" Examining the Relationship between Social Capital Components and Economic Growth and Development "
محورهای موضوعی :
قاسم موسوی
1
,
Manouchehr pahlavan
2
,
علی رحمانی فیروزجاه
3
1 - دانشگاه آزاد اسلامی بابل
2 - science Committee of Islamic Azad University, Babol Branch.iran
3 - دانشیار و عضو هیات علمی دانشگاه آزاد اسلامی واحد بابل
کلید واژه: Social Capital, Economic Development, Human and Social Development.,
چکیده مقاله :
This research was conducted with the aim of examining the role of social capital in achieving economic development. Focusing on the concept of social capital, especially in the economic sphere, through the role this concept plays in an interactive relationship with certain social indicators, can contribute effectively to the production and increase of human, economic, and environmental capital. Social capital flourishes and becomes efficient in a free environment intermingled with awareness, knowledge, and other favorable social conditions. Undoubtedly, identifying the constructive indicators and components of social capital at all levels of planning and macro policies for economic development will be highly beneficial. This research was conducted through a library and documentary method. The main basis of the theoretical discussions in this research is focused on the views of economic and sociological experts. In this research, while defining social capital and its related concepts, as well as reviewing the background of works and theoretical discussions, five major indicators of social capital: trust, cohesion, participation, religious-ideological affiliations, and social empowerment were studied and examined. The results of the research indicate that each of the mentioned components has a profound connection with formal institutions and particularly independent social networks in society, in such a way that strengthening the building foundations of social capital and the collective and comprehensive participation of this social force can improve the grounds for economic and social growth and development.
This research was conducted with the aim of examining the role of social capital in achieving economic development. Focusing on the concept of social capital, especially in the economic sphere, through the role this concept plays in an interactive relationship with certain social indicators, can contribute effectively to the production and increase of human, economic, and environmental capital. Social capital flourishes and becomes efficient in a free environment intermingled with awareness, knowledge, and other favorable social conditions. Undoubtedly, identifying the constructive indicators and components of social capital at all levels of planning and macro policies for economic development will be highly beneficial. This research was conducted through a library and documentary method. The main basis of the theoretical discussions in this research is focused on the views of economic and sociological experts. In this research, while defining social capital and its related concepts, as well as reviewing the background of works and theoretical discussions, five major indicators of social capital: trust, cohesion, participation, religious-ideological affiliations, and social empowerment were studied and examined. The results of the research indicate that each of the mentioned components has a profound connection with formal institutions and particularly independent social networks in society, in such a way that strengthening the building foundations of social capital and the collective and comprehensive participation of this social force can improve the grounds for economic and social growth and development.
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1. Akcomak, I, S. & Ter Weel, B, (2009), Social Capital, Innovation and Growth; Evidence from European Economies, 6(1), 1-18.
2. Berger, Peter, & Hefner, Robert W. (2006), Spiritual Capital in Comparative Perspective, Boston University.
3. Bayulgen, O. (2015), Microcredit and Political Empowerment in Azerbaijan and Kazakhstan, International Journal of Development Issues, Vol. 14, No. 2, p. 130.
4. Hayami, Y. & Godo, (2005), Development Economics: From the Poverty to the Wealth of Nations.
5. Coleman, James, (1990), Foundations of Social Theory, Harvard University Press.
6. Fikne, Roger, (2003), Spiritual Capital: Definitions, Applications, and New Frontiers, Penn State University.
7. Potes, A. (1998), Social Capital: Its Origin and Applications in Modern Italy, Princeton University.
8. Woolcock, M. (2000), Managing Risk and Opportunity in Developing Countries: The Role of Social Capital, Promises and Pitfalls.
" Examining the Relationship between Social Capital Components and Economic Growth and Development "
Abstract
This research was conducted with the aim of examining the role of social capital in achieving economic development. Focusing on the concept of social capital, especially in the economic sphere, through the role this concept plays in an interactive relationship with certain social indicators, can contribute effectively to the production and increase of human, economic, and environmental capital. Social capital flourishes and becomes efficient in a free environment intermingled with awareness, knowledge, and other favorable social conditions. Undoubtedly, identifying the constructive indicators and components of social capital at all levels of planning and macro policies for economic development will be highly beneficial. This research was conducted through a library and documentary method. The main basis of the theoretical discussions in this research is focused on the views of economic and sociological experts. In this research, while defining social capital and its related concepts, as well as reviewing the background of works and theoretical discussions, five major indicators of social capital: trust, cohesion, participation, religious-ideological affiliations, and social empowerment were studied and examined. The results of the research indicate that each of the mentioned components has a profound connection with formal institutions and particularly independent social networks in society, in such a way that strengthening the building foundations of social capital and the collective and comprehensive participation of this social force can improve the grounds for economic and social growth and development.
