Social Capital in Theory and Practice

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Social Capital in Theory and Practice
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ENVIRONMENT
SOCIETY
ECONOMY
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What will I tell?

• Background Me
• Why Social Capital
• What is Social Capital
• How to develop Social Capital
• Future trends in social innovation and social
  entrepreneurship

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Who am I?

• Born in the north
• Sports
• Mountains
• Business
• Culture
• Work

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Why focus on the social dimension in
development of society ?

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Great challenges that only could be solved
togheter....
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What is social capital about? Your corn is ripe
today mine will be so tomorrow. This is
profitable for us both, that I should labour with
you today, and that you should aid me tomorrow
(David Hume, A Treatsie of Human Nature, 1740)
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but also..

• Social capital is the glue that holds
  societies together and without which there can be
  no economic growth or human wellbeing.

Christiaan Grootaert Social Capital, The
missing link, 1998, World Bank
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Herbert Simon (1916-2001)
It is hard not to conclude that social capital
produces about 90 percent of income in wealthy
societies like those of the United States or
Northwestern Europe. (Herbert Simon Nobel
Prize Winner for Economics UBI and Tax Rates
2000.)
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A common definition of social capital Networks
together with shared norms, values and
understanding that facilitate co-operation within
or among groups of people (Office for Economic
Co-operation and Development (OECD)
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Trust The fabric of social capital

• Trust between individuals becomes trust
  between strangers and trust of a broad fabric of
  social institutions ultimately, it becomes a
  shared set of values, virtues, and expectations
  within society as a whole. Without this
  interaction trust decays this decay begins to
  manifest itself in serious social problems
• (The Necessity of Politics Beem 1999 20)

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Elements of Networks

• Bonding within groups or communities,
  characterised by strong connections (families,
  ethnic groups, clubs, etc.)
• Bridging horizontally across boundaries,
  characterised by weak links (interreligious,
  interracial, intergenerational, across wider
  social networks)
• Linking weak links made vertically between
  relationships of power (e.g. class structure)

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Strengths of Social Capital

• Compensate for low levels of other capital
  (human, physical, financial)
• Reduce conflict between different communities
  (excess bonding social capital will achieve the
  opposite increasing the cost of regulation and
  control across community boundaries)
• Reduce crime
• Increase educational achievement
• Higher economic performance
• Higher levels of happiness
• Better health

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• The more social capital people have access to
  the better they perceive their health.
• Those who take part in social activities
  consider their health better than
  non-participants do.
• Those that have great trust in people perceived
  their health as good.
• 
  (Social Capital in
  Finland, 2000)

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Social Capital Thrives on

• Ownership, equality collective identity
• Transparency information exchange
• Collaboration on common goals participation
• Mutual trust and reciprocity
• Informal interaction
• Openness to new ideas
• Access to positions of power and influence

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• Social Capital in Practice

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Västra Götalandsregionen (Region West Sweden)
Facts

• Largest region in Sweden
• 4 subregions Responsible for Economic growth
  programs
• App 1 500 000 people live in West Sweden
• Gothenburg main town App 500 000 people
• 49 Municpalities, out of 290 in Sweden (local
  governance)

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• Organised work devoted to the social economy
  started in 2001
• According to the regional guidelines the
  significance of the social economy and its
  protagonists must be brought out clearly in all
  strategic development work and in the
  implementation of Vision Västra Götaland
• 14) Joint action with universities and schools
  ..The concept of social capital and the
  knowledge around its significance for development
  and growth should continue to be highlighted by
  means of concrete studies and development
  projects in the collaboration between, for
  example, municipalities and the higher education
  sector.

