#CommunityEconomics 101

Summary: There is a case to be made that unfettered capitalism is not sustainable, and that it is time to consider other models. "Community Economics" is an economic model for sustainable growth. 

Challenges: 

1. Taxpayers are paying too much for the private sector’s production of infrastructure and delivery of public services.
2. “Corporate Welfare” is rarely a great investment for taxpayers.
3. Natural resources should provide greater benefits to the citizens of Canada.
4. The super-rich control too much wealth.
5. Some may say that the benefits of tax-cuts and other financial and environmental incentives for the private sector are not "trickling down" as expected to others in the economy.
6. Environmental degradation continues, in no small part due to the laissez faire attitude of capitalists.
7. Jobs and the benefits of production are being relocated to other jurisdictions. For example over $31 billion in profits from HWY 407 have left the public sector to enrich foreign investors.

Proposed solution:  Community Enterprise Network Inc. proposes thorough consideration and acceptance of an economic model in which the production of certain goods and services are managed by the “Community Enterprise” sector. (Examples: School Bus Services, Highway Maintenance, Infrastructure Construction, Water Bottling, Mining, etc.). This creates production that meets a business need which results in efficiencies and economic growth while providing comprehensive benefits to the public.

Benefits: Tax dollars are used more efficiently to create jobs, production and community wealth, rather than worsening the problem of income inequality.

Natural resources and the environment are better protected for the benefit of the public.

Jobs are better protected from transference to other jurisdictions.

Supporting information and background: Community Economics is a model for “community management” of businesses which are publicly funded, utilize public assets or require government regulation. The model may be applicable to production that depends on the extraction or processing of natural resources. The model may also be applied to the production of goods and services that are in the public interest, even though such production may not be profitable, and thus unsuitable for private investment.

A Community Enterprise is a revenue–generating not for-profit co-operative corporation that produces goods or services and provides comprehensive benefits to the public while creating jobs and economic growth. Initial investments are either made by government or philanthropic grants, and financing consists of debt funding rather than equity investments.

“Community management” refers to the governance structure (members, directors and committee members) of the corporation. (Note: there are no shareholders). Any member of the public that supports the objectives of the corporation is encouraged to buy a membership for a nominal fee. Members have the right to one vote on any governance question (example: director elections, motions, financial affairs, committee membership etc.). A Community Enterprise is staffed, operated and managed by qualified individuals; work is performed by hourly wage or salaried labour.

Incorporated in 2011, Community Enterprise Network Inc. has since acquired specialized knowledge in the field of Community Economics. Our mission is to help create the capacity needed to strengthen local economies through the development of Community Enterprises. We help guide the business development processes of each community enterprise and help secure business opportunities as they arise. We are a not for-profit business providing shared services to help create efficiencies, and build economies of scale within the community enterprise sector.

Our role is to support each Community Enterprise with a plan to develop a business unit that produce goods or services (including but not limited to public services and infrastructure). These plans ensure that any surplus revenues are to be re-invested to reduce the cost, improve the product or service or are used to provide comprehensive benefits to the public. Once established, each Community Enterprise is set up as a corporation without share capital. The bylaws of the corporation will state that surplus revenues will be used for the betterment of the community or jurisdiction.

To achieve our mission, we advocate for strategic government procurement policies and programs to provide the certainty needed to grow a strong and vibrant Community Enterprise sector.

We propose the consideration of Community Enterprises as an alternative to privatization or the sell-off of government services or assets. It is our belief that engagement of Community Enterprises protects the interests of taxpayers, organized labour and others when government services are outsourced or public assets are liquidated. Going forward, we encourage all levels of government to consider using their buying power to stimulate the community enterprise sector.

There are hurdles... mainly mobilization (or capacity building) and access to capital. Factors slowing the creation of Community Enterprises are a lack of:

1. strategic policies related to the procurement of goods and services by governments
2. strategic investment programs for “seed” funding or start-up capital
3. strategic programs that provide access to affordable long-term capital

Governments routinely implement similar policies, programmes and investments to support private sector and aboriginal enterprises. We encourage governments to respond to the need for such policies, programmes and investments in support of the Community Enterprise sector. We hope that governments will enact a "Community Economy Act" to develop and approve these policies and programs and enshrine in law the rights of communities to protect local enterprises from falling into foreign hands.

The Ontario government launched a Social Enterprise Strategy in 2013. This strategy is/was the province's plan to become the Number One jurisdiction in North America for revenue-generating businesses that have a positive social, cultural, or environmental impact. A Community Enterprise is a form of "social enterprise".

On February 19, 2015 the Ontario government announced its intention to "make Ontario the leading jurisdiction in North America for social enterprise". The Ontario government recognized then that opportunities exist for Ontarians to benefit from economic activity and jobs resulting from social enterprise.

This strategy was reviewed in 2016 and culminated in Ontario's Social Enterprise Strategy 2016-2021. While a good step forward, there is still more to be considered and much more work to be done.

We are seeking support for our proposal to build Community Enterprise capacity in areas including, but not limited to, the following:

1. School Bus Services (Surplus $ for education)
2. Farming and Local Food processing and distribution (Surplus $ for protection of agricultural lands)
3. Energy generation and distribution (Hydroelectricity, Natural Gas, Bio-Diesel and Oil refinement) (Surplus $ for impacted communities and provincial benefit)
4. Liquor and Beer sales and distribution (Surplus $ for provincial benefit)
5. Toll Highways and Highway maintenance (Surplus $ for reducing cost or improving service)
6. Resource Extraction and Processing (Mining, Forestry, Aggregate, Water etc.) (Surplus $ for impacted communities and provincial benefit)
7. Mining in the Ring of Fire (Surplus $ for provincial benefit)
8. Waste Management and Energy from Waste (Surplus $ for reducing energy cost and/or impacted community benefit)
9. Telecommunications because: Telus, Rogers, and Bell have cornered the mobile communication market and we need more competition.
10. and more

By transitioning to a community economy, we can build workable, livable and sustainable communities. We can't do it alone; we need partners, citizens and governments that understand the importance of growing the community enterprise sector.

We think the Ontario government should fund our project to collaborate with economists, students, researchers and other consultants in creating a report that validates or disproves our community economics model. Such a report could then be shared with ministries and staff in support of the need for strategic policies and investments in the sector.

We heartily believe that Community Economics is a well thought out model for sustainable growth. We also believe the Community Enterprise sector is an excellent alternative to the private sector for delivery of public services and the private extraction of natural wealth. We hope you agree, that this alternative offers better value for taxpayers and the public by re-investing surplus revenues in education, healthcare and other social programs that can significantly benefit the public.

In closing we encourage all levels of government to establish a Community Economy Act or similar policies. This will ensure that the community enterprise sector has the policies, programs and strategic investments needed to create the certainty required for creating good quality service and manufacturing jobs.

Thanks for considering our work.

Regards,

Jeff Mole

President

Community Enterprise Network Inc.

705-645-0820