Department of Political Economy: The Third Sector and Public Policy - Essay Example

?SOCIAL CAPITAL Table of content 0 Introduction 2 2.0 Definition of Social Capital 2 3.0 Types ofSocial Capital 4 4.0 Measurement of Social Capital 5 5.0 Importance of Social Capital to Public Services 6 5.1 Collective Action 7 5.2 Increased Levels of Trust 7 5.3 Flourishing of Social Networks 8 5.4 Reducing risk factors in the society 9 5.5 Widening Society’s Awareness 10 5.6 Promoting Better Health 11 5.7 Fostering Democracy 12 5.8 Other Benefits 13 6.0 Conclusion 13 7.0 Bibliography 14 Explain what is meant by the term ‘Social Capital’: Why Is It Important to Public Services? 1.0 Introduction Social, economic, and political spheres are critical in the wellbeing of society. These three spheres are inextricably linked; that is, the functioning of one sphere greatly relies on that of the other. Generally, public policies are shaped by economic, political, and social actions. The third sectors are critical in public policy as they integrate a wide range of institutions (governmental and non- governmental) into attaining set public policy objectives. Social capital is greatly considered as one of the key ingredient of the Third Sector, and for that matter public policy (Coleman, 1988, p. 95). It is against this background that it is important to discuss what the term “social capital” means and its importance to public services. 2.0 Definition of Social Capital The term “social capital” is increasingly become the lexicon of everyday language. This term is getting more popular in public policy even though it is a relatively younger concept in the field of public policy. The term “social capital” is defined in a number of ways. Even though there are different definitions to the term, there are certain aspects that create a point of convergence among all the users of the term. The users of this term agree that any definition of “social capital should include some if not all of the following aspects: connection between individuals; clear distinction between economic and social capital; presence of contradictory and different social processes; involvement of reciprocity and trust principles; non- monetary forms of power and influence; and focus on positive aspects of social life (Portes, 1998, p. 8-9). So how is “social capital” defined? According to the World Bank (1999), social capital encompasses norms, institutions, and relationships that shape the quantity and quality of interactions within the society. The World Bank’s definition implies that social capital is not simply the sum of institutions, norms and interactions that underpin the society, but rather they are the glue that holds the society together. Also, social capital is defined as the connections among individuals, norms of trustworthiness and reciprocity and social networks that arise from connections among individuals (Putnam 2000, p. 19). From this definition, it can be deduced that social capital requires that civic virtue be embedded in the reciprocal social relations. This is because a society needs connected and virtuous individuals for it to be considered rich in social capital. Bourdieu (1983, p. 249) defines social capital as the aggregate of the potential or actual resources which are connected to possession of a long-lasting network of institutionalized relationships of mutual recognition and acquaintance. From the definitions, it is evidently clear that the term “social capital” cannot be defined entirely in a single definition; there are aspects that may be left out if the term is given a single definition. The definition of this term seem to stem from a basic concern of exploring the processes of ensuring that there is equal access to resources, differentiation of power, and diminishing the essence of creation of elites and class formation. In most cases, the term “social capital” is defined against the term “economic capital”. Actually, there is a belief among many proponents of social capital that the concept seeks to correct the “wrongs” created by economic capital in the society (Alcock, 2010, p. 13). Economic capital is often characterized by creation of elites, class formation, and domination of power by particular networks of individual. The ideologies and principles behind social capital are geared towards fighting the “creations” of economic capital. Generally, social capital functions to create social sense out of economic capital. Economic benefits should benefit the entire society and not just a section of it. As argued by Bourdieu (1983, p. 249), social capital is the aggregate of the potential or actual resources which are connected to possession of a long- lasting network of institutionalized relationship of mutual recognition and acquaintance. This is the basis on which social capital is founded; the need to harness resources and relate it to the long- lasting network among individuals in the society. Just like other types of capital, social capital is geared towards development in the society, although through different perspectives and approaches. Social capital involves processes and experiences that seek to incorporate all the members of the society in the development process. Therefore, whereas economic capital creates elites and perpetuates class formation, social capital brings on board all the groups regardless of their economic, social, and political status and affiliations (Office for National Statistics, 2001). This explains why the marginalized groups are usually a significant consideration in social capital processes; social capital explores the nature of social structures and seeks to align them. In addition to considering societal issues from social and economic perspective, social capital consider societal issues from political point of view. Social capital is based on the belief that political institutions of any given society play a very critical role in enhancing the overall well- being of the society. According to Hall (1999. p. 419), political institutions more than any other institutions are crucial in moving forward public policy. Implementation, sustainability, and legitimacy of any public policy rely heavily on the political institutions. The quality of civic life and democracy in a given society are important political aspects that are at the core of public policy. 