Why is asset building important?

Living in poverty is not just about having too little income - it is also about not having sufficient social, personal, human, and physical assets to adapt and transition through change and crisis. Without the full range of assets people living in poverty are vulnerable to crisis such as a job loss or illness. While income security programs in BC provide a basic level of financial assistance for immediate needs, they are limited in their ability to move individuals and families towards long term self sufficiency.

The asset building approach focuses on what assets an individual possesses and works to enhance ALL assets for long-term change and personal development. Asset building programs provide a means to develop financial assets while at the same time enhancing the often overlooked intangible assets - personal self worth, community support networks, and access to community resources and information - which are key to long-term self-sufficiency and community involvement.

Asset building has the power to transform people's lives by providing them with the skills and supports necessary to develop their full range of assets, thus creating more self-sufficient individuals with plans and hope for the future.

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.

See the Success Stories for more detailed accounts on the tremendous transformation seen in the lives of participants in BC.

This website was produced with CEDTAP, Vancity, Bell Canada, and the Royal Bank of Canada.