Social Capital. Dr Saman Waqar Dept of Public Health
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1 Social Capital Dr Saman Waqar Dept of Public Health
2 Objectives To introduce the concept of social capital. Distinguish the social from other forms of individual and collective capital. Identify the various sources, dimensions and levels of social capital. Identify the value and organizing assumptions on which the concept is based Discuss the implications of this concept
3 Capital Capital is mainly defined as a stock of abilities to produce benefits revenues, incomes or profits. investment of resources with expected returns in the marketplace
4 Human Capital Human Capital presents the unique form of capital that has the ability to put other forms of capital tools, infrastructure (manmade capital) and land (natural capital) in motion to produce goods & services and thus to create new values. The value of HC depends on the previous investments in developing new and useful knowledge, skills and attitudes.
5 Human Capital As any capital, it requires continuing investment in developing new knowledge and skills. Academia plays enormous role in building new human capital but its effectiveness depends on many other factors, including political system and culture, which could encourage or suppress critical thinking and creativity the unlimited ability of this capital to create values.
6 Social Capital Features of social organization such as networks, norms and social trust that facilitate coordination and cooperation for mutual benefit. (Robert Putnam) The norms and networks that enable collective action. (World Bank) the institutions, relationships, and norms that shape the quality and quantity of a society s social interactions Social capital is not just the sum of the institutions which underpin a society it is the glue that holds them together (World Bank)
7 For Coleman as for the earlier sociologists the SC is first of all an individual good that could be however traded through the social networks for the advance of the human capital or get things done. Lin defines SC investment in social relations with expected returns in the marketplace.
8 For Fukuyama the SC is set of informal rules and ethical values common for social groups that enable them to act effectively. For Putnam, the SC does not belong to anybody but is a public good representing set of social norms and civic attitudes supporting common actions and trust both interpersonal and in public institutions. Huber defines SC as resources embedded in social networks which can be potentially accessed or are actually used by individuals for action (Huber).
9 Types of Capital 1. Physical (equipment, buildings, tools) 2. Financial (money, fiscal resources) 3. Human (education, training, experience) 4. Cultural (knowledge, music, language, art) 5. Social (a relational process that generates physical, financial, human, and cultural capital)
10 Physical capital: Refers to physical objects (e.g., plants, machinery, other equipment) Financial capital: Refers to money and monetary instruments (e.g., stocks, bonds) Human capital: Refers to properties of individuals--knowledge and skills--that are derived from education, training and experience Social capital: Refers to connections among people social networks and the norms of reciprocity and trustworthiness that arise from them. The norms may be as simple as the norm of reciprocity between two friends or complex and elaborately articulated doctrines such as Islam or Christianity etc. A society of many virtuous but isolated individuals is not necessarily rich in social capital.
11 Classifying Social Capital There is positive and negative Social Capital. Positive SC creates economic advantages that are major forces for clustering. Negative SC could start developing when there are efforts to limit membership in clusters and cultivate insularity or lock-in.
12 Measuring Social Capital The economic value of SC depends on time invested in developing institutions, networks, relations, attitudes and trust within the a certain group of people (from family, through firms, cluster, region, nation to global community).
13 Hypotheses: The more the level of participation in voluntary associations, the greater the social capital. The more the networking, the greater the social capital. The more the mentoring and mutual support in an organization, the greater its social capital. The greater the prevalence of passive media (e.g. television), the less the social capital. The greater the social capital, the more prevalent the norm of reciprocity (bargaining, compromise, pluralism). The greater the social capital, the higher the priority of the norm of equality.
14 The greater the social capital, the greater the confidence in government (and other institutions). The greater the social capital, the easier to mobilize support for problem solutions. The greater the social capital, the higher the percentage of problemsolving outside the governmental sector. The less the social capital, the greater the need to rely on authoritative controls.
