Credit and social capital: The community development potential of U.S. microenterprise programs

Abstract

This article looks at the community‐building activities of microenterprise programs. These programs build community primarily by creating networks that build social capital. Microenterprise programs build two types of networks—networks within programs that typically involve borrowers and networks between programs and other institutions. The article examines (1) the ways in which microenterprise programs motivate the creation of both types of networks; (2) the extent to which these networks are embedded within program structures; and (3) the process by which network formation leads to the accumulation of social capital.

The networks of relationships that Women's Initiative and Working Capital have catalyzed, both within and between programs, build social capital in important ways. The trust building that intraprogram relationships accomplish and the alteration of norms that interprogram relationships accomplish motivate the creation of networks that build social capital. These changes are not sufficient to turn poor communities around, but they are important first steps.     

The Impact of Elections on Cooperation: Evidence from a Lab‐in‐the‐Field Experiment in Uganda

Communities often rely on sanctioning to induce public goods contributions. Past studies focus on how external agencies or peer sanctioning induce cooperation. In this article, we focus instead on the role played by centralized authorities, internal to the community. Combining “lab‐in‐the‐field” experiments with observational data on 1,541 Ugandan farmers from 50 communities, we demonstrate the positive effect of internal centralized sanctioning authorities on cooperative behavior. We also show that the size of this effect depends on the political process by which authority is granted: subjects electing leaders contribute more to public goods than subjects who were assigned leaders through a lottery. To test the ecological validity of our findings, we relate farmers’ behavior in the experiment to their level of cooperation in their community organization. We show that deference to authority in the controlled setting predicts cooperative behavior in the farmers’ natural environment, in which they face a similar social dilemma.     

Theory to Practice: Policy Recommendations for Fostering Economic Development through Social Capital

Proponents of social capital theory have long argued not only that it is in the best interest of civic life to build social capital but also that social capital is vital for the economic health of communities. This has been confirmed by recent research showing that social capital, especially in its bridging form, is positively associated with job creation at the metropolitan statistical area level. At the same time, social capital is often viewed as something either inherent or absent within a community. This article takes on that assumption by presenting a policy‐based approach to developing social capital. It provides two theoretical explanations for how social capital affects economic development and identifies four lessons for economic development practitioners to use to enhance social capital. These research‐based recommendations for economic development practitioners and policy makers seek to improve the social capital and, consequently, the economic development of their community.     

“Hunkering Down or Hunkering Away?” The Effect of Community Ethnic Diversity on Residents' Social Networks

We identify two issues with the current literature suggesting that community ethnic diversity undermines social capital: (1) studies predominantly use attitudinal indicators of social capital; and (2) these attitudinal indicators are neighbourhood specific. We suggest the “size” of, and “frequency of interaction” within, individuals' social networks form more valid indicators of social capital. Thus it remains unknown: (1) whether diversity undermines individuals' social connectivity or only attitudes towards neighbours; or (2) whether diversity undermines individuals' total levels of social connectivity or only neighbourhood connectivity. We demonstrate that diversity negatively predicts both local trust and local social connectivity. However, diversity does not negatively predict individuals' total levels of connectivity. From a social connectivity perspective, diversity may undermine local social capital yet exert little effect on individuals' total levels of social capital. Instead, individuals in diverse communities possess equally sized (and active) but less neighbourhood-centric networks. However, this appears dependent on the ability to maintain dispersed social networks: less mobile individuals (e.g. the elderly) report both lower local and lower total social capital in diverse communities.     

New Urbanism and Selection Bias in the Formation of Social Capital

Over the past several decades, there has been a decline in social capital in American communities. New urbanism has been proposed as a tool to reverse some of this decline. This study seeks to understand the potential benefits of new urbanism in terms of social capital. Differences in social capital between a new urbanist subdivision (NUS) and a standard suburban subdivision (SSS) are compared. The findings of this study suggest that residents of NUSs have more social capital than residents of SSSs. However, many of the differences between the two communities disappeared when a social bias control was added to the model.     