Keywords: Social Capital, Economic Development, Human and Social Development.
Introduction
One of the central issues in today's world is economic growth and development, which is always at the forefront of governments' programs and social and economic experts' agendas. In fact, the issue of development is closely related to domestic and foreign concepts, phenomena, and policies, among which social capital is considered an essential and fundamental component, which is discussed in this article.
In recent years, social capital has been referred to as the foundation for the economic growth and development of every society. The World Bank has called social capital the "invisible wealth of countries" and considers it to encompass the institutions, relationships, and norms that shape social interactions. Explaining whether social capital has a significant impact on economic and social growth and development can be highly valuable and beneficial, specifically in the management system and decision-making strategies.
The importance of social capital in the development process is such that it can be seen as contributing to the flourishing of all aspects of development and reaching a desirable model of healthy living, free from poverty, discrimination, and injustice. Now, we must accurately find the productive mechanisms of social capital and how we can use it to recognize the scope of social capital's power, invest more in it, enhance the quality of governance, and through this, attain the goals of excellence and economic development. The researcher, to achieve this purpose, utilized the theoretical views of Fukuyama, Putnam, Bourdieu, James Coleman, Ezakiya, and Ghaffari in the theoretical discussions, which attest to the close relationship between social capital and economic growth and development. One of the best ways to achieve this goal is to strive for the creation of social infrastructures, provision of a foundation for awareness and constructive interaction among individuals, social groups, and the relationships between the government and society, and increasing trust and strengthening the public sphere.
Social capital, while shaping the set of moral and behavioral rules and laws of each society, intervenes in the way behaviors are adopted and helps human, economic, and material capital to reach a good stage of growth and dynamism through interaction with one another. Social capital, by utilizing the similarities and homogeneities of individuals in society from various aspects, creates a spirit of mutual trust and serves the society, including economic interests. Commitment to it creates a context and environment that, while reducing the cost of using human resources, elevates the positive level of social interactions, and as a result, society moves towards social and economic growth and development (Ahghar and Haghighi, 2017: 80).
Among the variables that contribute to the enrichment of social capital, five indicators can be mentioned: trust, cohesion, participation, religious-ideological affiliations, and social empowerment. These components have an unbreakable connection with social networks independent of the government, and strengthening their foundations creates the grounds for economic and social growth and development. Therefore, it can be concluded that by strengthening social capital, the level of economic performance will also gain more momentum.
Statement of the Problem:
Economic development without a comprehensive plan and effective and productive mechanisms will be fruitless. It is the combination of material and social elements in a suitable context and with an accurate vision and rational logic that can lead to economic and social growth and development. Now, what is this social capacity and essence that facilitates the process of coordination and cooperation between society and groups, and what are its components? Clearly, social capital is one of the most important factors that, if nurtured and fostering trust, integration, and participation in public and independent spheres, can accelerate the engine of economic growth and development, and bring the two sectors of social power and the government apparatus closer together with all existing capacities in development goals.
Research Objectives and Questions:
The aim of this research is to examine the relationship between social capital and economic development. To this end, it necessitates addressing the fundamental indicators that play a valuable role in strengthening the foundations of this capital and serve as a link between the segments of society and other formal and informal institutions and organizations. It is in the shadow of this connection and coherence that the process of economic and social growth and development gains real meaning, which will be addressed in the research process.
This article seeks to answer these two main questions: Is there a relationship and correlation between social capital and economic development? Can the important components of social capital, namely: trust, participation, empowerment, and religiosity, lead to increased productivity and reduced poverty and unemployment?
Empirical Research Background:
Naghdee et al. (2006) conducted a study to investigate the role of social capital on the economic status of centers. They tried to show that by increasing the share of indicators such as participation, cohesion, and social trust, one can witness an improvement in economic growth and development conditions.
