UNAIR NEWS – Crowdfunding is regarded as one of the most effective strategies for village development. The topic was discussed at the fourth vice-presidential debate on measures for village development.
Yusuf Ernawan Drs MHum, an anthropology expert at Universitas Airlangga, stated that crowdfunding is an alternate method for village development once the rules and implementation policies have been established.
“For now, regional administrations already provide village funds for development, making a crowdfunding system unnecessary unless villagers collectively decide otherwise,” he told UNAIR NEWS on Thursday, January 24, 2024.
New problems
Crowdfunding aims to collect the capital or democratic funding to run a project. In practice, individuals can contribute capital in exchange for a stake or share in the project being undertaken.
Nevertheless, Yusuf stressed that the utilization of crowdfunding in village development lacks clear regulations and implementation policies, potentially causing new challenges for the rural community.
“Generally, village communities adhere to a communal sharing system known as ‘patembayan’ (gesellschaft). Once the discussion shifts to capital owned by certain individuals, this communal system no longer applies. The capital becomes a logical basis for control or ownership,” he added.
The control will revive a liberal system due to the possibility of external individuals injecting capital. Consequently, the village might be dominated by outsiders who hold authority over the funding provided to the village through capital injection.
“The situation resembles that of the Neolithic era when those with money could buy or invest in desired places. The funds could potentially come from successful elites from urban areas, leading to colonization,” Yusuf said.
Therefore, the implementation of crowdfunding programs requires structured regulations and policies to ensure that their execution does not create new problems for rural communities.
Productive Village Development
Just like the Surabaya City Government’s program to optimize Former Village Treasury Land (BTKD), which has transformed into a source of livelihood for the rural community.
“BTKD is empowered based on a collective agreement with the residents. So, there is a discussion first on what it will be formed into. And eventually, the utilization of BTKD can help the economic development of rural communities in Surabaya,” he explained.
Two strategies can be employed to foster productivity in villages. Firstly, creativity within rural populations can be stimulated through initiatives and programs spearheaded by local governments and academic institutions. Secondly, the effective utilization of village funds allocated by local authorities can be optimized through Village-Owned Enterprises (BUMDes).
Author: Nokya Suripto Putri
Editor: Feri Fenoria
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