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Home My WebLink About16 April 5, 2023f Community Capitals: A, Tool for Evaluating Strategk lnterventi / ns 'nd Projects ~~~~~~~~~~~~~~ by Cornelia Butler Flora, Mary !nJery, Susan Fey and Corry Bregendahl North Central Regional Center for Rural Development, Iowa State University, 107Curtiss Hall, Ames, IA SOOl 1-1 OSO (515) 294-8321, (515) 294-3180 fax, www.ncrcrd.iastate.edu To understand how communities function, Flora and Flora (2004) developed the Community Capitals framework. Based on their analyses of entrepreneurial communities, they determined that the communities that were successful in supporting healthy sustain- able community and economic development (CED) paid attention to seven types of capital: natural, cultural, human, social, political, financial and built. Beyond identifying the capitals and their role in community economic development, this approach focuses on the interaction among these seven capitals and how they build upon one another. This framework is used not only as a tool for analysis, but also as a way to assist project managers in identifying key boundary part- ners. By identifying which agencies or organizations link to each of the community capitals, project managers can determine which organizations with which to partner. Once partners are identified, the framework can then be employed to determine what each part- ner may need to do in order for the partnership to be successful. Using the Community Capitals framework, project managers and evaluators can trace how an investment in human capital, for example leadership training, might impact financial capital as leaders use their skills to acquire new funds and better manage existing funds. Social capital may then be impacted as members of the leadership program develop new bonds among themselves and new bridges among the groups with whom they interact. The same leadership course might consequently expand political capi- tal by providing information about how the political system works and how to access resources within the community; it could also help participants develop key linkages to other sources of political power. Finally, the interaction with representatives from different commu- nity groups may expand the cultural capital in the community as people learn to value the voices and heritages of others. The Community Capitals model has become an invaluable tool in the North Central Regional Center for Rural Development's work with the National Rural Funders' Collaborative. This framework helps project staff and funders better understand the strategic nature of the funded programs and their impact on reducing poverty, creating wealth, supporting family self-sufficiency, and expanding local leadership. NCRCRD's research focus with the Benedum Foundation addresses the question: Is CED possible in rural communities with populations less than 10,000 people? By measuring the investments in each of the capitals and the changes resulting from that investment, the fra mework provides a means by which researchers begin to understand the impact of CED on rural people and places. COMMUNITY CAPITALS Context Pre-existing conditions and structures Community Characteristics- Impetus for Community Economic Development (CED) Efforts Natural Capital: Air quality, land, water and water quality, natural resources, biodiversity, scenery Cultural Capital: Values, heritage recognition and celebration Human Capital: Population, education, skills, health, creativity, youth, diverse groups Social Capital: Trust, norms of reciprocity, network structure, group membership, cooperation, common vision and goals, leadership, depersonalization of politics, acceptance of alternative views, diverse representation Political Capital: Level of community organization through the use of government; ability of govern- ment to garner resources for the community Financial Capital: Tax burden/savings, state and federal tax monies, philanthropic donations, grants, contracts, regulatory exemption, invest- ments, reallocation, loans, poverty rates Built Capital: Housing, transportation infrastructure, telecommunications infrastructure and hardware, utilities, buildings Process Actions, investments, intervention CED Investments in Seven Capitals to Change Community Characteristics What: CED projects focus on strengthening capitals Who: Actors (groups involved) How: Actions to address CED When: Year effort initiated; duration of CED effort Natural Capital Iuvestments: Preserving, restoring, enhancing, conserving environmental features in the CED effort Cultural Capital Investments: Sharing cultural identities (heritage, history, ethnicity, etc.) to drive CED effort Human Capital investments: Work expertise contributed to CED effort Social Capital investments: Risks taken to express