Community procurement, also known as community-led procurement, is transforming local economies by empowering residents and local organizations to take an active role in procuring goods and services that align with community values and needs. This approach creates economic resilience and fosters sustainable development by channeling funds into local businesses and ensuring transparency. Let’s explore some standout examples of community procurement models from around the globe and the positive impacts they’ve had on their communities.
1. Preston Model: Revitalizing the Local Economy in the UK
The “Preston Model” in Preston, England, is a shining example of how community procurement can revitalize local economies. Faced with economic stagnation, Preston’s government adopted principles of the “Community Wealth Building” model, developed by the Democracy Collaborative in the U.S. Through this approach, anchor institutions—such as universities, hospitals, and local councils—redirected a significant portion of their procurement spending towards local businesses. By prioritizing contracts with local suppliers and cooperatives, Preston strengthened its local economy, creating jobs and fostering community engagement. This model has become a blueprint for other UK cities, demonstrating the power of local procurement to build economic resilience.
2. Barcelona’s Socially Responsible Public Procurement
Barcelona, Spain, has implemented a community procurement model focused on social responsibility. By setting specific criteria for public procurement, Barcelona’s government prioritizes contracts for businesses that contribute to social good—such as companies with fair wages, environmentally friendly practices, or social inclusion policies. This strategy supports small and medium enterprises (SMEs) and social enterprises, making the city’s procurement processes more equitable and transparent. The initiative has led to greater diversity in suppliers and helped local businesses thrive while promoting sustainable practices, creating a model for socially responsible procurement.
3. Community-Driven Infrastructure in New Zealand
In New Zealand, the Māori iwi (tribes) have pioneered a unique form of community procurement to drive infrastructure projects. By participating directly in the planning and execution of projects, iwi-led procurement ensures that infrastructure development aligns with Māori values and community goals. Projects such as the Tāmaki regeneration program in Auckland have employed local Māori businesses and workers, supporting economic development within indigenous communities. This approach ensures that community voices are heard, and benefits are shared locally, demonstrating the potential of community procurement to respect cultural heritage while fostering economic growth.
4. Canadian Aboriginal Procurement Initiative
Canada’s Aboriginal Procurement Initiative (API) promotes partnerships between indigenous communities and the federal government to increase the participation of indigenous-owned businesses in public procurement. By setting procurement targets and creating exclusive contract opportunities for indigenous businesses, API has stimulated economic activity in Aboriginal communities and helped foster business capacity. This model provides a powerful example of how procurement policies can empower underrepresented communities, reduce inequality, and support the sustainable growth of minority-owned businesses.
5. Japan’s Revitalization of Rural Economies through Community Procurement
Japan faces a unique challenge with aging rural populations and urban migration. To counteract these trends, rural Japanese communities have turned to community-led procurement as a means of revitalization. By focusing on local producers and service providers, these communities have preserved traditional crafts, supported local farmers, and stimulated tourism. The town of Kamikatsu, for example, has adopted zero-waste policies that involve local businesses in waste management and sustainable product creation. These efforts have generated local employment, attracted eco-conscious tourists, and revitalized Kamikatsu’s economy, proving the potential of community procurement to sustain rural areas.
Final Thoughts: A Pathway to Sustainable Development
Community procurement models worldwide demonstrate the transformative potential of localizing public procurement processes. From Preston’s economic revival to New Zealand’s culturally respectful infrastructure projects, these case studies reveal how community procurement can drive economic, social, and environmental benefits. By focusing on local suppliers, promoting inclusivity, and embedding social values, communities can build more resilient, self-sustaining economies.
For governments and organizations seeking sustainable development, these models provide practical examples to follow. Community procurement not only empowers local economies but also fosters stronger, more cohesive communities aligned with shared values and long-term prosperity.