Crowdfunding for urban planning - a good idea?
I stumbled on this article about a crowdfunding website for urban transformation (see link). Crowdfunding is becoming more and more popular and the formula used on Kickstarter is now used for urban planning initiatives like improving neighborhoods.
This seems like a very nice and innovative principle: it is democratic, creative, very open and encourages bottom-up action and involvement of stakeholders.
However, I can't stop wondering what the pitfalls are - is it as democratic as it seems; is it good that a part of the responsibilities and initiatives are shifting from (local) government to users and the market?
What are your ideas on crowdfunding in urban planning?
http://www.good.is/post/kickstarter-for-neighborhoods-brings-crowdfunding-s-potential-to-urban-renewal
Bart Driessen (Site admin) from the Netherlands, 6 June 2012I like the idea since crowdfunding is not only a method for fundraising but also a method of getting a group of people more involved and even feel responsability and ownership for a project.
At the same time: i believe good urban planning projects are partnerships of government, organizations and citizens. Crowdfunding i think, is good to get citizens involved, but you still must think of the other parts of the coalition.
Citizens can only vote by putting their money somewhere. In neighbourhoods where citizens tend to be poor, this is favouring the richer.
Markus Appenzeller, 12 June 2012I am not sure whether the rich would only fund their neighbourhoods or if there would also be an impact on poorer neighbourhoods but the result could also be that poorer areas would profit more. The reasons: Poorer people can afford less space and therefore live in higher density environments which means there are more potential contributors. In addition more people share the same amount of public space which means each one is responsible for a much smaller area. In richer neighbourhoods people tend to live a more autonomous lifestyle which means they care less about whats beyond their garden fence. Their own estate is big enough to be happy. This can be seen in cities in South America where areas with the highest population densities and low to medium income levels often show less signs of neglect than those where the higher earners live.
But independent from that I feel that crowd funding for urban planning is something that has to be uses with care:
There is the risk that it will just increase the privatization of space and lead to more disappearance of public space. I also don't think it is democratic since it gives people a bigger share of the 'profit' that invest more. The basic rule of democracy is that every vote counts the same.
While I wholeheartedly support participation there needs to be an overarching agenda that is carried by political consensus and not by individual investment. This agenda is necessary to be able to define a path into the future that is relatively immune against individual opportunism.
I can imagine crowd funding to be a very good tool to satisfy desires of select groups that are usually ignored in the public debate or do not have the level of organisation necessary to be heard. These projects have more the character of private developments with a public side. They can become active contributors for urban life and have a huge positive impact on the public realm around them. This is where I see the big chance for such crowd funded projects.
Thomas Oluwatomi Idunnu, 19 June 2012The responsibilities and initiatives should not be shifted from (local) government to users rather both the local government and user should work together.
Yvonne Rijpers (Moderator) from the Netherlands, 21 June 2012Hi Thomas, I agree that local government and users should work together. However, this could also be archieved through / with the help of crowdfunding, giving local government the role of the faculitator as well as let governance give guidance in the process and the point Marcus mentioned above: that there needs to be an overarching agenda. Would that be a good idea?
Ilja Green, 25 June 2012This is an interesting concept, especially for cash strapped local governments. I am reminded of the concept of Business Improvement Areas (BIA's) where businesses or resident associations to pool their money together to beautify the neighbourhood so that the place become more lively and hopefully more attractive to customers. The dangers with BIA's and crowdsourcing is that it may benefit only a select few of the citizens. Also, it should not take away the very important role that local government still needs to have to achieve an equitable city.
Patricia ACOSTA from Colombia, 10 July 2012We have seen some interesting experiences with crowdfunding in Bogota. They began in mayor Mockus´ administration as "Obras con saldo pedagógico" - translates " public works with a pedagogical balance". It was meant to promote community organization around a common interest such as paving a very deteriorated neighborhood street, which otherwise won´t be prioritized in the local budget. Communities with a proposal raise funds and present a proposal to the urban development insitute´s special program. Proposals are assessed and selected on a competitive basis and cofinanced by the institute. It is a program that has had its ups and downs, but is a way of democratizing the few funds available for such minor projects, and often result in fostering grassroot organizations.
Priscella B. Mejillano, 18 July 2012Hi Shipra. May I know if there is an initial summary of the topics and comments of e-dialogue on Urban Planning? Can this possibly be shared? Thanks.
Professor KK Pandey, 29 July 2012There are several examples of similar nature in India as discussed above.We have in Ahmedabad an initiative known as Parivartan involving the corporate sector to promote basic infrastructure in low income neghibourhoods.Another case in Indore covers community resources for social forestry(on meriage anneversery,bithday,in memory of forefathers etc.),pavement of road/footpath(local community groups),Janambhoomi in several towns in Andhra Pradesh seeking community resources for social services.
However,there are certain prerequisites.The City govts adopt it as a policy,have partial funding and other resources to motivate partners and handhold them for implementation and upkeep.