Each panelist reviewed the considerable obstacles to creating assets in low-income communities. Presenters underscored the difficulties inherent in trying to reverse policies that have historically undermined marginal populations' efforts to enter the economic mainstream. With the emergence of locally-owned and controlled institutions like the Blackfeet National Bank, and its affiliated CDC, this situation is beginning to be redressed. Each speaker reiterated the importance of providing this kind of ongoing technical assistance to buttress and sustain asset-building programs. Much as government policy impeded economic development in Indian Country, the demise of plantation agriculture in the Delta region of the South created unforeseen obstacles, and possibilities, for underserved communities in Arkansas, Mississippi, and Louisiana.
Results are impressive.
These leveraged, restricted investment accounts, which can be used only for education, training, purchase of a home, or small business start-ups, have the potential to become a key part of community reinvestment strategies. On the policy side, IDAs may prove to be one of the few programs to benefit from welfare policy changes. To date, more than 30 state bills have included provisions that seek to end disincentives for savings in income maintenance programs like AFDC and food stamps. In addition, Congress is considering funding a national IDA demonstration. The project focuses on processing kenaf fiber, a substitute for wood and plastic that can yield a variety of products, including newsprint, building panels, and containers.