Building Social Capital
Introduction
Social capital is an essential community asset. Communities are known to have different standards of social capital; an example is Putnam's study which reviews the breakdown of traditional networks and shared activities in USA. He also found that social capital is a key determinant of both governmental efficiency and economic development
Social capital is based on four basic tools: trust, reciprocity, networks and collective action, it takes time to develop and requires a specific and concrete attention. Urban renewal can move people from a dilapidated neighborhood into a new development without involving the group neither working with it in planning the procedures. But ignoring social capital will result to long term unsustainability of manufactured capital. This will mean deteriorating of buildings and dependencies on outsiders created.
Social capital has led to economic development, especially self-development, where a larger proportion of the benefits created by an enterprise within a community remains in that community. North Central Regional Center for Rural Development associates shows that social capital can enhance other forms of capital within the community and concludes that social capital can be created and at the same time be destroyed.
Ways of increasing social capital
1. Legitimization of Alternatives
Some communities follow a specific way of doing things while others consider many ways/alternatives to getting things done which is more legitimate. In such communities, there are shared goals with an understanding that there are many ways of meeting those goals. A practical example is the continuous improvement in industry, solutions are not sought, but countermeasures are implemented as progress towards goals is constantly monitored and different ways of getting there considered. In a community where there is a high level of legitimization of alternatives, different points of view are both accepted and valued by others in the community. This leads to acceptance to controversy. When people disagree, new issues are brought forward; visions of the future are shared and alternative ways of attaining a goal are developed. In such communities there is also depersonalization of politics, great attention to process.
2. Diverse Networks
Communities with high social capital have diverse and inclusive networks. While there is room for subgroups with high levels of social capital, communities of place require diversity. The best approach to diversity is considering the necessary view point which will help to move forward towards achieving the goal. With this if the community development project desires to create more jobs, local people who will take those jobs will be part of the process so there can be a better link between human capital and the manufactured capital offering employment opportunities.
Diversity is asking who is not involved and the reason why are they not involved, and talking directly to those who are not involved to find the answers. This can be accomplished through training youths on leadership skills which they wish to share with their community.
Additional characteristics of networks creating social capital include:
- Lateral learning is essential tool in networks. Communities learn best from each other. Social capital is built in the course of lateral learning, both among communities and within communities.
- It is important that communities be linked to regional, state and national resources and organizations. Elected officials and members of organizations should attend those regional, state and national meetings
- Being part of a network should not be a lifetime commitment. People are willing to participate where they can make a difference. People are asked to participate primarily in things in which they have real interest. However, care must be taken that the larger vision is shared. Flexibility means that many people have the opportunity to become leaders.
- Permeable Boundaries. The community of interest is expanded and the community of place grows larger as new partnerships and collaborations are formed. On the other hand, when something very local is required, the boundaries can become temporarily reduced. Permeable and flexible networks are very important for community sustainability.
3. Resource Mobilization
In this case resources in the community must be seen as available to all. This applies to private resources, such as access to credit, public resources e.g. quality education, recreation and other opportunities. This does not mean there cannot be criteria for access, but the criteria should be well-known and there should be opportunities for people to increase their access opportunities.
When mobilizing private resources, it is crucial for financial institutions to find out how to give loans in the appropriate amount, with the appropriate terms, to all levels of entrepreneurs and citizens. In such a community, private citizens of all levels contribute whatever money they can when there is a need, and opportunities are available for individual persons to contribute their time. The ability to mobilize private resources is an important part of creating social capital, giving everyone a chance to give.
When mobilizing public resources, people must be willing to invest in themselves to make their community a better place to live since the biggest problem is the unwillingness of management to live in rural areas. Communities that invest in themselves, have quality schools, and have an equipped environment including parks and residential areas, are the communities that have less trouble attracting industry.
Possible Benefits of Social Capital
Putnam (2000) suggested that social capital helps people to resolve collective problems more easily.
1. Social capital helps to preserve social norms in the community and reduce selfish behaviors. Individuals who are well connected in a community and have active trusting connections with others are likely to behave in the accepted social manner.
2. The community benefits of social capital extend to formal educational institutions. The World Bank (1999) discovered that schools were more effective when parents and local communities were actively involved. Teachers were more committed and students had high scores in tests.
3. Firms benefit from social capital since it facilitates cooperation and coordination which minimizes transaction costs, such as negotiation and enforcement, imperfect information and layers of unnecessary bureaucracy.
4. Social capital can bridges cultural differences by building a common identity and shared understanding. The fact that building social capital requires continuous interaction enables people to realize common interests and build trust. This improves their level of shared commitment and encourages a sense of solidarity within a community..
Drawbacks of Social Capital
The presence of social capital in communities might exert a negative influence. For example, in multicultural societies where people are affiliated to communities but pay close allegiance to tribal, ethnic, and political allegiances to their own groups rather than national interests, there is a decline in the national political culture.
Communities that exhibit highly cohesive forms of social capital are not beneficial to a society. These groups might encourage internal trust among their members while spreading hate and terror to the larger society. This is the case with many terrorist organizations and organized crime groups.
Cohesive communities that manifest strong social capital may eliminate others from entering into the communities, and this can lead to norms that harm the community. For example, individuals in influential government positions may exercise an unspoken policy of employing members of the community regardless of their qualifications, and this can result in excluding qualified workers from the workforce. (Fukuyama, 1995).
The construct of social capital is also a problem to researchers ‘indiscriminate and uncritical adoption of social capital across disciplines risks explaining too much with too little substance' Woolcock(1998). The fact that communities exist within particular contexts makes every community different from the other.
Conclusion
Creating social capital takes conscientious effort. It means that each individual citizen must be included, not just to meet their needs, but for the assets which they can offer the community. It means that every person has not only a living, but a life. We make a living by what we get. We make a life by what we give.
References
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