Building Social Capital for Economic Development

1
Building Social Capital for Economic Development

• Cornelia Butler Flora
• Charles F. Curtiss Distinguished Professor of
  Agriculture
• Dept. of Sociology, Iowa State University
• Director
• North Central Regional Center for Rural
  Development
• cflora_at_iastate.edu
• www.ncrcrd.iastate.edu

2
Collaboration

• Shares a vision developed by study, experience,
  and work
• Identifies its resources to move toward the
  vision
• Identifies alternatives to achieve vision
• Implements alternatives
• Assesses progress and adjust alternatives
• Is a means to an end, not an end in itself
• The transaction costs of maintaining the
  collaboration should not exceed the capitals
  generated through acting together rather than
  separately.

3
Monitoring and evaluation is only useful when the
long term goal is clear. We shift from
monitoring activities and outputs to monitor
progress toward multiple outcomes. Increasing
capitals (assets) is a useful way of thinking
about desired outcomes. In looking at capitals,
it is important to understand that they are both
means and ends.
4
Capital

• Resources invested to create new resources over a
  long time horizon

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Financial/Built Capital
Natural Capital
Political Capital

• Healthy regional economy
• Social equity and empowerment
• Self-sufficient families

Cultural Capital
Social Capital
Human Capital
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Natural capital

• Air
• Water
• Soil
• Biodiversity (plants animals)
• Landscape

• The biophysical setting that impacts human
  endeavors and is impacted by those activities.

7
Natural CapitalSustainable, healthy ecosystems
with multiple community benefits

• Human communities are mindful of natural systems
• Ecosystems yield multiple community benefits
• Those with conflicting uses of the ecosystem seek
  common ground

8
Understands limitations opportunities of
physical environment and uses that in development
work
9
Pride in community in neighborhood programs and
cleanup
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Cultural CApital

• Cultural capital determines how we see the world,
  what we take for granted, what we value, and what
  things we think possible to change. Hegemony
  allows one social group to impose its symbols and
  reward system on other groups.

• Symbols
• Ways of knowing
• Language
• Ways of acting
• Definition of what is problematic

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Cultural CapitalDifferent heritages are
maintained and valued

• Cultural differences are recognized and valued.
• Mechanisms to maintain ancestral languages and
  customs are in place
• Collaborations are willing to take the time to
  understand and build on different ways of knowing
  and doing.

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We value strong multi-generational family
traditions
13
Diverse kinds of people cooperate to make the
community a better place
14
Community development efforts honor and respect
the values and cultures of community members
15
We have to do it ourselves
16
Human capitalIncreased use of the knowledge,
skills, and abilities of local people

• Identifying skills, knowledge and ability
• Increasing skills, knowledge and ability
• Using skills, knowledge and ability
• Recombining skills, knowledge and ability

17
Community supports the existence of diverse
perspectives
18
The community supports a leadership development
program
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Human Capital

• Education
• Self-efficacy/self esteem
• skills
• health
• values
• leadership

• The characteristics and potentials of individuals
  that are determined by the intersection of nature
  (genetics) and nurture (determined by
  interactions and environment)

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Leaders are Knowledgeable
21
Social Capital

• mutual trust
• reciprocity
• groups
• collective identity
• sense of shared future
• working together

• The interactions among individuals that occur
  with a degree of frequency and comfort. Bonding
  social capital consists of interactions within
  specific groups and bridging social capital
  consists of interactions among social groups.

22
Strong belief in education and life-long learning
23
All groups in the community have access to
affordable recreational opportunities
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Social Capital

• Bonding
• Tight, exclusive networks
• Strong distinction between insiders and outsiders
• Single answer focus

• Bridging
• Open and flexible networks
• Permeable and open boundaries
• Legitimization of alternatives

25
Social CapitalStrengthened relationships,
communication, community initiative,
responsibility, adaptability

• Participation
• Communication
• Relationships
• Initiative
• Responsibility
• Adaptability

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Community Social Capital Typology
BRIDGING SOCIAL CAPITAL
B O
N D I N G
S. C.