Bahrami and Khoshmanesh (2016) used the Spearman statistical test to study the relationship between development and enhancement of security and social capital in the commercial context. The research findings indicate a significant relationship between free businesses and a high security coefficient produced by increasing social capital and trust.
An article in the Donyaye Eqtesad (World Economy) magazine (July 2022) titled "Social Capital, the Foundation of Economic Development" states that the issue of trust production as a qualitative dimension of social capital and social intelligence is formed in an interactive and free process, leading to strengthened cooperation among human forces and achievement of the society's economic goals. Terms such as trust, trustworthiness, charity, kindness, honesty, and attention to religious values in the business process have a special impact on economic flourishing and progress. In countries with high social capital, indicators of good governance, internet access, and high rates of women's participation in various sectors show a positive and meaningful relationship and are factors of economic growth and development. Meanwhile, in countries with low social capital, the corruption index has a negative and significant effect on economic performance. (Special Issue No. 5513, 2022).
Knack and Keefer (2000), in studying the relationship between social capital and economic development, while introducing indicators of trust, participation, and collective cooperation, especially in low-income and marginalized neighborhoods, concluded that in poor countries, strengthening each of these elements could have positive and decisive effects on economic growth and prosperity.
Zak and Knack (2005) examined social capital and economic development. They used the trust index and civic activities as indicators of social capital and the gross national product growth index. The results indicate a positive and significant relationship between the gross national product growth index and investments with the level of social trust.
Akcomak and Ter Weel (2009) investigated the interaction between social capital, knowledge, and economic growth in the European Union. They modeled and identified innovation as an important mechanism that converts social capital into higher income, showing that higher knowledge and innovation performance contributes to economic growth, and social capital indirectly affects this growth and development by strengthening knowledge and innovation.
Buglisedesk and Schabbek (2015), in a study titled "The Relationship between Social Capital and Economic Development in the Commercial Context," conclude that there is a close and meaningful relationship between participatory activities, especially volunteer work, and economic growth and development.
Other empirical research whose results indicate the direct and indirect effects of social capital on economic growth and development includes documentary and field work by Rizer (1997), Marsh (2000), Collier and Gunning (1999), Smaldres (2007), and Galvis (2004) conducted in several former communist countries, Latin America, and Britain. These studies attest to the positive and significant relationship between social capital and indicators of growth and development in terms of cost reduction, increased productivity, reduced poverty and inequality, market efficiency, and so on.
Theoretical Foundations of the Research:
Fukuyama1 believes that social capital is the set of norms in a social system that enhances the level of cooperation among its members, reduces the cost of transactions and communications, enables individuals to work in groups for collective goals, and increases people's level of trust. This trust is not limited to the family, tribe or ethnicity, but extends to the interests of organizations, private companies, and even throughout society, leading to an increase in the country's economic efficiency (Fukuyama, 1999).
According to Fukuyama, social capital is a sociological phenomenon closely related to the radius of trust. The more trust extends to a larger group, the more mutual cooperation among group members will increase (Ahghar and Haghighi, 2016, 100).
In Putnam's view, social capital refers to the features of social life – networks, norms, and trust – that enable participants to act together more effectively to pursue shared objectives. More precisely, social capital, through increasing the potential costs of defection, strengthening robust norms of reciprocity, facilitating the flow of information about the reputations of actors, and embodying past successes in the pursuit of shared objectives, aims to contribute to the achievement of collective action (John Field, 2007, 55).
Putnam distinguishes between two primary forms of social capital: bridging (or inclusive) and bonding (or exclusive). Bridging social capital brings together people from diverse social divisions, while bonding social capital reinforces exclusive identities and maintains homogeneity (ibid, 55).
Bourdieu2 considers social capital as the sum of actual and potential resources derived from the possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition. This network provides each of its members with the backing of the collectively-owned capital and confers them with the credential they are entitled to (Bourdieu, 2005, 147).