15 Sources of Social Capital(World Bank) A number of key sources of social capital are to be found in every community, although in differing amounts and at differing levels Families Communities Firms Civil society The public sector Ethnicity Gender
16 Families Functions as the first building block in the generation of social capital for the larger society, i.e., as the first and most stable source of economic and social welfare for its members (a social safety net of sorts) In generating social capital, families: Function on the basis of norms of trust, reciprocity, mutual aid, exchange and, typically, altruism all norms that are essential to the development of social capital. Model patterns of cooperative social interaction with others in the community that are carried forward by their children into future generations. Make substantial emotional, physical and financial investments in the human capital development of their children.
17 Communities Communities provide the context within which neighbors, friends and a broad range of formal and informal groups come together in the pursuit of common purposes. Arts and cultural groups Community centers Ethnically- or regionally-based associations Social capital at the community level increases with increases with frequency of interaction.
18 Leads to improved coordination and communication which, in turn, facilitates increased mutual trust and willingness to cooperate in future activities. These networks of community interaction benefit not only those directly involved in the interactions, but the community-as-a-whole. Danger: Members of a community who do not comply with group or community norms may be ousted from the community or, at a minimum, blocked from participating fully in the social benefits of that community New arrivals Members of minority groups
19 Firms virtually all economic activity is carried out not by individuals but by organizations that require a high degree of social cooperation. Thus, building and sustaining organizations, such as firms, requires a high level of trust and a common sense of purpose, i.e., social capital Social capital development at the firm levels works in a variety of ways: Better knowledge sharing Reduced transaction costs (including costs associated with negotiation and enforcement, imperfect information and layers of unnecessary bureaucracy)
20 Lower turnover rates (hence, lower recruitment and training costs) Greater coherence of action due to organizational stability and shared understanding) Such norms increase the competitive edge and profitability of successfully organized firms.
21 Civil Society Civil society consists of formal and informal groups and organizations that act independently of the state and market to promote diverse interests in society. These activities are essentially voluntary in nature and, as such, serve to integrate private sector activities with those of the public sector, albeit such activities may sometimes be confrontational in nature. NGOs are essential to the development of social capital in that civil society organizations: provides opportunities for participation and gives voice to those who may be locked out of more formal avenues to affect change A danger exists that civil society organizations can become overly inclusive and, therefore, exclusive of those who do not easily fit within its norms.
22 The Public Sector The state and its institutions is central to the function and welfare of any society Considerable evidence exists that links the type and effectiveness of a country s public sector to society s level of social cohesion Social capital promotes government accountability and legitimacy and, thus, good governance It also improves the provision of public goods and services. Corruption in the public sector interferes with both good governance and the development of social capital.
23 Two additional sources of social capital have been identified: Ethnicity can serve as a social glue that keeps together people of the same ethnicity, race, religion, etc. Gender Has been shown to be a key variable in bringing and keeping women together in a variety of social and economic context. Micro-enterprise development Child care
24 The Dimensions of Social Capital Two basic types of social capital and though to exist: Bonding capital Bridging capital Both forms of social capital are essential to the success of societies, albeit in different ways. Each form also has inherent within it certain limitations.
25 Bonding Social Capital Tends to be more inward looking, i.e., focused on strengthening already existing or more natural social relationships Racial/ethnic organizations and associations Religious associations Gender-based groups Regional-based groups Thus, bonding social capital strengthens norms of reciprocity and solidarity among people who already have a high level of trust between and among themselves. BUT, bonding social capital tends to be exclusive and, therefore, can undermine integrative goals associated with the larger society.
26 Bridging Social Capital Bridging social capital is more outward looking Promotes social interaction and associations between heterogeneous groups of people, i.e., between people and groups across the usual social divides. If bonding social capital provides a type of superglue between highly trusted individuals and groups, then, bridging social capital helps in reducing friction and increases movement between unrelated and, often, unknown groups of people.
