How to close the racial wealth gap through building community wealth

Two Black men, one wearing a brown jacket and the other in a blue shirt are talking and sitting next to each other

Produced live at WGBH Studios in Boston, Basic Black is the longest-running program on public television focusing on the interests of people of color. The show, which was originally called Say Brother, was created in 1968 during the height of the civil rights movement as a response to the demand for public television programs reflecting the concerns of communities of color. Each episode features a panel discussion across geographic borders and generational lines with the most current stories, interviews and commentaries.

April 22, 2022

Updated April 24, 2022

An investment model known as community wealth building is a relatively new approach to closing the racial wealth gap, which aims for democratic ownership and puts control in the hands of people of color.

According to research from the Federal Reserve, Black and Hispanic or Latino households own only about 15 to 20 percent net wealth as the average white household. As an inclusive model of investment, community wealth building is a broad term that covers several ways in which residents can come together to invest their money, time and talent to build equity in their neighborhoods. It includes models such as community land trusts and public banks, which sit in contrast with economic models that concentrate wealth at the top.

Now, cities across the country are following successful models by designing initiatives and steering funding toward communities to move into pandemic recovery and create economic prosperity for communities of color.

"We have to own our businesses, we have to own our communities, you know, homeownership," said Teri Williams, president and chief operating officer of OneUnited Bank, and board chair of the Black Economic Council of Massachusetts. "That is really the way that we have to build wealth that builds community wealth, and that ownership provides us with a sense of control."

Watch: Basic Black "Building Community Wealth"

Local cooperatives and organizations, such as the Boston Ujima Project, are helping to provide this feeling of ownership by investing in business and arts to grow an ecosystem that confronts systemic barriers.

Nia Evans, executive director of the Boston Ujima Project, said Black and brown communities have been historically disinvested as their wealth and assets have been taken away.

"It's important that we look to models that center our needs, that center our expertise, that center our experiences, and that also acknowledge the wealth that we have created, and that acknowledge that we should have control over the wealth," Evans said.

In addition to models that center on community needs and experiences, they also need to generate consensus in a neighborhood, according to Turahn Dorsey, co-founder of the Jazz Urbane Cafe development in the historic Bolling Building, and a member of the GBH Board of Advisors.

"That consensus is much richer," Dorsey said, "and I think has a lot more work than just the dollars because now that we got a community of folks who have said to us, 'Jazz Urbane Cafe has our stamp of approval,' we know that folks are going to come through the door when it opens."

One leader in the Boston business space who also has plenty of people coming through the door is Nia Grace, owner of Darryl’s Corner Bar & Kitchen, The Underground Café + Lounge, and co-founder of the Boston Black Hospitality Coalition.

Grace's advice to others looking to own a business in Boston is to invest in what makes you happy and brings richness to the community, which is what she did with her business ventures.

"It's about something that I'm really passionate about and what I feel my community needed and provided a bright spot for it," said Grace.

Watch the latest episode of Basic Black Fridays at 7:30 p.m. on GBH 2 or live on our website. You can also watch on the GBH News YouTube channel. Subscribe to get notifications for future premiere episodes.