Social Capital & Promoting Development in Low-Income Communities

Picture this: You’re driving down a rural road, and suddenly your car breaks down. 

You’re stranded, with no phone signal and no idea what to do. 

But then, a friendly farmer pulls up and offers to help. She calls a mechanic she knows, and within an hour, your car is fixed and you’re back on the road. 

This is an example of social capital at work – the norms and networks that enable people to act collectively.

In their study, “Social Capital: Implications for Development Theory, Research, and Policy,” Michael Woolcock and Deepa Narayan explore the concept of social capital and its potential for promoting development in low-income communities. 

They argue that social capital can play a crucial role in creating positive outcomes, including economic growth, improved health and education, and reduced crime and violence. 

Let’s see how.

Social Capital, Defined

We’ve covered social capital extensively over the last several weeks, and similarly, the authors of this study define social capital as 

“the norms and networks that enable people to act collectively.” 

They emphasize that social capital is not just about individual connections but also about the broader social norms and institutions that support collective action. 

Some of these norms include trust, reciprocity, and social networks that help create social capital, which can vary by community, region, and country.

Further, the study notes that while bonding social capital can provide social support and a sense of belonging, bridging social capital is particularly important for promoting economic growth and reducing poverty. 

However, bridging social capital can be particularly challenging, as it often requires overcoming social and cultural barriers.

Regardless, social capital can be particularly important for marginalized communities, as it can provide a source of support and resources.

Social Capital vs. Individual Outcomes

According to research, social capital has several advantages over traditional development approaches that focus on individual outcomes or economic growth. 

Social capital can create “public goods” that benefit everyone in a community, which can be self-sustaining over time. 

The authors note that social capital can help to build trust and cooperation within a community, which can be particularly important in post-conflict or post-disaster contexts.

The Cons

While the study makes obvious the many benefits of social capital, it also notes potential pitfalls and emphasizes the need for a nuanced and context-specific approach to promoting it.

Social capital is not a universal remedy for development challenges – there are several potential disadvantages, including the possibility of exclusion and inequality within social networks, the risk of “elite capture” where social capital benefits only a select few, and the potential for social capital to be used for negative purposes such as corruption or discrimination.

Further research into social capital and its potential in low-income communities might give us a clearer idea of how to avoid these pitfalls.

Prosocial Behavior: Why Do We Give? Why Do We Care?

Do you donate money to charity? Time and energy to volunteering? 

Are you concerned about social issues, like homelessness, racial discrimination, or gender inequality?

If you answered ‘yes’ to any of these questions, then you’re engaging in prosocial behavior.

Over the next few weeks, we’ll be looking at prosocial behavior and culture.

But first, let’s define and understand it.

Origin of the Term, ‘Prosocial Behavior’

The term, ‘prosocial behavior,’ appeared in the ‘70s as an antonym for ‘antisocial behavior.’

It’s defined as demonstrating actions such as cooperation, diplomacy, sharing, helping, feeling empathy, etc.

Basically, prosocial behavior involves caring for other people and your community.

Personal benefits of being a “helper” include boosting one’s mood, reducing stress, and giving your network or community social support.

Reasons for Prosocial Behavior

Aside from the personal benefits of prosocial behaviors, there are other evolutionary and psychological reasons to engage in it. 

  • Reciprocity – Helping others may have evolved from the social norm of reciprocity. When on the receiving end of help, one might feel obliged to help the person in return in their time of need.
  • SocializationEarly child development often includes teachings on kindness, sharing, and helping. These prosocial behaviors may be encouraged as the child grows.
  • Egoism – One might be performatively prosocial, engaging in prosocial behaviors purely to benefit themselves.
  • Survival of the Fittest – Evolution might explain why prosocial behaviors developed. Helping one’s in-group (family, for instance) would ensure survival of your species and/or genetics.

Types of Prosocial Behavior

Researchers have that prosocial behavior can be driven by different motivations.

Here are three distinct types of prosocial behavior:

  • Altruistic – This type of prosocial behavior is not motivated by personal gain. It seeks to help and support others for their sake. Think donating to a cause anonymously.
  • Reactive – This type of prosocial behavior is motivated by individual needs. The individual is acting in response to someone’s specific need. Think supporting a friend when they’re going through a hard time.
  • Proactive – This type of prosocial behavior is motivated by personal gain. The goal of this behavior is to seek status and in-group popularity through “generous” actions. Reciprocity is expected. Think national diplomacy.

With this brief introduction to prosocial behavior, we’ll be discussing how it manifests culturally over the next few weeks in the context of charity and volunteering.