differences of opinion on CED issues; organizations involved in CED effort; involving youth in CED; public participation/input in CED effort; organiza- tional link with non-local involvement; actions linking community to the outside; local and non-local organizations involved in CED effort; organizational representative on CED decision-making board; number of different groups on CED board Political Capital Investments: Relationship presence and nature of relationship between CED board and local, county, state, federal, tribal, regional govern- ments Financial Capital Investments: Type of materials contributed to CED effort; presence and sources of both local and external fi nancial support; mechanisms used for leveraging financial support Built Capital Investments Infrastructure used for CED effort Outputs and Outcomes Results of Actions Positive Changes in Community Characteristics Changes in Natural Capital: Indicator: Healthy ecosystems with multiple community benefits Measures: Landscape, scenery, outdoor recreation opportunities, soils, air quality, water quality, wildlife, vegetation preserved, conserved or restored; land development poli- cies adopted Changes in Cultural Capital: Indicator: Cultural consciousness Measure: New community festivals Changes in Human Capital: Indicators: Increased use of the skills and abilities oflocal people (critical thinking, innovation, problem solving); increased ini- tiative, responsibility and innovation Measures: New skills acquired, new training programs established; health care improved; childcare improved; youth and adult educa- tion improved; workforce improved; community population and median age changes post-CED effort Changes in Social Capital: Indicators: Increased networks, communica- tion, cooperation, trust Measures: New groups involved and partners in CED; new groups formed from CED effort; more community cooperation; increased local and non-local participation; local strategic plan formed; new leaders; more effective leaders Changes in Political Capital: Indicator: Increased ability to secure resources for the community through elected officials Measures: New community and government connections at various levels Changes in Financial Capital: Indicator: Appropriately diverse and vital economies Measures: New financial instruments estab- lished, new bond issues passed; outside fund- ing obtained to improve infrastructure and business development; poverty reduction Changes in Built Capital: Indicator: Appropriately diverse and vital economies Infrastructure improved and strengthened (including telecommunications, education facilities; government buildings; community buildings; transportation; business district; health care facilities; industrial park; indoor rec facilities; cultural facilities; housing; churches; city services; energy services, etc.) Using the Community Capitals Framework to Analyze Secondary Data on Community Development Corry Bregendahl corry@iastate.edu North Central Regional Center for Rural Development Iowa State University Research: An Overview • Benedum Foundation -Based in West Virginia -Investing in rural communities • Interest in maximizing community capacity with limited funds -Commissioned a review of CED successes globally Research: An Overview • Research questions -Is CED possible in rural communities with populations of 10,000 people or less? -What are the elements of a successful community? Research: Methods • 57 communities included • Criteria for selection -Former English colonies (New Zealand, Australia , Canada , US) -Geographically remote -Less than 10,000 population -Engaged in some form of CED activities -Used outside funding for CED • Employed the use of secondary data analysis -Review of communities via the Internet and other media -Collection of Census statistics Process Actions, investments, intervention CED Investments to Change Community Characteristics Natural Capital Cultural Capital Human Capital Social Capital Political Capital Financial Capital Built Capital Process ---+--Outputs/Outcomes Actions, investments, intervention Results of Actions CED Investments to Change Community Characteristics Natura l Capital Cu ltural Capital Human Capital Social Capital Political Capital Financial Capital Built Capital Data Classification Positive Changes in Community Characteristics Natural Capital Cultural Capital Human Capital Social Capital Political Capital Financial Capital Built Capital • Systematically reviewing information as it re lates to Community Cap itals Framework • Coding data as an investment or outcome for each type of community capital Financial Capital Examples • Investments -Were any bond issues passed to aid CED? -Were foundation grants used as a source of external financial support? -Were community revolving loan funds, foundations, or microloans established to aid