Crowdfunding for development: fad or future?

19 Sep 2014 by Benjamin Kumpf, Knowledge Management Specialist

Children picking olives from a treeChildren picking olives at Ostrog Primary School which was made energy independent, through a crowfunding campaign supported by UNDP and the Kaštela Energy Cooperative. Photo: Marina Kelava/UNDP Croatia
Steady growth and, for now, no end of the trend in sight: the crowdfunding market keeps expanding across the globe. Crowdfunding describes the practice of securing funding for a specific project or business venture by a dispersed group of people with some shared interests, “the crowd”. Most crowdfunding initiatives are dependent on whether they raise the targeted amount from the crowd. If the funding goal is not met, the project will not take off. It thus differs to charitable donations which usually support the respective organization’s general mission without knowing exactly how the money will be spent. UNDP has been experimenting with philanthropic crowdfunding and has had some early successes. For example, colleagues in Croatia successfully raised $10,000 for an energy-independent school in Croatia. The sum might be fairly small but the experience showed: crowdfunding can create a buzz for development work and social causes as the unwritten rules of crowdfunding require development organizations to communicate constantly and in a non-technical jargon what concretely was achieved. UNDP has also had some experience ‘failing’ with crowdfunding initiatives. As the saying goes: “Failure is only the opportunity to begin again more intelligently”. Based on lessons thus far, we developed guidance document for UNDP … Read more

Pakistan’s investment in resilience is the ultimate win-win

19 Sep 2014 by Marc-André Franche, Country Director

Pakistani man smilingThe provision of basic social services empowers people to live the lives they value. Photo: UNDP Pakistan
In the last 2 decades, most countries have registered significant improvements in human development. Now, vulnerability and the impact of crises and disasters are undermining the hard won progress or slowing down its growth.  The annual growth in Human Development Index (HDI) value has declined in Pakistan from 2 percent in 2000-2008 to almost zero during 2008-13.  The 2014 UNDP Human Development Report (HDR) 2014 launch in Pakistan demonstrates that progress cannot be sustained without building resilience. The report highlights two crucial types of vulnerabilities influencing human capabilities: life cycle and structural vulnerabilities. Life cycle vulnerabilities are the result of peoples’ life histories, with past outcomes influencing present exposure to and ways of coping with vulnerabilities. Unfortunately in Pakistan, vulnerabilities at the early stage of the life cycle are the highest. The structural vulnerabilities are generated from social, legal institutions, power structures, political traditions and socio-cultural norms. Structural vulnerabilities are manifested through deep inequalities and widespread poverty. In Pakistan, 44.2 percent of the households live in poverty, according to the multidimensional poverty index. There are at least five lessons from the report and global experience which are central for Pakistan’s future: The provision of basic social services empowers people to live … Read more

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