September 2000 Insights Issue #34Friends in high places? An overview of social capitalSocial capital can be split into three connecting strands: bonding social capital (strong ties between immediate family members, neighbours, close friends, and business associates sharing similar demographic characteristics); bridging social capital (weaker ties between people from different ethnic, geographical, and occupational backgrounds but with similar economic status and political influence); linking social capital (ties between poor people and those in positions of influence in formal organisations such as banks, agricultural extension offices, schools, housing authorities, or the police). Poor people typically have plenty of bonding social capital - links with people in similar circumstances to themselves; they have some bridging social capital - scattered friends, acquaintances, and distant relatives in other areas; but next to no linking social capital or 'friends in high place' to help deal with commercial, educational, legal, or political organizations. Without bridging and linking social capital, the poor will succumb more easily to natural disasters and economic shocks, and struggle to take up new opportunities for advancement. Were a hurricane or crop failure to strike an entire village, bonding social capital could offer immediate practical help. Bridging social capital might provide longer-term support such as shelter, jobs, or credit and help tackle problems needing collective action such as road maintenance. Linking social capital helps alleviate the effects of disasters by providing access to a broader range of assets (e.g. official aid), and by enabling poor people’s organizations to advance their interests and aspirations. In rural north India, social groups in poor communities simply provide basic protection and solidarity. For the better off, extensive networks offer strategic advantage, strengthening material interests. In Africa poor entrepreneurs running small local firms form 'solidarity' networks that help reduce risk and uncertainty. Larger firms form 'innovation' networks to share knowledge about technology and markets, to increase productivity, profits, and market share. Endowments of bonding, bridging, and linking social capital may vary along gender lines: in Ghana women pool risk with other women in the village whilst the men pool risk both within and outside the village. A three-pronged approach by NGOs, firms, and government agencies is thus essential to:
Contributor(s): Michael Woolcock
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