A growing number of sociologists, political scientists, economists, and organizational theorists have invoked the concept of social capital in the search for answers to a broadening range of questions being confronted in their own fields. Seeking to clarify the concept and help assess its utility for organizational theory, we synthesize the theoretical research undertaken in these various disciplines and develop a common conceptual framework that identifies the sources, benefits, risks, and contingencies of social capital.

https://www.jstor.org/stable/pdfplus/4134367.pdf

Social Capital: Prospects for a New Concept

This paper presents evidence that "social capital" matters for measurable economic performance, using indicators of trust and civic norms from the World Values Surveys for a sample of 29 market economies. Memberships in formal groups—Putnam's measure of social capital—is not associated with trust or with improved economic performance. We find trust and civic norms are stronger in nations with higher and more equal incomes, with institutions that restrain predatory actions of chief executives, and with better-educated and ethnically homogeneous populations.

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Does Social Capital Have an Economic Payoff? A Cross-Country Investigation

Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Estimation and Inference in Econometrics

In the 1990s the concept of social capital defined here as the norms and networks that enable people to act collectively enjoyed a remarkable rise to prominence across all the social science disciplines. The authors trace the evolution of social capital research as it pertains to economic development and identify four distinct approaches the research has taken : communitarian, networks, institutional, and synergy. The evidence suggests that of the four, the synergy view, with its emphasis on incorporating different levels and dimensions of social capital and its recognition of the positive and negative outcomes that social capital can generate, has the greatest empirical support and lends itself best to comprehensive and coherent policy prescriptions. The authors argue that a significant virtue of the idea of and discourse on social capital is that it helps to bridge orthodox divides among scholars, practitioners, and policymakers.

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Social capital: implications for development theory, research, and policy

Trust: The Social Virtues and the Creation of Prosperity

This volume brings together multidisciplinary perspectives on poor people's mobility, a dynamic approach that hopefully will add to the reader's understanding of how and why people move into and out of poverty. The chapters draw on the latest longitudinal micro data to present a moving picture of poverty that is rather different from what one can see in single snapshots, the staple of traditional poverty analysis. The book is also important because the contributors' distinct disciplinary perspectives demonstrate clearly why it is critical to draw on diverse information to improve the reader's understanding about how to reduce poverty. The economic findings reinforce what has been known for some time: fast economic growth underpins poverty reduction, but the speed of declines in poverty is greatly affected by social and political factors. The economic panels also show that the people mired in chronic poverty around the world are actually fewer in number than the people moving in and out of poverty. Static studies do not capture this dynamic quality of poverty and vulnerability. Of particular interest are the chapters clarifying interactions between the local social, political, and economic factors that underlie persistent poverty, vulnerability, and inequality. They point to the need to draw from different disciplines as we turn to the task of reaching the bottom poor trapped in poverty and those churning in and out of poverty.

Moving Out of Poverty: Volume 1. Cross-Disciplinary Perspectives on Mobility

The global moving out of poverty study is unique in several respects. It is one of the few large-scale comparative research efforts to focus on mobility out of poverty rather than on poverty alone. The study draws together the experiences of poor women and men who have managed to move out of poverty over time and the processes and local institutions that have helped or hindered their efforts. It is also the first time that a World Bank report draws on people's own understanding of freedom, democracy, equality, empowerment, and aspirations-and how these affect poor people in different growth, social, and political contexts. By giving primacy to people's own experiences and how they define poverty, the study provides several new insights to develop more effective strategies to reduce poverty. The study finds that poor people take lots of initiative, in many cases even more than those who are better off. There are millions and millions of tiny poor entrepreneurs. The investment climate of these tiny entrepreneurs has not been a centerpiece of poverty strategies. Too often, poor people do not face a level playing field. Despite the micro credit revolution, poor people remain outside of most financial services; and large lenders remain reluctant to lend to micro enterprises and micro entrepreneurs. New institutional models and financial instruments are needed to serve poor people's financial needs and give them the capital they need to expand their businesses and connect to markets.

Moving Out of Poverty : Volume 2. Success from the Bottom Up

Lifting people out of poverty is one of the great challenges facing the international community today. It has become still more daunting in the context of the global financial crisis, which has severe implications for the poorest people in the world. Almost 1.4 billion people in developing countries live in poverty, according to recent estimates by the World Bank, and a significant part of this population lives in chronic poverty. This is the fourth in a series of volumes emerging from the global moving out of poverty study, which explores mobility from the perspectives of poor people who have moved out of poverty in more than 500 communities across 15 countries. The research on conflict-affected countries was managed by the global development network in partnership with the World Bank. This volume examines the social, political, and economic institutions facing poor people in post-conflict environments, where lives have been turned upside down by violence and instability. Based on original evidence from over a hundred communities in seven countries, the study documents the strategies that poor people use to cope with and move out of poverty, and it concludes with important policy recommendations.

Moving Out of Poverty : Volume 4. Rising from the Ashes of Conflict

Social capital - including membership in an association such as an agrarian syndicate - reduces the probability of being poor in Bolivia. The returns to household investment in social capital are generally greater for the poor than for the rich, and greater for households with little land than for those with more land. Returns to such membership for Bolivia's poorest exceed returns to education and other assets. Grootaert and Narayan empirically estimate the impact of social capital on household welfare in Bolivia - where they found 67 different types of local associations. They focus on household memberships in local associations as being especially relevant to daily decisions that affect household welfare and consumption. On average, households belong to 1.4 groups and associations: 62 percent belong to agrarian syndicates, 16 percent to production groups, 13 percent to social service groups, and 10 percent to education and health groups. Smaller numbers belong to religious and government groups. Agrarian syndicates, created by government decree in 1952, are now viewed mainly as community-initiated institutions to manage communal resources. They have been registered as legal entities to work closely with municipalities to represent the interests and priorities of local people in municipal decisionmaking. The effects of social capital operate through (at least) three mechanisms: sharing of information among association members; the reduction of opportunistic behavior; and better collective decisionmaking. The effect of social capital on household welfare was found to be 2.5 times that of human capital. Increasing the average educational endowment of each adult in the household by one year (about a 25-percent increase) would increase per capita household spending 4.2 percent; a similar increase in the social capital endowment would increase spending 9 to 10.5 percent. They measured social capital along six dimensions: density of memberships, internal heterogeneity of associations (by gender, age, education, religion, etc.), meeting attendance, active participation in decisionmaking, payment of dues (in cash and in kind), and community orientation. The strongest effect came from number of memberships. Active membership in an agrarian syndicate is associated with an average 11.5 percent increase in household spending. Membership in another local association is associated with a 5.3-percent higher spending level. Empirical results partly confirm the hypothesis that social capital provides long-term benefits such as better access to credit and a higher level of trust in the community as a source of assistance in case of need. This paper - a joint product of the Social Development Department and the Poverty Division, Poverty Reduction and Economic Management Network - is part of a larger effort in the Bank to understand better the role of local institutions, and social capital in general, for poverty reduction.

Deepa Narayan

Papers

Moving Out of Poverty: Volume 1. Cross-Disciplinary Perspectives on Mobility

Moving Out of Poverty : Volume 2. Success from the Bottom Up

Moving Out of Poverty : Volume 4. Rising from the Ashes of Conflict

Globalization and Firms'Financing Choices - Evidence from Emerging Economies

Fair Use Exception in the Music Industry: The Issue of Digital Sampling