3.0 Types of Social Capital There are three types of social capital: bonding, linking, and bridging social capital. Bonding social capital is that which relates to the ties between individuals who are in the same situations. Bonding social capital is brought about by similar circumstances and experiences that either makes individuals experiencing them to bond, wilfully or forcefully. This type of social capital is usually experienced by close friends and neighbours, as well as immediate family members. Woolcock (2001, p. 13) identifies linking social capital as the second type of social capital; it is the opposite of bonding because it relates to individuals whose situations and experiences are not similar. A good example is that of the individuals who are outside of the community, completely. Therefore, members are able to leverage a wider range of resources than those already available in that community. The last type of social capital is bridging social capital which includes ties that are more distant and therefore the individuals involved have to find a way of reaching to each other. According to Putnam (1995, p. 67), this type of social capital involves distant workmates and individuals with loose friendships. Putman argues that bridging can be considered as inclusive whereas bonding can be considered as exclusive. This is because the former tend to be more outward- looking and incorporates individuals from different social divide. On the other hand, the latter tend to be more inward- looking and thereby have a tendency of reinforcing homogenous groups and exclusive identities (Putnam, 2000, p. 22). 4.0 Measurement of Social Capital Before considering the importance of social capital to public services, it is crucial to understand how social capital is measured. Anheier (2007, p. 8) observes that there are no clear means of measuring social capital and measurements are usually purposive. Social capital measurements often seek to consider particular aspects relating to social capital in the society. Purposive measurement of social capital is in the following three major categories: group cohesion that seeks to measure the extent of commitment of members and the length of such membership. The second category is links between a particular social network and other networks within the society. Such a measurement is essential as it helps in determining how a given social network is linked to the others and the extent of those linkages. The final category is civil participation where membership of groups are determined, as well as the activities of the groups and the impact that they have in the society. Measuring social capital is very important especially when analyzing the importance that social capital has to the public services (Edwards, 2004, p. 45). The purposive measurements employed in measuring social capital helps in providing measurable outcomes of social capital aspects in public services. As such, the impact of social capital to public services can be effectively determined, thus making its importance to easily visible (Kramer, 2000, p. 21). 5.0 Importance of Social Capital to Public Services It is agreeable that social capital is at the centre of public services; formulation and implantation of public policies are related to social capital aspects in one way or another. Herman and Renz (1999, p. 109) argues that social capital has clear benefits not only to the policy-makers but also to the entire society. The policies that policy-makers formulate usually revolve around addressing social problems. Additionally, policy responses such as promotion of civic “infrastructure” and support for volunteering from the public are often within the tenets of social capital (Salamon and Anheier, 1997, p. 34). Public services are the type of services which the government provide to its citizens through funding provision of services either by private firms or the public sector. Public services are some of the inherent obligations of the governments across the world as it is associated with social contract concept between the government and its citizens. Social contract concept implies that whereas the citizens have the obligation of obeying the law and paying taxes, the government has the obligation of providing essential services to the citizens, their income notwithstanding (Lewis, and Surender, 2005, p. 76). So, what are the importances of social capital to public services? 