Economic Development
Resolution on Economic Development
WHEREAS, the National Coalition of 100 Black Women defines economic development as a viable plan that provides economic self-sufficiency and the ability to obtain a better quality of life; and
WHEREAS, economic development places money in the hands of African American women for the purposes of achieving self-sufficiency; and
WHEREAS, economic development organizations and institutions can be challenged to develop methodologies that place money directly in the hands of African American women for the purposes of achieving self-sufficiency; and
WHEREAS, large economic development organizations and systems should organize themselves to address the "individual," including the African American woman; and
WHEREAS, NCBW is positioned to engage economic institutions in dialogue that encourage them to restructure ways in which economic methodologies can be enhanced to benefit African American women.
BE IT RESOLVED, THEREFORE, the National Coalition of 100 Black Women will advocate for increased wealth-building practices for African American women through partnerships with public and private institutions that focus on individual investment practices.
BE IT FURTHER RESOLVED that each NCBW chapter implement this action as it is appropriate to the resources of its chapter and the needs of its members and community.
Adopted Friday, October 8, 1999
Economic Development, Wealth and NCBW
Economic development has been described as the increase in the amount of people in a nation's population with sustained growth from a simple, low-income economy to a modern, high-income economy. Its scope includes the process and policies by which a nation improves the economic, political, and social well-being of its people (Wikipedia). Nevertheless, no matter how it's described, economic development can be seen as a complex multi-dimensional concept involving improvements in human well-being.
Noted British economist Professor Dudley Seers argues that development is about outcomes, that is, development occurs with the reduction and elimination of poverty, inequality, and unemployment within a growing economy (and/or population).
American economist Professor Michael Todaro sees three objectives of development:
- Producing more 'life sustaining' necessities such as food, shelter, and health care and broadening their distribution
- Raising standards of living and individual self esteem
- Expanding economic and social choice and reducing fear
According to a recent study published by the Insight Center for Community Economic Development titled, "Lifting as We Climb: Women of Color, Wealth and America's Future," black women, in their prime working years of 36-49, have a median wealth of only $5! Prior to age 50, women of color have virtually no wealth.
While the NCBW (and others) might challenge the research, the reality is whatever "the number," black women are at the lowest end of the personal wealth arc, and much work is left to be done.
Wealth, or net worth, refers to the total value of one's assets minus debts. The Insight study further points out that the current economic crisis has revealed why wealth is so important to the stability of households. Without savings or wealth of some form, economic stability is built on a house of cards that quickly crumbles when income is cut or disrupted through job loss, reduced hours or pay, or if the family suffers an unexpected health emergency.
As the current crisis continues to unfold, it has become all too clear that it is not just "poor" people who are losing their homes to foreclosure in record numbers; even households with some wealth found that they did not have enough to ride out the still unfolding economic downturn. Wealth impacts not just current economic security, but retirement security as well. With concerns over the solvency of Social Security and the shrinking number of jobs that provide pensions, it is of increasing importance that people have the means to save for their own retirement.
Wealth is also tied to the well-being of the next generation, as it provides parents with the ability to help pay for their children's college education, and can also be passed down from generation to generation. In fact, the intergenerational transfer of wealth is one of the reasons why racial wealth gaps from policies long ago have become entrenched.
To these collective ends, the NCBW embraces an agenda that works to promote the economic empowerment of Black women through implementation of national and member education and advocacy efforts to promote pay equity, increase retirement savings, and improve opportunities for personal wealth building.
The NCBW national economic development committee is chaired by Iris Ann Cooper, a renowned financial expert and accomplished business woman (www.justaskiris.com ) currently serving as the director of the Division of Entrepreneurship and Small Business for the State of Ohio, and well known as the founder of Glory Foods, Inc. (www.gloryfoods.com ).
NCBW has partnered with Prudential Insurance Company to deliver programs of financial literacy and wealth building strategies at the chapter level. The first partner programs were implemented during program year 2010.
Through this unique opportunity, nine chapters were selected to "launch" the national partnership advancing the NCBW's the economic empowerment agenda by collaborating with local Prudential offices to offer workshops related to financial literacy/education and job creation to women of color and to the historically economically underserved. Through these workshops, chapter members and other interested community residents also learn of available career opportunities with the Prudential Insurance Company. The nine participating chapters for the first year of the partnership include: Long Island, Manhattan, Metropolitan Atlanta, St. Louis, Omaha, Philadelphia and South New Jersey, and Polk County, Florida (Central Florida). Other chapters will be added in program year 2011, and are expected to include New Orleans and Indianapolis, to name a few.
The national economic development committee is developing a "tool kit" for chapter distribution and aid in framing one or more local economic empowerment initiatives and partnerships such as real estate counseling with local realtors, and financial literacy boot camps in collaboration with local banks.
