What it's about:
In Cleveland, U.S. workers have been establishing cooperatives to supply goods and services to local institutions such as hospitals, councils and universities, in an effort to ensure that profit stays local.
“Community wealth building” allows an enterprise to be jointly owned and operated by members for their mutual benefit. Now known as the “Cleveland model,” it is being replicated around the world, including in the city of Preston in the UK.
Both places have shrinking populations, lower-than-average life expectancies and declining jobs and industry in their regions.
Now, large public institutions anchored to Preston such as the local council, the university and the police are looking at ways to select local suppliers to ensure that wealth stays local.
Why it's noteworthy:
As a former rust-belt city, in a region known for its swaths of shuttered factories, Cleveland is trying to survive by tackling inequality.
By ensuring that large public institutions pick local suppliers as well as giving employees a stake in local companies and the right to share profits, Cleveland – and now an English town – are taking a novel approach to wealth management.
Encouraging community wealth could work equally well in cities around the world grappling with economic decline or financial crisis.
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