Social Capital

1
Social Capital and Civil Society
Dr. M. H. Qazi
2

• Human Capital
• Social Capital
• Physical Capital

3
What is Human Capital?
This refers to property of Individuals. (Public
Good)
How it is created? (Education)
Investment
Rates of return
(Primary, Secondary, Tertiary)
4
How is Human Capital Created?
Teaching
Culture

• Agricultural Revolution
• Industrial Revolution
• IT Revolution

Human
Capital
Enterprise
Research
Economic Development Social Mobility
Rich(20)
U-Middle(20)
L-Middle (20)
Poor(40)
5
Rates of Return(Years of Schooling)

• Income from old data (1976)

6
Physical Capital

• Goods and Services
• GDP
• Income expenditure

7
Human Development Index
HDI is calculated on the basis of (a) number of
years of schooling (b) Longevity (c) income
distribution (Gini coefficient)
8
Progressive HDI
9
Human Development Index Trend (1975-2004)
10
Social Capital

• What is social capital?
• Where does the Social Capital come from?
• Role of Religion

11
What is Social Capital?

• This refers to connection among individuals.
• Social networks reciprocity, trustworthiness.
• The power of Civic Worship.
• Civic Society, quality and quantity.

12
How is Social Capital Formed?
Absence of Networks
Networks of Trust
13
Where does it come from?

• Education
• Religion
• Spontaneous
• Repeated community interaction
• Hierchical (Civilization, Transmission)
• Role of Government.

14
Where does the Social Capital come from?
15
Role of Religion

• All religions focus on Social Capital
• (Islam, Christianity, Buddhism, Confucianism)
• Respect, Honesty, Integrity, Trust, Love ,
  Coexistence, Tolerance, Networking, Living
  Soulfully.
• Economic or rational explanations.

16
Relationship of Human Capital Social Capital

• Human Capital with positive social capital
• Human Capital with negative social capital.

17
Human Capital With Positive Social Capital
18
Human Capital With Negative Social Capital
Democracy
Education
Access, Equity, Quality Low Literacy Rate
Inefficient Systems Un necessary
interventions Lack of Trust
Civil Society
Religion
Human Abuse
Theological Tyranny Religious Grouping Lack of
Enlightenment
Poverty Disengaged Government Human development
Index Distribution of Wealth
Philanthropy
Justice
Lack of Altruism Materialism Sham NGOs
Bad Legal System Abuse of Civil
Rights Corruption Nepotism
Distorted Consciousness Social Stratification Inco
herent Society
19
How do you measure Social Capital?

• Groups of Counted (n1..t)
• Sum of membership of all groups
• Formula SC?n1..t
• 1.4 million non profit groups were operating in
  USA in 1989.

20
Examples of positive Social Capital.

• Pakistan Zakat, Earthquake
• India Self employed human Women's Associations
  SEWA.
• Bangladesh Gramene Bank
• Thailand Legislation, Community rights to self
  determination, Expansion of Social Security.
• Philippines Peoples Declarations of Principles
  on Agrarian Reforms.

21
Social Capital Civil Society State
Suggested Hierarchy
Various digresive society
Benevolent State
Present hierarchy Down Stream
State
Up Stream
Meets all needs of Society , individual efforts
curtailed
Hovers over disorganized society
Balance of Power
Self organized Society
Low Social Capital
Negative Social Capital from ( Religion)
Liberal democracy
Low Inefficient local Government
Devolution
Devolution
Efficient local government
Pervasive Corruption
Dense Civil Society
Family favored, Others neglected
Multi tier Moral system
Social Capital
Chaos
22
How to increase the stock of Social Capital

• Education
• State to protect public property rights and
  ensure public safety.
• Contribution of Culture and Shared historical
  experience.
• Leave activities which can be performed by the
  civil society. (discuss Hegelian right and
  Hegelian left).
• Let religion play its positive role
• Globalization ideas, selected culture values
• For Example technology, management, intensive
  NGO activities. (Modernity).