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Conflict with outside/internal factionalism
Participatory community action

External control via local elites/ or bosses
Apathy extreme individualism
-
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Leadership opportunities for youth
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Organizations work together to better our
community
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Many opportunities for residents to participate
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Organizations work together to better our
community
31
Community recognizes and supports community
volunteers
32
We monitor who is accountable for what and to whom
33
Women accepted in all types of leadership roles
34
We take a problem-solving approach to address
the needs of people from all segments of the
community
35
Traditional institutions are action oriented and
responsive to the needs of the community
36
We assess outcomes and celebrate success, while
acknowledging there is more work to do
37
Local institutions welcome new residents and youth
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We provide opportunities for group reflection
39
The community welcomes newcomers
40
Political capital

• Organization
• Connections
• Voice
• Power

• Political capital is the ability of a group to
  influence the distribution of resources within a
  social unit, including helping set the agenda of
  what resources are available.

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Welcome group inquiry, negotiate alternatives,
and use research-based evidence
42
The community demonstrates a willingness to seek
help from the outside
43
Local leadership is broad and deep
44
Political CapitalIncreased voice and influence

• Excluded people are organized and work together
• Excluded people know and feel comfortable around
  powerful people
• The issues of excluded people are part of the
  political agenda

45
Community decisions are made with input from all
concerned
46
People from diverse religious, ethnic, and
minority backgrounds in leadership roles
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Community supports a community foundation local
philanthropy
48
People are willing to run for public office and
do not risk personal and family ties and
reputation
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Deliberate transition of power to a younger
generation of leaders
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Financial capitalAppropriately diverse and
healthy economies

• reduced poverty
• increased business efficiency
• increased business diversity
• increased community residents assets

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Built capital

• Housing
• Sewers
• Water systems
• Business space
• Day care centers
• Roads
• Electronic communication

• Human-constructed infrastructure used as tools
  for production of other capitals

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Financial Capital

• debt capital
• investment capital
• tax revenue
• savings
• tax abatement
• endowments/community foundations
• grants

• Forms of money used to increase capacity of the
  unit that accesses it. Financial capital is
  often privileged because it is easy to measure,
  and there is a tendency to put other capitals
  into financial capital terms.

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Local businesses support the community through
donations
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Community supports local businesses that donate
to the community
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Community provides resources for community and
economic development efforts
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Community sees itself as part of a greater region
considers all communities in the region when
planning
57
Local government community organizations
carefully use fiscal resources understand
fiduciary responsibilities
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Schools youth groups provide opportunities for
youth entrepreneurship
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Community supportive of entrepreneurship
60
Economic development program strategically
targets resources
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Community supports local businesses in planning
for generational succession
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Our community appreciates quality in all aspects
of business and community life
63
Community development efforts are asset based
64
We realistic in appraising future opportunities
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Community and businesses ware of competitive
positioning
66
Community supports an active economic development
program
67
Our community recognizes the value of supporting
local businesses
68
Donations to community endeavors come from all
segments of the community
69
Donations include many small gifts as well as
large gifts
70
Financial/Built Capital New facilities New jobs
in the community held by Alaska Natives Basic
primary community health services accessible to
all Professionals in the community spending in
the community Economic environment improved for
other enterprises

 
Political Capital Employment is created by
government entity, creates on-going relationships
to increase villages leverage Services delivered
are reimbursed by third party players Local
decision-making and regional plans inform each
other
Natural Capital Distance Ecosystem
potential Weather/Climate change Biodiversity Cult
ural/traditional support for ecosystem based
activities
Healthy Individuals Healthy communities
Human Capital Individuals with the capacity to
deliver health services Individuals have the
capacity to act for community economic
improvement Healthier people More Alaska Natives
with career ladders Individual and family
empowerment
Social Capital Communities able to recognize and
deal with own problems Communities know how to
access outside resources Institutions change to
be more flexible in response to village
circumstance Community empowerment
Cultural Capital Village chooses student Village
members feel comfortable in higher education
settings Tribal governments involved in health
service delivery Ancestral health traditions
 
Alaska Rural Community Health Economic Solution
(ARCHES)
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We invest in the future by passing school bonds
72
Community supports and maintains a sound
infrastructure