WHAT IS CED?

TABLE OF CONTENT

1. INTRODUCTION
2. Definition of terms
2.2.1 Community
2.2.2. Economic
2.2.3. Development
2.2.3.1. Theories of Development: How development started
2.2.3.2. Competing Theories of Economic Development
3. Community Economic Development
3.1. Principles of Community Economic Development
4. Conclusion













1. INTRODUCTION
This paper will examine community Economic Development as model to achieving societal development. In order our effort to depict this, we shall define community, Economic and Development by entirely looking at what other researchers and scholars came up with.

In our attempt to understand Development, we shall explore the theories explaining how development started and then look at competing theories of Economic Development, the most modern approach.

We shall then embark on the view of different scholars and researchers who were actually involved in Community Economic Development (CED) program; their definitions and explanation of CED. Under this, we shall also look at the principles which they developed in their effort to explain CED.

Finally, we shall conclude the paper by give our opinion on how we understand CED.
2. DEFINITIONS OF TERMS.
2.1. Community
Community has been defined by different scholars; For instance Karen Jones (1995:7) defines a community as a dynamic interplay of historic process and complex relationships, acted out in environment .St. Clair (2003), sees a community as a place that is characterized by close personal interactions, where people feel a sense of belonging security and fulfillment. As for Phil Bartle (1992), a community is system which transcends individuals. A system, therefore has various dimensions, technological, economic, political, institutional, ideological and perceptual. He added by saying, that a community may be dynamic through birth, death and migration. Bryant, 1999; Mc Robie and Ross, 1987 sees a community as “Communities of interest; people with something in common other than their place of residence, such as gender, kinship, ethnic background or political belief.

Therefore, a community can be defined as of the people of the same origin, common interest, living in the same area with similar occupation and are joined by some or all these elements.

According to the World book encyclopedia, a community is a group of people who share similar belief and customs and who may live in the same area. Members of the community are linked by emotional bonds. They share a sense of belonging and feel an obligations toward other members of the group; people may form a community in the basis of ethnic or racial origin, religious or political beliefs, occupation, friendship or shared interest.

2.2 Economics.
Classical economist, Adam Smith (1776) defined Economics as the study of causes of wealth of Nation. The Neoclassical economist, Alfred Marshall (19th Century) defined “economics as a study of mankind in ordinary business of life. It examines that part of individuals and social action which is most closely connected with the attainment and the use of the material requisite of well being”
The modern economist Lionel Robbins (1933) defined “economics as a science which studies human behavior as a relationship between ends and scarce means which have alternatives uses”

Economics can be, therefore, seen as a social science which study that part of human activity to which individuals co-operate with each other to satisfy their basic wants like food, clothing, and shelter.

2.3. DEVELOPMENT
2.3.1. How Development started
Development started with the transition from Feudalism to capitalism. Early bourgeoisie saw it as an improvement of an individual’s lot in the society.
Under Mercantilism the desire to accumulate gold and silver arose and later the government’s goal of increasing reports of manufactured goods was achieved.
Competitive capitalism witnessed the rise of industrial sector and increased demand for unskilled labour.

The classical Economist, Adam Smith approved the ‘Laissez faire” system and therefore discouraged the government intervention in the market.

Karl Marks (1867) saw development as a process of class struggle.

Imperialist spread capitalism in the rest of the world between 1860 and 1945 hence dominated politically and economically.

Alfred Marshall, a Neoclassical Economist believed that state would play important but limited role in achieving long term growth.
Vladimir Lenin believed that state should promote economic development generating wealth and distributing it.
John Keynes (1930s), encouraged government expenditure as a mechanism to create full employment, a mechanism still held by Breton Woods leaders.
From the above discussion, one can see development as a process involving quantitative and qualitative improvement in life of people in terms of material well being and social welfare which take place through various modes of production and different economic systems.

2.3.2. COMPETING, THEORIES OF ECONOMIC DEVELOPMENT
Following the perceived inability of classical, neo - classical and Marxist economics to address the economic reality that plagued the poor countries of the world that came into existence following world War II, four school of economic thought were coined: (i) structuralism (ii) the linear stage growing model, (iii) the neo-Marxist or dependency theory, and (iv) the neoclassical revival of the 1980s.

2.3.3. The Structural school: State – led development was key
The structuralists focus on the mechanism by which “underdevelopment” economies transform their domestic economies from a traditional subsistence agricultural base into a modern economy. A modern economy is defined as one in which most of the population is urban and the bulk of the country’s output is in the form of manufactured products or services. This encourage import substitution and export promotion industries.

2.3.2.2. The Linear-stages-of-growth model: the Western European view of economic development.
This share the view that economic growth could only be achieved through industrialization .The key to development was the injection of massive capital coupled with public sector intervention designed to accelerate the pace of economic development.



Walt W. Rostow designated the stages of economic development as follows:
(i) The traditional society (ii) the pre-conditions to take-off (iii) the take- off (iv) the drive to maturity and (v) the age of high mass consumption.