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• Dynamic Growth Capital
• In the beginning there was an idea about people
  as the main resource
• Now it develops into an interactive knowledge and
  learning platform It took some time

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Dynamic Growth Capital

• Aims
• To increase the knowledge about social capital
• 2) Create a modell to be used in the rest of west
  Sweden for work with related issues and in
  similar organisation form (From analysis to
  implementation)

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Structure of project

• Participants
• Västra Götalandsregionen (Region of West Sweden)
• School of Business, Economics and Law at
  Gothenburg University
• Four municipalities in Region West Sweden
  participated
• Swedish ministry of Enterprise, Energy and
  Communications
• Swedish Association of Local Authorities and
  Regions

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View of process Nov 2006 2010
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Work process in the platform

• The project group meets every other month (7-10
  people) Discussion and issues are adressed
• University makes a study of a choosen issue by
  the municipality
• Meanwhile a seminar is arranged in a local arena
  (municipality, region) for spread of information
  when the study is finished.
• The local arena has the responsibility of
  inviting people from its surroundings
  Businesses, Associations and Locals are invited
• Marketing of results Reports are spread through
  media, webs and through printed material.

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• Micro projekt as method

• Center of Innovation Business network
• Civic Sector as resource 12 workshops
• Social Sustainability in School
• Development of Tourism network
• Public Health Project
• Ethnic minorities as resource

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Our defintion of social capital It took some
time to come to agreement among many actors!!

• Social capital exists between people and develops
  with time Ita about relations
• Social capital is expressed through trust that is
  created in relations among people Makes it
  agile
• Social capital is a resource which is built in
  action

www.connectsverige.se
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A future model Municipality of Vårgårda Based
on diagnosis

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  Local Authorities
• Resources are build
• and enhanced
• through
• co-operation
• Civic sector
  Business
  

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Bridging silos a means of transfer of ideas
and knowledge between and within groups

• Example Microproject Business climate in
  Vårgårda, seminar on Business climate
• Next microproject Social Entreprenuership and
  Tourism Seminar on Social Entreprenuership and
  Tourism, earlier participants are invited to a
  new seminar
• Microproject Microproject
  Microproject
• - Participants and knowledge is transfered
  to next seminar-

Se. Business Cl.
Se. Social Entre.
Se. Outside power stru.
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• Challenges in building social
  capital
• We have to act?
• Its about eating ice-cream
• You must be concrete?
• I do not feel comfortable with this concept?
• Language - Norms are hard to challange
  Icehotel!!
• They are to negative on the list!

www.connectsverige.se
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Value
Business Value - Income Value
of IdentityHappinessInspirationEthicsCommunit
y
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Resources
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Different roles, different language,
goals and expectations Building social capital
in a local environments is about canalizing
expectations into mutual benefits
Resources
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Guidance in working with SC

• What makes SC concrete! (Easier to invest in a
  house!)
• Storybuilding (Roskilde, Langenegg, Here We are,
  Trangsviken)
• What values do you have?
• From resources to capital awarness is the answer

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To measure and to make social capital concrete
What a community chooses to measure has a
tremendous impact on the quality of life of its
members (North West Policy Center, Seattle, USA)
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Measuring Social Capital to

• Make visible what is currently invisible
• Highlight the value human relationships
• Explore the quantity and quality of relationships
  
• Put numbers to soft outcomes in order to
  benchmark
• Move from anecdotal to strategic and replicable
• Develop Action Plans to begin investing
  strategically in social capital

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Changing Community Landscapes

• Matrix showing social capital (3 elements)
  against ACTIVITIES
• Stakeholder map - RELATIONSHIPS
• Social capital questionnaires before and after
  CCLcompleted by community
• Post-CCL project look at changes in norms/values
  trust/reciprocity networks
• Report
• Case study

