Crowdfunding for post-disaster reconstruction projects: a conceptual framework

Abstract

Post-Disaster Reconstruction (PDR) projects are essential for rebuilding communities affected by natural disasters and conflicts. Despite the increasing global demand, their success is often hindered by economic, social, and physical challenges. Among the economic constraints, insufficient funding is a critical barrier due to the substantial financial requirements involved. Therefore, this study aimed to review available financial mechanisms for PDR projects and to explore the feasibility of crowdfunding for PDR projects. Accordingly, a comprehensive literature review was conducted on existing studies related to financial mechanisms and the application of crowdfunding for PDR projects. The content analysis method was used to analyse the collected data. The findings identified challenges in existing financial mechanisms such as inadequate funding, high transactional costs, time delays, upfront payments and bureaucratic processes. Overcoming these challenges, the study identified crowdfunding as a viable and innovative solution to attract additional financial resources. Crowdfunding enables the collection of small funds from a broader community, providing an inclusive and accessible financing option. Hence, this study contributes to academic and practical knowledge by bridging the concepts of crowdfunding and post-disaster reconstruction. Beyond its theoretical value, the study offers significant social and economic contributions by promoting inclusive, community-driven financing approaches that enhance resilience and recovery. Furthermore, it supports the achievement of the United Nations Sustainable Development Goals (SDGs), particularly SDG 11 (Sustainable Cities and Communities), SDG 9 (Industry, Innovation and Infrastructure), and SDG 17 (Partnerships for the Goals), by fostering sustainable, innovative, and collaborative reconstruction efforts.