Social Capital
Basis Of Development

By Mukti Rijal

SOCIAL capital is a popular term for development theorists and practitioners. It is considered to be of highly instrumental and constitutive value for development. Social capital is defined as ability of social structures and underlying attitudes to increase the efficiency of collective action. Collective action is expressed in the joint efforts of communities to work together for strengthening their own mutuality and resolving their respective needs.

Element

Social capital, in fact comprises of two categories i.e. structural social capital and cognitive social capital. Structural social capital refers to objective and externally visible social structures such as networks, associations and institutions. Similarly, rules and procedures embodying an organisation are also the element of the structural social capital.

In the Nepalese context, users groups, beneficiary committees, sports clubs, and other neighbourhood associations are some of the examples of the social capital.

Another category of the social capital is called as cognitive social capital. It refers to more subjective and intangible elements such as generally accepted attitudes and norms of behaviours, shared values, reciprocity and trust.

Social capital has been broadly defined as institutions, relationships, attitudes and values that govern interaction and interrelationship among people and contribute to economic and social development. Social mobilisation and other community-based activities are based on the premise of social capital. In Nepal there are efforts to recognise and use the value of the social capital in social change and development.

Development theorists employ three major perspectives to define and classify social capital. The first is the communitarian perspective. This perspective defines the social capital in terms of local organisations and groups. This perspective has helped focus the attention of development practitioners on the role of social relations in the fight against poverty. But it precludes the detrimental aspects of social capital such as crime rings; mobs and groups that destroy the positive dimension attached to social mobilisation and capital.

The networks perspective of social capital comprises relationship between and within horizontal and vertical associations. In particular it refers to productive consequences of the social capital. Similarly, this approach recognises that while social capital can unite the members of a community it often does so at the cost of excluding none members as is for example, the case with for sects. A member belonging to a sect may be precluded from membership of another sect.

Then institutional view stresses that the political, legal and institutional environment are the main determinants of the strength of community networks.

Reliable transparent and predictable operation of the state, low levels of corruption and independent judiciary and strongly enforced individual and collection initiatives can be successful. Democracy and democratic institutions are thus very important for social mobilisation and development. The synergy view aims at to integrate the different concerns of the network and institutional approaches and seeks to strengthen relationships at different levels and contexts.

The social capital shares a number of features with the more traditional forms of capital that is fiscal capital and other resources. For example, social capital like physical capital accumulates as a stock that produces a stream of benefits.

Social capital also contains several features that set it apart from physical and human capital. First and by definition social capital unlike human capital cannot be built individually. Second, unlike physical capital, the stock of social capital does not decrease. Actually, it increases as a result of its use. As an expert on social capital points out " social capital does not wear out with use but rather with disuse."

In Nepal social mobilisation related activities are implemented based on the premises of social capital. The government and donors have emphasised on strengthening social capital and trust so that cohesion and solidarity for group activities are enhanced.

Social capital affects economic development. It helps development mainly by facilitating transactions among individuals, households and groups in developing countries. This effects can take several. Participation by individuals in social networks increases the availability of information and lower its cost. This information especially if it relates to such matters as crop prices, location of new markets , sources of credit or treatments for live stock disease can play critical role in increasing the returns from agriculture and trading.

Instrumental

Participation in local networks and attitude of mutual trust make it easier for any group to reach collective decision and implement collective action. It is high time we in Nepal pursued peace by resolving all type of political disputes to ensure that social capital becomes instrumental in our development endeavors. Political conflicts should not breach the foundation of social networks and trusts. This will hinder all our initiatives for progress and social gains.

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