COMMUNITY ECONOMIC DEVELOPMENT
PROGRAM
ICD 533 PRINCIPLES & PRACTICLES OF DEVELOPMENT
JAN 2008 ASSIGNMENT
JOURNAL


SOCIAL CAPITAL
&
THE ROLE OF SOCIAL CAPITAL IN POVERTY REDUCTION

TUTOR’S NAME: DR SINDA HUSSEN SINDA

STUDENT’S NAME: NEEMA WELLU NSALLU ( ID No 728177).



DSM CLASS







TABLE OF CONTENTS

1.0 INTRODUCTION ---------------------------------------------------------------------------------------4
2.0 LITERARURE REVIEW--------------------------------------------------------------------------------4
2.1 Empirical literature review-------------------------------------------------------------------------------4
2.2 Definition of social capital-------------------------------------------------------------------------------4
2.3 The concept of social concept ---------------------------------------------------------------------------4
2.4 What is social capital?------------------------------------------------------------------------------------4
2.5 Evaluating social capital----------------------------------------------------------------------------------5
2.6 Social capital measurement------------------------------------------------------------------------------6
2.7 Social capital and civil society---------------------------------------------------------------------------6
2.8 Social capital and education------------------------------------------------------------------------------7
2.9 Social capital in the third world-------------------------------------------------------------------------8
2.10 Bad social capital-----------------------------------------------------------------------------------------8
2.11 CED on social capital------------------------------------------------------------------------------------9
3.0 EMPIRICAL LITERATURE REVIEW ---------------------------------------------------------------9
3.1 Example of social capital in Tanzania------------------------------------------------------------------9
3.2 The role of social capital in poverty reduction-------------------------------------------------------10
3.3 Prevention and management of HIV/AIDS----------------------------------------------------------10
3.4 Support group of PLWHAs SHIDEPHA +-----------------------------------------------------------11
3.5 Mambo Poa Youth Resource Center – Dodoma, -- Urban-----------------------------------------12
3.6 Changamoto livestock keepers group Kongwa District/ Dodoma---------------------------------12
4.0 POLICY REVIEW---------------------------------------------------------------------------------------12
5.0 OWN PERSPECTIVES---------------------------------------------------------------------------------12
6.0 CONCLUSION-------------------------------------------------------------------------------------------12








LIST OF ABBREVIATION

1. AIDS – Acquired Immune Deficiency Syndrome.
2. ARVs – Anti-retrial viral drugs.
3. CED – Community Economic Development.
4. HIV – Human Immune deficiency Syndrome.
5. NGO – Non-Governmental Organizations.
6. PLWHA - People Living With HIV/ AIDS.
7. PRSP – Poverty Reduction Strategic Paper.
8. SACCOS – Savings And Credit Cooperation Services
9. STI – Sexually Transmitted Infections.
10. VCT – Voluntary Counseling and Testing.





















SOCIAL CAPITAL
THE ROLE OF SOCIAL CAPITAL IN POVERTY REDUCTION

1.0 INTRODUCTION
This paper is developed to describe social capital and its role to poverty reduction. Describes the theoretical literature review, empirical review and policies review, lastly there is my discussion and conclusion.

2.0 THEORETICAL LITERATURE REVIEW
Social Capital is the aggregate of the actual or potential resources which are linked to possession a durable network of more or less institutionalized relationships of mutual acquaintance and recognition

2.1 Definitions
Social Capital defined as the resources available to individuals through their memberships in various community set-ups, and how the social capital affects the lives of people in their community set- up.
Social Capital lends itself to multiple definitions, interpretations, and uses. David Halpern (1970) argues that the multiplicity of uses for social capital has led to a multiplicity of definitions. In The forms of capital Pierre Bourdieu (1974) distinguishes between three forms of capital: economic capital, cultural capital and social capital.

