development - social capital and cohesion
Introduction to Social Capital, Cohesion & Development
Development economics emphasis the role of social capital, cohesion and inclusion in the process of development:
Social cohesion is about how united, connected, cooperative and trustful a society is.
Social cohesion needs tolerance for cultural diversity. Switzerland has a culturally diverse population and social cohesion; the former Yugoslavia lost all social cohesion and dissolved into war. Standards of living collapsed.
Social capital is associated with Putnam:
Social capital refers to features of social life - networks, norms and trust – that enable participants to act together more effectively to pursue shared objectives. Social capital is “is the glue that holds societies together- what social cohesion depends on.”
There are two aspects of social capital:
(1) Organisations eg the number and quality of clubs, pressure groups, political parties, etc
(2) Values and relationships eg the way people interact, cooperate, and resolve their conflicts
Social inclusion means the whole of society enjoys the benefits of economic activity (eg income) and have full access to appropriate opportunities eg education. Social inclusion encourages participation eg employment
Trust and cooperation are essential to economic transactions and raise productivity
Poor governance means:
o the rule of law has broken down eg civil war and regions
run by ‘war
lord’
o Bribery and corruption resources misallocation
o Rulers are unaccountable to citizens eg no or ‘fixed’ elections
Colonisation & Development
A colony is a country controlled by another. Many European countries had extensive empires
Latin American countries have been largely been independent since the 19th century.
Europe dominated many African and Asian countries until the 2nd World War.
Colonial experience influences:
o Language eg the official
language of India is English
o Legal and value system
o Infrastructure eg India inherited an extensive railway network on independence
o Pattern of international trade.
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