1. Cause or Effect in BR&E Visitation Programs
Social Capital
Cause or Effect in BR&E Visitation Programs

2. Social Capital What is Social Capital?
How does it relate to BR&E Visitation Programs?
Does increased social capital lead to more local development?

3. Vital Economy Healthy Ecosystems Social Equity
Community Capitals
Social Capital
Human Capital
Natural Capital
Vital Economy
Healthy Ecosystems
Social Equity
Political
Capital
Cultural
Capital
Built Capital
Financial Capital

4. Social Capital is: Building Mutual Trust Constructing a shared future
Formation of
groups
Strengthening
collective identity
Group
collaboration

5. Social Capital Bonding Bridging Tight, exclusive networks
Strong distinction between insiders and outsiders
Single answer focus
Bridging
Open and flexible networks
Permeable and open boundaries
Legitimization of alternatives

6. Dimensions of Social Capital: Implications for Area Development
NDSU Extension Center for Community Vitality,
Dimensions of Social Capital: Implications for Area Development
Bridging +
Clientalism
Regional change
driven by goals of
outsiders
Progressive Participation
Regional change driven
by community-determined
goals - +
Bonding
Strong Boundaries
Regions resists change, often
groups within the regions don’t trust each other and do not cooperate
Extreme individualism
Rich solve problems
through financial capital
Poor have few options
Clientalism- high bridging with low bonding
Extreme individualism – low bridging and bonding
Strong boundaries – low bridging but high bonding
Progressive Participation – high bridging and high bonding -
Source: North Central Regional Center for Rural Development, C. Flora and M. Emery

7. Yogi Berra’s Example of General Reciprocity
“If you don’t go to somebody’s funeral, they won’t come to yours.”

8. Social Indicators
Relationships
Communication
Individuals
Programs

9. Honesty and Trust give communities “measurable economic advantage”
Firms spend less on surveillance if they can trust public and employees
Firms spend less on legal services
Firms spend less on checking compliance with contracts if they can trust partners, employees, customers

10. How Does Social Capital Work?
Social Capital helps communities resolve problems and make group decisions
Social Capital reduces the transaction costs of doing business
Social Capital broadens perspectives, opening the doors to new ideas.

11. Mission of BR&E Visitation Programs
Help existing firms survive and grow:
Using a process for learning about the concerns of local businesses and setting priorities for BR&E projects to address those needs
To build the capacity of the community to do both BR&E programs and other local economic development efforts

12. Higher levels of social capital help build this capacity

13. Social Capital and BR&E
Which of the four models in tab 2 is likely to create the most social capital? Why and where?

14. Questions

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