Furthermore, Bourdieu identified three types of capital that manifest in the forms of economic, cultural, and social capital. Economic capital is immediately convertible to money and may be institutionalized in property rights. Cultural capital, under certain conditions, is convertible to economic capital and may be institutionalized in educational qualifications. Social capital, which is focused on the relationships and participation of members of an organization based on social obligations and commitments, is under certain conditions convertible to economic capital and may be institutionalized in the form of a title of nobility (Jalaipour 2017: 320).
What we observe in Bourdieu's theories is that he considers economic capital as the principal form of investment, which includes other forms of cultural and social capital, and is conceived as an instrument for achieving economic benefits; in other words, if social capital cannot lead to economic growth and development, it will never be useful.
James Coleman3 examined the concept of social capital in various dimensions, relying on its role and function to provide a functional definition rather than an essential one. Accordingly, social capital is not a single entity but possesses shared characteristics: they all arise from a social structure and facilitate certain actions of individuals within that structure. Social capital, like physical and human capital, is not entirely fungible but is fungible with respect to certain private activities. Social capital is not conceivable solely in individuals or physical production tools (Coleman, 1998, 464).
In comparing the views of Bourdieu and Coleman, a clear distinction emerges: both focus on the elements of individual participation and group membership. However, Bourdieu, using the term "adhesion," considers economic capital as the ultimate goal. In contrast, Coleman, employing the term "structure," views human capital as the ultimate goal, with human capital facilitating the path for social capital.
Azghia and Ghaffari (2015) identified the main elements of social capital as trust, cohesion, and participation in parties, media, charities, local communities, and so on. They differentiated social capital into micro, meso, and macro levels. At the micro level, horizontal relationships exist among individuals, families, friends, and neighbors. At the meso level, a set of relationships between associations, companies, organizations, and parties is involved. At the macro level, it includes the structures and relationships of formal institutions, executive and judicial branches, the legal system, and civil liberties. The more extensive and widespread the meso-level units are, the more vibrant collective action and mature democracy become. Social capital aims to bring individuals to the stage to demonstrate collective actions (Azghia et al., 2006: 124).
According to the analyses presented by Frank (1966), Wallerstein (1970-1980), Myrdal (1984), and Sen (1999), the intensification of social inequalities and the reduction of freedom hinder people's involvement in the development process and prevent the formation of social capital, namely trust, participation, and organization, which are necessary preconditions for development. The existence of an organic relationship between development goals and people's social actions prevents an instrumental view of people in the development process.
Furthermore, among the various approaches to "social and economic development," five fundamental perspectives can be distinguished:
1. The "basic needs" approach, influenced by the recognition of the right to basic human needs (education, health, food, clothing, housing) as a human right. In a committed development, the creative use of "state power" in allocating resources to the deprived segments of society, involving people in the development process, and subjecting market mechanisms to social calculations are essential.
2. The "evolutionary" approach, wherein the main objective of development is the establishment of social order and the consequent social integration, contingent upon the institutionalization of human, political, and economic development. The development process is linear and complex, with the outcomes of each stage closely related to the previous stage. Accordingly, social development is the product of "social change," often referred to as modernization.
3. The "functionalist" approach, which presents political, economic, cultural, and social elements as characteristics of national development and considers each to have a relative identity and independence. Here, social development refers to the expansion and consolidation of the community, and its goal is to reach a desirable point determined by the normative dimension of social development.
4. The "structuralist" approach involves creating fundamental changes in social structures and relationships to achieve social integration and make power-wielding agents and organizations accountable in the development process.
5. Based on the "integrative" approach and the Copenhagen Declaration, justice, development, and social capital are essential for societal peace and security. It is recognized that economic, human, social, and environmental development are interrelated and form the framework of sustainable development, ultimately aimed at improving the quality of life for all human beings (Asgharpour, 2014: 43-68).
Research Method
One of the essential topics in any research project is the methodology employed. Achieving scientific knowledge and accurate understanding is only possible through proper methodology. Each research gains credibility through its method, not its subject matter (Khaki, 2008: 8). In this article, considering the subject at hand, i.e., identifying the relationship between social capital indicators and economic development, a library and documentary method was utilized.