CED? • Outcomes -Income increased or not from pre-CED year to post CED year Built Capita l Examples • Investments -Were community facilities used or critical in the CED effort? -Were te lecommunications critical in the effort? • Outcomes -Was built infrastructure strengthened or enhanced? • Communications infrastructure improved • Transportation improved • Health care, education facilities improved Political Capital Examples • Investments -Is there a relationship between CED board members and local town or county government (local government endorsed strategy, provided training, directly involved) • Outcomes -Are there new connections between the community and governments? Social Capital Examples • Investments -Number of local and external organizations involved in CED effort -There has been public participation/input • Outcomes -Did individuals in the community emerge as leaders who had previously not taken leadership roles? -Are community members working together/cooperating more now as a result of the CED effort? -New groups formed as a result of the CED effort/action Human Capital Examples • Investments -Services provided by community organizations including • Grant writing • Legal services •Training • Outcomes -Did community members learn new skills in the CED process like grant writing, etc.? -Did health care improve for community residents? ---~ Cultural Capital Examples • Investments -Is heritage the basis for the shared identity driving the CED effort? • Outcomes -Are new community festivals held as a result of the CED effort? Natural Capital Examples • Investments -Impetus of CED based on preserving natural capital -Were environmental assets used or critical in the CED planning/implementation effort • Outcomes -Is natural capital in the community being preserved, conserved, or restored as a result of the effort? Research: Results • Elements common to most or all -Public participation (SC) -Multiple local organizations involved with decision making power (SC) -Multiple outside organizations involved as advisors, not decision makers (SC) -Organizations contributed human capital to CED effort (HC) -New leaders emerged (SC/HC) -New connections between community and government (PC) -CED part of a long-range plan (SC) Public Infrastructure: The Next Frontier For Real Estate Investment? Page 1 of 2 Sponsored Links CQsta Bi1::an Lam! Deals lnvestmeot ero~erties Invest in East Tenoessee Re_aj !;~tate lnv~stin~ Purchase land at a fraction of the cost Defer capital gains taxes when you Smoky Mountain Real Estate simple real estate investin1 with ocean views in paradise buy replacement investment property Premium Property for Sale ordinary people <!~PRU Powered by ~( Public Infrastructure: The Next Frontier For Real Estate Investment? By Parke M. Chapman May 31, 2006 3:00 PM Where many see rusting beams and potholes, some investors see the next big opportunity. With the prices of conventional real estate at or near cyclical highs, there is a growing interest by investors in toll roads and bridges, which have many of the financial characteristics of commercial properties, including predictable cash flow. Just last year, for example, a joint venture between a pair of Australian and Spanish investment firms shelled out $1.83 billion to buy a 75-year leasehold on the Chicago Skyway. The 7.8-mile long Skyway, which connects the Dan Ryan Expressway to the Indiana Tollway, throws off annual toll revenue of $45 million. And, later on last year, the state of Indiana announced plans to lease its 157-mile long Indiana Toll Road for 75 years to the same Australian/Spanish joint venture for $3.8 billion. "Money continues to inundate the commercial real estate market and much of that capital is having a hard time finding a home," says Dale Anne Reiss, Global Director of Ernst & Young's Real Estate, hospitality and construction sector. "Public infrastructure is certainly a sister to real estate, and the returns are both steady and long-term." Both New York and New Jersey are now considering privatizing toll roads, says Reiss. While private toll roads are common in Europe and Canada, the concept is slowly gaining traction here in the United States. Privatizations are hardly risk-free, too: The 22-mile long Camino-Colombia Toll Road, one of four toll bridges that span the Rio Grande River in Laredo-Nuevo, Texas, was built for $90 million by a private company with deep roots in the area. It opened in the fall of 2000 hoping to lure heavy truck traffic at a $16 toll for 18-wheelers. But the project proved to be a financial disaster. After the borrowers foreclosed, Camino-Colombia fell into the hands of the Texas DOT for just $20 million. The doomed venture effectively gave the state of Texas a new toll road for just .22 cents on the dollar. Despite these bumps in the road, Reiss believes that