IMPORTANCE OF SOCIAL CAPITAL IN COPING WITH AND BENEFITING FROM NEW ECONOMIC CONDITIONS (original) (raw)
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Social Policy & Administration
In this contribution, we offer an analysis that evaluates the impact of the recent financial and economic crisis on social capital. An economic crisis offers a unique chance to study people's associational lives, volunteering, network-making, and trust-building under duress. Theoretical perspectives on the relationship between social capital and economic development emphasize a reciprocal relationship between the two. Therefore, we hypothesize that if economic performance is compromised, this might lead to an erosion of social capital. More importantly, however, we also argue that states can actively intervene by means of fiscal policy measures. We will illustrate our approach by comparing 29 Organisation for Economic Cooperation and Development countries before and after the crisis. Using qualitative comparative analysis, we demonstrate that imperatives related to fiscal policy stimuli provide leverage on social capital development.
A Theoretical Approach of the Concept of Social Capital in Supporting Economic Performance
DOAJ (DOAJ: Directory of Open Access Journals), 2012
If centuries ago the concept was that their presence was enough, now it takes a lot more. Moreover, since Aristotle the issue was taking into consideration all aspects of the community life that can lead to a "better life". In the current conditions we may consider resources in the broader context of the human factor and of the relations established within a society. Thus social capital was conceptualized. As opportunities of economic growth-based purely on the quantitative aspects of the determinantswere limited, the need occurred to reconsider the qualitative and structural components. Social capital considers a number of the integrative components of social life. These refer to the relations established at family level up to the level of societal institutions. It is necessary that these relationships be well established, and for the proper performance it is necessary that aspects of education and health should be properly valued and assessed. This helps setting up strong institutions. Developed countries have the ability to create a proper environment for the manifestations of social capital; in these countries one can observe the growing importance of formal and more impersonal relations. But this just reinforces the occurrence and development of economic activities based on efficiency criteria leading to the countries' economic development. The interpretations of economic development issues have undergone changes in recent decades. If previously it was considered that the essential difference between rich and poor countries is reflected in the amount of physical capital per person, later on the concept of capital has been expanded to include as well human capital, the lack of which was considered a serious obstacle to development, particularly in the case of poor countries. And given the fact that the transactions within an economic system take place in an institutional and cultural framework that defines the majority of the transaction's features, the present paper analyzes the concept of social capital-which alongside other forms of capital significantly influences economic progress-in order to emphasize the link between the functionality of institutions, culture and the level of economic development.
Can Social Capital Be the New Dynamics of Economic Development?
Annales. Etyka w Życiu Gospodarczym, 2016
Besides other capital types, social capital is such a kind of capital, which is revealed by the confidence level of the society and certain financial facts. This study questions whether the social capital could be new dynamics for the developments of the countries along with other types of capitals (real capital and human capital). According to the recent research it has been concluded that the social capital has some positive effects to decrease the asymmetric information; to gain trust, information sharing and competitive power; to increase the participation in political life and social organizations; to fix the distribution of income; and to accelerate the economic growth. As a result, considering the fact that the countries with high confidence level have high humanitarian growth and high income per capita, it has been concluded that social capital may create new dynamics of economic development.
Social Capital and Economic Development: Possible Links and the Implications for Economic Policy
2004
This research project was carried out with three principle objectives. First, I provide a primer investigation of what social capital means and examine its possible relevance in the discipline of economics and I highlight some of the numerous conceptual debates surrounding the theory. Secondly, I shed light on the historical progression and time line for the implications of social capital. That is, where we were in the past, where we are at the current time and where we (as economists) are possibly heading with this into the future. Lastly, I highlight some of the major challenges in applying an empirical methodology to social capital, without having to carry out any new empirical research work-an intensive and oftentimes extensive and time consuming undertaking-which is not likely to add much to this project. This report is a primer on social capital and its links to economics and development policy. The attempt is to simply and effectively isolate issues of past debate and the current major successes and failures in the attempt to integrate social capital into meaningful policy. More importantly, this report explores possible answers to the question: Does social capital have a contribution to make in the current efforts at formulating economic policies to address poverty?