The Concept of Development
Development is the result of the convergence and widespread mobilization of human and material forces in the advancement of society and the progressive goals of development. Through this process, poverty, illiteracy, dependence, and oppression give way to welfare, freedom, and power. In institutional economics, the role of governments in providing inputs and necessities of life for people gains particular importance. The notion of economic growth and considering per capita income does not provide an accurate assessment of life opportunities and citizen welfare. In this situation, social variables and the fundamental rights of people are not adequately addressed. We know that humans are both the goal and the instrument of development. This paramount importance has caused the management levels of many countries around the world and international organizations to focus on the components of human development.
Development, literally meaning expansion, has various definitions in technical terms. Michael Todaro (1992) views development as a multidimensional process involving fundamental changes in social structure, popular attitudes, and national institutions, as well as the acceleration of economic growth, the reduction of inequality, the eradication of absolute poverty, and the reduction of unemployment rates.
The United Nations defines development as "a process based on the efforts of people and governments to improve the economic, social, and cultural conditions of every society, which combines the people of these regions in the life of a single nation and fully enables them to participate in national progress" (quoted from Mousavi 2008: 15).
Social Capital
The concept of social capital[1] was first introduced by James Coleman and later elaborated upon by sociologists such as Anthony Giddens (1990) and Francis Fukuyama (1997). Since the late 1990s, it has been considered one of the main components of the new development paradigm (Zahedi, 2011: 274). This capital, as a social power through fostering trust, creating interactive and supervisory networks, and coordinated action, can improve the conditions for achieving economic and social goals and resources. Adopting democratic methods and opening channels for public participation increase social responsibility and system efficiency, and social satisfaction also increases. The main pillars of social power can be examined in the following three components: a. Social capital b. Participatory democracy c. Empowerment.
Social capital can be defined as resources inherited from social relationships that facilitate collective action. These resources, obtained through appropriate socialization, encompass trust, norms, and networks of social bonds that bring individuals together in a cohesive and stable manner within a group to achieve a common goal. Experts have cited education, health, confidence in political institutions, satisfaction with the government, and political commitment as factors influencing the enhancement of social capital levels (Zahedi, ibid., p. 115).
The intrinsic feature of social capital is that it is formed in social relationships. As Portes[2] (1998) states, this capital is found within the structure of reciprocal relationships between individuals, and it is these others who are considered the actual source of an individual's benefits and advantages. Woolcock (2000) believes that social capital, public trust, the rule of law, and civil liberties are positively associated with economic growth. Social networks facilitate the flow of growth and economic development by providing skilled and entrepreneurial individuals in the areas of production, technology, and markets.
4-Openness to public participation and involving them in social and cultural responsibilities |
3-Government efforts to preserve human capital and create opportunities for their engagement in economic development |
2-Utilizing thinkers and intellectuals and their participation in economic policies |
1-The level of social trust and good relations between the people and the authorities |
Social Capital |
|
Economic Development
Gerald Meier, in his 1995 definition of economic development, states: "Economic development is a process by which the per capita income in a country increases in the long term." He considers economic development to be economic growth accompanied by transformations (technical and value changes). Economic development not only includes quantitative expansions but more importantly, it encompasses qualitative aspects that affect all indicators of a desirable life for citizens and the status of all institutions, organizations, and the culture governing these transformations (Hayami & Gode, 2005:30).
In economic development, the increase in productive resources, including physical, human, and social capacities, is considered. It differs from the concept of economic growth, which indicates a quantitative change in production variables or Gross National Income. Economic development is a fundamental and key concept deeply linked to the quality of life and the aspirations and ideals of the government and society. Addressing societal issues and problems and transforming into a developed society requires enjoying welfare, social justice, and basic and civil rights, under which human dignity in social life and economic productivity in production can reach an ideal and maximum level.
Table 1: Summary of Key Concepts
Titles | Core Meaning |
What is Development | Development represents the convergence and mobilization of material and spiritual forces in enhancing society. It involves fundamental changes in social structure, public attitudes, national institutions, and the positive transformation of economic and social foundations. |
Social Capital | Indicates social power, a dynamic civil society, trust and commitments, honest reciprocal relationships, norms, common identity, and supportive culture. |
Economic Development | A set of quantitative and qualitative changes across all production levels, social institutions, and desirable living opportunities. |
Theoretical Model of the Relationship between Social Capital and Economic Growth and Development
The analytical model is the natural continuation of the theoretical research problem, which practically considers indicators and pathways for observation and analysis and can provide a coherent analytical framework. In this model, five major variables of social capital that are closely related to economic growth and development are mentioned: trust, cohesion, participation, religious-ideological attachments, and social empowerment. These components have a deep connection with social networks and are independent of the state. Strengthening its foundations paves the way for economic and social growth and development.
