The term Social Capital’ refers to ..........................

The correct answer is - Network reciprocity and trust

Key Points

• Social Capital
  • The term refers to the networks, reciprocal relationships, and trust shared among individuals or groups within a society.
  • It emphasizes the value derived from social interactions and the collective ability to work together effectively.
  • The concept is central to understanding how relationships foster cooperation and lead to positive social and economic outcomes.
• Key Elements
  • Network: Refers to the interconnected relationships between individuals, groups, or organizations.
  • Reciprocity: The mutual exchange of favors or support, ensuring a give-and-take dynamic.
  • Trust: The confidence that others will act fairly, ethically, and predictably within the network.

Additional Information

• Difference from Economic Capital
  • Economic capital refers to financial resources or material assets owned by individuals or groups.
  • Unlike social capital, it focuses on monetary wealth and physical resources rather than relationships or networks.
• Applications of Social Capital
  • Plays a crucial role in community development by fostering collaboration among members.
  • Improves governance and decision-making through trust-based relationships.
  • Enhances economic outcomes by reducing transaction costs and encouraging cooperation.
• Types of Social Capital
  • Bonding: Involves close-knit relationships within a group or community (e.g., family or close friends).
  • Bridging: Refers to connections between different groups or communities to share information and resources.
  • Linking: Focuses on relationships with institutions or individuals in positions of power.