For citation:
Babina, Y. V. (2026). Creative Participatory Budgeting as an Institutional Innovation in Rural Development. AlterEconomics, 23(3), 637–655. https://doi.org/10.31063/AlterEconomics/2026.23-3.
Abstract:
Amid persistent resource, fiscal, competency, and digital constraints, traditional participatory budgeting (PB) models often demonstrate limited effectiveness in rural areas. Drawing on a systematic literature review and a qualitative comparative analysis of 18 empirical cases from nine countries, this paper develops the concept of creative participatory budgeting (CPB) as an institutional innovation that integrates participatory budgeting mechanisms with tools from the creative industries. The study aims to empirically substantiate a flexible model of CPB, identify the conditions under which it is effective across different types of rural settlements, and examine implementation risks and mitigation strategies. The central hypothesis is that the deliberate integration of creative and deliberative methods into key phases of the budget cycle can help overcome institutional barriers that constrain traditional PB in rural contexts. The study identifies four groups of barriers to traditional PB in rural areas and systematizes three theoretical frameworks — diagonal accountability, arts-based empowerment, and value-based budgeting. A taxonomy of seven creative methods is developed. Comparative analysis of the 18 cases informs a six-component cyclical model of CPB: creative diagnostics → deliberative assemblies → creative design → hybrid voting → cultural audit → place branding. The model is empirically substantiated in two configurations: a full version for suburban agglomerations and a simplified, low-tech version for remote villages. Five groups of implementation risks are identified, together with measures for their mitigation. The findings support the hypothesis: in successful cases, participation rates increased from approximately 5–10 % to 30–45 %, while higher levels of trust and greater sustainability of participatory practices were also reported. However, these effects depend on contextual conditions, including the availability of trained facilitators, adaptation to settlement type, and the integration of cultural auditing with formal financial controls. The paper concludes by identifying priorities for future research, including pilot testing in Russian regions, developing methods for accounting for residents’ labor contributions, comparing digital and analogue formats, and conducting longitudinal studies of CPB’s effects on local identity and community resilience.
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