The The Economic Recovery and Economic Recovery and Structural RacializationStructural Racialization

john a. powelljohn a. powellDirector, Kirwan Institute for the Study of Race and EthnicityDirector, Kirwan Institute for the Study of Race and Ethnicity

Williams Chair in Civil Rights & Civil Liberties, Moritz College of LawWilliams Chair in Civil Rights & Civil Liberties, Moritz College of Law

60th Annual Conference of the Council on Foundations. 60th Annual Conference of the Council on Foundations. Tuesday, May 5, 2009 Tuesday, May 5, 2009

How does race work today?How does race work today? There are practices, cultural norms and institutional There are practices, cultural norms and institutional

arrangements that help create & maintain arrangements that help create & maintain (disparate) racialized outcomes(disparate) racialized outcomes

We call this “structural racialization”We call this “structural racialization” It is a very different way of looking at race It is a very different way of looking at race The way race matters changes over time The way race matters changes over time

(progress/retreat)(progress/retreat) We must consider how we each stand differently with We must consider how we each stand differently with

respect to our opportunities for work, education, respect to our opportunities for work, education, parenting, retirement…parenting, retirement…

We must understand the work our institutions do, not We must understand the work our institutions do, not what we wished they would do in order to make them what we wished they would do in order to make them more equitable and fairmore equitable and fair

THINKING OF RACE AS THINKING OF RACE AS THE “MINERS CANARY”THE “MINERS CANARY”

The “Miner’s Canary” The “Miner’s Canary” metaphormetaphor Disparities facing Disparities facing

communities of color are communities of color are indicators of larger indicators of larger impending societal impending societal challengeschallenges

Ex: Race and predatory Ex: Race and predatory lending, which contributed lending, which contributed to the subprime debacleto the subprime debacle Threatening the entire Threatening the entire

US economy US economy

3

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Capital Market ‘Credit crunch’

Affected neighborhoods are being reduced to ‘ghost towns’

Reduced spending and retail flight

Families lose their homes, wealth and safety

Banks, police and courts saddled with foreclosures

SUBPRIME LENDING: We didn’t care about the canary...

Opportunity is racializedOpportunity is racialized Structural racialization: the joint Structural racialization: the joint

operation of institutions operation of institutions produces racialized outcomes.produces racialized outcomes.

Structures unevenly distribute Structures unevenly distribute benefits, burdens, and benefits, burdens, and racialized meaning.racialized meaning.

In 1960, African-American In 1960, African-American families in poverty were families in poverty were 3.83.8 times more likely to be times more likely to be concentrated in high-poverty concentrated in high-poverty neighborhoods than poor neighborhoods than poor whites.whites.

In 2000, they were In 2000, they were 7.37.3 times times more likely.more likely.

This uneven distribution has This uneven distribution has negative consequences not just negative consequences not just for those with the greatest for those with the greatest need, but all of us.need, but all of us.

Lower EducationalOutcomes

Increased Flightof Affluent

Families

Neighborhood Segregation

SchoolSegregation &

Concentrated Poverty

Opportunity is spatialized Opportunity is spatialized Structural racialization involves a series of exclusions, Structural racialization involves a series of exclusions,

often anchored in (and perpetuating) often anchored in (and perpetuating) spatialspatial segregation. segregation.

Historically marginalized people of color and the very Historically marginalized people of color and the very poor have been spatially isolated from economic, poor have been spatially isolated from economic, political, educational and technological power via political, educational and technological power via reservations, Jim Crow, Appalachian mountains, ghettos, reservations, Jim Crow, Appalachian mountains, ghettos, barrios, and the culture of incarceration.barrios, and the culture of incarceration.

Opportunity is complex and Opportunity is complex and cumulativecumulative

Rebecca Blank builds on Myrdal’s Rebecca Blank builds on Myrdal’s concept of “cumulative causation.” concept of “cumulative causation.”

In the U.S., while whites are poor In the U.S., while whites are poor in greater numbers, people of in greater numbers, people of color are more likely to be in color are more likely to be in prolonged poverty and to suffer prolonged poverty and to suffer the cumulative effects (poor the cumulative effects (poor health, lack of labor market health, lack of labor market experience, inadequate education)experience, inadequate education)

Single-issue policies do not Single-issue policies do not adequately address the multiple adequately address the multiple oppressions of povertyoppressions of poverty

Opportunity: stimulus planning Opportunity: stimulus planning How do we make it fair, sustainable, accountable?How do we make it fair, sustainable, accountable?