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ACTION POINT DATE ACHIEVED (to be completed by NIDOS) OUTCOMES RESPONSIBILITY
Develop a Network Handbook, to be updated every 3-5 years. Info on Committees roles and external networks. Info on conflict resolution (case studies of mutual support, achievements of working groups, members, etc) Extending knowledge of Norms values. Connecting past and present to proactively allow growth in norms values enabling opportunities to remain flexible and learn. NIDOS staff and temporary working group.
Introduce options for Network to be involved in decision making process Transparency of process, how decision was arrived at, possibly using ICT. Increasing opportunities for equity and collective ownership, maximising social network development opportunities of ICT (bridging, bonding, can be extended once initial face-to-face contact is made). NIDOS staff with support from ICT specialist (from Network if possible).
Encourage members to support each other Collective / joint activities e.g. a common resource library (photos, videos, news articles, information on members awards) campaigns like Make Poverty History Increased reciprocity can lead to increased levels of trust. Target of 5 per year increase in levels of trust for next 3 years. NIDOS staff and working group.
Provide access to strategic stakeholders Increase links to external agencies by increasing Associate Membership Increasing opportunities for linking to take place Management Committee staff.
Investigate the possibility for more sub-groups and more sub-group activity Increasing opportunities for bridging to take place and informal information transfer NIDOS staff
Develop or revisit marketing strategy for external (public) and internal (Network) audience. Use information from resource library to reinforce Network Handbook messages, promote collective identity. Increasing collective understanding and ownership of aims objectives via knowledge. Highlight opportunities for reciprocity via partnership working. Working Group
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Where are we going? Mission drift into the
future
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Trends in society supporting SC development

• Tällberg Foundation
• World Economic Forum Klaus Schwab
• SKOLL Foundation Jeff SKOLL
• TRUST network USA
• NEXT Generation (Howard Buffet, Michael Young)
• World Business Council of Sustainable development
• Clinton Global Initiative
• Social Capital Markets (Impact Investments)

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Definitions social innovation Social
entrepreneurship...

• Profit Social / or, and social aims
• Muhammad Yunus Social Entrepreneur
• Mikrofinance Social Innovation
• Grameen Bank Social Business

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• Future business areas
• Ageing populations - which require new ways of
  organizing pensions, care, mutual support,
  housing, urban design, mobility and new
  methodsfor countering isolation.
• Growing diversity of countries and cities which
  demands innovative ways of organizing schooling,
  language training and housing
• Rising incidence of chronic diseases such as
  arthritis, depression, diabetes, cancers and
  heart diseases (which are now chronic as well as
  acute). These demand novel social solutions as
  well as new models of medical support.

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Here We Are
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The Issues Facing Cairndow in 1998

• Lack of housing
• Insufficient workers to fill jobs
• No opportunities for further education
• Lack of centre to encourage tourists to stop and
  learn about Cairndow
• Lack of knowledge of local history
• No awareness to alternatives (e.g. renewable
  energy sources)

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Here We Are

• Set up in 1998 to CONNECT Cairndows past,
  present and future and share it with the
  community and the incomers
• Inter connected activities, for and by community,
  land, homes, history, local resources
• Built a community centre beside the famous Loch
  Fyne Oyster Bar to act as a focal point of
  activity.
• Launched Scotlands first community owned biomass
  plant, opened by Minister for Energy Jim Mather
• Created 14 jobs and sustained a further

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From the Favela Painting Project, Brazil
www.boomerang.nl/favela/
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Biosfärsområdet Vänerkulle
http//www.strategy-business.com/article/11110?gko
64e54cid20110222enews
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Final Thoughts

• Social Capital brings a new way of looking at the
  challenges that communities face and provides a
  lens which values human relationships and makes
  currently invisible resources visible
• It provides a common language to explain why we
  are doing what we are doing
• Helps put numbers to soft outcomes
• Can provide a framework to help replicate
  successes
• Look to introduce activities which help make
  community boundaries porous and allow access to
  new resources (bridging linking)
• Indirect and informal activities are excellent
  ways to build reciprocal interaction and trust

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The real challenge is not to construct
buildings, nor putting a man on the moon, but to
deal with human nature - Björn Grinde, Chief
scientist Public Health Norway