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Assignment On Marketing for Nonprofit Organizations Course: 523 Topic: “Social Capital in Bangladesh”Prepared for:Dr. Mijanur RahmanProfessorDepartment of MarketingFaculty of Business of StudiesUniversity of Dhaka Prepared by: Md. Abdur Rakib Section: A MBA Roll: 375 Department of Marketing (14th) University of Dhaka Date of Submission: 10th January, 2013 eng.
“Social Capital in Bangladesh”Social Capital:In sociology, social capital is the expected collective or economic benefits derived from thepreferential treatment and cooperation between individuals and groups. Although different socialsciences emphasize different aspects of social capital, they tend to share the core idea that socialnetworks have value. The term "capital" is used by analogy with other forms of economiccapital, as social capital is argued to have similar (although less measurable) benefits. However,the analogy with capital is misleading to the extent that, unlike traditional forms of capital, socialcapital is not depleted by use. In fact it is depleted by non-use (use it or lose it). In this respect, itis similar to the now well-established economic concept of human capital.Social Capital is also distinguished from the economic theory Social Capitalism. SocialCapitalism as a theory challenges the idea that Socialism and Capitalism are mutually exclusive.Social Capitalism posits that a strong social support network for the poor enhances capitaloutput. By decreasing poverty, capital market participation is enlarged.Evolution:The notion of social capital is a useful way of entering into debates about civil society – and iscentral to the arguments of Robert Putnam and others who want to „reclaim public life‟. It is alsoused by the World Bank with regard to economic and societal development and by managementexperts as a way of thinking about organizational development.The term social capital was in occasional use from about 1890, but only became widely used inthe late 1990s. Jane Jacobs used the term early in the 1960s. Although she did not explicitlydefine the term social capital her usage referred to the value of networks. The appearance of themodern social capital conceptualization is a new way to look at this debate, keeping together theimportance of community to build generalized trust and the same time, the importance ofindividual free choice, in order to create a more cohesive society. It is for this reason that socialcapital generated so much interest in the academic and political world 1
Importance:Social capital has been used at various times to explain superior managerial performance,improved performance of functionally diverse groups, the value derived from strategic alliances,and enhanced supply chain relations. The modern emergence of social capital concept renewedthe academic interest for an old debate in social science: the relationship between trust, socialnetworks and the development of modern industrial society. Social Capital Theory gainedimportance through the integration of classical sociological theory with the description of anintangible form of capital. Through the social capital concept researchers have tried to propose asynthesis between the value contained in the communitarian approaches and individualismprofessed by the rational choice theory. Social capital is generated collectively but it can also beused individually, bridging the dichotomized approach communitarianism versus individualism.Social capital allows citizens to resolve collective problems more easily… People often might bebetter off if they cooperate, with each doing her share.Second, social capital greases the wheels that allow communities to advance smoothly. Wherepeople are trusting and trustworthy, and where they are subject to repeated interactions withfellow citizens, everyday business and social transactions are less costly.Social capital improves our lot is by widening our awareness of the many ways in which ourfates are linked. When people lack connection to others, they are unable to test the veracity oftheir own views, whether in the give or take of casual conversation or in more formaldeliberation. Without such an opportunity, people are more likely to be swayed by their worseimpulses.The networks that constitute social capital also serve as conduits for the flow of helpfulinformation that facilitates achieving our goals. Social capital also operates throughpsychological and biological processes to improve individual‟s lives. Community connectednessis not just about warm fuzzy tales of civic triumph. In measurable and well-documented ways,social capital makes an enormous difference to our lives. 2
Bridging, Bonding & Linking Social Capital:Bonding social capital means which denotes ties between people in similar situations, such asimmediate family, close friends and neighbors.Bridging social capital means which encompasses more distant ties of like persons, such as loosefriendships and workmates.Linking social capital means which reaches out to unlike people in dissimilar situations, such asthose who are entirely outside of the community, thus enabling members to leverage a far widerrange of resources than are available in the community.Benefits Associated with Social Capital: Child development is powerfully shaped by social capital. Trust, networks, and norms of reciprocity within a child‟s family, school, peer group, and larger community have far reaching effects on their opportunities and choices, educational achievement, and hence on their behavior and development. In high social-capital areas public spaces are cleaner, people are friendlier, and the streets are safer. Traditional neighborhood “risk factors” such as high poverty and residential mobility are not as significant as most people assume. Places have higher crime rates in large part because people don‟t participate in community organizations, don‟t supervise younger people, and aren‟t linked through networks of friends. The confidence to intervene born of higher rates of social capital - are characterized by lower crime rates. A growing body of research suggests that where trust and social networks flourish, individuals, firms, neighborhoods, and even nations prosper economically. Social capital can help to mitigate the insidious effects of socioeconomic disadvantage. 3
There appears to be a strong relationship between the possession of social capital and better health. Regular social attendance, volunteering, entertaining, or religious place attendance is the happiness equivalent of getting a college degree or more than doubling your income. Women empowerment in a poor country like Bangladesh can add to a great contribution to drive poverty & develop our economic backbones. Farmers association is the most important issue as almost 80% of our profession is related to agriculture. The farmers‟ society must be improved with social capital.Social Capital in Bangladesh:Research studies recognized social capital as a useful resource, which facilitates socialinteraction and promotes mutual support and cooperation and thus improves participants‟livelihood through income generation, better community governance and capacity building. Animportant observation is that social capital yields superior outcome if it is used in line with thelocal conditions of a given society. The findings suggest lessons for policy planners, donoragencies, development practitioners, non-governmental organizations (NGOs) and civil societyto use social capital as a resource in order to achieve sustainable community development.Non-governmental organizations in Bangladesh have established innovative developmentmodels that have improved participant livelihood, through efforts in income-generation, social-service provision, and group capacity building. However, the dominant focus of most agencies inBangladesh - including Bangladesh Rural Advancement Committee, the Grameen Bank, andProshika MUK -is income-generation, often at the expense of longer-term structural changeassociated with the extension of social capital. NGOs have expanded community norms andnetworks, but this has been largely between agency practitioner and participant, as opposed towithin the participant community.Social capital can be generated by the expectations of the rural poor who are victimized bygovernment and market failures. The demands of the rural poor of Bangladesh for economic andsocial goods and services, for example, have been instrumental to their economic and socialwell-being. Cooperation based on mutual trust and norms of reciprocity contributes to the 4
creation of other kinds of capital, especially economic and human capital, that are mutuallyreinforcing. Both governments and the NGOs make use of social capital as a tool forimplementing poverty policies.Conclusion:Social capital must be used carefully and employed with the interactions of needed socialparticipants .Awareness of the dangers of capitalization must be created among participants.There is a deep danger of skewing our consideration of social phenomenon and goods towardsthe economic. There has been a tendency not to locate exploration properly within a historicalframework. Linking involvement in associational life and participation in social networksenables the enhancement of educational achievement, the promotion of health and the reductionof crime and so on. Social interaction enables people to build communities, to committhemselves to each other, and to knit the social fabric and there by gaining both social andeconomic benefits.References: http://www.jas.sagepub.com http://www.wikipedia.org http://link.springer.com http://www.thesociologicalcinema.com 5