Community Economic Development: Some Critical Issues

Abstract

Community development is an issue of continuing interest not only because of the need for more successful economic development within our cities, but because the survival of a significant portion of African-American poor is at stake. Community development planning seeks to improve all aspects of community life, including health, education, crime prevention, employment and training, business development, family stability, and housing. Community economic development must arise from our black churches, historically black colleges and universities, African-American officials, business leaders, teachers, and health and welfare professionals. In the real world, where group welfare functions are interdependent, only two possible long-term outcomes are both just and stable: win-win or lose-lose. Consequently, there is a need for significant Pareto improvements in all social programs. There are roles for both race-specific and race-neutral policies because long-term Pareto improvements can result both from programs such as targeted minority employment and training as well as color-blind policies that encourage legislators to forgo the coffers of the gun lobby and control the sale and use of guns. The paper will focus on the historical logic of public policy as reflected in housing policy, financing mechanisms under community development corporations, and the issue of an urban underclass. By reestablishing its commitment to the inner cities, the government can redress the onerous impact of two and a half decades of social and economic neglect and private investment retrenchment.