Social Capital in Theory and Practice

ENVIRONMENT SOCIETY ECONOMY

What will I tell? Background – Me Why Social Capital What is Social Capital How to develop Social Capital Future trends in social innovation and social entrepreneurship

Who am I? Born in the north Sports Mountains Business Culture Work Externa relationer

Why focus on the social dimension in development of society ?

Great challenges that only could be solved togheter....

What is social capital about? “Your corn is ripe today; mine will be so tomorrow. This is profitable for us both, that I should labour with you today, and that you should aid me tomorrow” (David Hume, A Treatsie of Human Nature, 1740 )

but also.. Social capital is the glue that holds societies together and without which there can be no economic growth or human wellbeing. Christiaan Grootaert Social Capital, The missing link, 1998, World Bank

“It is hard not to conclude that social capital produces about 90 percent of income in wealthy societies like those of the United States or Northwestern Europe.” (Herbert Simon Nobel Prize Winner for Economics ‘UBI and Tax Rates’ 2000.) Herbert Simon ( )

A common definition of social capital Networks together with shared norms, values and understanding that facilitate co-operation within or among groups of people (Office for Economic Co-operation and Development (OECD)

Trust – The fabric of social capital Trust between individuals becomes trust between strangers and trust of a broad fabric of social institutions; ultimately, it becomes a shared set of values, virtues, and expectations within society as a whole. Without this interaction trust decays; this decay begins to manifest itself in serious social problems… (‘The Necessity of Politics’ Beem 1999: 20)

Elements of Networks Bonding – within groups or communities, characterised by strong connections (families, ethnic groups, clubs, etc.) Bridging – horizontally across boundaries, characterised by weak links (interreligious, interracial, intergenerational, across wider social networks) Linking – weak links made vertically between relationships of power (e.g. class structure)

Strengths of Social Capital Compensate for low levels of other capital (human, physical, financial) Reduce conflict between different communities (excess bonding social capital will achieve the opposite increasing the cost of regulation and control across community boundaries) Reduce crime Increase educational achievement Higher economic performance Higher levels of happiness Better health

The more social capital people have access to the better they perceive their health. – Those who take part in social activities consider their health better than non-participants do. – Those that have great trust in people perceived their health as good. (Social Capital in Finland, 2000)

Social Capital Thrives on Ownership, equality & collective identity Transparency & information exchange Collaboration on common goals & participation Mutual trust and reciprocity Informal interaction Openness to new ideas Access to positions of power and influence

Social Capital in Practice

Västra Götalandsregionen – (Region West Sweden) Facts Largest region in Sweden 4 subregions – Responsible for Economic growth programs App people live in West Sweden Gothenburg main town – App people 49 Municpalities, out of 290 in Sweden (local governance)

Organised work devoted to the social economy started in 2001 According to the regional guidelines the significance of the social economy and its protagonists must be brought out clearly in all strategic development work and in the implementation of Vision Västra Götaland 14) Joint action with universities and schools..”The concept of social capital and the knowledge around its significance for development and growth should continue to be highlighted by means of concrete studies and development projects in the collaboration between, for example, municipalities and the higher education sector.”

Dynamic Growth Capital In the beginning there was an idea about people as the main resource… Now it develops into an interactive knowledge and learning platform – It took some time…

Dynamic Growth Capital Aims 1)To increase the knowledge about social capital 2) Create a modell to be used in the rest of west Sweden for work with related issues and in similar organisation form (From analysis to implementation )

Structure of project Participants: Västra Götalandsregionen (Region of West Sweden) School of Business, Economics and Law at Gothenburg University Four municipalities in Region West Sweden participated Swedish ministry of Enterprise, Energy and Communications Swedish Association of Local Authorities and Regions

View of process Nov 2006 – 2010 Seminar 1: March 2007 (research oriented) Seminar 2: Sep. 07 ”Social capital in four municipalities” – Resulted in suggestions on ”microprojects” among the actors Decison on ”microprojects” among actors Example: Social networks and its influence on business climate +4 other... Seminar 3: June 08 Seminar on business climate 2 School, Health, and EU, Seminar 4: March 09 ”Entrepreneurship and Tourism” Project in practice Seminar 5: May ”Groups outside the power of networks” Conference - Urban Policies & Social Capital - September 24-26

Work process in the platform The project group meets every other month (7-10 people) – Discussion and issues are adressed University makes a study of a choosen issue by the municipality Meanwhile a seminar is arranged in a local arena (municipality, region) for spread of information when the study is finished. The local arena has the responsibility of inviting people from its surroundings – Businesses, Associations and Locals are invited Marketing of results – Reports are spread through media, webs and through printed material.

Micro projekt as method Center of Innovation – Business network Civic Sector as resource – 12 workshops Social Sustainability in School Development of Tourism network Public Health Project Ethnic minorities as resource

Our defintion of social capital – It took some time to come to agreement among many actors!! Social capital exists between people and develops with time – It`a about relations Social capital is expressed through trust that is created in relations among people – Makes it agile Social capital is a resource which is built in action

A future model Municipality of Vårgårda – Based on diagnosis Local Authorities Resources are build and enhanced through co-operation Civic sector Business Resources In civic sector Basic Knowledge in School Competence in Business

” Bridging silos” – a means of transfer of ideas and knowledge between and within groups Example: ”Microproject Business climate in Vårgårda”, seminar on Business climate Next microproject ” Social Entreprenuership and Tourism” Seminar on Social Entreprenuership and Tourism, earlier participants are invited to a new seminar ”Microproject ” ”Microproject” ”Microproject” - Participants and knowledge is transfered to next seminar- Se. Business Cl.Se. Social Entre.Se. Outside power stru.

