Nan Lin - Social Capital and Its Implications for Development

2,129 views

Published on

Nan Lin - Social Capital and Its Implications for Development

Nan Lin - Social Capital and Its Implications for Development

  1. 1. Social Capital and Its Implications for Development Nan Lin Duke University gnanlin@gmail.com International Seminar On9/27/2012 Social Capital and Territorial 9/22/2012 version Development
  2. 2. Topics to be covered:What is capital? What is social capital?Definition and Theory of Social CapitalMeasurements of social capitalControversies and clarificationsImplications for development
  3. 3. Valued ResourcesResources valued in a societyTypical forms of resources Economic: Wealth Political: Power/control Cultural: Symbolic, life style, etc. Human: Skills, knowledge Social: Status, reputation Materials and technology
  4. 4. Theorization of capitalProduction, reproduction and accumulation of resources
  5. 5. Definition of Capital1. Investing resources in production2. Generating production-consumption gap: “surplus”3. Reinvesting surplus for production
  6. 6. “Capital” Theories1。 Classical Theory: Marx Social Relations: Capitalists: Labor: Surplus value: Capital Investment, Re-investment
  7. 7. The Trade MarketCapitalists Commodity 1 M2 Commodity 2 The Consumption The Production Market Market M1 M3Laborers Commodity 3 M4 Commodity 4 (labor) (food, clothing, shelter, etc.) Sunbelt 1999 Figure 1. Rendition of Marx’ Thesis on Production and Consumption Relations
  8. 8. Marx’ Capital:Definition: valued resources, and part of the surplus value, invested and reinvested for production, reproduction and accumulation.Theory: exploitative social relations between capitalists and laborers.
  9. 9. Was Marx Correct?Yes – his definition of capital Production and reproduction of resourcesNo – his theory was not always right Exploitative capitalists – yes Exploited labor – not always
  10. 10. 2。 Neo-Capital Theories Human Capital: Investment in skills, knowledge Neo-classical economic theory Cultural Capital: Investment in normative practices and behaviors. “Mis-recognition of institutions and normative behaviors.
  11. 11. Social Capital What is “Social”?Coleman: elements of the social structure, networksBourdieu: quality and quantity of social ties in social networksPutnam: voluntary associations, participationBurt: structural holes in networks
  12. 12. Coleman: 1990“these social-structural resources”consisting “a variety of different entities having two characteristicsin common: They all consist of some aspect of a social structure, and they facilitate certain actions ofindividuals who are within the structure”a tautological argument ?
  13. 13. Bourdieu: 1983“the aggregate of the actual or potentialresources which are linked to possession of a durable network of more or lessinstitutionalized relationships of mutualacquaintance and recognition” (p. 248), and conceives it operationally as“the sum of resources, actual or virtual,that accrue to an individual or groupby virtue of possessing a durable networkor more or less institutionalizedrelationships of mutual acquaintanceand recognition.”
  14. 14. Putnam: 2000, p. 19Social capital refers to connectionsamong individuals – social networksand the norms of reciprocity andtrustworthiness that arise from them.Civic virtue is most powerful whenembedded in a dense network ofreciprocal social relations.Following Coleman, but mixingdefinition with theory and never studiedsocial networks.
  15. 15. Burt, 1992Structural holeStructural constraintsNetwork features as social capital: Strength of ties: Granovetter Bridges: Burt
  16. 16. Clarification and integration:Social capital is:rooted precisely at the juncturebetween individuals and their relations;and is contained in the meso-levelstructure or in social networks.
  17. 17. Definition of Social CapitalResources embedded in social networks (Lin 1982; Bourdieu 1983)
  18. 18. Definition of Social CapitalResources embedded in social networks.Ego Alter Capital: economic Social capital political, cultural, social, etc.
  19. 19. Social Capital is not owned by a person.It is “borrowed” to facilitate an action.It becomes possible because: Maintaining social ties Social ties have valued resources
  20. 20. Justification for Social Capital Functions of social capital﹕ Information Influence Social credentials Identity: recognition Social integration Entertainment, leisure Trade, transaction
  21. 21. Relative Cumulative Effects of Social Capital and Human Capital Social Capital Accu mulat ed Human Capital Capit al Time Figure 8.1 Accumulation Rates for Human and Social Capital
  22. 22. Social capital needs: social ties and social networksBut it is the resources embedded in the social ties and social networks
  23. 23. Theory of social capital: Lin, 2001Investment in social relations for expected returns.
