Essay Example: The Role of CRA in the Economic Revitalization

The role of CRA in the economic revitalization of underserved communities is a subject of differing discussion, taking a case example of New York City.

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The challenges facing the underserved communities, including insecurity, unemployment and poor infrastructure, can be cured using a properly run CRA.

What do we know about the problem?

The neighborhood communities have faced relegation for a long time. The role of CRA in coming up with solutions is part of the whole solution process.

The research shows that the increased funding in underserved areas such as East Harlem has seen an upturn in fortunes. There have been increased employment opportunities and better healthcare and social amenities.

The research question you intend to explore, address or answer

This topic seeks to determine the relevance of CRA towards uplifting the living condition of the underserved neighborhoods in New York City. The topic discusses the prominence of CRA since its inception has seen it become a central component in the development of otherwise neglected regions in the United States

Theory says

This research relies on the Marxist theory of theoretical model that is the best fitting for the hypothetical role of CRA in the developments witnessed in underserved areas through the dissemination and the decentralization of resources across the regions like East Harlem.

Contributions

This project will determine the relevance of CRA towards uplifting the living condition of the underserved neighborhoods in New York City (East Harlem) in line with Classical Theory. The prominence of CRA since its inception has seen it become a central component in the development of otherwise neglected regions in the United States.

Literature Review

Impact of the Community Reinvestment Act on the Economic Revitalization of Underserved Neighborhoods in Harlem: Case Study of the East Harlem Community Economic Development

Community Reinvestment Act (CRA) through the help from the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Federal Reserve System (FRS) will show how the economic upturn has been achieved I the areas of low-and moderate-income (LMI) neighborhoods to the betterment of the vast population.

The hypothesis founded on the classical theory that was developed by Adam Smith in 1776 that shows how equitable resource distribution is best for economic development (Weisberg, 2018). I am learning from the Classical theory of specialization, distribution of resources to the underserved neighborhoods as opposed to capitalism theory (Willis, 2019).

Intro your theory

The determinations of the hypothesis will depend upon the primary and secondary methodologies for validity. The hypothesis founded on the classical theory that was developed by Adam Smith in 1776 that shows how equitable resource distribution is best for economic development. Learning from the Classical theory of specialization, distribution of resources to the underserved neighborhoods as opposed to capitalism theory. The Marxist theoretical model is the best fitting for the hypothetical role of CRA in the developments witnessed in underserved areas through the dissemination and the decentralization of resources across the regions (Lento, 2013).

Hypothesis

H0: CRA has an economic impact on the development of underserved neighborhoods

HA: CRA has no economic impact on the development of underserved neighborhoods

Proposed Methods & Analyses

The research will test whether CRA has an economic impact on the development of underserved neighborhoods

The research will be conducted on many of the residents using such primary methodological approaches as interviews, secondary means like periodicals, and government journals, among other methodologies.

The design that is most appropriate for this research is data correlation

Various statistical analyses will validate the H0. Correlation analysis will be conducted to ensure that the relationship between CRA and the economic viability of the underserved area is determined (Avery, Calem & Canner, 2013). ANOVA test will determine the statistical data re-tested for a statistical connection between the independent variables. Similarly, the research seeks to ensure that the validity of the data is determined using the regression analysis. The multiple regression analysis will also help in the connection in the dependent variable based on the sets of independent variables such as CRA and the FFIEC (DiNapoli & Bleiwas, 2017).

DiscussionA result of H0= (1-a) is a clear manifestation that the CRA has largely been effective in the economic improvements of the underserved neighborhoods.

The validity threats in the study as many, ranging from the self-esteem issues on the participants part. Most of the participants coming from the low-income areas are likely to shy off and, as such, may not give very reliable information, thus threatening the validity of the entire information given in the data (Barr, 2015).

The overreliance on the descriptive and observational study, as opposed to statistical data, is one that needs to be addressed in the subsequent studies (Kobeissi, 2019). The study will also need to incorporate more of the data-backed pieces of evidence with calculated figures to back up any theoretical claim.

Conclusions

This study will largely go along the way in proving that indeed, CRA has a long-lasting influence on the livelihood and the economic viability of the underserved neighborhoods. The research will fill the knowledge gap that exists in as far as the unconfirmed role of CRA in underserved areas. The participant's role, as well as data from OCC, is sufficient to have a positive impact on the place of CRA in the economic wellness of underserved neighborhoods.

References

Kobeissi, N. (2019). Impact of the Community Reinvestment Act on New Business StartUps and Economic Growth in Local Markets. Journal of Small Business Management, 47(4), 489-513. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-627X.2009.00280.x

DiNapoli, P. T., & Bleiwas, K. B. (2017). An Economic Snapshot of the East Harlem Neighborhood. Office of the New York State Comptroller. Report 92018. New York. http//An%20Economic%20Snapshot%20of%20the%20East%20Harlem%20Neighborhood%20(1).pdf

Avery, R. B., Calem, P. S., & Canner, G. B. (2013). The effects of the Community Reinvestment Act on local communities. In Proceedings of" Seeds of Growth: Sustainable Community Development: What Works, What Doesn't, and Why," Conference sponsored by the Federal Reserve System. retrieved from https://www.federalreserve.gov/communityaffairs/national/CA_Conf_SusCommDev/pdf/cannerglen.pdf

Lento, R. E. (2013). Community Development Banking Strategy for Revitalizing Our Communities. U. Mich. JL Reform, 27, 773. Retrieved from https://heinonline.org/HOL/LandingPage?handle=hein.journals/umijlr27&div=24&id=&page=

Willis, M. (2019). Updating CRA Geography. Retrieved from https://furmancenter.org/files/Mark_Willis_10-1.pdf