2.2 The Concept of Social Capital
Social Capital is a core concept in business, economics, organizational behavior, political science, and sociology, can be explained by person’s location structure of relationships, Social relationships. Pierre Bourdieu (1974) concept on social capital is instrumental, focusing on the advantages to possessors of social capital and the deliberate construction of sociability for the purpose of creating this resource.
James Coleman (1974) defined social capital functionally as “a variety of entities with two elements in common, they all consist of some aspect of social structure, and they facilitate certain action of actors. Within the structure” – that is, Social Capital is anything that facilitates individual, or collective action, generating by networks and relationships, reciprocity, trust, and social norms. In Coleman’s conception, Social Capital is a neutral resource that facilitates any manner of action, but whether society is better off as a result depends entirely on the individual uses to which is put.
According to Robert Putnam,( 1993) Social Capital “refers to the collective value of all ‘social networks’ and the inclinations that arrive from these networks to do things for each other”. According to Putman and his follower, Social Capital is a key component to building and maintaining democracy. Putnam believes that Social Capital can be measured by the amount of trust and ‘reciprocity’ in a community or between individuals.

2.2 What is Social Capital?
Social Capital, referring to connections within and between social networks, is a care concept in business, economics, organizational behavior, political science, public health, and sociology. Though they are in fact, a variety of inter-related definitions of this term, which has been described as “something of cure all” for the problems of modern society, they tend to share the core idea “those social networks Just as screwdriver (Physical Capital) or collage education (Human Capital) can increase productivity (both individual and collective), so too social contact affect the productivity of individuals and groups. While various aspects of the concept have been approached by all social science fields. James Madison, (The Federalist Papers).

2.3 Evaluating social capital
Edwards and Foley, editors of a special edition of the American Behavioral Scientist on Social Capital, Civic Society and Contemporary Democracy, raised two key issues in a study of Social Capital. First, social capital is `not equally available to all, in much the same way that other forms of capital are differently available. Geographic and Social isolation limit access to this resource. Second, not all social capital is created equally. The value of a specific source of capital depends in no small part on the socio-economic position of the source with society. On top of this, Portes has identified four negative consequences of Social Capital, exclusion of outsiders; excess claims on group members; restrictions on individual freedom; and downward leveling politics. Social capital is often linked to the success of democracy and involvement. . (http//en.wikipedia.org/wiki/social-capital)
2.4 Social capital measurement
There is no widely held consensus on how to measure Social Capital, which is one of its weaknesses. One can usually intuitively sense the Level/amount of Social Capital present in a given relationship (regardless of type or scale), but quantitatively measuring it has proven somewhat complicated. This has resulted in different metrics for different functions. In measuring political social Capital, it is common to take the sum of society’s membership of its groups. Groups with higher membership (such as political parties) contribute more to the amount of Capital than groups with lower membership, although many groups with lower memberships (such as communities) still add up to be significant. The level of cohesion of a group also affects its Social Capital. However, again, there is no true quantitative way of determining the level of cohesiveness. It is entirely subjective. How a group relates to the rest of society also affects Social Capital, but in different manner. Strong internal ties can in some cases weaken the group’s Capital in cases where the group is geared towards crime, distrust, intolerance, violence or hatred towards each. (http//en.wikipedia.org/wiki/social-capital)

2.5 Social Capital and Civil Society
Civil society refers the voluntary associations and organizations. According to such authors as Walzer, Alessandrini, Stolle and Rochon, Foley and Edwards, and Walters, it is through civil society, or more accurately, the individuals are able to establish and maintain relational networks. If civil society, then, is taken to be synonymous with the individuals, then the question it seems is not ‘how important is social capital to the production of civil society?’ but ‘how important is civil society to the production of Social Capital?’ The Social Capital depends on an already functioning community.
According to Lyons, Civil society is the space for free association, where people could meet and from groups pursue their enthusiasm, express their values and assist other. The idea that creating social capital (i.e. creating networks) will strengthen civil society underlies current Australian social policy aimed at bridging deepening social divisions. The goal is to reintegrate those marginalized from the rewards of the economic system into “the community. According to Onyx (2000), while the explicit aim of this policy is inclusion, its effects are exclusionary. The resurgence of interest in Social Capital as a remedy for the cause of today’s Social problems draws directly on the assumption that these problems lie in the weakening of civil society. However this ignores the arguments of many theorists who believe that social capital leads to exclusion rather than to a stronger civil society. In international development, Ben Fine and John Harris have been heavily critical of the inappropriate adoption of Social Capital.
An abundance of Social Capital is being almost a necessary condition for liberal democracy. A low level of social capital leads to an excessively rigid and unresponsive political system and high levels of corruption, in the political system and in the region as whole. Formal public institutions require Social Capital in order to function properly, and while it is possible to have too much social capital (resulting in rapid changes and excessive regulation), it is decidedly worse to have too little.

