those
in
poverty
receive
steadily getting poorer, the thr
number
one priority.
Integrate
CED program and funding
delivery
tax relief
and aresuch
able tothat
buildexisting
assets, and new
Create a nationalcategories
action plan of
onCanadians increa
savings,
and thefunding
capacity to
escape
the
organizations do not have to patch
together
from
disparate
homelessness
developed
by
all
prosperity bythree
27% or more.2 In
poverty trap.9
We believe it is essential that
levels of government with input from
resources.
many middle-income and poo
community organizations to identify root
all federal political parties
Generate a comprehensive Social
families
are struggling,
causes and implement
effective
solutions. as thei
Housing Spending Program for lowcommit
to better
policies
Modify
existing
employment support
programs
to
better
meet
the
needs
of
assets would only last for five
income Canadians. 1.5 million Canadian
that support communities in
Commit
to
increasing
theirdevelopment
householdaid
income were
human capital development, andhouseholds
implement
new
funding
for
those
not
are still in desperate need of
and
cancelling
debt.
Our
members
are
their efforts to reduce poverty
10
3
disappear.
covered by existing programs. decent, affordable housing. We propose
concerned deeply about the debt and
renewing and extending the Homelessness
and homelessness. We call
poverty experienced
by communities
Much
of the wealth disparity w
Partnering Strategy and Residential
for assistance in creating
in
the
South
and
request
that
Use tax incentives to encourageRehabilitation
community
investment
by
companies,
Assistance Program for
is due topolicy
a lack
of support for
supports
and
promotes
equitable
trade
sustainable economic and social
five years,
expanding
mandate
of thefor commucapital
development.
Despite
individuals and financial institutions
and
providetheseed
capital
between Canadian social and community
Supporting Communities Partnership
opportunities for those most
economic
growth and falling u
enterprises and their
counterparts.
nity investment funds.
Initiative, and reversing the $45-million
marginalized.
ment in recent years, there are
2. Tackle Poverty and Homelessness
1
Why is CED Nee
Inequality is rising and
communities are at risk
RECOMMENDATIONS
2
3
in annual cuts to the Canadian Mortgage
and Housing Corporation.
signs that the combination of
cut-backs aimed at reducing E
Insurance and Social Assistan
economic trends towards grea
and temporary employment h
increased income insecurity a
poverty in Canada.4