Social Capital

Social Capital = refers to connections among individuals – social networks and the norms of reciprocity and trustworthiness that arise from them

URL = http://www.socialcapitalgateway.org/

Social capital is strongly related to P2P since it is the value derived from interactions.

Definitions

Short Definitions

the effectiveness of actively-exercised, mutually beneficial relationships in the network that forms a community

- Regenerosity [1]

the information, trust, and norms of reciprocity inhering in one’s social networks

- Michael Woodcock [2]

Social capital refers to 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. (The World Bank 1999)

Social capital consists of the stock of active connections among people: the trust, mutual understanding, and shared values and behaviors that bind the members of human networks and communities and make cooperative action possible. (Cohen and Prusak 2001: 4)"

- Infed [3]

Long Definitions

From the Social Capital Gateway at http://www.socialcapitalgateway.org/

"Social capital is generally referred to as the set of trust, institutions, social norms, social networks, and organizations that shape the interactions of actors within a society and are an asset for the individual and collective production of well-being. At the macro level, social capital can affect the economic performance and the processes of economic growth and development. These webpages contain useful resources for researchers, teachers, students, and practitioners interested in social interactions and social capital, in their role in the well-being of communities, and in their relationship with human, social and economic development." (http://www.socialcapitalgateway.org/)

From the Infed Encyclopedia at http://www.infed.org/biblio/social_capital.htm

"Whereas physical capital refers to physical objects and human capital refers to the properties of individuals, social capital refers to connections among individuals – social networks and the norms of reciprocity and trustworthiness that arise from them. In that sense social capital is closely related to what some have called “civic virtue." The difference is that “social capital" calls attention to the fact that civic virtue is most powerful when embedded in a sense network of reciprocal social relations. A society of many virtuous but isolated individuals is not necessarily rich in social capital. (Putnam 2000: 19)

List of definitions at http://www.uky.edu/~skwon2/Social%20capital.pdf

Discussion

Why Social Capital is Important

By Robert Putnam at http://www.infed.org/biblio/social_capital.htm

"First, social capital allows citizens to resolve collective problems more easily… People often might be better off if they cooperate, with each doing her share. But each individual benefits more by shirking their responsibility, hoping that others will do the work for her…. [Resolving this dilemma is] best served by an institutional mechanism with the power to ensure compliance with the collectively desirable behavior. Social norms and the networks that enforce them provide such a mechanism.

Second, social capital greases the wheels that allow communities to advance smoothly. Where people are trusting and trustworthy, and where they are subject to repeated interactions with fellow citizens, everyday business and social transactions are less costly….

A third way is which social capital improves our lot is by widening our awareness of the many ways in which our fates are linked. People who have active and trusting connections to others – whether family members, friends, or fellow bowlers – develop or maintain character traits that are good for the rest of society. Joiners become more tolerant, less cynical, and more empathetic to the misfortunes of others. When people lack connection to others, they are unable to test the veracity of their own views, whether in the give or take of casual conversation or in more formal deliberation. Without such an opportunity, people are more likely to be swayed by their worse impulses….

The networks that constitute social capital also serve as conduits for the flow of helpful information that facilitates achieving our goals…. Social capital also operates through psychological and biological processes to improve individual’s lives. Mounting evidence suggests that people whose lives are rich in social capital cope better with traumas and fight illness more effectively. … Community connectedness is not just about warm fuzzy tales of civic triumph. In measurable and well-documented ways, social capital makes an enormous difference to our lives.

Robert Putnam (2000) Bowling Alone: The collapse and revival of American community, New York: Simon and Schuster: 288-290" (http://www.infed.org/biblio/social_capital.htm)

More Information

1. The Social Capital Gateway, http://www.socialcapitalgateway.org/
2. Smith, M. K. (2001) 'Social capital', the encyclopedia of informal education, http://www.infed.org/biblio/social_capital.htm
3. Putnam, R. D. (1995) 'Bowling Alone: America's Declining Social Capital', Journal of Democracy 6:1, Jan, 65-78. http://muse.jhu.edu/demo/journal_of_democracy/v006/putnam.html
4. Sirianni, C. and Friedland, L. (undated) 'Social capital', Civic Practices Network, http://www.cpn.org/sections/tools/models/social_capital.html
5. The World Bank (1999) 'What is Social Capital?', PovertyNet http://www.worldbank.org/poverty/scapital/whatsc.htm
6. Social Capital: Prospects for a new Concept, by Paul S. Adler and Seok-Woo Kwon
7. Rebuilding the Stock of Social Capital, by Thomas H. Sander and Robert D. Putnam

Key Books to Read

Cohen, D. and Prusak, L. (2001) In Good Company. How social capital makes organizations work, Boston, Ma.: Harvard Business School Press.214 +xiii pages.

Fine, B. (2000) Social Capital Versus Social Theory: Political Economy and Social Science at the Turn of the Millennium, London: Routledge. 304 pages. Useful critical exploration of the notion of social capital and its theoretical origins and the extent to which 'it avoids a proper confrontation with political economy and, as a result of its origins and evolution, has become chaotic'.

Robert Putnam (2000) Bowling Alone: The collapse and revival of American community, New York: Simon and Schuster