5.1 Collective Action Provision of services is by no means an easy task; no particular individual or group of individuals can afford to satisfactorily provide public services. Effective provision of public services calls for concerted efforts, without which such services will be unattainable. It is in the light of this fact that social capital injects the sense of collective action geared towards effective provision of public services (Deakin, 2000, p. 43. Since public problems are shared problems, social capital play important role in facilitating addressing of such problems for the betterment of the society. Through the social capital, citizens are able to solve “collective problems” more easily. Most collective problems can only be solved better through cooperation as each member of society plays his or her role towards addressing those problems. Performance and Innovation Unit (2002) argues that studies have shown that societies with high social capital tend to resolve collective problems more easily and thereby experience less of these problems. Conversely, societies with low social capital usually find it difficult to resolve their collective problems, explaining why they are afflicted with these problems the most. 5.2 Increased Levels of Trust A society is made up of different communities. Often, different communities tend to conflict because of varying traditions, culture, and religious beliefs thus breeding mistrust among them. In order for provision of public services to be effective, communities within a society need to co- exist peacefully and with mutual respect. Mistrust of whichever nature can be very detrimental to the provision of public services and therefore it should not be allowed to prevail. Social capital is very crucial in greasing the wheels that facilitate smooth advancement of communities within a society. Societies where people are trustworthy and trusting, social interactions and businesses tend to be less costly. This is because individuals are subject to repeated interactions with each other hence minimizing tension between them, and reducing if not eliminating any possibility of conflict which may make social transactions and business more costly (Titmuss, 1970, p. 38). 5.3 Flourishing of Social Networks According to Putman (2000, p. 19), social capital is the connections among individuals, norms of trustworthiness and reciprocity and social networks that arise from connections among individuals. Social networks are one of the key ingredients of social capital; the impact of social capital in society and public services for that matter is highly dependent on the nature of social networks within a given society. A growing body of research have shown that social networks flourish where there is trust. This implies that high levels of trust are critical in flourishing of social networks. Flourishing social networks are important in facilitating the provision of public services as individuals, firms and institutions are integrated towards provision of public services. Well-integrated social networks ensure that all the processes and institutions within the society in a systematic manner towards attainment of public goals. Flourishing social networks enables neighbourhoods, firms, nations, and individuals to prosper socially and economically (Alvord, S. et al, 2004, 265). Application of social capital in public services is vital in mitigating the insidious effects of socioeconomic disadvantages (Casey, 2004, p. 252). This assertion is evident through the interaction between the public sector, private sector and the third sector in various areas of public services. Recent years have witnessed growing presence of the civil society, non- governmental organizations and the private sector in various areas of public services and they have greatly helped the public sector in provision of services. Moreover, social capital has helped enhance the quality of social networks in the “urban poor’s underground economy”, thus going a long way in providing essential services to this section of the society’s population (Imrie and Raco, 2003, p. 71). Furthermore, the networks constituting social capital serve as conduits that facilitate flow of vital information; hence helping the society achieves its goals. It is important to point out that social capital operates through biological and psychological processes geared towards improving people’s lives. 5.4 Reducing risk factors in the society Society is predisposed to myriad of problems due to a presence of risk factors within it. Presence of risk factors in the society increases the possibility of certain social problems to emerge such as crime, poverty, and risky sexual behaviours. The role of social capital in public services is to ensure that the entire population of the society regardless of their social and economic status are able to get access to basic services (Casey, 2004, p. 255). High social capital societies or section of a society tend to have friendlier people, safe streets, and cleaner public spaces that reduce the risks that people living there are exposed to. Areas with low social capital are characterized by risk factors such as residential mobility, crime, drug abuse, and poverty. People in such areas do not participate in community services, are not linked through networks of relatives and friends, and young people are not supervised. As a result, they do not prosper economically and socially. It is against this background that social capital seeks to find its way into public services in order to make the society safer and more conducive to live in (Keane, 2001, p. 111-3). 5.5 Widening Society’s Awareness Individuals’ fates in the society are linked in one way or another, a reality that people may not realize in the absence of social capital. The essence of public service is to improve the overall wellbeing of people in the society so that they may lead desirable lives. Alvord, S. et al (2004, p. 280) argue that this essence is informed by the awareness that the wellbeing of one in the society is related to that of another, thus impacting on their interactions. Social capital seeks to widen society’s awareness in regard to the ways in which people’s fates are intertwined in one way or another. This fosters connection between them. When members of a society lacks connection to each other, they cannot be in a better position to test the truth of their personal views, regardless of whether it is in formal or casual conversation or deliberation. Social capital provides people with opportunity not to be swayed by their worse impulses that glorify personal interests at the expense of public interests. Awareness in the society that individual’s fates are linked in various ways is a critical ingredient in facilitating effectiveness of provision of public services (Cohen and Prusak, 2001, p. 33). 