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Community Economic Development in Distressed Urban Neighborhoods: A Case Study of the Philadelphia Empowerment Zone

Author: Howard Nemon

Dissertation School: University of Pennsylvania

Abstract:

Place-based development strategies are being increasingly utilized to address the complex, localized problems in distressed urban neighborhoods. Although economic development is one of the critical concerns of these programs, determining the most effective economic strategy for impoverished communities is problematic. Typical local economic development (LED), managed by local authorities, financial institutions, and developers, is the more traditional approach. However, empirical studies have not demonstrated that it is capable of addressing the economic problems of disadvantaged groups and neighborhoods. An alternative option is community economic development (CED), a comprehensive approach that empowers communities to control their socioeconomic activities for the benefit of all their residents. Although the field of urban revitalization recognizes the importance of comprehensive programs and community involvement, there are many challenges to building community capacity and developing programs that successfully improve economic, social and physical conditions.

This dissertation will examine the CED approach within the context of a dominant LED environment in order to determine how CED strategies can be effective, how community building processes contribute to CED effectiveness, and how the interaction of CED and LED approaches affects the implementation of CED strategies. This research uses case study methodology to explore CED strategies within the Philadelphia Empowerment Zone. The Empowerment Zone/Enterprise Community (EZ/EC) initiative is the federal government's major comprehensive community development plan for economically distressed communities that encompasses both CED and LED strategies. By using qualitative and descriptive quantitative analysis to examine data collected from semi-structured interviews of key informants from the public, for-profit and nonprofit sectors, EZ reports and other local economic development materials, survey data, and participant observation, the study will closely examine the complex community processes that are involved in CED and LED strategies of the Philadelphia EZ.

This dissertation will inform policy and program development regarding the planning and implementation of successful CED strategies. CED offers an effective economic development approach for all localities experiencing inadequate economic activity, access to capital, and employment opportunities, whether inner-city, older suburb or rural area. A clearer understanding of how CED strategies operate will assist these communities to strategically develop their local workforce, increase local financial resources, and build a strong local economy. This study will also clarify how different community building processes, such as empowerment, social networks, and social integration, operate together in order to facilitate CED. When neighborhoods are empowered, united, and actively developing networks, it is easier for them to partner with local authorities and the private sector. Finally, CED strategies promote greater vertical collaboration by developing mechanisms for coordination between the local and regional levels.

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