The myth of social capital in community development

Abstract

This article argues that contemporary interest in social capital by community development theorists, funders, and practitioners is misguided and needs to be thoroughly rethought. It argues that social capital, as understood by Robert Putnam and people influenced by his work, is a fundamentally flawed concept because it fails to understand issues of power in the production of communities and because it is divorced from economic capital. Therefore, community development practice based on this understanding of social capital is, and will continue to be, similarly flawed.

The article further argues that instead of Putnam's understanding of social capital, community development practice would be better served by returning to the way the concept was used by Glenn Loury and Pierre Bourdieu and concludes with a discussion of how these alternative theories of social capital can be realized in community development practice.     

Is Ethnic Diversity Bad for Any Dimension of Social Capital? Trust,Networks and Voluntarism in Norwegian Communities

Ethnic diversity has been posed as a threat to social capital, but results from existing research are inconclusive. This study takes as its starting point that different aspects of social capital may be influenced differently by ethnic diversity and uses one specific welfare state context – Norway – to explore such variations. Analysing an original dataset, nine different measures are used to explore three dimensions of social capital in 61 communities in Norway, amongst the majority population and residents with immigrant background. The results suggest, first, a differentiated impact of ethnic heterogeneity on trust. Ethnic diversity is negatively associated with spatially bounded forms of trust, but not with generalized trust. Second, a negative association with traditional forms of voluntarism is found – albeit this latter relationship is much weaker than the former. Third, the results suggest that these relationships are fairly similar across different (immigrant) groups. Although residents with immigrant background typically express lower levels of generalized trust than the majority population, the relative differences between residents living in diverse or homogeneous communities are limited. Given its strong institutions Norway could be seen as a least likely case for studying the impact of ethnic diversity on social capital. On the one hand, effects are more limited than what has been found in studies from the United States. On the other hand, the fact that effects are found on community trust and volunteering indicates that this type of societal model can indeed be affected by ethnic diversification.     

Civic Networks and Community Resilience in Brazil,Canada, Chile,and Cuba

This article explores the relationship between civil society and community resilience in coastal communities in Brazil, Canada, Chile and Cuba. In understanding the role of social capital in community development, we do not feel sufficient attention has been paid to the subtle micro-dynamics of civil network structure. Using social network analysis, we explore the link between community cohesion and resilience. Attention is given to conflicting interests that characterize these communities and how they manifest themselves in civic participation and factional affiliations. We find that organizational diversity is a necessary condition for community vitality, but organizations can become captive to factional interests. The critical factors for resilience are associated with a benign side of factions (a plurality of inclusive ties) and the presence of keystone bridging agents. Each offers hidden mechanisms for neutralizing the effects of fragmentation by providing a cohesive capability which remains latent until crises call for collective action.     

The Impact of Local Economic Structure on Community Philanthropy

This article explores how local economic structure directly and indirectly affects community philanthropy. Drawing on campaign data for local United Way (UW) affiliates at three points in time (1990, 2000, and 2010), the article tests the degree to which the relationship between economic structure and community philanthropy is mediated through local stocks of human resources and social capital. The results suggest that retail employment and industrial concentration negatively affect local UW campaigns, while nonlocal ownership positively affects UW campaign size. These measures of economic structure also indirectly influence local UW fund‐raising activities by affecting the levels of human resources and social capital. In the midst of global efforts to increase community‐based philanthropy, these findings have important policy implications for efforts to promote community solutions to social issues in changing economies.     

Ethnic Diversity and Social Capital in Europe: Tests of Putnam's Thesis in European Countries

This article focuses on the core theory recently proposed by Putnam on the relationship between ethnic diversity and dimensions of social capital. Hypotheses are derived from this theory, but also from other theories that propose competing hypotheses on relationships between national characteristics and dimensions of social capital. Essentially, the authors propose more rigorous empirical tests of Putnam's hypotheses by including these competing hypotheses: tests of these hypotheses provide possibilities to evaluate Putnam's and these other theories in terms of general (i.e. cross‐national) tenability for the European continent. The general question is: To what extent do national‐level characteristics like ethnic diversity, next to other national characteristics, actually affect dimensions of social capital of individual citizens in European countries? The authors set out to answer this question by testing hypotheses on cross‐national data from 28 European countries. These data contain valid measurements of a number of dimensions of social capital. The individual‐level data are enriched with contextual‐ (i.e. national‐) level characteristics to be included in more advanced multilevel analyses. The main finding is that Putnam's hypothesis on ethnic diversity must be refuted in European societies. Instead, it is found that economic inequality and the national history of continuous democracy in European societies turn out to be more important for explaining cross‐national differences in social capital in Europe.     

