Transcript The Evolution of CED Practice in Montreal, Quebec

The Evolution of CED
Practice in Montreal,
Quebec
(Fontan, Hamel, Morin,
and Shragge, chapter 5)
Community development corporations
(CDCs) in Quebec are called CDECs.
Pointe St. Charles : first CED initiative
The neighbourhood had a
history of organized labour:

first community health and legal clinics

community education centres

campaigns to promote needs and
interests of the poor and working-class
CED objectives:
creating jobs
revitalizing the area
1984: The Pointe St. Charles Economic
Program (PEP) was founded.
What made their initiative
unique?

The concept of building a consensus on
the direction for local economic
development.

The idea of partnership across interests.
Financial resources from provincial
and federal governments.
To be used for:

Operating PEP

Venture capital to be made available to
small and medium enterprises at very
low interest rates
An inter-CDEC committee was created
to increase negotiating power between
CDECs and the three levels of
government.
The main objectives of the
CDECs:




Start new businesses by managing
capital funds
Facilitate the training and placement of
the unemployed
Initiate processes to bring agents
together to support CED
Change the negative attitude created by
many years of economic hardship
CDECs are very much intermediary
organizations.
In 1990, the City of Montreal started to
develop a universal policy to formally
recognize and support the role of
CDECs as a vital intermediary for local
economic development.
Within a short period, seven CDECs
were in existence, each covering
approximately three local districts.
A committee was formed to coordinate
the implementation, funding, and
evaluation of the CDECs by the three
levels of government.
Challenges
The committee attempted to standardize
the CDECs’ agendas making it difficult
for the CDECs to implement specific
development project in their own
communities.
Outcome
The committee has softened and now
permits the CDECs to design their own
action plan reflecting local priorities.
The CDECs became part of a city-wide
organization with direct accountability to
the provincial government.
The significance of this action:

The provincial government became the
primary provider of financing and policy
development for the organizations.

Local level: each CDEC retained an
independent board with the addition of a
City councilors.
2003: Bill 34 was introduced determines the method by which local
representatives become members of
CDEC Board of Directors.
CDECs have become extensions of the
government with less accountability to
the local district.
How do CDECs run CED
initiatives

CDECs administer a variety of
government programs and investment
funds.

The criteria for program participation is
set by the provincial government.
What types of programs are
initiated?

Many have an entrepreneurial nature.
Some programs administered in
2004:
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a local investment fund
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a fund for the development of social
economy enterprises
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a young entrepreneurs program
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a program to assist microenterprise or
self-employment

a program to stimulate entrepreneurship
in the manufacturing and industrial
sector

These programs tend to target low
income persons and those on the
margins of the labour market.
Program results:

Despite the social orientation of
Montreal’s CDECs, the greatest support
is designated to private business
development.
Fiscal Year 2002- 2003
Over $700,000 was invested in 21
projects that generated over $4,700,000
of revenue and has maintained or
created approximately 175 jobs in the
South-West section of Montreal.

Also, 22 projects have been accepted and 16
business plans have been approved.

The young entrepreneurs program funded 11
projects and the creation of 455 jobs.

The local investment program funded 4 new
projects with $185,000 and created 35 jobs.

For the most part, the three levels of
government consider CED to be about
entrepreneurship and employability.

Problems of poverty and social inequality
are addressed using market-driven
initiatives to advance social integration
and social inclusion by improving
employability, local entrepreneurship and
job creation.
Business Development Projects

Business development is typically small
business and is often related to the
social economy.

Businesses must be viable.
Some specific projects:
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A community-based member-owned
cooperative offering environmental products,
services and education.
Mandate: “successfully engages in economic
activities using reasonable profits to sustain
their activities, to provide an alternative to
consumerism and protect and respect their
natural environment”.

A theatre was taken over by a non-profit
organization and retained 8 jobs and
created 10 additional jobs while
contributing to the revitalization of the
area.
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High tech development, on a larger
scale.
A manufacturer of circular knit fabrics.
The firm produces many fabrics and had
been in operation for over 30 year. The
plant had closed in 2002 and then reopened as a CED project.
The Democratic history of CEDs
in Quebec

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The active participation of citizens in the
democratic process in deep rooted in
Quebec.
The creation of CDECs provided a
mechanism for residents and local
organizations to have a voice in local
economic and social development.

Over time, the involvement of the
government sectors has reduced citizen
participation in the decision-making
processes for CED.

The CDECs have become paragovernmental organizations.