The Community Development Block Grant (CDBG), one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development. CDBG, like other block grant programs, differ from categorical grants, made for specific purposes, in that they are subject to less federal oversight and are largely used at the discretion of the state and local governments and their subgrantees.
CDBG funds are allocated to more than 1,100 local and state governments on a formula basis, at $4.7 billion in FY2005. Larger cities and urban counties, called "entitlement communities," are required to prepare and submit a "Consolidated Plan" that establishes goals for the use of CDBG funds. Grantees are also required to hold public meetings to solicit input from the community, ensuring that proposed projects are aligned with the community's most urgent needs.
The United Nations defines community development as "a process where community members come together to take collective action and generate solutions to common problems." It is a broad term given to the practices of civic leaders, activists, involved citizens and professionals to improve various aspects of communities, typically aiming to build stronger and more resilient local communities.
Community development seeks to empower individuals and groups of people with the skills they need to effect change within their communities. These skills are often created through the formation of large social groups working for a common agenda. Community developers must understand both how to work with individuals and how to affect communities' positions within the context of larger social institutions.
Community development as a term has taken off widely in anglophone countries i.e. the United States, United Kingdom, Australia, Canada and New Zealand and other countries in the Commonwealth of Nations. It is also used in some countries in Eastern Europe with active community development associations in Hungary and Romania. The Community Development Journal, published by Oxford University Press, since 1966 has aimed to be the major forum for research and dissemination of international community development theory and practice.
In a fiscal federal form of government, a block grant is a large sum of money granted by the national government to a regional government with only general provisions as to the way it is to be spent, in contrast to a categorical grant, which has stricter and specific provisions on the way it is to be spent.
An advantage of block grants is that they allow regional governments to experiment with different ways of spending money with the same goal in mind. Disadvantages are that it is very difficult to compare the results of such spending and reach a conclusion and that regional governments might be able to use the money as if they collected it through their own taxation systems to spend it, without any restrictions from above. Also, the formula can be manipulated for partisan advantage, and favoritism occurs more easily than with categorical grants.
Since devolution in the United Kingdom was implemented in the late 1990s, creating the Scottish Parliament, Welsh Assembly and the Northern Ireland Assembly, the devolved governments of Scotland, Wales and Northern Ireland have been funded by block grants from the government of the United Kingdom because only a relatively small percentage of the tax revenue is collected by the devolved governments. Westminster provides a block grant for Transport for London reflecting the expense of operating the London Underground and the fact the London Authority is unable to raise a Transport Levy on Council Tax unlike other metropolitan counties in the UK (Though since 2012 the Mayor of London’s Community Infrastructure Levy has been introduced allowing the Mayor to attach a levy on property development to serve a similar function).