2.6 Social capital and education
Coleman and Hoffer (1980) collected quantitative data of 28,000 students in total 1,015 public, Catholic and other private high schools in America from the 7 years period from 1980 to 1987. It was found from this longitudinal research that Social Capital in students’ families and communities attributed to the much lower dropout rates in Catholic schools compared with the higher rates in public and non-Catholic private schools. The results also reveal the positive element brought by Social Capital to the teaching of mathematics and verbal skills in Catholic schools.
Teachman et al further develop the family structure indicator suggested by Coleman. They criticize Coleman, who used only a number of parents present in the family neglected the unseen effect of more discrete dimensions such as step-parents and different types of single-parent families. They take into account of detailed counting of family structure, not only with two biological parents or step parent families, but also with types of single parent families with each other (mother-parent-child interactions by indicators of how often parents and children discuss school related activities
Putnam (2000) mentioned in his book Bowling Alone Child development is powerfully shaped by social capital” and continued “Presence of Social Capital has been linked to various positive outcomes is the results of parent’s Social Capital in a community. States where there is a high social capital there is a high Education performance. Similarity of these states is that these states, parents were more associated with their children education. When there are more parents participation to their children education and school, teachers have reported these engagements lower levels of students misbehavior, such as bringing weapons to school, engaging physical violence, playing hooky, and being generally apathetic about education.

2.7 Social Capital in the Third World
Many authors suggest that Third World communities lack the Social Capital networks and associations found in Western Developed communities, but this underestimates the nature of Social Capital building in traditional societies. For example many of the potlatch activities in which rather than accumulating wealth, it distributed widely, are better understood as forms of investment in Social Capital. For instance Lea Jellineck, in examining circular migration in the Pondokan and Kampong of Indonesia, shows that the Capital accumulated by those moving from rural areas to urban areas, is extended for celebratory slametan when the migrants returns to there rural village. Whilst convectional economics condemns such practices as a waste of capital, and irrational economic behavior, it can be a form of banking in circumstances where convectional banking and credit facilities are not present. Indeed, as a number of commentators have shown, the rate of return on this investment in Social Capital can be much higher than investment in nay other economic activity, as distributive relationships may establish forms of interpersonal obligations that are permanent and cannot easily be discharged. Many Third World communities have such relationships to varying degrees. In Papua New Guinea, for example, the Moka cycles, whereby which pigs are raised for distribution of pig meat in communal feasts are found widely through the Highlands, and the ability to organize and coordinate such events is a major way in which “bikmen” achieve social status”

2.8 Bad Social Capital
It is also important to remember that Social Capital is not always a good thing. As a groups gather together to create bonding groups can become more radical than if they just stayed to themselves. Without bridging Social Capital, bonding groups can become isolated and disenfranchised from the rest of society. For example of these types of groups, one needs only to consider bad organizations. But there is no easy treatment of the casual relationships between Social Capitals invested towards more negative ends. An example of the complexities in calling these forms of Social Capital bad is the example of how gangs might develop in places where social capital is lacking, but that they sometimes provide integral functions for the communities they arise in. This might be extrapolated to include the governmental hosting of terrorist groups that serve some positive function in the society regardless of their overtly negative connotations.

2.9 Community Development Economic on Social Capital
CED based thinking example is idea Social Capital, an idea which encompasses community resolve and self reliance as equitable to monetary Capital. The logic behind it is that if a community has a strong sense of collectivity and duty to each other, they will be less dependent on handouts an more apt to find ways in which to address their problems or the commonwealth of their communities. The appeal of CED thinking has allowed people and communities the World over to re-think their conception of development, and in doing so redefine their understanding for economic activity in the process.
Abel Enterprises is a non-profit work co-operative based in Ontario Canada. It has been in existence for over twenty years providing psychiatric patients with opportunities to contribute to the market economy. They specialize in manufacturing custom woodwork products such as bedroom furniture and desks for children with disabilities. This is a typical social enterprise, in spirit and in practice, for it is equipped to contribute positively to the psychiatric members of the community while creating some profits to self sustain.


