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Writer's pictureOblige Team

Rethinking Growth: Why Communities Must Be at the Heart of the Post-Crisis Economy

The COVID-19 pandemic, followed by a cost-of-living crisis exacerbated by the economic fallout of the Ukraine war, has laid bare the urgent need for a fresh approach to our social and economic systems. Projections of up to four million job losses, with over eight million economically inactive, paint a bleak picture. The fallout extends beyond the job market, with education inequality widening and mental health challenges escalating. Astonishingly, 100,000 children remain ‘missing’ from schools post-lockdown. At the same time, charities and social enterprises—the bedrock of many communities—are struggling, with 60% facing income declines and 32% suffering a volunteer shortage.


To "build back better," we need more than the platitudes of growth-at-any-cost economics. The experiment of Truss-onomics—high stimulus and low taxes geared toward big business—was an abject failure, reminding us that growth for its own sake, especially when centered on the financial economy and not on the real, everyday economy of small and medium enterprises (SMEs), can be destructive. It's time to rethink what success looks like.


This isn’t a cry from the so-called ‘anti-growth coalition.’ Growth is essential, but it must benefit the people who truly power our economy: the shop workers, taxi drivers, teachers, and healthcare workers. Pre-pandemic, neglected regions—particularly in the North, Midlands, and rural areas—were already struggling. The UK’s once-thriving industrial towns and farming communities have been left behind, as capital and labour migrated to metropolitan centres.


However, despite the challenges, many remain deeply rooted in their hometowns. The barriers—lack of skills, poor mobility, and sparse opportunities—are real, but attachment to place runs deep. The government’s much-lauded "levelling up" agenda was a decent first step, but it hasn’t gone nearly far enough. To preserve our communities, we need more than tinkering with tax rates or piecemeal grants; we need a paradigm shift in how we think about growth and success.


One solution lies in community wealth building, a model proven to work in places like Cleveland, Ohio, and Preston, UK. These initiatives anchor wealth locally by creating networks of worker-owned businesses, boosting job creation and reducing poverty. Meanwhile, the circular economy offers a way forward for sustainable growth. The European Union’s Circular Economy Action Plan could generate €1.8 trillion and create over 700,000 jobs by 2030, demonstrating that economic dynamism and environmental responsibility can go hand in hand.


Even more radical ideas, like Bhutan’s Gross National Happiness Index, which prioritises well-being over GDP, are worth a closer look. Closer to home, the Happy City Index, implemented in several UK cities, has offered a more holistic view of what progress really looks like.


And let’s not forget Danny Kruger’s "New Social Covenant," a blueprint for rebuilding society on the pillars of civic responsibility and mutual support. Kruger rightly advocates for placing power and resources into the hands of local communities. His vision for strengthening local democracy and social infrastructure, alongside the crucial role of volunteer organisations, offers a deeply pragmatic route to a more resilient society.


The road ahead requires more than abstract economic growth; it demands a system that values people and places first. Local ownership, community wealth building, and a focus on well-being are all steps toward a future where growth is inclusive and sustainable. To get there, government, business, civil society, and individuals must work together, not just to recover from the crises of today, but to build a future where communities can thrive on their own terms.

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