  24. 24. Primary theoretical propositionsSocial capital is facilitated by:1. Superior positions in hierarchy2. Accessing weaker ties3. Accessing upper positions
  25. 25. Significance of Positions in Hierarchical Structure High e1: ego 1 a1 a1: alter 1 e2: ego 2 a2: alter 2 Structu e1 ral Positio ns a2 e2 Low Figure 5.3 Relative Advantages of Structural Positions for Accessing Social Capital
  26. 26. Significance of Weaker Ties High e: ego a1: alter 1 (stronger tie) a2, a3: alters 2 and 3Struct (weaker ties)uralPositions a2 e a1 a3 Low Figure 5.4 Relative Advantages of Weaker Ties
  27. 27. Significance of upper reaching in hierarchy High e1: ego 1 a1: alter 1 e2: ego 2 a2: alter 2 Struct e1 a1 ural Positio e2 a2 ns Low Figure 5.1 Relative Effects of Social Capital
  28. 28. Investments: social connections embedded resourcesSocial capital should be conceived within a social structureThe pyramidal hierarchy: Quantity and quality of resources Number of occupants
  29. 29. IndicatorsCapacity: One’s access to resources through social connections, social networks Example: resources among friends and co-workersActivation One’s use of specific connection and resources for a specific event or episode Example: using a contact to find a job (contact resources)
  30. 30. Modeling Social CapitalInvestment Social capital ReturnsStructural position Instrumental returns (wealth, power, prestige)Network location Capacity ActivationPossessed resources Expressive returns (psychological, physical health)Purpose of action instrumental or expressive investment
  31. 31. The Paradox of Social CapitalHomophily: Similarity in resources General tendency of group formation Horizontal connections (Example: friends)Positive: group cohesion, collective solidarity, preservation of resourcesNegative: Inequality across groups Inter-group tension and conflict
  32. 32. Acting for Inter-group LinkageHeterophily: Dissimilarity in resources Extraordinary efforts at reaching out Vertical connections (Example: higher-position occupant)Positive: Diversity in information, and influence Mobility and inter-group interactionNegative: Risk in solidarity and in-group membership
  33. 33. Striving for a balance in vertical and horizontal connectionsHomophily: for preservations of resourcesHeterophily: for gaining of resourcesHeterophily promotes new and fresh information and technology, mobility, innovation
  34. 34. Measuring Social CapitalMeasuring capacity (access)Measuring activation (use)
  35. 35. Measuring Social Capital CapacityObjective: accessed resources through ties: Position Generator﹕ 1。 Sampling of social positions 2。 Topic neutral 3。 Relations neutral Name Generator﹕limitations
  36. 36. Key Question Among your relatives, friends andacquaintances, does anyone have thefollowing job? If so, what is your relation?
  37. 37. High school teacher (60) Police (40)Electrician (36) Provincial/city officeManager of a small firm (48) manager (55)Nurse (54) Housemaid (22)Provincial/city assemblyman (69) Reporter (55)Truck driver (31) Owner of a big firm (70)Physician (78) Lawyer (73)Manager of a big firm (62) Guard (26) Sampled Positions
  38. 38. Index Construction﹕ExtensityUpper reacheabilityRange
  39. 39. High Upper reachability Structur Extensity al Heterogeneity Position s (Range) Low Figure 5.2 Measures of Social CapitalSocial Capital Capacity Indictors
  40. 40. Position Occupant Characteristics Gender Race/ethnicity Education Relation (direct, indirect) Familiarity Length of acquaintance Etc.
  41. 41. Measuring activation of social capitalVisible hand: Seeking help: Job search – job contact/helper - contact resourcesExample: Did anyone help you in getting this job? Who was him/her? gender, race, occupation, etc.
  42. 42. Invisible hand: help rendered in routine exchangeExample: Did you receive information about anyjob in casual conversations with your friendsand colleagues without your asking? Who was he/she? (position, organization, gender, race, etc.)
  43. 43. Inequality of Social CapitalInvisible hand more effective: 1. Better job information fromsocial ties in networks rich in resources. 2. Advantaged individuals have betternetworks (rich in resources)Visible hand may be necessary for some: for those lacking rich networks.
  44. 44. Controversies1. Is social networks per se. social capital?2. Is trust social capital?3. What about participation in voluntary associations and civil engagement ?4. What about social relations?
  45. 45. HighHierarchicalAxis B You (ego) A Low Figure 5.5 Structural Holes (Bridges) and Strength of Ties (Horizontal clusters, adapted from Burt 1992 p. 27) Effects of Social Networks and Positions, without resource considerations