In Good Company: Why Social Capital Matters for Women during Disaster Recovery

Although social capital has made inroads into the public administration literature, little is known about the gender dimensions of social capital in the context of a disaster. This article examines what kind of benefits, if any, social capital offers for women who are affected by disasters. Studying this question is important because it would help public administrators overcome the unique vulnerabilities of women and strengthen their capabilities in preparing for, responding to, and recovering from disasters. This case study of the city of Gölcük, Turkey, suggests that social capital offers benefits for women affected by disasters because it is therapeutic in nature and helps women gain empowerment and avoid the stigma of public assistance. The article offers lessons on how public administrators could build social capital in disaster‐stricken communities by enabling face‐to‐face interaction, initiating leadership programs, and putting in place institutions and policies that are conducive to collective action.     

It is not just who you know: Dominant knowledge and civic participation

Abstract

Civic participation and its role in increasing social capital is touted as a key element in the regeneration of urban communities. This approaches assumes that urban communities are homogenized collective interests and misses the diversity of interests that capitalize on the growth of institutionally supplied social capital brought about through redevelopment projects. This article examines the participatory processes in a Southern California urban community using social and cultural capital frameworks to show that resident participation is a classed and racialized project that privileges those with dominant knowledge, cultural awareness and language skills. The field of contestation, or the political space developed by institutional players for urban regeneration also plays a key role in determining who participates and how decisions are made. While civic participation is presented as a process that is democratic and open to all, this article argues that participation exists within a cultural context that much like the ‘hidden curriculum’ in education, privileges the knowledge of dominant groups.     

Gated communities in America: Walling out the world?

Abstract

Gated communities—enclaves of homes surrounded by walls, often with security guards—are becoming increasingly popular in America. This article introduces and analyzes findings of a Fannie Mae Foundation—sponsored panel on gated communities held at the 1997 Association of Collegiate Schools of Planning annual conference. A key finding is that many people choose to reside in gated communities because they believe that such places reduce risk, ranging from the mundane (e.g., unwanted social exchanges) to the high stakes (e.g., declining home values).

In many ways, gated communities deliver what they promise, by providing an effective defense against daily intrusions. However, some of their benefits entail a high social cost. A sense of community within gated communities comes at the expense of a larger identity with the region outside. Gated communities manifest and reinforce an inward‐focused community culture, where the tension between the individual and society tilt toward self‐interest.     

Inequality,Diversity and Social Trust in Norwegian Communities

This article examines community effects on social trust in Norwegian communities. The large research literature on social trust agrees that community effects are important, but disagree about which aspects of communities influence social trust. The main current disagreement concerns the relative importance of ethnic diversity and socio-economic factors, such as income inequality within communities and differences in socio-economic standing between communities. We test the competing propositions on a Norwegian dataset consisting of 99 communities and 6,166 survey respondents within those communities arguing that it is particularly interesting to look at the relationship between diversity and social trust in the setting of a wealthy universalist welfare state. It is to our knowledge the first dataset that allows a hierarchical analysis of the determinants of social trust in the Norwegian context. The results of our models show that economic inequality, within and between communities, has a direct negative effect on social trust, but that it is not possible to separate the effects of ethnic diversity and level of unemployment. This study thus lends support to the body of research that first and foremost emphasizes the role of economic inequality in accounts of community differences and social trust.     

