2. • Learn about the WealthWorks approach to
economic and livelihood development
through story and discussion
• Understand the fundamental elements of the
approach
• Principles
• Tools
• Discuss how these principles and tools relate
to your own work
Objectives of this Presentation
3. • Wealth, broadly defined, is the foundation for
prosperity.
• Poor places and people will stay poor unless they are
connected to larger economies – and they have
assets to bring to the table!
• Those assets can be developed and linked to markets
in ways that create multiple forms of wealth.
• Structures exist or can be created to cause wealth to
stick.
• Wealth that sticks leads to improved livelihoods.
Why focus on Wealth Creation??
4. #1 WealthWorks is demand driven.
#2 WealthWorks is intentionally inclusive.
#3 Wealth is tied to place by WealthWorks value
chains.
#4 Measurement is used as a tool for planning and
adaptive management.
#5 Wealth sticks through attention to structures of
ownership and control.
#6 The WealthWorks approach is strategically
flexible while doing no harm.
WealthWorks Principles
5. Biofuels in the Arkansas Delta
Camelina: Fuel for Thought
WealthWorks Story
AGEN
6. Regional/Urban Demand:
• Purpose: Bring new money into rural
communities
• Valero needs biofuel to meet blending
requirements per EPA RFS2; interested in
investing in getting value chain to scale.
• FedEx commitment: 50,000 gallons/day
Local Demand:
• Purpose: Price stabilization for
vulnerable budgets
• Municipalities and county governments
want stable fuel prices
• School system want to burn cleaner fuel in
school buses transporting children
Principle #1: WealthWorks is demand driven.
8. • Winter crop for soybean and cotton
farmers
Focus: Minority and small
farmers
• New Entrepreneurial Opportunities
Micro-Bio-Refineries
Waste Oil Collection
Seed Management
Seed Crushing
Manufacturing of Refineries
Example: Intentional focus on
minority farmers by providing
technical assistance, help with
planting and harvesting.
Principle #2: WealthWorks is intentionally inclusive.
9. Discussion Question
In what ways are you intentionally
including low income individuals – as
consumers, employees,
entrepreneurs – in your work?
Share some examples
10. Principle #3: Wealth is tied to place by
WealthWorks value chains.
A WealthWorks value chain
is a network of people, businesses,
institutions and non-profits
who collaborate to meet market demand
for specific products or services –
each advancing individual self-interest
while together creating greater local
wealth.
11. AGEN: Deep Collaborations
• Seeking larger systems
change
• A move beyond partnerships
focused on specific projects
• Deep collaboration built on
each member’s self interest
• Self interest creates
momentum!
• Example: Initial conversations
with individual members
identified their self interest.
“What is in it for YOU?”
• Collaboration is problem
solving together almost on a
weekly basis.
12. Demand for biofuel
Local municipalities, school districts, farmers, truckers
Regional companies - Valero, FedEx
Local
and
State
Policy
Support
MSCC Mini Refinery Micro Refinery
Spring-
board
Diesel Mfg
Dist
Gir
Energy
Mfg
Angel
Investor
Net
work
Loan
Funds
Waste Vegetable Oil
Collection
Businesses
Source of WVO:
restaurants,
convenience stores,
schools,
hospitals,prisons,
casinos, etc.
Community
Mktg
Strategy
Ed/promo
materials
Community
Recycling
Programs
Progressive
Community
Leadership
Trans-
porta-
tion
Camelina Seed
Processing Company
Growers of
Camelina:
Minority, Non-
Minority Farmers
Camelina
research
ASU,
PCCUA
Camelina
Agronomic
Service
Business
USDA
Support
Programs:
NAP, Cover
Crops, Crop
Insurance
ADTEC
RET
Training
Fuel Blender
Distributor
Animal Feed
Composting
Cosmetic mfg
By Products
Meal
Glycerol
13. Principle #4: Measurement is used for planning
and adaptive management.
Intellectual
capital
Social
capital
Individual
capital
Natural
capital
Built
capital
Political
capital
Financial
capital
What are we measuring? Seven forms of capital that,
together, comprise wealth.
14. Type of Wealth Interventions in Value Chains
Individual
# of farmers growing Camelina Baseline: 0; 3 in Spring 2013
# of entrepreneurs who have started micro-refineries
Baseline: 0; Today: 1 entrepreneur preparing to produce by Oct 2013
Social
# Number of groups engaged in renewable energy policy work and the
strength of their relationships Baseline:1; Today: 5
Intellectual
# of requests for renewable energy installations from municipalities,
residents, and business. Baseline: 0; Today: 3
Natural
# of gallons replaced by biodiesel produced in the Delta Baseline: 0; Today:
1360 gallons
Built
# of micro refineries functioning within the value chain
Baseline: 0; Today: 1 micro-refinery on campus of MidSouth CC fully
operational
Political
# co-sponsors on renewable and energy efficiency bill and how far the bill
advances in the political process. Baseline: 0; Today: 10 legislators; 4 bills
approved by committees
Financial
Value of external investment in value chain. Baseline =0. Today 5 local
investors committed to invest $1.2 million.
Principle #4: Measurement is used for planning
and adaptive management.
15. Discussion Question
In what ways are you building and
measuring outcomes that go beyond
jobs and income?
Share some examples
16. Value chain meeting in
January 2012
focused on ownership
structures
Principle #5: Wealth sticks in rural areas through
attention to structures of ownership and control.
1. Entrepreneurial Model:
Individual/local investors
purchase refinery to serve
local and regional markets
2. Farm Coop Model: Coop owns
refinery and converts farmers’
crop into fuel for on-farm use
on a contract basis
3. Municipality owns refinery and
leases it to entrepreneur with
right to purchase % of output
Intentionality: Focus on micro-refinery that costs $250,000
enabling investors to be local and wealth to stay in local
communities
17. Principle #6: The WealthWorks approach is
strategically flexible while doing no harm.
1. Members introduce new opportunities
Solar Bioenergy
2. Problem solving together
Financing barrier led to 3 potential models
3. Connectedness
Community leaders
Market players
Political influence
4. Do no harm – how to grow
camelina with fewer chemicals
Transformational Benefits of a Value Chain
Intermediary’s role:
Maintain values, do no harm
18. Central Appalachia
Energy efficient housing, energy
efficiency, food, forestry
Alabama Black Belt and Mid-South
Renewable energy, investment, forestry,
food, community-based tourism
Lower Rio Grande Valley region in Texas
Green housing/neighborhoods, literacy
Where are we working
on the ground?