  46. 46. High Hierarchi cal Axis A You (ego) B Low Figure 5.6 Differential Advantages of Structural Holes (Bridges) and Weaker Ties in a Hierarchical StructureEffects of Social Networks and Positions, with resource conditions
  47. 47. Trust1。Types of trust﹕ interpersonal trust generalized trust institutional trust 2。Theoretical foundations of trust: Networks, resources, and participation 3。 The social nature of trust
  48. 48. Trust1。Types of trust﹕ interpersonal trust generalized trust institutional trust 2。Theoretical foundations of trust: Networks, resources, and participation 3。 The social nature of trust
  49. 49. Trust and social capitalTrust as an indicator of social capital?Trust as a cause of social capital? Trust as a consequence of social capital? Trust as a contingent factor
  50. 50. Extending Social Capital to the Macro-Level: 1。Articulation: social groups, associations Coleman, Putnam 2. Confusion﹕ Causal relation Macro-micro link Multiple concepts Multiple measurements 3。Research confusions
  51. 51. Micro-foundationMicro-dynamics is fundamental: Consistency across all capital theories Process of capitalization explicit Modeling the production and returns to social capital
  52. 52. The micro-macro linkConsistency of theory and measurementUnit of analysis: from individuals to groups
  53. 53. Macro-extension of social capital: social capital in organizationsInternal Social Capital: Collective resources of members Resources embedded in positions External Social Capital: Networks of the organization Embedded resources in connected organizations
  54. 54. Figure: Internal and External social capital Internal social capita l Focal group External social capital
  55. 55. Extension from the meso to the macro-level: Internal social capital Group participation and formation: social networks embedded resources External social capital Linkages to other groups social networks accessed resources
  56. 56. Balancing:In-group and between-group homophilyIn-group and between-group heterophilyDiversity in social capital critical for the health of groups and community
  57. 57. Figure: layers of relations Belonging Bonding Binding
  58. 58. Layers of social relations and resources: 1. Binding relations: dense network homophilous resources. 2. Bonding relations: mixed networks interactive 3. Belonging relations: sparse networks and heterophilous resources one-to-many
  59. 59. Development and Social Capital
  60. 60. Development:Mobilization and interaction of three key elements The state: rules and implementations The markets: production, trade and consumption The networks: access to and use of social capital
  61. 61. (Idealized) Model of Development: 1 Markets StateExample: The United States, UK, etc.The neo-classical capitalism
  62. 62. (Idealized) Model of Development: 2 State MarketsExample: ChinaThe centrally managed capitalism
  63. 63. (Idealized) Model of Development: 3 NetworksMarkets StateExample: Taiwan?The socially managed capitalism
  64. 64. Social Networks and Social Capital missing in (idealized) development modelsBut it operates in all models of development In the US, UK, etc. In China, Japan, Korea In Russia, oil-producing nations In Brazil, Italy, etc.
  65. 65. Significance of the networks in developmentLubrication of frictions between the state and the marketsReducing deviations of the state and the marketsCoordination and reinforcement of joint actions and functionsBalance of competition and cooperation Concerns for equality and justice
  66. 66. Why social networks and socialcapital not mentioned in developmentmodels?
  67. 67. Dark Sides of Social CapitalCorruption and collusionNepotismDisruption the markets
  68. 68. Multiple Faces of Social Capital Voluntary associations Multiple media the significance of the Web Independence of networks from the state and the markets Individual and group participation and contributions
  69. 69. (Idealized) Model of Development: 3 NetworksMarkets State The hybrid capitalism
  70. 70. Current StudiesThree-society Studies The US, China and Taiwan 2004-05, 2007-08 The institutional contingency Home owners associations in China Capitalism in China: The centrally managed capitalism
  71. 71. Some publications on social capital2001 Nan Lin Social Capital: A Theory of Social Structure and Action (Cambridge)2001 Nan Lin, Karen Cook and Ron Burt, editors Social Capital: Theory and Research (Aldine de Gruyter)2010 Nan Lin and Bonnie Erickson, editors Social Capital: an International Research Program (Oxford)2011 Lin, Nan, editor. Social Capital: Critical Concepts in Social Sciences. 4 volumes. (Routledge)
  72. 72. 2013 Nan Lin, Yang-chih Fu and Chih-jou Jay Chen, editors Social Capital and its Institutional Contingency: A Study of the United States, Taiwan and China. (Routledge)2011 Nan Lin “Capitalism in China: A Centrally Managed Capitalism (CMC) and Its Future” Management and Organization Research. 7-1:63-96 (March).

×