A Tale of Two Towns: Assessing the Role of Political Resources in a Community Electronic Network

In this study we examine responses to the recent expansion of information technology in two rural Minnesota towns. One of these towns took a cooperative approach to technology access, developing a community electronic network, while the other town relied on a more individualistic, entrepreneurial model. The present study examines citizens' attitudes concerning social, political, and technological issues in these two communities, with the goal of uncovering what kinds of attitudes and resources citizens need to have in order to help support and sustain a community electronic network. Structural equation modeling is used to specify the relationships among individuals' economic, political, and social resources, technology ownership and use, and awareness of and support for the community network. Drawing on a theory of social capital, we consider the relative importance of privately- oriented social engagement versus publicly- oriented political engagement in relation to collective outcomes. Our analysis shows that in the town with the broadly- based community electronic network, individuals' political as well as economic resources are linked to knowledge and use of computer resources, whereas in the comparison community, economic stratification alone drives computer access. The implications of these findings for issues of equity, access to technology, and the development of strong community ties are discussed.     

Political Brand Communities as Social Network Clusters: Winning and Trailing Candidates in the GOP 2016 Primary Elections

This study integrates a brand community theoretical framework and a social networks approach to the study of political marketing on social media. It analyzes Twitter activity by and about all Republican candidates during the month of January 2016 prior to the Iowa primary caucus. Specifically, it identifies key patterns of information flow and political brand community emergence surrounding each candidate as well as brand social mediators who play influential roles in content flow. Findings detect network clusters - subgroups of siloed users - who converse to exchange information with one another rather than with disconnected others in any given political brand community. We classify these clusters in two groups: direct communities that surround a brand – here, a candidate – and indirect communities that consist of users who talk about the political brands but are not directly connected to the brand. Within this fragmented community structure, brand social mediators have the power to bridge direct and indirect brand communities across the network. Among the winning and trailing brand communities, different sets of brand social mediators, patterns of information flow, and network structures emerge. The findings suggest that the more successful a political brand is in voter polls, the weaker the social ties and relationships are within the brand communities. The interactions between political brands and their direct vs. indirect communities also exhibit different patterns of information flow. While direct brand communities demonstrate a higher level of reciprocity, indirect brand communities show a higher level of density. Implications and directions for future research are discussed.     

Does social capital increase public support for economic globalisation?

The dominant explanation of public attitudes vis‐à‐vis economic globalisation focuses on re‐distributional implications, with an emphasis on factor endowments and government‐sponsored safety nets (the compensation hypothesis). The empirical implication of these theoretical arguments is that in advanced economies, on which this article focuses, individuals endowed with less human and financial capital will be more likely to experience income losses. Hence they will oppose economic openness unless they are compensated by the government. It is argued here that including social capital in the analysis can fill two gaps in explanations relying on factor endowments and the compensation hypothesis. First, generalised trust – one key aspect of social capital – constitutes a personal endowment alongside human and financial capital. Second, structural social capital – another key aspect of social capital – can be regarded as a nongovernmental social safety net that can compensate for endowment‐related disadvantages of individuals. Both aspects of social capital are expected to contribute, for distinct reasons, to more positive views on economic openness. The empirical testing relies on survey data for two countries: Switzerland and the United States. For both countries, the results indicate that generalised trust has a strong, positive effect on public opinion of economic globalisation, whereas structural social capital has no effect.     

社会资本在当代中国发展的困境

本文通过对社会资本内涵的说明，力求探索“关系”资源和社会资本的关系，厘清社会资本和“关系”资源的区别。进而论述目前在我国构建社会资本的条件尚不充分，如果强行进行社会资本的运行，那么社会资本极易演变成“关系”资源的范畴，进而不利于社会的有效整合。     

The Effects of Capital Mobility, Trade Openness, and Democracy on Social Spending in Latin America, 1980–1999

Empirical studies measuring the impact of globalization on social spending have appeared recently in leading journals. This study seeks to improve upon previous work by (1) employing a more sophisticated and comprehensive measure of financial openness; (2) using a more accurate measure of trade openness based on purchasing power parities; and (3) relying on social spending data that are more complete than those used by previous studies on Latin America. Our estimates suggest that several empirical patterns reported in previous work deserve a second look. We find that trade openness has a positive association with education and social security expenditures, that financial openness does not constrain government outlays for social programs, and that democracy has a strong positive association with social spending, particularly on items that bolster human capital formation.