INTERNATIONAL CONFERENCE ON INNOVATIONS IN SCIENCE AND EDUCATION MARCH 20-22, 2019, PRAGUE, CZECH REPUBLIC WWW.ISEIC.CZ, WWW.JOURNALS.CZ, 2019
This paper is an analysis of different types of capital as well as of the opportunity for capital to be transformed into various types. The basic sorts of capital and their theoretical conceptions are being viewed with an attempt to prove that every resource should be considered as capital as long as they bring benefits which can be regarded as economic ones. Education and knowledge are important factors for the process of observing and analyzing the transformation of human or social capital into economic capital. On the basis of statistic data from Eurostat it is shown in this paper that there is a direct dependency between education and the economic growth of a given country. The main objective of the paper is to present the theoretical opportunities for capital transformation and to give examples for the latter through data from Eurostat. Moreover, we accept the working hypothesis that capital should be related to the personality that it belongs; and that in its essence it is uniform and it takes different forms through transformation. For the writing of the text we have used comparative and theoretical methods, adaptive methodology, deductive and empirical method and the statistical analysis method. The main outcomes of our research are as follows: capital exists in various forms; it can be transformed and it should be defined as a resource that brings additional dividends; human capital, albeit personal. Through its social function it is transformed into economic one and is useful not only for the individual but for society as a whole; education is one of the fundamental ways for human and social capital accumulation. There is a direct correlation between education and economic growth. Moreover, on the basis of the examples from the data from the European Union, it is clear that the more educated young people there are in the real economy, the higher the economic development is. JEL Classification Numbers: A14, J24, I25,
Social Capital at the Outburst of the Economic Crisis in Greece, 2008-2010
ERN: Financial Crises (Monetary) (Topic), 2016
Purpose – Social capital and its core components of social trust and associational activity are widely acknowledged as a core feature of strong and active civil societies that promote effective democratic governance and economic prosperity. Within this context the present study sets out to explore two important research questions. The first one relates to the stock of social capital characterizing Greece and its change during a highly sensitive era, that of the outburst of the economic crisis. The second research question relates to analyzing the group of civil servants as carriers of higher or lower levels of social capital compared to the other citizens. Design/methodology/approach – Based on the available knowledge in the field social capital is measured via the measurement of six main constructs comprising the soft and hard attributes of the concept, namely social trust, social altruism, equality, tolerance, humanitarianism and civic participation. Data are drawn from the Europe...
Social Capital Impact on Economic Development (A Theoretical Perspective)
ijbmer.com
The concept of social capital as an important determinant of economic development is attracting increasing attention among development economists. Social capital in every sense is one of the fundamental factors of development. No country can achieve sustainable economic expansion without substantial investment in human capital. Social capital is an instantiated informal norm that promotes cooperation between individuals Social capital enriches people's understanding of themselves and world. Social capital is important to the coefficient functioning of modern economies Macro-level social capital comprises different aspects of institutional quality and is closely related to the income distribution and social cohesion. It improves the quality of their lives and leads to broad social benefits to individuals and society. Social capital raises people's productivity, creativity and promotes entrepreneurship and technological advances. In addition it plays a very crucial role in securing economic and social progress to improving income distribution.
Comparisons of Trends in GDP and Economic Well-being -the Impact of Social Capital
This paper discusses the connection between social capital and trends in economic well-being. Although arguments for the growth-enhancing aspects of social capital are concerned with the impacts of social capital on well-being, in practice research has focussed on the relationship between social capital and trends in GDP per capita. However, there are severe disadvantages to using GDP per capita as an indicator of trends in economic well-being. Sections 2 to 4 develop an index of economic well-being for selected OECD countries for the period 1980 to 1996 and compare trends in economic well-being to trends in GDP. We argue that the economic well-being of a society depends on: (1) effective per capita consumption flows, which includes consumption of marketed goods and services, unmarketed goods and services, and changes in life span and in leisure; (2) net societal accumulation of stocks of productive resources, including tangible capital and housing stocks, human capital and R&D investment, environmental costs, and net change in level of foreign indebtedness; (3) income distribution, (as indicated by the Gini index of inequality, and depth and incidence of poverty); and (4) economic security (from unemployment, ill health, single parent poverty and poverty in old age).