The Cleveland Model: Building Community Wealth through Local Procurement

Introduction

I take inspiration from cities and communities that, having been metaphorically kicked in the teeth, find a way back. It’s never easy and always requires ingenuity, resilience and local people and institutions coming together in collaborative action.

It is hard to look beyond what became known as “The Cleveland Model” as a model of successful localization and keeping wealth within the city to help generate more wealth and opportunities for local people. All cities and communities have their own challenges and characteristics, and one size should not fit all. Yet it’s interesting and productive to learn from the experiences of others and see if there are any lessons that can be adapted to local conditions.

Cleveland is a port city in the US state of Ohio, on Lake Erie, one of the Great Lakes looking across to Canada. The Greater Cleveland Area is home to more than 2 million people. After years of expansion, albeit with difficulties along the way including the hardships of the 1930s Depression, it was from the 1960s that a seemingly unstoppable decline set in. It led to violence and unrest, culminating in Cleveland being labelled “Bomb City” in the 1970s, and experiencing further decline and unemployment with the closure of the steel mills in the 1980s.

The fightback began in earnest in 2008 when the Cleveland Model, spearheaded by the Evergreen Cooperatives, was introduced and gained traction. It is a pioneering initiative aimed at revitalizing the local economy by leveraging public spending to develop local supply chains. This model is a collaborative effort involving the Democracy Collaborative, the Cleveland Foundation, the Ohio Employee Ownership Center, the City of Cleveland, and the city’s major hospitals and universities.

Background and Objectives

So, the Cleveland Model emerged in response to the economic challenges faced by Cleveland, a city, as we’ve seen, significantly impacted by industrial decline and economic disinvestment. The primary objective of this initiative is to create a sustainable, inclusive economy by fostering worker-owned businesses and ensuring that public spending benefits the local community.

It is a model that has been gaining momentum since its launch, and a model that is being adopted elsewhere. This rust belt city’s prosperity model is now being widely copied by cities in the USA and elsewhere in the world.

Key Components

The model has three key components.

Worker-Owned Cooperatives: At the heart of the Cleveland Model are the Evergreen Cooperatives, which include businesses like Evergreen Cooperative Laundry, Evergreen Energy Solutions, and Green City Growers. These cooperatives are designed to provide stable, well-paying jobs to local residents, particularly those from low-income neighbourhoods.

Anchor Institutions: The initiative leverages the purchasing power of Cleveland’s anchor institutions, such as hospitals and universities, to create a steady demand for goods and services provided by local cooperatives. This ensures a reliable market for these businesses, helping them to grow and thrive1.

Community Wealth Building: By focusing on local procurement, the Cleveland Model aims to keep wealth within the community. This approach not only supports local businesses but also reinvests profits back into the community, fostering economic resilience and reducing poverty.

Impact and Replication

The Cleveland Model has shown promising results, creating jobs, and generating economic activity in some of the city’s most distressed neighbourhoods. Its success has inspired other cities across the United States to adopt similar approaches to economic development. The model’s emphasis on local procurement and community wealth building offers a blueprint for cities looking to create more equitable and sustainable economies.

It has garnered significant attention and praise for its innovative approach to community wealth building, and in addition to its impact in Cleveland, the broader influence of the model needs to be considered.

Some of its benefits are:

Economic Empowerment: The model focuses on creating worker-owned cooperatives, which empowers employees by giving them a stake in the business. This has been particularly impactful in economically distressed areas of Cleveland, providing stable jobs and opportunities for wealth accumulation.

Sustainability: The Evergreen Cooperative Laundry, a flagship enterprise of the Cleveland Model, is noted for its environmentally friendly operations. It uses significantly less water and energy compared to traditional industrial laundries, showcasing a commitment to sustainability.

Community Benefits: By prioritizing local procurement, the Cleveland Model ensures that public spending benefits the local economy. This approach helps to retain wealth within the community, fostering economic resilience and reducing poverty.

Inspirational Framework: The success of the Cleveland Model has inspired other cities and regions to adopt similar strategies. It demonstrates how cooperative ownership, and local procurement can be integrated into broader economic systems to create more equitable and sustainable communities.

Conclusion

The Cleveland Model demonstrates the transformative potential of local procurement and community-focused economic strategies. By prioritizing local businesses and worker ownership, Cleveland is not only addressing immediate economic challenges but also laying the groundwork for long-term, inclusive growth. This initiative serves as a powerful example of how cities can harness public spending to build stronger, more resilient local economies.

Overall, the Cleveland Model has become seen as a pioneering effort in rethinking economic development to prioritize local communities and sustainable practices. It’s an interesting model and clearly is an impactful one. I feel that small and microbusinesses can still be the primary engine of growth supporting the anchor institutions, but there is scope for a hybrid model crafted for each local situation, leveraging the talent and ambitions of people on the ground.

References

Atlas of the Future – Cities Copy Cleveland’s Prosperity Model, The Cleveland Model - Atlas of the Future — Atlas of the Future

The Cleveland Model - How the Evergreen Cooperatives are Building Community Wealth, community-wealth.org

Footnote

My latest book, Delivering Social Value in Urban Development, is available on most Amazon portals - Delivering Social Value in Urban Development: Amazon.co.uk: Sandelands, Eric: 9798334988668: Books

Sarah Alanazi Maram Albalawi Adrian Ashton Jessica Robson