On Social Capital
Why? Adam Smith said, "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest." In addition, A human being as Homo economicus is so "rational", that he seeks to attain very specific and predetermined goals to the greatest extent with the least possible cost which involves the hardship-avoiding predisposition of the moment.
How can we overcome the predicament of the farmers? Everyone would be better off if everyone could cooperate in coordination and credible mutual commitment, And so in order to create a more cohesive community, we have to keep together a community with generalized trust and individual free choice,
An answer to the above question was published under the title of ‘Social Capital, 1% vs. 99%, Who Makes the Polarization of Wealth More Serious’, which shows the way to change an individualized community into a matual one beyond the growth-oriented fetishism.
Social Capital? It lends itself to multiple definitions, interpretations, and uses. Pierre Bourdieu in The Forms of Capital distinguishes between three forms of capital: economic capital, cultural capital and social capital. He defines social capital as "the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition." James Coleman defined social capital functionally as “a variety of entities with two elements in common: they all consist of some aspect of social structure, and they facilitate certain actions of actors within the structure” - that is, social capital is anything that facilitates individual or collective action, generated by networks of relationships, reciprocity, trust, and social norms. According to Robert D. Putnam, social capital refers to “the collective value of all 'social networks' and the inclinations that arise from these networks to do things for each other“ and ”features of social organization, such as networks, norms, and trust, that facilitate coordination and cooperation for mutual benefit. Social capital enhances the benefits of investment in physical and human capital“. And also he believes that social capital can be measured by the amount of trust and "reciprocity" in a community or between individuals.
How does social capital undergird a good community and its economic progress? First, enlarged networks of face-to-face contacts with members foster sturdy norms of generalized reciprocity: I’ll do this for you now, in the expectation that down the road you or someone else will return the favor. “Social capital is akin to what Tom Wolfe called the ‘favor bank’ in his novel. A community that relies on generalized reciprocity is more efficient than a distrustful community for the same reason that money is more efficient than barter. Trust lubricates social life. Organized networks of face-to-face contacts with members also facilitate coordination and communication and amplify information about the trustworthiness of other individuals. Students of prisoners’ dilemmas and related games report that cooperation is most easily sustained through repeat play. When economic and political dealing is embedded in dense or organized networks of social interaction, incentives for opportunism and malfeasance are reduced.
Ben & Jerry's as altruistic collaboration Model, Faber-Castell as an enterprise for coexistence and coprosperity, and Wolfsburg City, which are stated in ‘Social Capital, 1% vs. 99%, Who Makes the Polarization of Wealth More Serious’, make the common good foundation with the communities through the organized networks and organizational activities on trust and generalized reciprocity.
Social Capital is so creative, active and organized that it makes a community and its members prosperous beyond passively sustaining ‘the Commons’ in “The Tragedy of the Commons” by Garrett Hardin and <Governing the Commons> by Elinor Ostrom, Nobel prize winner.