Challenges in building social capital We have to act? It`s about eating ice-cream You must be concrete? I do not feel comfortable with this concept? Language - Norms are hard to challange – Icehotel!! They are to negative on the list!

Business Value - Income Value of: Identity Happiness Inspiration Ethics Community Value

Resources

Different roles, different language, goals and expectations – Building social capital in a local environments is about canalizing expectations into mutual benefits Resources

Guidance in working with SC What makes SC concrete! (Easier to invest in a house!) Storybuilding (Roskilde, Langenegg, Here We are, Trangsviken) What values do you have? From resources to capital – awarness is the answer

To measure and to make social capital concrete ‘What a community chooses to measure has a tremendous impact on the quality of life of its members” (North West Policy Center, Seattle, USA)

‘Measuring’ Social Capital to … Make visible what is currently invisible Highlight the value human relationships Explore the quantity and quality of relationships Put numbers to soft outcomes in order to benchmark Move from anecdotal to strategic and replicable Develop Action Plans to begin investing strategically in social capital

Changing Community Landscapes … Matrix showing social capital (3 elements) against ACTIVITIES… Stakeholder map - RELATIONSHIPS… Social capital questionnaires before and after CCL…completed by community Post-CCL project look at changes in norms/values; trust/reciprocity; networks… Report… Case study…

ACTION POINTDATE ACHIEVED (to be completed by NIDOS) OUTCOMESRESPONSIBILITY Develop a Network Handbook, to be updated every 3-5 years. [Info on Committee’s roles and external networks. Info on conflict resolution (case studies of mutual support, achievements of working groups, members, etc)] Extending knowledge of Norms & values. Connecting past and present to proactively allow growth in norms & values enabling opportunities to remain flexible and learn. NIDOS staff and temporary working group. Introduce options for Network to be involved in decision making process [Transparency of process, how decision was arrived at, possibly using ICT.] Increasing opportunities for equity and collective ownership, maximising social network development opportunities of ICT (bridging, bonding, can be extended once initial face-to-face contact is made). NIDOS staff with support from ICT specialist (from Network if possible). Encourage members to support each other [Collective / joint activities e.g. a common resource library (photos, videos, news articles, information on members awards); campaigns like Make Poverty History] Increased reciprocity can lead to increased levels of trust. Target of 5% per year increase in levels of trust for next 3 years. NIDOS staff and working group. Provide access to strategic stakeholders [Increase links to external agencies by increasing Associate Membership] Increasing opportunities for linking to take placeManagement Committee & staff. Investigate the possibility for more sub-groups and more sub-group activity Increasing opportunities for bridging to take place and informal information transfer NIDOS staff Develop or revisit marketing strategy for external (public) and internal (Network) audience. [Use information from resource library to reinforce Network Handbook messages, promote collective identity]. Increasing collective understanding and ownership of aims & objectives via knowledge. Highlight opportunities for reciprocity via partnership working. Working Group

Where are we going? ”Mission drift into the future”

Trends in society supporting SC development Tällberg Foundation World Economic Forum – Klaus Schwab SKOLL – Foundation – Jeff SKOLL TRUST network USA NEXT Generation (Howard Buffet, Michael Young) World Business Council of Sustainable development Clinton Global Initiative Social Capital Markets (Impact Investments)

Definitions social innovation – Social entrepreneurship... Profit + Social / or, and social aims Muhammad Yunus = Social Entrepreneur Mikrofinance= Social Innovation Grameen Bank= Social Business

Future business areas Ageing populations - which require new ways of organizing pensions, care, mutual support, housing, urban design, mobility and new methodsfor countering isolation. Growing diversity of countries and cities – which demands innovative ways of organizing schooling, language training and housing Rising incidence of chronic diseases such as arthritis, depression, diabetes, cancers and heart diseases (which are now chronic as well as acute). These demand novel social solutions as well as new models of medical support.

Here We Are

The Issues Facing Cairndow in 1998 Lack of housing Insufficient workers to fill jobs No opportunities for further education Lack of centre to encourage tourists to stop and learn about Cairndow Lack of knowledge of local history No awareness to alternatives (e.g. renewable energy sources)

Here We Are Set up in 1998 to CONNECT Cairndow’s past, present and future and share it with the community and the incomers Inter connected activities, for and by community, land, homes, history, local resources Built a community centre beside the famous Loch Fyne Oyster Bar to act as a focal point of activity. Launched Scotland’s first community owned biomass plant, opened by Minister for Energy Jim Mather Created 14 jobs and sustained a further

avela/ From theFavelaPaintingProject, Brazil

Biosfärsområdet Vänerkulle business.com/article/11110?gko=64 e54&cid= enews

Final Thoughts Social Capital brings a new way of looking at the challenges that communities face and provides a lens which values human relationships and makes currently invisible resources visible It provides a common language to explain why we are doing what we are doing Helps put numbers to soft outcomes Can provide a framework to help replicate successes – Look to introduce activities which help make community boundaries porous and allow access to new resources (bridging & linking) – Indirect and informal activities are excellent ways to build reciprocal interaction and trust

“ The real challenge is not to construct buildings, nor putting a man on the moon, but to deal with human nature “ - Björn Grinde, Chief scientist Public Health Norway