Economic Development Initiatives of African-American Churches in Treme: The Oldest African-American Neighborhood in the United States

ABSTRACT The economic condition of inner cities in the United States is one of the most important issues facing us as a nation. The inner city is now a frontier of growth and entrepreneurship. One influence in promoting economic development in the inner-city is the African-American church. This study examines the nature and extent of economic development activities of African-American churches in Treme an inner-city neighborhood in New Orleans, Louisiana. Treme is black, low income, 71% rental and is the oldest African-American neighborhood in the U.S. dating back to the early 1800s. Six of 16 churches in Treme were studied. Churches were more likely to take part in social service activities than entrepreneurial activities (job training, housing, supporting small business start-ups). Two churches (both Catholic) followed different approaches to economic development. St. Peter Claver targets a weakness in Treme, housing and lack of home ownership. St. Augustine's efforts are directed towards tourism and related cottage industries. This strategy plays to Treme's history and the growth of cultural tourism. Further study should be oriented toward church strategy used given the strength and weaknesses of congregations in light of community threats and opportunities. INTRODUCTION The economic condition of inner cities in the United States is one of the most important issues facing us as a nation. The lack of business, jobs, and private investment in these disadvantaged urban areas not only perpetuates poverty, but also contributes to other social problems such as crime and drug abuse. (Porter, 1995). Largely abandoned during an era of industrial restructuring, the inner city is now a frontier of business growth and entrepreneurship. From Harlem in New York City to Los Angeles, blighted inner cities have begun to improve (McNatt, September 20, 2004). According to a recent study by the Initiative for a Competitive Inner City (ICIC), ghettos and surrounding neighborhoods actually outpaced the U.S. as a whole in such factors as median household income increases, poverty rate decline, home ownership, and high school graduates (Bernstein, Pameria, & Crocket, 2003). Growth in the inner city and a major market potential reflect renewed interest by the public sector, bankers and developers, large corporations, and the influx of young professionals. Despite the improving picture, too many inner city neighborhoods remain untouched. Another influence in promoting economic growth and entrepreneurship in the inner city is the African-American Church. There are 50,000-75,000 black churches in the U.S. with 19 million members. Church deposits total $2.6 billion per year. Ten percent of the churches underwrite business enterprises (Wilson, n.d.). Twenty eight percent of urban churches implement economic development programs (Jackson, et. al., 1997). This project examines the nature and extent of economic development activities in African-American churches in Faubourg Treme, a poor inner city neighborhood in New Orleans, Louisiana. Treme is the oldest African-American neighborhood in the United States dating back to the early 1800's. It has a long tradition of African-American history, culture, and small business ownership as well as music (jazz), food, and architecture. BACKGROUND Inner City U.S.A. U.S. inner cities represent the largest emerging market in the world. They represent $85 billion in annual retail spending excluding unrecorded income from legal activities that could add another $15 billion. That amounts to nearly 7% of total U.S. spending per year (Porter & Blaxill, 1997). In addition, inner cities in the 100 largest central cities of the U.S. are a substantial part of the economy. They account for 8% of the U.S. population (21 million people), 8% of private employment (9 million employees) and 814,000 business establishments (Initiative for a Competitive Inner City, June, 2004). …