The impact on employment and GDP of a government investment in the community are greater than that of a similar investment in the entire Quebec economy, according to a study conducted for the National Table of Development Corporations community (TNCDC) and published on Monday.
The study conducted by AppEco shows that for $100 million invested in the community, $183.7 million is actually injected into the economy. Moreover, according to the firm’s economists, for these same $100 million invested, a GDP of $110 million is generated and 1,900 jobs are maintained or created.
“However, for 20 years, the real funding of community development corporations (CDCs) has decreased by 12%,” lamented the TNCDC, which believes that this underfunding prevents them from increasing their resources or even from countering inflation. .
“The lack of conclusive quantitative and economic indicators was one of the issues raised by the government to postpone an increase in funding for the CDC. We hope that this study, which confirms both the economic impact and the underfunding of the CDCs, will encourage the government to release the expected amounts. The study clearly shows that investing in the community pays off not only socially, but also economically,” said Marie-Line Audet, Executive Director of the TNCDC.
According to the TNCDC, the CDC network needs additional funding of $8.7 million as of 2022-2023.
This amount would allow the CDC to make up for the shortfall of the past 20 years, but also to improve their interventions in the communities and meet the increase in needs, by each relying on a team of three full-time people. Also, the increase in funding would allow an increase in salary conditions and contribute to the retention of professionals.