2.3.2.3. The Neo-Marxist Approach: - Advanced capitalist countries Exploit Development countries:
They argued that developed countries paid very low prices for the primary products imported from developing countries, transformed them into finished products and sold them back to developing countries at very high prices. This resulted in chronic poverty and misery in developing countries.
They further argued that it was impossible for many developing countries to industrialize because they were struck in a state of under development and unequal exchange with advanced Capitalist nations.

2.3.2.4. The Neoclassical Revival: Private Markets, Not Government Intervention, Are Critical for Development.
To neoclassical economists, economic stagnation in developing countries was a by-product of poorly designed economic polices and excessive state interference in the economy. They argued that in order to stimulate the domestic economy and promote the creation of an efficient market, developing country governments had to eliminate market restriction and limit government intervention.

3 COMMUNITY ECONOMIC DEVELOPMENT (CED)
According of Sanyika (1989), CED is a people initiated strategy which seeks to develop the economy of community, region or country for the benefit of its resident. CED is a systematic planned intervention that is intended to promote economic self-reliance .Principal objective of CED is to help consumers in becoming producer, users in becoming providers, and employees in becoming owners of enterprises .CED does not assume that market alone will solve the economic problem of communities .CED utilizes entrepreneurial methods similar to those used by tradition business in the private, sector, methods such as market studies ,business plans and financial packaging. CED seeks to develop efficient productive and profitable ventures and enterprises, but it does so in the contact of community social cultural and political values .This, CED will often focus on issues such as local ownership, building the capacity of local people, and public needs, rather than focusing solely on business profits.

The Economic Council of Canada in 1990 defined CED in the following words. “In this contexts the “local community “is a geographic area whose residents participate interdependent economic, social and political institution and share a variety of public and private services. Local-community economic development means improvement of job opportunities, means improvement of job opportunities income levels and other features of the economy, not only on Main Street, but by main street”.
For the Canadian community Economic Development network 2003 the vision of CED is not limited to participating local economic development. It also envisions equitable and sustainable social and economic change:

“Community economic development is local action to create economic opportunity and enhance the social and environment conditions of communities .Its strength lies in this long-term vision and integrated approach – CED concurrently addresses multiple issue. Strategic priorities include but are not limited to structural economic change, local ownership of resources, social development, environmental stewardship, labour market development and access to capital .These strategies renew community economies by managing and strengthening community resource for local benefit.
British Columbia working group on CED 1991 sees CED as:
“Community based and community directed process that explicitly combines social and economic development and is directed toward festering the economic social ecological and cultural well being of communities and regions. CED, has emerged as an alternative to conventional approaches to economic development .It is founded on the belief that problems facing communities – unemployment poverty, job loss, environment degradation, and loss of community control –need to be addressed in a holistic participatory way “
The CED knowledge base out of Simon Fraser university states:
“CED is the process by which communities can initial and generate their own solutions to common economic problem, engaging in this process, builds long-term community capacity and fosters the integration of economic, social and environmental objectives “

3.1 PRINCIPLES OF CED
CED is based on the following principle:

1. CED is development of the community, by the community for the community

2. CED is a process. If a community is to do CED, the people have to get together, organize themselves and develop a plan through identifying their strength and assets
3. CED is along-term. CED is not an over night business.

4. CED is a holistic approach to development. CED included both social and economic development “money is not the only “bottom line. “ In CED there is more than one bottom line…..people, their community ,their culture and the environment are all important .

5. CED is inclusive. Having a CED plan that meets the needs of the whole community means consulting and involving all members of the community.

6. CED is the development of people. Key to the success of CED are committed leaders and participation by a broad range of community members

7. CED is founded upon sustainability. When community is deciding what they want to do, they have to ask questions about sustainability.

8. CED is innovative. CED requires participants to find new ways to use both our human natural and material resource to create new opportunities.

9. CED aims for diversification. Diversification means creating economic opportunities a variety of different smaller sections, rather than relying on one single including.
10. CED is collaborative. In order to accomplish than goals, communities often build partnerships with other communities, with educational organization, government, and regional development agencies.

4. CONCLUSION
Community economic Development (CED) is process by which people living in a community involve together to create a diversified and sustainable local economy .CED is therefore a model which emphasizes peoples participation in all activities which are geared towards solving their social and economic development. By so doing, they develop the sense of belonging, that is, the “we feeling “.They therefore see the activity as “ours” as opposed to “theirs.”


5. REFERENCES

St. Clair, Charles, 2003. Community and Economic Development: A manual for Practitioners. Outreach and Extension. University of Missouri. Lincoln University.

Bartle, Phil, (2003) Handbook for Mobilizes. Available on http://www.scn.org/cmp/

Blakely, E.J. 1989. Planning Local Economic Development: Theory and Practice, Sage Publications, New burry Park, California.

Britain Columbia working Group on CED 1991.

Sanyika 1989.

World Bank…..Working Group or CED in British Columbia, Canada in 1991.