Incentives for inclusion of people of colorIncentives for inclusion of people of color

Grants and loans for small and minority-, women-, and Grants and loans for small and minority-, women-, and community-disadvantaged businessescommunity-disadvantaged businesses

Collect data by race and gender to understand impacts Collect data by race and gender to understand impacts of economic recovery policyof economic recovery policy

Investment in public transit Investment in public transit (prioritize projects that connect (prioritize projects that connect people to jobs)people to jobs)

Source: Maya Wiley, Source: Maya Wiley, Center for Social InclusionCenter for Social Inclusion

Opportunity: foreclosure reliefOpportunity: foreclosure reliefHow do we make it fair, sustainable, How do we make it fair, sustainable,

accountable?accountable? Sustainable credit options for low-income families Sustainable credit options for low-income families

and credit-deprived neighborhoods (fair investment and credit-deprived neighborhoods (fair investment in all communities)in all communities)

Living-wage jobs and “green” housing standards Living-wage jobs and “green” housing standards (economic and environmental sustainability)(economic and environmental sustainability)

Disciplined, fair and flexible underwriting Disciplined, fair and flexible underwriting standards; a robust retooling of Fannie Mae and standards; a robust retooling of Fannie Mae and Freddie Mac; and an overhaul of financial Freddie Mac; and an overhaul of financial regulation (accountability)regulation (accountability)

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Seeing the ConnectionsSeeing the Connections Attempts to address singular issues in isolated Attempts to address singular issues in isolated

ways will ultimately failways will ultimately fail

Targeted interventions must recognize the Targeted interventions must recognize the interconnected nature of our structuresinterconnected nature of our structures

While many policy areas can appear distinct, we While many policy areas can appear distinct, we must think of them collectively.must think of them collectively.

Ex: TransportationEx: Transportation• Is this an urban policy issue?Is this an urban policy issue?• An environmental issue? An environmental issue? • A jobs/economic issue?A jobs/economic issue?

People are “differentially situated”People are “differentially situated” Example: controlling for risk factors, Example: controlling for risk factors,

African Americans were 15-30% more African Americans were 15-30% more likely than whites to get subprime loans likely than whites to get subprime loans for purchase and for refinancefor purchase and for refinance Likely refinance targets: elderly, often widowed, Likely refinance targets: elderly, often widowed,

African American women in urban areas African American women in urban areas For Latinos, similar numbers for purchase, but not For Latinos, similar numbers for purchase, but not

for refinancefor refinance Many Latino homebuyers were recent, first generation Many Latino homebuyers were recent, first generation

homebuyers who could not be automatically homebuyers who could not be automatically underwritten (multiple income earners, cash, local underwritten (multiple income earners, cash, local credit, etc.)credit, etc.)Sources: Graciela Aponte (National Council of LaRaza) and Debbie Bocian (Center for Responsible Lending) presentations at The Economic Policy Institute panel “Race, Ethnicity and the Subprime Mortgage Crisis” on June 12, 2008 in WDC; and “Baltimore Finds Subprime Crisis Snags Women” in The New York Times online, Jan. 15, 2008

Ex: Economic Stimulus PackageEx: Economic Stimulus Package The economic stimulus package fails to directly account The economic stimulus package fails to directly account

for race.for race.

Race is a key component of many major economic issues.Race is a key component of many major economic issues. Ex: Subprime/Foreclosure crisis:Ex: Subprime/Foreclosure crisis:

• People of color are more than three times as likely as People of color are more than three times as likely as whites to have subprime mortgages. whites to have subprime mortgages.

• Borrowers of color were more than 30 percent more Borrowers of color were more than 30 percent more likely to receive a higher-rate loan than white likely to receive a higher-rate loan than white borrowers, borrowers, even after accounting for differences in risk.even after accounting for differences in risk.

Besides considering race-sensitive design, Besides considering race-sensitive design, we must be concerned about the impacts.we must be concerned about the impacts.

Rogers, Christy. “Subprime Loans, Foreclosure, and the Credit Crisis - A Primer.” Dec. 2008.

Racially Sensitive PoliciesRacially Sensitive Policies We must embrace a systems thinking perspective when We must embrace a systems thinking perspective when

forming policies.forming policies.

What do racially sensitive policies look like?What do racially sensitive policies look like?

TargetedTargeted: They recognize the nature of our : They recognize the nature of our interconnected structures / larger inequitable, institutional interconnected structures / larger inequitable, institutional framework.framework.

Pay attention to situatednessPay attention to situatedness: They account for the fact : They account for the fact that people are situated differently in the economic and that people are situated differently in the economic and social landscape of society.social landscape of society.

Driven by outcomesDriven by outcomes: It may seem great if unemployment : It may seem great if unemployment is cut in half, but if all the jobs go to white males, serious is cut in half, but if all the jobs go to white males, serious problems remain.problems remain.

Racially Sensitive Policies (con’t)Racially Sensitive Policies (con’t)

What do racially sensitive policies look like?What do racially sensitive policies look like?

TransparentTransparent: - Transparency allows for gauging progress and : - Transparency allows for gauging progress and making corrections if necessary.making corrections if necessary.

Multi-facetedMulti-faceted: Incentivize a systems approach. Reorient how : Incentivize a systems approach. Reorient how we think about policy.we think about policy.

