Social Capital (Social Sciences Essay)

Social Capital
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Social Capital
Social capital refers to networks between people who live or work in a particular place. An example of social capital is when an individual opens a door for another person or when a stranger returns a lost item. The networks are real-world connections and are essential in society’s functioning through shared values, understanding, trust, norms, sense of responsibility and identity, interpersonal relationships, and reciprocity (Tulin, Lancee & Volker, 201). Communities that value social capital often reports low crime rates, higher literacy levels, economic growth and stability, and excellent healthcare services. Social capital networks facilitate the easy dissemination of information because of trust between individuals in the groups and the sense of responsibility instilled through the shared norms and values.
Sources of social capital
Social capital traces its origins mainly from the culture passed on from one generation to another, moral practices, community norms, and political systems.
Role of social capital in society
Social capital plays an essential role in reducing transaction costs in contracts, bureaucratic regulations, and formal coordination in hierarchies. Coordination can be easily achieved among individuals with substantial social capital since they share common values such as trust and a sense of belonging (Auer et al., 2020). Through the values, the costs of monitoring, negotiating, enforcing agreements, and litigating are reduced significantly compared to when exploring communities with low social capital. Proper dissemination of information in a society helps create awareness and advocacy teams for good infrastructure such as electricity, railway lines, schools, hospitals, and public services. A group that works together can easily influence the leadership of the society through seminars and team-building activities.
During an election, voter turnout and society’s homogeneity determines their unity and strength of social capital. A massive turnout in a community depicts the strength of their social capital and their political ideologies. Social capital affects hiring processes, employment, and settlement in certain areas (Auer et al., 2020). A society with good connections facilitates easy sharing of information, and cooperative nature helps them obtain accurate information about job opportunities and expand their territories.
Relationship between social and human capital
Human capital is a pack of knowledge, personal attributes, and skills that produce economic gro...