Social Trust |
Increased Production and Productivity |
Social Cohesion |
Reduction of Poverty and Unemployment |
Economic Development |
Social Capital |
Religious and Ideological Beliefs |
Increase in Welfare and Life Expectancy |
Social Participation |
Social Empowerment |
omponents as a Basis for Development
A. Social Trust
In the process of social and economic development, the level of individual membership in groups, organizations, and voluntary associations increases, and mutual social trust is generalized. Hence, Eisenstadt notes that the most important issue in social order, even for the founders of sociology, is the discussion of trust and social cohesion. That is, without cohesion and trust, real order in society becomes impossible (Chelbi, 1996: 12). Giddens4 mentions that the impact of social trust on the development process paves the way for transformations in modern societies. Wherever the level of social trust is high, people's participation and cooperation in economic and social arenas increase, and consequently, the level of social harm is also lower (Yadipour, 2008: 149).
Trust is recognized as a key factor in development and one of the most important components of social capital. In the shadow of trust, social actions are formed based on rational choice. If trust does not extend beyond blood and kinship relationships and cannot connect with the external environment, it will never be able to create suitable capital. The broader the scope of trust, extending beyond its individual and limited dimension, the more it can determine collective and large-scale interests (Hasani, 2015: 4).
B. Social Cohesion
Durkheim5 is one of the first sociologists to study the concept of cohesion and social solidarity, considering it necessary and essential for society. Jonathan Turner, quoting Durkheim, says: "Cohesion occurs when individuals' emotions are regulated by cultural symbols. Where individuals are connected to the community and socialized, where actions are organized and coordinated by norms" (Manzoor and Yadipour, 2008: 150). Cohesion can be seen as the social spirit of the development process and a necessary condition for society to benefit from its maximum productive potential. Social cohesion determines how an economy is interconnected and leads to mutual interaction and a sense of belonging and integration within society. Such social connectivity can provide equal opportunities for economic, political, and social distribution and delegate some decision-making to the people. This results in countries with greater cohesion sharing the costs and benefits between the poor and the rich, making general welfare attainable (Zabiri and Karimi Moghari, 2013: 41).
Social cohesion can be related through indicators such as: citizens' inclination towards one another, the extent of their mutual social interactions based on awareness and collective wisdom, devoid of any collective disputes and political differences. This collective spirit in pursuing public interests lays the groundwork for economic growth and development in the country.
C. Social Participation
Social participation refers to those libertarian activities through which members of a community participate in neighborhood, city, or village affairs and directly or indirectly contribute to shaping social life. Participation that arises from within the society and encompasses all areas of life finds a strong position in advancing development programs, and neglecting such an issue brings numerous problems and shortcomings in pursuing development goals. The tangible manifestation of social participation is the existence of associations, local organizations, independent from the government, and civil groups (Manzoor and Yadipour, 2008: 181).
Participation includes various individual and collective actions and subjective (internal inclination) and objective dimensions. Clear manifestations of social participation are the membership of individuals in civil institutions, organizations, participation in charitable associations, educational units, financial, productive, and other public benefit communities where the constructive and active role of individuals paves the way for economic and social development and modernization. Social participation through individuals' connections with civil institutions has an amplified effect on social capital.
D. Religious and Ideological Beliefs
Religious capital refers to those skills and experiences formed through religious teachings, awareness, and knowledge obtained from religious institutions, educational centers, and churches (Figner, 2003: 5). "Berger and Hefner" consider ideological capital as a subset of social capital that demonstrates the power of influence, knowledge, and inclinations created through participation in a religious ceremony. Many scholars have discussed the role of ethics, religion, and spirituality in forming and accumulating capital and consider it a part of social capital. Coleman (1990) believes that ideology can, by imposing a desire on an individual to act in favor of someone or something other than themselves, drive them to prioritize others' interests.
