What Is Social Capital

842 WordsMay 20, 20124 Pages
What is social capital? Why is it important for a society? The sociological concept of social capital is developed in conjunction with the concepts of human capital and physical capital which has clear distinctions among them to explain theory of social relations (Jackman and Miller, 1998). Unlike human capital and physical capital which has clear and united explanation, social capital has no unified and undisputed definition due to its weak palpability as it comes “from changes in the relations among individuals that facilitate action” (Jackman and Miller, 1998). Be that as it may, we can still find they commonly define social capital as “the value of social networks, bonding similar people and bridging between diverse people, with…show more content…
One of the examples that could illustrate this idea is the failure of Indonesia to be a high performing economy. Though Indonesia enjoyed rapid economic growth in 1980s, the economy declined and seriously hurt not only by the Asian Financial Crisis but also by its rooted clientelist and cronyist corruption problems founded on the particularistic trust on patron-client relations and family relations. Low trust was obviously the problem in the Indonesian society that hindered a free and fair trade market decreased the incentive of people in investment. This shows that lack of trust as social capital can be destructive to an economy and high trust is of significance of the economic development. All in all, social capital is important as it can affect the social stability and the economic development of a society. References Dayton-Johnson J. (2003). “Social Capital, Social Cohesion, Community: A Microeconomic Analysis”. The Economic Implications of Social Cohesion, Osberg L. eds., University of Toronto Press, p. 43-78. Jackman, R. and Miller, R. (1998). Social Capital and Politics. Annual Review of Political Science, 1 (1), p.47-73. the Population Health PhD programme of the University of Ottawa. (2007). Social Capital and Social Cohesion. [ONLINE] Available at: http://courseweb.edteched.uottawa.ca/pop8910/Notes/Social_Capital.htm. [Accessed 08 May 2012]. Social
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