27 Horizontal Vs. Vertical Social Capital Horizontally organized networks are believed to assist social capital Achieved mostly through their face-to-face interactions and facilitation of development of mutual trust. Reinforces community sense of identity and common purpose. Can become exclusive and, thus, inhibit the bridging function between various groups that are essential to the formation of social capital Vertically organized networks are believed to inhibit its formation However, according to Putnam, a vertical network, no matter how dense and no matter how important to its participants, cannot sustain social trust and cooperation.
28 Macro Social Capital: Macro Vs. Micro Social Capital Refers to the institutional context win which organizations operate Includes formal relationships and structures such as: Rules Legal frameworks The political regime The level of decentralization The level of participation in the policy formulation process
29 Micro Social Capital Refers to the potential contribution that horizontal organizations and social networks make to development Micro level social capital is further divided into two subtypes of social capital: Cognitive( Values, Beliefs, Attitudes, Behavior, Social norms Structural (Network structure of people s interactions and their established roles.)
30 How Social Capital Works Social capital develops through a variety of channels: Information flows e.g. Learning about jobs, learning about candidates running for office, exchanging ideas in meetings, etc.) Norms of reciprocity (mutual aid) e.g. Bonding networks that connect people who are similar and sustain particularized (in-group) activity Bridging networks that connect individuals who are diverse Collective active e.g. The role of regional associations among groups of migrants Broader identity and sense of solidarity
31 Measuring Social Capital The selection and development of indicators for social capital can proceed along two lines: (1) According to the breadth of relationships and institutions involved; and (2) According to the types of impact social capital has on the development process, in which the key dimensions are growth, equity, and poverty alleviation.
32 Primary Indicators of Social Capital Direct Indicators: Extent of development of other types of capital (physical, financial, human, cultural) Level of inclusion of diverse partners in decision-making and implementation. Extent of viable community-based partnerships. Extent of self-sustained social service NGOs
33 Process Indicators: Measurable direct outcomes are important, but the process is itself an outcome that can be measured. Measurable Processes Existence of processes that are in place for building trust and creating sustainable networks based on inclusion and transparency. For example: the size and membership of a NGO advisory board responsible for making decisions in a community-based partnership.
34 Conditions that Facilitate the Development of Social Capital Local community responsibility and authority for implementation and administration. Government involvement as a contributing partner, not as a controlling partner. Community ownership of the social problem. Alternative social services. Specific areas of responsibility for each partner. Multiple community partners (businesses, trade unions, local officials, social work professionals, educators, clients) who are involved in the process.
35 Regular meetings among partners to exchange ideas and concerns. Informal networks of partners. An environment that rewards innovation and creativity. Flexibility in decision making by direct service providers. A focus on what can be learned from experience and how each partner can use the lessons to improve services. Systematic processes for gathering and disseminating information. Systematic in-service training. System of volunteers. Reward successes.
36 The Benefits/Costs Of Social Capital The Economic Benefits of High Social Capital Higher economic growth Social networks help people find jobs. Trust encourages more effective use of credit. Cooperative attitudes within firms are linked to output and profitability. Regional clusters of innovative industries depend on local social networks to spread and share knowledge.
37 The Social Benefits of Social Capital Enhanced child development (including lower rates of child abuse and neglect) via higher levels of trust and norms of reciprocity within the child s family, school, community, etc.) Cleaner public spaces Friendlier people Safer streets Lower crime Better health, including mental health High educational achievement Improved government and public governance
38 The Down Side "to Social Capital Most of the downside are associated with horizontal social capital, i.e., relationships that lead to exclusivity and subordination of out groups rather than inclusivity. The emergence of tribes, clans, religious associations, etc. that reward insiders and discriminate against outsiders Very powerful horizontally organized social capital can be used to persecute those on the outside:
39 Social capital results from cooperation on the part of individuals and groups for addressing the common ills of their common lives and for achieving common goals. This shared activity makes possible the emergence of shared values and thus gives rise to the possibility of a fuller community. John Dewey
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