Framework for IT Role in Crowdfunding Urbanization Process in Developing Countries

Literature Review

There are little or no evidences that crowdfunding for civic projects exist today in the developing world like countries in Africa, despite the growing use of crowdfunding in the recent years to successfully support civic projects in the developed countries (Davies, 2014; Schiller, 2014). However, with the experience of the developed countries, such solution can be reengineered and adopted for developing countries. Just like the emergence of microfinance as a means of soft loans to start a small business or expand an existing one among very low incomes earners in developing countries. This solution has been adopted by some developed countries as means of securing microloans to entrepreneurs with similar difficulties in accessing conventional loans. (Bruton, Khavul, Siegel, & Wright, 2014). Crowdfunding is believed to be largely developed-world phenomenon with support from development organization and governments, experts still believe that it could become a useful tool in the developing countries as well (infoDev, 2013).

To give a broader perspective on the role of IT in crowdfunding urbanization process in developing countries, the rest of this literature review will focus on three main issues. Firstly, it will highlight the transformative nature of urbanization process; secondly, it will review the literature on the nature of crowdfunding projects and processes; and thirdly it will focus on civic crowdfunding that has more direct impact on urban development.