By Neil Resto
Aerospace Valley, California
Financialisation, or the increasing influence of financial markets and institutions on the economy, has had significant effects on cities and urban communities. In some cases, financialisation has led to economic growth and increased investment in urban areas. However, it has also contributed to rising inequality, displacement, and social exclusion, particularly for low-income and marginalized communities.
To address these challenges, community development interventions can play a critical role in promoting justice for cities. Community development interventions are programs and initiatives designed to promote economic and social development in urban communities, often with a focus on empowering local residents and addressing structural barriers to opportunity.
One approach to community development intervention in the context of financialisation is to focus on creating alternative financial institutions and systems that prioritize community needs and values over profit maximization. For example, community development financial institutions (CDFIs) are specialized banks and credit unions that provide financial services and investment capital to underserved communities. CDFIs can provide loans and other forms of financing to support affordable housing, small business development, and other community-based initiatives.
Another approach is to support community-led development initiatives that prioritize equitable development and social justice. This can involve partnering with community-based organizations and grassroots movements to identify and address the needs and concerns of local residents. For example, community land trusts (CLTs) are non-profit organizations that acquire and hold land in trust for the benefit of the community. CLTs can provide affordable housing, protect against displacement, and support community-led development initiatives.
Finally, community development interventions can also focus on promoting policy and institutional change to address the root causes of financialisation and inequality in cities. This can involve advocating for changes in tax policies, zoning regulations, and other public policies that disproportionately benefit wealthy investors and corporations at the expense of low-income and marginalized communities.
Overall, community development interventions can play a critical role in promoting justice for cities in the context of financialisation. By supporting alternative financial institutions and systems, community-led development initiatives, and policy and institutional change, these interventions can help to ensure that the benefits of economic growth and development are shared more equitably and inclusively across urban communities.