5.6 Promoting Better Health Health is Wealth; one of the main purposes of public services is to promote better health among the society’s population because this is the only way that can ensure sustainable development within the society. Small (2003, p. 18) says that various researches have shown a very strong relationship between social capital and better health. Social capital principles emphasizes on the need for the public sector, the private sector, and the third sector to invest sufficiently in the health sector. This emphasis is informed by the reality that poor health can gradually destroy all the development attained over years. Emergence of “new” diseases and infection, as well as increase of population across the world has prompted the proponents of social capital to advocate for more attention to be accorded to the health sector. Apart from that, social capital activities help in promoting better health. Volunteering, church attendance, regular attendance of meetings not only promotes physical health but also emotional and psychological health. Along with that, social capital has been to be a powerful tool of shaping child development. Norms of reciprocity within a school, family, larger community, and family setting, as well as networks and trust are social capital aspects that shape development in children (Foley, M. W. and Edwards, 1999, p. 150). These aspects, along with others impacts on children‘s choices and opportunities, behaviour, and educational achievement. These traits go a long way in influencing people’s attitudes and commitment to public services in the future. 5.7 Fostering Democracy The phenomenon of public services is founded on democratic principles. As has been noted, public services are one of the key elements that the government is obligated to perform under the social contract. Newman et al (2004, p. 205) argue that such a government should be legally in office after a democratic election which should be conducted periodically. Since the need for public services have increased due to increase in population and citizen’s expectations, the public sector seems overwhelmed by this need. It is for this reason that the private sector and the third sector have considered it desirable to help the government in the provision of public services. In order for these services to be provided effectively, presence of a democratic environment is crucial. Besides, there has been an increasing realization among all the players in the public policy that progressive and sustainable development can only be possible within a democratic environment (Pattie, et al (2003, p. 616). Undemocratic setting can achieve development but such development can be vulnerable to social and political risks thus compromising its sustainability. Social capital has instilled greater confidence in democracy. Najam (2000, p. 391) observes that policy- makers as well as the citizens have come to appreciate the importance of democracy in running of public affairs. Moreover, social capital promotes higher levels of participation in public issues among the citizens; as a result of social capital, citizens have a great influence in decisions that affect them. Different groups including the minority are engaging in activities that promotes public development. More importantly, social capital has facilitated more responsive policies. Citizens give their feedbacks regarding implementation of public policies (Fung and Wright, 2003, p. 177). Citizens’ feedbacks are important in helping policy- makers to formulate better and appropriate policies, as well as effective implementation of these policies. 5.8 Other Benefits The benefits of social capital to public services cannot be exhausted; apart from the above mentioned main benefits, there are others that are worth mentioning. One of them is that social capital fosters better management of public policies hence facilitating provision of public services (Fisher, 2003, p. 26). Secondly, social capital accelerates economic growth in the country. As one of the important types of capital, social capital is driving force of the economy because human beings are critical in the economic process. Thirdly, social capital facilitates attainment of higher education by members of society. This ensures that there is a significant number of people who are well- equipped to provide public services. Moreover, it ensures that labour markets function more efficiently, as well as making sure that supply chains are working well (Lewis, 2005, p. 130). 6.0 Conclusion From the above discussion, it is evidently clear that social capital is a critical part of public policy. Social capital greatly influences social interactions in the society and glues together the institutions and relationships. The wellbeing of any given society depends on the nature of social capital; societies with high social capital have better wellbeing compared to societies with low social capital. As it can be seen from the discussion, social capital is beneficial to public services in a number of ways. Effectiveness and efficiency of the provision of public services in a given society is determined by the nature of social capital in that society. 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