In Iran, considering the culture of Shia Islam and the extensive network of religious, worship, and pilgrimage centers, from mosques and Husseiniyas to religious groups that gather large crowds during Muharram, Ashura, and other ceremonial events, there is a potential and central capacity to strengthen public and ideological consensus for pursuing public interests. This potential can increase the contribution of religious communities to economic production and productivity, meaning the energy and religious beliefs of the people align with the culture of collective work and effort in achieving development and public welfare. In this regard, Mohsen Renani (2003) believes that social capital relies on implicit rules that construct individuals' behavior. The stronger the religious, cultural, and ethical values, the more people behave within a specific framework, enhancing trust and making social relations smoother and less costly. One of the functions of religion throughout history has been to create social capital.
E. Empowerment
Empowerment is a multidimensional component comprising practical approaches, functions, and social actions emerging within the frameworks of social, economic, political, and psychological capital. Empowerment refers to the freedom of choice and individual action, increasing one's authority and control over resources and decisions affecting their life. Empowerment, facilitated by social capital, expands people's access and abilities to participate, negotiate, and control socially. It also refers to conditions where individuals, groups, organizations, and communities gain control over the social, economic, political, and cultural aspects of their lives to improve their quality of life (Nasrollahi Vasti, 2020: 10).
From a political perspective, the role of governance in enhancing empowerment and increasing social capacities is undeniable. Governments, possessing abundant resources such as educational and media systems, influence cultural and symbolic regeneration. One of the significant indicators of political empowerment is political awareness, which entails access to information about services, goods, and the performance of high-ranking officials in providing these services. This awareness can be interpreted as the right to express opinions, network resources and perceptions, power relations, agency, and active participation in community decision-making (Bayoulogan, 2015: 139).
"Empowerment" with an economic focus aims at poverty reduction, politically seeks to liberate people from the dominance of the powerful, and socially and legally strives to eliminate discrimination among various social groups. It involves creating conditions for people to gather in voluntary associations, organizations, and non-governmental organizations and increase the community's level of choice and universal participation. According to Amartya Sen (2010: 439), having a good and dignified life is a criterion for development.
Conclusion and Recommendations
Social capital is one of the most critical pillars of economic growth and development and a prerequisite for transforming and modernizing the legal, cultural, and economic structures of societies. Social capital has a deep connection with the rate of cooperation, group conscience, and social trust, which, while shaping the set of moral and behavioral rules of any society, helps individuals achieve growth and dynamism within an optimal interactive unit alongside other cultural, symbolic, economic, and social capitals. Social capital, by utilizing group similarities and uniformities from various aspects, increases the spirit of trust, cohesion, and collective participation, enabling society and the people to swiftly advance development programs in constructive interaction with governmental power.
Regarding the mechanisms through which social capital impacts economic growth and development, five major components of social capital—trust, cohesion, participation, religious-ideological affiliations, and social empowerment—are highlighted from among the numerous indicators resulting from positive social interactions, both subjective and objective, within social capital. These components have deep connections with social networks independent of the government, and strengthening their foundations facilitates economic and social development. When national and public benefits are prioritized over personal gain and the culture of work, effort, responsibility, foresight, and public welfare becomes widespread, the power of social capital increases. In such a context, on one hand, we observe a reduction in costs and an increase in benefits and performance, development of financial markets and investments, creation of job opportunities, and business prosperity; on the other hand, we see a reduction in poverty, unemployment, injustice, and corruption, which are the outcomes of a flawed and underdeveloped economy.
In producing and strengthening social capital, the role and performance of the government, educational institutions, and religious organizations are also very important. As social capital is created in a free interactive environment, devoid of social, political, and security restrictions, the presence of independent institutions, a dynamic civil society, and the necessity of knowledge enhancement become more prominent. Therefore, it is suggested that in Iran, due to the strong base of Shia ideology and the presence of diverse religious institutions—from the Basij organization and religious groups to other small and large gatherings that host a large population—a new and rational perspective, which ensures national interests and the welfare and happiness of people in this world and the hereafter, can enhance the credibility and richness of social capital and, consequently, have constructive and favorable effects on the country's economic development.
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[1] 1 - Francis Fukuyama
[2] 1 - Pierre Bourdieu
[3] 2 - James Samuel Coleman
[4] 1 - Anthony Giddens
[5] 2 - Emile Durkheim
