CROWDFANDING AS A WAY TO INVOLVE CITIZENS IN SOLVING ISSUES OF LOCAL DEVELOPMENT

Abstract

The article provides a theoretical analysis of crowdfunding as a way to involve citizens in solving local development issues. It was found that the decrease in government funding as a result of the global economic crisis contributed to the creation of a public economy based on the social responsibility of citizens involved in the development and production of common property and infrastructure. Such a social economy is expressed in the participation of citizens in the construction of public infrastructure, the retraining of the environment, and the protection of artistic and cultural heritage. The tool that allows such participation is crowdfunding, which allows citizens to personally act on a voluntary basis in order to implement local development projects. It has been proven that the key goals of crowdfunding are to democratize the process of supporting local initiatives, as well as generating additional income for their implementation; supporting innovative solutions and startups at the local level; creating a transparent and efficient mechanism for public funding of projects. It is possible to implement such projects through the use of public crowdfunding tools and independent do-it-yourself crowdfunding. It was determined that crowdfunding allows attracting a wide audience of young citizens and supporting initiatives for the development of a territorial community. However, the popularization of crowdfunding technology and its further development as a way to involve citizens in solving local development issues in Ukraine requires the formation of a legislative framework and an appropriate legal framework in the field of crowdfunding financing, the development of a "roadmap" for the implementation of crowdfunding for the implementation of local initiatives, the creation of mechanisms to minimize risks, development of crowdfunding infrastructure, formation of a culture of collective financing, creation of public structures for co-financing of local development projects opened on crowdfunding platforms.