Include people of color in the processInclude people of color in the process: Their input is vital.: Their input is vital.

Serve as a bridge to the next economyServe as a bridge to the next economy: These policies should : These policies should be the stepping stones for the future.be the stepping stones for the future.

Race-Sensitive Policy Analysis of the StimulusRace-Sensitive Policy Analysis of the Stimulus

How do we make the stimulus fair, sustainable, accountable?How do we make the stimulus fair, sustainable, accountable?

Incentives for inclusion of people of colorIncentives for inclusion of people of color

Grants and loans for small and minority-, women-, and Grants and loans for small and minority-, women-, and community-disadvantaged businessescommunity-disadvantaged businesses

Collect data by race and gender to understand impacts of Collect data by race and gender to understand impacts of economic recovery policyeconomic recovery policy

Investment in public transit (prioritize projects Investment in public transit (prioritize projects that connect people to jobs)that connect people to jobs)

Wiley, Maya. “Economic Recovery for Everyone: Racial Equity and Prosperity,” Center for Social Inclusion, 12/2008.

Toward a Just Economic RecoveryToward a Just Economic Recovery Focus on strategic interventions / turning pointsFocus on strategic interventions / turning points

““Will this make the water turn into steam?”Will this make the water turn into steam?”

Reflect on the intersection of need and opportunityReflect on the intersection of need and opportunity Some communities and people have greater needs Some communities and people have greater needs

(i.e., communities suffering from high foreclosure rates)(i.e., communities suffering from high foreclosure rates)

Seek collaborative opportunitiesSeek collaborative opportunities Allocate your money coherently – a little bit in a lot of Allocate your money coherently – a little bit in a lot of

places is not as effective as focused efforts that can places is not as effective as focused efforts that can later be replicated elsewherelater be replicated elsewhere

Embrace advocacyEmbrace advocacy This is our government, our money, and our opportunity!This is our government, our money, and our opportunity!

Targeted UniversalismTargeted Universalism This approach supports the needs of the particular This approach supports the needs of the particular

while reminding us that we are all part of the same while reminding us that we are all part of the same social fabric.social fabric.

• Universal, yet captures how people are differently Universal, yet captures how people are differently situated situated

• Inclusive, yet targets those who are most Inclusive, yet targets those who are most marginalizedmarginalized

• Example: Every school as a performing schoolExample: Every school as a performing school What does each school need to get there?What does each school need to get there? What does each student, family, teacher, What does each student, family, teacher,

community need?community need? What are their strengths and constraints?What are their strengths and constraints?

Targeted UniversalismTargeted Universalism Targeted Universalism recognizes racial Targeted Universalism recognizes racial

disparities and the importance of eradicating them, disparities and the importance of eradicating them, while acknowledging their presence within a larger while acknowledging their presence within a larger inequitable, institutional frameworkinequitable, institutional framework

Targeted universalism is a common framework Targeted universalism is a common framework through which to pursue justicethrough which to pursue justice A model which recognizes our linked fateA model which recognizes our linked fate A model where we all grow togetherA model where we all grow together A model where we embrace A model where we embrace

collective solutionscollective solutions

Toward a Just Economic RecoveryToward a Just Economic Recovery What are these billions of dollars actually fixing?What are these billions of dollars actually fixing?

Are we only fixing the ‘status quo’?Are we only fixing the ‘status quo’? Are we transformative yet?Are we transformative yet? Are opportunity gaps shrinking?Are opportunity gaps shrinking?

Mind the gap & fix the gap:Mind the gap & fix the gap: Reduce the existing disparities between Reduce the existing disparities between

communities of color both in terms of people and communities of color both in terms of people and places while growing the economy for allplaces while growing the economy for all

This requires:This requires:■■ Baseline Baseline ■■ Monitoring Monitoring ■■ Strategy Strategy

Reflect on what it means to spend money “fairly” Reflect on what it means to spend money “fairly”

Understanding our linked fatesUnderstanding our linked fates Racialized structures and policies have created the Racialized structures and policies have created the

correlation of race and poverty. People assume that correlation of race and poverty. People assume that only people of color are harmed. only people of color are harmed.

In reality, these effects are far reaching and impact In reality, these effects are far reaching and impact everyone – we share a everyone – we share a linked fatelinked fate

Linked Fates…Linked Fates…Transformative ChangeTransformative Change

Our fates are linked, yet our fates have been Our fates are linked, yet our fates have been socially constructed as disconnected socially constructed as disconnected (especially through the categories of class, (especially through the categories of class, race, gender, etc.).race, gender, etc.). We need socially constructed “bridges” to We need socially constructed “bridges” to

transform our society.transform our society. Conceive of an individual as connected to—Conceive of an individual as connected to—

instead of isolated from—“thy neighbor.”instead of isolated from—“thy neighbor.”