From the Director
by Cornelia Flora
Social capital is an important community asset. Communities historically have very different levels of social capital. For example, in Robert Putnam's study of development in Italy, he found that social capital was the determinant of both governmental efficiency and economic development. He found that social capital sprang from ancient roots. In particular, he found a good predictor of social capital in the 1990s was the level of social capital in the Middle Ages, as indicated by the presence of choral societies, male singing groups associated with towns.
Social capital, which is based on trust, reciprocity, networks and collective action, takes time to develop and needs particular and concrete attention. Yet it is easy to destroy by focusing development efforts only on other aspects of capital. For example, urban renewal can more quickly move people from a dilapidated neighborhood into a new development without consulting the group and by not working with the group in planning the procedures. But ignoring social capital can mean long term unsustainability of manufactured capital. Buildings may soon deteriorate because social capital has been destroyed and dependencies on outsiders created.
In the April 1988 edition of Rural Development News, Jan Flora and I published an article titled "Characteristics of Entrepreneurial Communities in a Time of Crisis." Since then we have expanded our research, refined the categories, and related these to creating social capital. We call it entrepreneurial social infrastructure.
Recent research has shown the importance of social capital as indicated by entrepreneurial infrastructure, for economic development, particularly self-development, where a larger proportion of the value-added by an enterprise within a community remains in that community. Work by North Central Regional Center for Rural Development associates has shown that social capital can indeed enhance other forms of capital within the community, and that social capital can be created and destroyed.
Entrepreneurial social infrastructure suggests ways of increasing social capital. Entrepreneurial social infrastructure consists of legitimization of alternatives, diverse networks and resource mobilization.
Legitimization of Alternatives
Some communities seek THE answer, while other communities consider many ways to getting things done. It is legitimate to look at alternatives. In such communities, there are shared goals with an understanding that there are alternative ways of meeting those goals. Like continuous improvement in industry, solutions are not sought, but countermeasures are implemented as progress towards goals is constantly monitored and alternative ways of getting there assessed. Where there is a high level of legitimization of alternatives, different points of view within the community are both accepted and valued by others in the community.
This leads to acceptance to controversy, which is different than conflict. Where there is conflict, lines are drawn in the sand and one is labeled according to one's stance on a particular issue. When everything appears smooth and everyone agrees on everything, no discussion occurs. New issues are not brought forward, visions of the future are not shared, and alternative ways of getting there are not developed. In this situation, conflict often lies right beneath the surface. Controversy, however, is the opposite of conflict. Acceptance of controversy means that people can disagree with each other and still respect each other.
In communities that accept controversy, there is depersonalization of politics. Ordinary citizens are more likely to run for public office, and feel able to implement countermeasures to resolve community issues without being crucified. There is an awareness that the public sector is important in bringing about change at the local level, and there is higher participation in both civic and governmental organizations as a result.
In such communities there is great attention to process. There are celebrations of who we are and of successes of many within the community. In some communities where it is not legitimate to look at alternatives, the notion of a "limited good" is strong. The success of one person is viewed as occurring at the expense of another. These are communities where controversy does not occur, because people do not politically express different points of view.
With focus on process, there is assessment of progress toward goals. When that progress is below expectations, a discussion of countermeasures to move it forward occurs. There is less concern about "Who's crummy idea was that?" or "Why didn't you listen to me? I had a better idea," and more consideration of "What did we learn from this last effort?" and "What will we try now?"
Diverse Networks
Networks in communities with high social capital are diverse and inclusive. While there is room for subgroups with high levels of social capital (communities of interest within communities), communities of place require diversity. The best approach to diversity is not: "Are we politically correct?" But rather: "Whose viewpoint is necessary as we move forward toward our goals?" For example, if a community development project is on-going with the desire to create more jobs, local people who will take those jobs need to be part of the process so there can be a better link between human capital and the manufactured capital offering employment opportunities.
Diversity means asking who is not involved and why are they not involved, and talking directly to those who are not involved to find the answers. Is it the time? Is the place too expensive for lunch? Is it the location? Meeting at lunch is impossible for people who work in factories or in other salaried employment. In addition, people who are poor or have mobility problems may find it difficult to access because of lack of transportation.
Do not mistake a broad invitation for inclusiveness. Personal invitations work better than advertisements in newspapers. People without personal invitations, who are not part of the planning team, or who are asked to bring food for example, generally only come if they are really incensed and want to protest. Personal invitations that include a chance a give are very important in building inclusive networks.
Being inclusive does not mean just having people at the table. We have discovered this in some youth leadership programs. Youth are trained in leadership skills which they wish to share with their community. However, the response to their presence is: "Wonderful, here is someone to sell the donuts and do the cleanup." While the youth are willing to do this, they would also like to help plan the development activities. But when they try to participate in the planning, the response of the established leaders is: "Well, we don't do it that way here." Or: "We tried that 20 years ago and it didn't work." Inclusiveness and diversity must go together.
Additional characteristics of networks creating social capital include:
Resource Mobilization
Resource mobilization is the last critical area where social capital is built. First, resources in the community must be seen as available to all. This applies to private resources, such as access to credit, as well as public resources, such as quality schooling, recreation and other opportunities. This does not mean there cannot be criteria for access, but the criteria should be well-known and there should be opportunities for people to increase their chance for access.
When mobilizing private resources, it is important for financial institutions to figure out how to give loans in the appropriate amount, with the appropriate terms, to all levels of entrepreneurs and citizens. In such a community, private citizens of all levels contribute whatever money they can when there is a need, and opportunities are available for individuals to contribute their time and goods to good causes. The ability to mobilize private resources is a critical part of creating social capital, giving everyone a chance to give.
When mobilizing public resources, people must be willing to invest in themselves to make their community a better place to live. We are learning that in industrial recruitment, the biggest problem is the unwillingness of management to live in rural areas. Communities that invest in themselves, have quality schools, and have a textured environment including parks and residential areas, are the communities that have less trouble attracting industry.
Creating social capital takes conscientious effort. It means that each individual citizen must be included, not just to meet their needs, but for the assets which they can offer the community. It means that every person has not only a living, but a life. We make a living by what we get. We make a life by what we give.