In the realm of community development, inspiration is drawn from a diverse array of philosophical ideas, each contributing to the pursuit of meaningful progress and societal well-being. A prime illustration of this symbiotic relationship lies in the concept of human development. Rooted in the belief that individuals are the essence of thriving communities, human development emphasizes empowering people, expanding capabilities, and fostering holistic growth. As community development endeavors embrace the principles of human development, they create more inclusive and sustainable pathways to prosperity.
Keleher (2017) exemplifies philosophical research in this area by emphasizing the integral nature of human development in at least two key ways. Firstly, it goes beyond mere economic development, focusing on the holistic growth of individuals encompassing social, political, creative, and spiritual dimensions (development of the whole person). Secondly, it underscores that development applies to every person, irrespective of their social status, be it a marginalized peasant or a powerful elite (development of every person).
In community development, embracing this approach involves strategic investments in education, healthcare, and skill-building programs, enabling individuals to become empowered contributors to their communities’ overall growth and prosperity.
As impact investing gains popularity, the focus on creating positive change and addressing social and environmental challenges has intensified. Alongside this trend, investments in community development have witnessed significant growth, with a diverse range of impactful strategies emerging to uplift and empower communities around the world. Impact investing in community development takes various forms, each designed to generate positive social and environmental outcomes alongside financial returns. Major avenues include investments in affordable housing, microfinance for underserved individuals and small businesses, community development funds targeting diverse initiatives, support for social enterprises tackling social and environmental challenges, funding education and healthcare initiatives, sustainable agriculture projects, renewable energy initiatives, financial inclusion programs, impact real estate projects, and water and sanitation projects. These investments aim to address critical societal needs, foster economic growth, and create lasting positive change within communities while aligning with investors’ values and financial objectives.
For financial institutions looking to invest in community development, it is essential to comply with specific regulations outlined by the Federal Reserve (FED) if they are members of the FED. Depending on the circumstance, the investing institution may require the Board’s approval before proceeding with such investments. Alternatively, in certain cases, prior regulatory approval may not be necessary, but the institution is still required to notify the Board either before or after making the investment.
According to the Office of the Comptroller of the Currency (OCC), national banks and federal savings associations can benefit from collaborating with intermediaries in community development investments. These intermediaries, such as Local Initiatives Support Corporation (LISC) and Enterprise Community Partners (Enterprise), help banks identify suitable opportunity zone investments, select qualified opportunity funds (QOFs), and manage projects effectively. LISC and Enterprise have extensive experience working with banks on community development initiatives in low- and moderate-income communities. By partnering with these intermediaries, banks can be better equipped to achieve measurable returns while making significant impacts in distressed and underserved areas (OCC, 2021).
References:
Keleher, L. (2017). Toward an Integral Human Development Ethics. Veritas: Journal of Philosophy & Theology, 37, 19–34.
OCC (2021). Intermediary-Sponsored Opportunity Funds Seek to Deliver Community Impact for Investors. https://www.occ.treas.gov/publications-and-resources/publications/community-affairs/community-developments-investments/jan-2021/cdi-jan-2021-article-7.html
Like (0)