Building Social Capital for Economic Development Cornelia Butler Flora Charles F. Curtiss Distinguished Professor of Agriculture Dept. of Sociology, Iowa State University Director North Central Regional Center for Rural Development

Collaboration Shares a vision developed by study, experience, and work Identifies its resources to move toward the vision Identifies alternatives to achieve vision Implements alternatives Assesses progress and adjust alternatives Is a means to an end, not an end in itself The transaction costs of maintaining the collaboration should not exceed the capitals generated through acting together rather than separately.

Monitoring and evaluation is only useful when the long term goal is clear. We shift from monitoring activities and outputs to monitor progress toward multiple outcomes. Increasing capitals (assets) is a useful way of thinking about desired outcomes. In looking at capitals, it is important to understand that they are both means and ends.

Capital Resources invested to create new resources over a long time horizon

Political Capital Cultural Capital Natural Capital Human Capital Financial/Built Capital Social Capital Healthy regional economy Social equity and empowerment Self-sufficient families

Natural capital Air Water Soil Biodiversity (plants & animals) Landscape The biophysical setting that impacts human endeavors and is impacted by those activities.

Natural Capital Sustainable, healthy ecosystems with multiple community benefits Human communities are mindful of natural systems Ecosystems yield multiple community benefits Those with conflicting uses of the ecosystem seek common ground

Understands limitations & opportunities of physical environment and uses that in development work

Pride in community in neighborhood programs and cleanup

Cultural CApital Symbols Ways of knowing Language Ways of acting Definition of what is problematic Cultural capital determines how we see the world, what we take for granted, what we value, and what things we think possible to change. Hegemony allows one social group to impose its symbols and reward system on other groups.

Cultural Capital Different heritages are maintained and valued Cultural differences are recognized and valued. Mechanisms to maintain ancestral languages and customs are in place Collaborations are willing to take the time to understand and build on different ways of knowing and doing.

We value strong multi- generational family traditions

Diverse kinds of people cooperate to make the community a better place

Community development efforts honor and respect the values and cultures of community members

We have to do it ourselves

Human capital Increased use of the knowledge, skills, and abilities of local people Identifying skills, knowledge and ability Increasing skills, knowledge and ability Using skills, knowledge and ability Recombining skills, knowledge and ability

Community supports the existence of diverse perspectives

The community supports a leadership development program

Human Capital Education Self-efficacy/self esteem skills health values leadership The characteristics and potentials of individuals that are determined by the intersection of nature (genetics) and nurture (determined by interactions and environment)

Leaders are Knowledgeable

Social Capital mutual trust reciprocity groups collective identity sense of shared future working together The interactions among individuals that occur with a degree of frequency and comfort. Bonding social capital consists of interactions within specific groups and bridging social capital consists of interactions among social groups.

Strong belief in education and life-long learning

All groups in the community have access to affordable recreational opportunities

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

Social Capital Strengthened relationships, communication, community initiative, responsibility, & adaptability Participation Communication Relationships Initiative Responsibility Adaptability

BRIDGING SOCIAL CAPITAL B O N D I N G S. C. External control via local elites/ or bosses Community Social Capital Typology Community Conflict with outside/internal factionalism Conflict with outside/internal factionalism Apathy;extremeindividualism Participatory Participatorycommunityaction

Leadership opportunities for youth

Organizations work together to better our community

Many opportunities for residents to participate

Organizations work together to better our community

Community recognizes and supports community volunteers

We monitor who is accountable for what and to whom

Women accepted in all types of leadership roles

We take a problem-solving approach to address the needs of people from all segments of the community

Traditional institutions are action oriented and responsive to the needs of the community

We assess outcomes and celebrate success, while acknowledging there is more work to do

Local institutions welcome new residents and youth

We provide opportunities for group reflection

The community welcomes newcomers

Political capital Organization Connections Voice Power Political capital is the ability of a group to influence the distribution of resources within a social unit, including helping set the agenda of what resources are available.

Welcome group inquiry, negotiate alternatives, and use research-based evidence

The community demonstrates a willingness to seek help from the outside

Local leadership is broad and deep

Political Capital Increased voice and influence Excluded people are organized and work together Excluded people know and feel comfortable around powerful people The issues of excluded people are part of the political agenda

Community decisions are made with input from all concerned

People from diverse religious, ethnic, and minority backgrounds in leadership roles

Community supports a community foundation & local philanthropy

People are willing to run for public office and do not risk personal and family ties and reputation

Deliberate transition of power to a younger generation of leaders

Financial capital Appropriately diverse and healthy economies reduced poverty increased business efficiency increased business diversity increased community residents’ assets

Built capital Housing Sewers Water systems Business space Day care centers Roads Electronic communication Human-constructed infrastructure used as tools for production of other capitals

Financial Capital debt capital investment capital tax revenue savings tax abatement endowments/community foundations grants Forms of money used to increase capacity of the unit that accesses it. Financial capital is often privileged because it is easy to measure, and there is a tendency to put other capitals into financial capital terms.

Local businesses support the community through donations

Community supports local businesses that donate to the community

Community provides resources for community and economic development efforts

Community sees itself as part of a greater region & considers all communities in the region when planning

Local government & community organizations carefully use fiscal resources & understand fiduciary responsibilities

Schools & youth groups provide opportunities for youth entrepreneurship

Community supportive of entrepreneurship

Economic development program strategically targets resources

Community supports local businesses in planning for generational succession

Our community appreciates quality in all aspects of business and community life

Community development efforts are asset based

We realistic in appraising future opportunities

Community and businesses ware of competitive positioning

Community supports an active economic development program

Our community recognizes the value of supporting local businesses

Donations to community endeavors come from all segments of the community

Donations include many small gifts as well as large gifts

Alaska Rural Community Health Economic Solution (ARCHES) Financial/Built Capital New facilities New jobs in the community held by Alaska Natives Basic primary community health services accessible to all Professionals in the community spending in the community Economic environment improved for other enterprises Natural Capital Distance Ecosystem potential Weather/Climate change Biodiversity Cultural/traditional support for ecosystem based activities Cultural Capital Village chooses student Village members feel comfortable in higher education settings Tribal governments involved in health service delivery Ancestral health traditions Human Capital Individuals with the capacity to deliver health services Individuals have the capacity to act for community economic improvement Healthier people More Alaska Natives with career ladders Individual and family empowerment Social Capital Communities able to recognize and deal with own problems Communities know how to access outside resources Institutions change to be more flexible in response to village circumstance Community empowerment Political Capital Employment is created by government entity, creates on-going relationships to increase village’s leverage Services delivered are reimbursed by third party players Local decision-making and regional plans inform each other Healthy Individuals Healthy communities

We invest in the future by passing school bonds

Community supports and maintains a sound infrastructure