pension funds and other institutional investors will look to privatize public infrastructure in order to lock in steady returns for decades. She also believes that privatizations will appeal to · many budget constrained local governments that are anxious to get costly roads and highways off their books. New York and New Jersey present the greatest opportunity. The New Jersey Turnpike and Garden State Parkway generated $1.12 billion in revenue last year, exceeded only by New York, which generated $2.08 billion in toll revenues. Together, these two states represented roughly half of all U.S. toll revenue in 2005, according to the Bureau of Transportation Statistics. Investing in a toll road or a bridge should not be a difficult leap for real estate pros, says David Geitner, director of tl:le Massachusetts Institute of Technology's Center for Real Estate. "How is a highway or a bridge any different.:from a ··-- commercial property? People pay to use both for a certain period of time," he says. : And how are the returns? It's still too early to gauge how strong the returns would be for U.S. infrastructure, but a http://www.printthis.clickability.com/pt/cpt?action=cpt&title=Public+Infrastructure%3A+T... 6/1/2006 Public Infrastructure: The Next Frontier For Real Estate Investment? Page 2 of2 well-established toll road in Europe can yield 8% annual returns within the first 12 years of ownership, according to RREEF, the real estate and infrastructure investment management arm of Deutsche Bank, which holds stakes in Australian tunnels and airports. A RREEF spokeswoman declined to comment on the company's plans for the U.S., citing a quiet period surrounding infrastructure investments. "I think that infrastructure really represents the next frontier for real estate investors," says Geitner. "Especially since the returns are already so low for core properties." Want to use this article? Click here for options! ~ © 2006 Prism Business Media Inc. "WI Find this article at: http://www.nreionline.com/news/public_infrastructure_commercial_real_estate/index.html 0 Check the box to include the list of links referenced in the article. http://www. printthis .clickability. com/pt/ cpt?action=cpt&title= Public+ Infrastructure%3 A+ T... 611 /2006 ··' Cornelia Butler Flora Charles F. Curtiss Distinguished Professor of Agriculture and Sociology, Iowa State University Director, North Central Regional Center for Rural Development www .ncrcrd.iastate.edu Co0101unity Capitals Jan L. Flora Professor of Sociology Extension Sociologist Iowa State University Floraj@iastate.edu CAPITAL Resources invested to create new resources over a long time horizon Worthy Causes and Community Activities CRCRD ~ Worthy Causes and Community Activities ealthy Ec9system Vital Economy Social Equity • Air quality, wind and sun • Water --quantity and quality • Soil and minerals • Biodiversity-wildlife and plants • Landscape Social Capital NATURS,AL CAPITAL Natural capital provides possibilities and limits to human action. It influences and is influenced by human actions. Sustainable, healthy ecosyste01s with 01ulti le co0101unity benefits • human communities plan and act in concert with natural systems ecosystems are used for multiple community benefits • those with alternative uses of the ecosystem seek common ground CULTURAL CAPITAL • Cosmovision - spirituality • Symbols-sense of place • Ways of knowing • Language-history • Ways of acting • Definition of what is problematic ,,...__-----t)Nn A BU?PH/Sf Cultural capital determines how we see the world, what we take for granted, what we value, and what things we think possible to change. Hegemony allows one social group to impose its symbols and reward system on other groups. Vtu!1!4?JM P>IP1Hf Mllt'K'6 A HEN ·lA!.ff<l:u flf/NrfR~ RPHClff~.. . LISTEN TOTH/f.. CULTUR~L CAPITAL • CulturalLocal and traditional knowledge is differences are · d d h d recognized and appreciate an en ance valued. ,,'' ;J • Traditional ~ knowledge and historical places are maintained • Communities are willing to take the time to ~~ understand and build on different ways of knowing and doing. • education • skills • health • self-esteem, self-efficacy HUMAN CAPITAL The characteristics and potentials of individuals that are determined by the intersection of nature (genetics) and nurture (determined by social interactions and environment) Increased use of the knowledge, skills, and abilities of local eople • Identify capacities • Enhance capacitie •Recombine • mutual trust • reciprocity • groups • collective identity • sense of shared future • working together SOCIAL CAPITAL The interactions among individuals that occur with a degree of frequency and comfort. Bonding social capital consists of interactions within a specific group and bridging social capital consists of interactions among social groups. SOCIAL CAPITAL •Bonding -Tight, exclusive networks -Strong distinction between insiders and outsiders -Single answer focus •Bridging -Open and flexible networks -Permeable and open boundaries -Legitimization of alternatives Dimensions of Social Capital: Implications for Regional Development Bridging Clientelism Regional change driven by goals of outsiders + Progressive Participation Regional change driven by community-determined goals + Bonding _____ ........ _____ _ Extreme individualism Rich solve problems through financial capital Poor have few options Strong Boundaries Regions resists change, often groups within the regions don't trust each other and do not cooperate Improved regional initiative, responsibility, and adaptability • Shared vision • Building first on internal resources • Looking for alternative ways to respond to constant changes • Loss of the victim mentality • Loss of cargo cult mentality POLITICAL CAPITAL Political capital is the ability of a • Organization • Connections • Voice • Power group to influence standards, regulations and enforcement of those regulations that determine the distribution of resources and the ,,,,..,.-..... ways they are used. ~ • People who share a vision for a sustainable future are organized and work together • They know and feel comfortable around powerful people as well as those often excluded • They make sustainability part of the political agenda FINANCIAL CAPITAL • Savings • Debt capital POLITICAL CAPITAL Increased voice and influence • Investment capital • Tax revenue •Tax abatements • Grants Forms of currency used to increase capacity. Financial capital is often privileged because it is easy to measure, and there is a tendency to put other capitals into financial • Gifts capital terms. Appropriately diverse and • reduced healthy regional economy poverty • increased efficiency • increased . economic diversity • increased assets of those who live in the region • Sewers and water systems • Buildings • Machinery • Roads • Electronic communication BUILT CAPITAL Human-constructed infrastructure used as tools for production of other capitals BUILT CAPITAL Physical infrastructure tha enhances other community capitals because -It serves multiple users -It can be locally maintained and improved -It links local people together equitably -It links local people, institutions and businesses to the outside ealthy Ecosystem VitafEconomy Social Equity . --- Social Capital . ' • •• Rod Howe, CCE and CaRDI Ken Schlather, Executive Director, CCE of Tompkins County Planning and Evaluation Tool • Asset Mapping • Strategic Planning • Working with community organizations • Evaluation The goal is to invest in all the capitals. An asset becomes capital when it is invested. • Capitals Are A Way Of Looking At The Current Situation And Outcomes If knowledge is to be shared, we have to be •-clear about what we are doing (activities) • -clear about what we expect to happen • -clear about the evidence that tells us whether or not it did happen as a result of our activities • • Where did the capitals come from? • Rural Communities: Legacy and Change (2003) Cornelia (Neal) Flora, Director, North Central Regional Center for Rural Development • Research looking at community systems and at community assets • Heartland Center's 20 Clues for Rural Survival (www.heartlandcenter.info) Natural capital • refers to those assets that abide in a location, including resources, amenities and natural beauty ,.\ _,··· ~·· ' - . . '. ~· ... ,,....... ......,._, " Sustainable, healthy ecosystems with multiple community benefits • Air •Water • Soil • Biodiversity • Landscape 1 • • • • • Cultural capital • Symbols and language • Ways of knowing • What we value • Ways of acting • Definition of what is problemtaic Different heritages are maintained and valued Social capital • Mutual trust • Reciprocity • Collective identity • Sense of shared future • Working together reflects the way people "know the world" and how to act within it. Also includes the dynamics of who we know and feel comfortable with, what heritages are valued, collaboration across races, ethnicities, and generations reflects the connections among people and organizations or the social glue to make things happen. Bonding social capital consists of interactions within specific groups and bridging social capital consists of interactions among social groups. Human and Social Capital Goals • Improved community initiative, responsibility, and adaptability -shared vision -build on assets -creative strategies for responding to changes • Increased use of the knowledge, skills, and abilities of local people -identify capacities -enhance capacities -recombine capacities • • • . Human capital includes the skills and abilities of people to develop and enhance their resources, as well as the ability to access outside resources