Social Capital/Civic Engagement
Social capital refers to those networks and ties of social trust that people turn to for solutions to common problems. Thriving communities share an on-going involvement by businesses and citizens alike in areas of civic commitments such as Little League, church groups, choral societies, literary circles, civic clubs, voting, etc., which translates into a wealth of Social Capital.
It is through this involvement in social settings that new friendships, ties and eventually, trust emerge. These networks, in turn, help to foster reciprocity, the idea that “…citizens who contribute to the community are rewarded, and those who benefit from the community give something back.” (Marshall)
When applied to a community’s economic development, Social Capital can be thought of as working in a positive “domino” effect:
1. Civic involvement and interaction builds new friendships, which foster trust
2. Trust leads to reciprocity
3. Reciprocity increases the likelihood of cooperation for mutual benefit
4. Cooperation for mutual benefit translates into a win-win situation for everyone (individuals, businesses, & community)
For decades, many traditional forms of social capital (civic clubs, for example) have been in decline. Technological changes such as the widespread adoption of television and air conditioning have significantly reduced the frequency and quality of human interaction. Similarly, the rise of online social networking tools creates more opportunities to build social capital.
Understanding that Social Capital is a vital component of economic development, communities in all parts of the world are developing networks to foster trust and create channels for information exchange. When companies link together through these networks, businesses grow in ways previously not possible (think Silicon Valley).
In his book titled “Getting a Job”, Sociologist Mark Granovetter discusses “The Strength of Weak Ties.” Granovetter indicates that what matters in getting ahead is not the quality of your relationships, but the quantity. What is important is not how close you are to those you know, but how many people you know to whom you aren’t particularly close.
Social Capital includes conversations between businesses who aren’t identical i.e., they don’t intimately know each other, but, through their interactions with one another, develop a sense of trust. This trust, in turn, leads to economic opportunities that business might not have been exposed to had they not taken the step of interacting with a diverse group of other businesses. Thus, the business’s “Weak Ties”, as described by Granovetter, are strong.
Another example of Social Capital is described in Gladwell’s article titled “Six Degrees of Lois Weisberg,” published in the New Yorker, on January 11, 1999. In this article, Gladwell talks about how one woman, Lois Weisberg, interacted with dozens of individuals, and through that interaction, provided the vehicle for individuals and businesses in Chicago to prosper. Again, the idea is that the more people we know and trust, the more we increase our chance to prosper. We know and trust Lois, who knows and trusts someone else, and who introduces us to this other person, who eventually becomes the vehicle for us learning about a business opportunity that we might not have found otherwise.
Unfortunately, building Social Capital doesn’t come easy. Gregg Lichtenstein, in a paper titled, “Building Social Capital: A New Strategy for Retaining and Revitalizing Inner-City Manufacturers,” Collaborative Strategies, January, 1999, discusses the challenges faced by the Urban Industry Initiative, a project whose mission is to retain neighborhood-based manufacturing jobs in Philadelphia, PA. One challenge is that “…Social Capital is intangible—it is difficult to describe, measure, evaluate and, thus, change.” In conclusion, however, Lichtenstein also notes that, “…We have the ability to revitalize and reinvent those neighborhoods to reflect the competitive realities of the global economy. Such a place-based mission can be achieved by using a strategy of building social capital.”
Communities who want to grow and prosper need to build upon their Social Capital wealth in order to produce the conditions that can transform companies, and their surrounding communities into economically viable entities. Building these kinds of networks is difficult and takes time. However, it is possible, and when it happens, everyone benefits—individuals, businesses, and the communities in which they thrive.
In the 2003 Report on the Future of the South, Southern Growth Policies Board said, “The volunteers and professionals who are taking on the community-based work that so directly determines our success or failure are reinventing the wheel of community leadership. And as community leadership structures are reinvented, the common weal itself will be reborn—to our collective benefit.”
Further Reading:
Why Is This Important?
Robert D. Putnam, An Interview with Robert Putnam
Six Degrees of Lois Weisberg