The challenge: Place-based disadvantage requires place-based solutions.
In Australia, inequality has a postcode. Across the country, disadvantage is consistently and disproportionately concentrated in a small number of communities. Whilst disadvantage does not define the story of these communities, it does colour opportunity.
From Mt Druitt, to Broadmeadows, to Corio and Norlane, people living in these locations are far more likely to experience a range of economic, social, and environmental barriers than their peers elsewhere. From poor job opportunities and lower education rates, to higher rates of incarceration and poor air quality, these factors shape everyday life.
Because disadvantage is cumulative, the problem also gets worse with time. The longer a person spends with significant disadvantage, the more likely he or she is to be stuck there. Children who grow up in a home with an entrenched disadvantage are also more likely to face the same problem.
So, what’s contributing to place-based disadvantage? While there are many factors contributing to economic and social disadvantage, we see four main challenges perpetuating or exacerbating the problem at a local level:
1. Economic policy that is perpetuating inequality
Over the last five decades, economic policies in developed nations have contributed to a growing wealth disparity. The underlying theory of ‘trickle down’ economics suggested that significant value and shared prosperity would result from the activities of large corporations and private capital.
However, in practice, these policies have led to the concentration of wealth among a minority of shareholders, exacerbating the issue of economic inequality on a global scale. After several decades of economic growth, Australia has made no inroads into entrenched disadvantage, nor have we reduced the number of people living below the poverty line, which sits at 3.3 million, or 13%.
2. Local communities in transition, with limited transition plans
We are seeing local Australian communities under increased economic pressure, with several significant transitions occurring:
- A transition away from carbon emissions and carbon-intensive industries.
- The closure of large manufacturing which was once the life blood of jobs and community spirit.
- The severe effects of natural disasters.
All these transitions see job losses and reduced local economic opportunities. Often, they cut much deeper into community pride and spirit.
3. Local economies and leaders are undervalued
Both TDi and GWYL have worked in local communities for many years, building the confidence and capability of local leaders. It has been both of our experience and observations that local leaders – when properly supported, resourced, and given time – create transformative change and are able to build and direct their own futures. Without support, leaders can often feel powerless to face the seemingly complex, impersonal forces which feel larger than them. Added to this is the undervaluing of the power of a local economy to drive its own change and future.
4. Place-based approaches that lack an economic lens
In the last decade, there has been an increase in funding for initiatives that try to reduce disadvantage using a place-based approach. However, rarely have these initiatives tried to shift the underlying economic conditions of a postcode. These economic conditions – from job opportunities to the provision of more valuable and needed local goods and services, or the local ownership of those businesses and assets – shape the day-to-day experience of economic opportunity, wellbeing, identity, and connection. We see this as a critical piece in addressing disadvantage.
Our response: Neighbourhood Economics
Neighbourhood Economics will exist for the economic wellbeing of Australia’s most disadvantaged suburbs, starting with Norlane, Corio, and Whittington, in the Geelong region. It has been created in recognition of, and response to:
- The need to explore economic development beyond traditional mechanisms, with ownership, shared prosperity, and community connection being central ideas.
- The aligned strategic focuses of both GWYL and TDi, and the realisation that both organisations have complementary skill sets.
Our goal is sustained community prosperity, achieved by utilising local assets to create businesses, jobs and potential new industries, with people and planet at the heart.
We’ll share more about how Neighbourhood Economics will help contribute to place-based, localised change in our next post. Or see our discussion paper for a more in depth look.
Neighbourhood Economics is a collaboration between Give Where You Live Foundation and The Difference incubator to design new models of place-based economic development.
Contact: hello@neighbourhoodeconomics.org.au