and bodies of knowledge in order to increase their understanding, identify promising practices, and to access data • Education • Skills • Health • Self-esteem • Self-efficacy More on Bridging and Bonding • Bonding -Tight, exclusive networks -strong distinction between insiders and outsiders -Single answer focus Political capital reflects access to power and power brokers; ability of a group to influence the distribution of resources, including helping set the agenda of what resources are available. • Bridging -Open and flexible networks -permeable and open boundaries -legitimization of alternatives • Organization • Connections • Voice • power Increased vrnce and influence -excluded people are organized and work together -exeluded people know and feel comfortable around powerful people -the issues of excluded people are part of the poli1ical agenda 2 . ••• • Financial Capital refers to the financial resources available to invest in community capacity building, to underwrite business development, to support civic and social entrepreneurship, and to accumulate wealth for future community development • Savings • Debt & investment capital • Tax revenue • Tax abatement • grants Appropriately diverse and healthy economies -reduced poverty -increased business efficiency -increased business dlvers1ty -increased community residents' assets An Example/Natural Capital • Strategies: -ecotourism projects: birding trail -birding/visitor web page -agritourism projects: collaborative tours -sustainability indicators checklist -planning for sustainable wood cluster (year 3) • Partner Assets -White Pine Coop organized 20 members -Landowner's conffor 150 • Outcomes: -support a healthy ecosystem -support entrepreneurship as a means to sustainable development -shape a regional commitment to sustainable sector development in field and forest .~ . Community Capitals and Evaluation • New evaluation methods and approaches have been developed to help projects learn from the evaluation experience such as participatory evaluations, logic designs and various mapping techniques • Community capitals framework offers a unique method for determining both the strategic nature of an intervention as well as its impact on systems • • • •.. . Built capital refers to the infrastructure that supports that community such as telecommunications, water and sewer systems, roads, etc. AGRO-FORESTRY CENTER Route 23, A,.cra, New York ilil I ' /:@..i"·1 .. 6!tidt~l.:4 ~ ' Evaluation • Sewers • Buildings • Water systems • Roads • Electronic communication Physical infrastructure that enhances other community capitals because. -it serves multiple users -it can be locally ma1nla1ned and improved -it links local people together equitably -it links local people, institutions and businesses to the outside • Kellogg Foundation's manual on evaluation lists 6 principles to guide evaluation -strengthen projects -use multiple approaches -be designed to address real issues -create a participatory process -allow for flexibility -build capacity CCE Tompkins County • Project Planning, Development and Evaluation • Strategic planning • Organizational Strengthening • Staff Development 3 • • Can we apply the model to individuals and organizations? Community Scanning each of the capitals Analysis of our comparative strength in each Analysis of key nodes in each one Ranking of importance for a given goal Strategic actions to take in each ' • • • • Org'I Strengthening , Staff Dev. Group efforts to address complicated issues require: • Common Language • Common Lens or Framework • Common Goals Staff (Organization)··~ .. , Development Model can help staff (and organizations): • Analyze, strengthen their own "capitals" • Provide a framework for understanding community development • Examine their own abilities to work in each of the capitals 4 • . • Strengths •Tool for in-depth analyses of complicated topics • Checklist for Planning • Provides a common language and framework Appreciative Inquiry (Al) • Focus on appreciative means that we think of the world as a glass that is half full as opposed to half empty • Inquiry refers to quest for new knowledge and understanding • The 60s: define, discover, dream, design, deliver and debrief • http://appreciativeinguiry.cwru.edu/ •• How might you use the framework? Building Extension's Public Value through Community Capital Investments Holiday Inn Inner Harbor Hotel, Baltimore, MD October 26-27, 2005 Dynamic inservice to help extension professionals discuss their work from a "public value" perspective. We will utilize the community capitals framework to posit extension programming as a public value. We encourage state teams to attend and use this as an opportunity to apply the material to a specific program. The training will help professionals identify outcomes and indicators for their educational programs. 5