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Asset Building as a Solution
Traditional definitions view poverty as a lack of income. The asset building approach sees poverty as both a lack of income and a lack of assets. Assets provide a cushion of personal, social and financial resources that are important during an income crisis such as job loss or illness. Without assets people can become trapped in a cycle of poverty.
The asset building approach to poverty alleviation and community development is an international movement with strong roots in the US and the UK. In Canada, it is embraced by the BC ABC and the broader the community economic development (CED) sector as an innovative anti-poverty tool that allows individuals to improve their self-sufficiency.
Michael Sherraden, author of 'Assets and the Poor" (1991), and recognized leader in the asset building community, identified nine effects of asset building and its impact on breaking the poverty cycle.
- improves household stability;
- psychologically gives people a viable, hopeful future;
- stimulates development of other assets, including human capital;
- enables people to focus and specialize;
- provides a foundation for risk-taking;
- increases personal efficiency;
- increases social influence;
- increases political participation and lastly; and,
- improves the welfare of offspring.
"Asset ownership - or the lack of asset ownership - has profound effects on life outcomes for individuals and for the well-being of communities." Individuals who are not focused on "surviving" are more involved in their communities - socially, economically, and politically - and are healthier, more positive, and able to "give back" to their communities.
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| This website was produced with CEDTAP, Vancity, Bell Canada, and the Royal Bank of Canada. |
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Funding Partners