3.0 EMPIRECAL REVIEW
3.1 The examples of Social Capital in Tanzania,
The Tanzania Prisons can be regarded as Social Enterprise as well. It is well understood that the prison is a place where there are different types of professionals as well as those who do not possess any profession. Every prisoner is involved in a certain activity according to their abilities and strengths. The abilities and skills possessed by the prisoners are being put to good advantage and in a way contributing value for the conventional market and the betterment of prisoners. Prisoners are involved in construction works, carpentry; some work in dispensaries and hospitals, and recently on prisoner graduated and was awarded a bachelor degree in Law. It is believed that his knowledge will be put to good use as well. Regardless the hardships they face as prisoners, they work together, and they encourage each other (Mutual support) for productivity.

3.2 The role of Social Capital in poverty reduction
The Multi- focus approach to poverty alleviation and poverty reduction is central to economic management in Tanzania. The need to integrate poverty concerns and development requires effective coordination and cooperation among all relevant principles, a department to coordinate efforts to society, and people. Combating poverty is a critical element in Country’s development endeavour. The Poverty Reduction Strategy Paper (PRSP) was developed to address the key challenges toward poverty eradications, improvement of policy environment, enhance productivity and increase investment in both human and physical capital. HIV/AIDS control activity and agriculture growth e.t.c.

3.3 Multi-sect oral approach toward the fight of HIV/AIDS
One of the Tanzania Government strategies in the poverty reduction is the HIV/AIDS management and HIV Prevention. Several programs have been made to fight against epidemic including Multi-sectoral approach whereby the Non-Governmental Organization and Civil societies are fully involved, and hence have built the social capital to fight against the disease. Most of the Programs in Africa offer nutrition support for People Living with HIV/AIDS (PLWHA). Inadequate nutrition in childhood in poor nations may lead to physical and mental stunting that may lead to economic problems. (Hence, it is both a cause and an effect). For example, lack of both iodine and iron has been implicated in impaired brain development. In developing countries, it is estimated that 40% of children aged 4 and under suffer from anemia because of insufficient iron in their diets. The multi-sect oral approach in Tanzania i.e. involvement of all sectors, has facilitated the services to affected and infected people.
The health staff and other community providers assigned to provide the nutritional support which is offered in a context of extreme deprivation, economic hardship, social stigma, endemic malnutrition and food scarcity. Many of the people providing nutrition support are devoted volunteers whom themselves have been personally affected directly or indirectly by the effects of the AIDS epidemic in their communities, sometimes is divergence of this support provided, the PLWHA have decided to form a NGO for network and mutual support, and this increases the Social Capital which increases the efforts of fighting against social stigma, fighting their rights, and increased the access to get support including Nutritional food and access to Ant-retroviral therapy.

3.4 Mambo Poa Youth Resource Center in Dodoma
Disease, specifically diseases of poverty: AIDS, Malaria, and Tuberculosis and others overwhelmingly afflict developing nations, which perpetuate poverty by diverting individual, community, and national health and economic resources from investment and productivity.
HIV/AIDS affects Tanzania’s young particularly; young aged 15 to 24 years old. This accounts for 60 percent of new infections, while comprising only 20 percent of the population. Girls are particularly vulnerable for both biological and social reason. At a regional level the HIV/AIDS interventions involves all the community groups including the Adult, both men and women, PLWHA and Youth. The HIV/AIDS/STI preventive education is provided to various groups requires different approaches, methodology or pedagogy. But most of these approaches favor the adult people and leave behind the multitude of young people. The young people in Dodoma Municipality formed a group called Mambo Poa and started a Youth resource center to seek for the HIV/AIDS education, friendly VCT services, recreational services, and also as a group to conduct a road show within and out the Municipality to the rural communities to there peers. The Social Capital built by Dodoma youth attracted many donors to support them with skills, educational materials, recreational instruments and financially.

3.5 Changamoto, livestock keepers association in Kongwa District Dodoma
The Dodoma Regional situated in arid area or semi-desert also play its role to combat poverty rather than agricultural activities, livestock is the main productive activity which contribute 35% of the regional economic, they are several challenges which face the farmers including animal diseases, cattle theft, shortage of water for their cattle e.t.c The livestock keepers forms their cooperation, to network with other central regional farmers to advocate for their crucial needs, to access the Livestock medicine and market for their products, this increases the Social Capital for their problem resolution. Also the organization encourage the Livestock keepers communities to form savings and credit institutions such as saving, and credit societies trusts and work with other small scale farmers communities and develop appropriate credit system such Saving and Credit Cooperatives (SACCOs) which have contributed a lot to lift the standard of lives in rural areas.

