PFM Articles 
The New Wealth Package for Community Economic Development: Generating Value in Distressed Urban Communities
EDWARD J. BLAKELY
PFM, Vol. 3 No. 2,
(2003)
This paper applies arbitrage theory as a means of valuing
assets in urban low-income communities. The reason for this is that
capital and wealth formation has become increasingly important, as
inner city areas become more robust marketplaces. Increasingly,
community based institutions and organizations are being challenged
to develop new approaches for creating self-sustaining capital from
internal community assets. Until recently, low income and distressed
communities attracted resources by showcasing their deficits and the
lack of marketable asserts. Today, however, with new immigration
and the opening of inner-city areas to new private capital, community
based institutions and organizations must find ways to value
previously undervalued assets as a means of capturing the wealth
they represent and holding them in the community as a new treasury
for capitalizing future development. In this paper, I argue that one
means of realizing wealth is capitalizing and securtizing the
increased value associated with the improved value of all forms of
rising in value community based assets through the use of arbitrage
methods that use the notion of increased values to form new tradable
capital stock that is transferable as well as capturable internally to
generate new wealth.
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