Capturing Cash Transfer Payments and Community Economic Development

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Abstract
In this paper the relationship between community economic development and transfer payments is considered. Transfer payments consist mainly of government retirement program and investment income such as rents, dividends and interest. First it is argued that fundamental restructuring of society is changing the context for community economic development. The proportion of elderly in the more developed regions of the world has risen. Second, transfer payments, especially to retirees, constitute a significant Percent of total income in the United States. Studies show that when this income is spent in communities, jobs are created. There are indications in several studies that migration is influenced by transfer payments, that jobs follow people with money. Finally, possible local strategies to capture cash transfers are discussed, including successful examples of development based on cash transfers. Formation of local capital pools with cash transfers and nation wide marketing strategies are suggested as possible options.

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