4.0 POLICY REVIEW
The community development policy gives guidance on how communities will be helped to build their capacity to implement their responsibilities. The policy also states clearly the responsibilities of different concerned parties in speeding up community development in the country. The major objective of the Community Development policy is to enable Tanzanians as an individuals or in their families and /or groups or associations to contribute more to the government objectives of self reliance and therefore bring about development at all levels and finally have a remarkable national growth.
Livestock policy aims at promoting the livestock industry so as to increase production and productivity to ensure that the nation achieves a per capita consumption of beef of 4.83 kg per annum by the year 2005 (increase by 39%). This will enhance farmers’ income, production of hides and exports by both live animals and other products. There is the establishment of livestock associations in the pastoral areas to enhance their bargaining and purchasing power in the supply of inputs, organizing the market of products and dissemination of new technology.
The National Policy for Youth development aim to improve the life of youths, men and women by developing them in sectors of economy, culture, politics, up-bringing, education and health. Also to sensitize youths and the society in awareness, promotion and defending youth rights according to the national constitution. To associate departments, institutions and various organizations in implementing youth development programmes with the aim of mitigating economic, social, political and cultural negative effects. To prepare youth physically, mentally, economically, politically and culturally so that they can take over the various responsibilities as good citizens, parents and leaders in a society. This enables youths to participate in the struggle to bring social and national development, the same as the adult.

5.0 OWN PERCEPTIVES
Social Capital is for economic growth; all strategies of poverty reduction toward poverty eradications should also include building social capital in all levels, the examples above show that there is evidence that Social Capital under any of 3 categories, political, economical and social structure, have impact on development outcome i.e. economic growth, equity and poverty alleviation. The organizations, institutions should provide the informal framework to organization information sharing, coordination of activities and collective decision making. The information sharing role of social capital is of key importance for poverty alleviation. The case of PLWHAs Mutual support group is an important example. The groups permit the infected people to overcome stigma, one of their main constraints, to access credit, and ARVs. The same the Livestock keepers who are regarded as poor in our communities if compared with other workers and business people because have limited ability to cope with risk such as animal disease and hence are more vulnerable to income fluctuation. The poor also have limited access to insurance against future calamities as well as market failures. Social Capital does not remove the uncertainty but is an important aspect; it may create mutual knowledge about how agents will respond to different issues. It may also serve as an enforcement mechanism to ensure that their expectations about mutual behavior are in fact realized. This reduces contracting costs.

6.0 CONCLUSION
Therefore Social Capital plays an important part in poverty reduction, cause it is a resource for collective act, so can be built in our communities to join effort, through networking, sharing information for better success toward Poverty eradication.


REFERENCES
1. Grootaert. C; 1998; Social Capital, the missing link. Connection: Sustainable Development Network. Washington, USA.

2 .http://www.worldbank.org/socialdevelopment Social Capital initiatives – World Bank. Working paper
3. http://www.un.org/esa/agenda21natlinfo/countr/tanzania/social htm Connection:-Social Capital and development.

4.http://www.rualpovertyportal.org//English/regions/Africa/tza/index.htm 2/11/2007 Rural Poverty in Tanzania. Connection: Poverty Reduction – Millennium Development Goals (MDGs)

5. http://www.Tanzania.go.tz/Sector po/.htm Policies livestock policy, health policy, community development policy

6..http://www.unaids.org/en/Regions-Countries/countries/Tanzania.asp UNAIDS Uniting the World against AIDS. Connection: Tanzania, country analysis.11/21/2007

7.http:en.wikipedia.org/wiki/social-capital. Social Capital- wikipedia, the free encyclopedia. Connection: social capital and civil society, education, and social capital and the third world,

8. Hughes, J., Wendy Stone. Social Capital, Empirical meaning and measuring validity, Research paper No. 27. Institute of family studies. Australia

9. Otliman H., Living A (2002) Local governance and poverty reduction, Tanzania country paper for AGF
10. Social Aspect of sustainable Development in the United Republic of Tanzania 11/5/ 2007
Connect: Poverty.

11. Woolcock, M & Narayan.D. (200), Social Capital: Implications for development Theory. Research and Policy world bank Research Observer 15(2)

NEEMA WELLU NSALLU
Msc. CED STUDENT