SOCIAL CAPITAL

Social Capital

Introduction

The world is manifesting the premise of economic globalism, where, the notion for the development of countries and economies pertain to the premise of social capital. The term social capital is defined as “the expected collective or economic benefits derived from the preferential treatment and cooperation between individuals and groups”. With the era of economic globalism, the social capital of countries has been escalated, and therefore, the term has led the world to derive much more from the premise of understanding and co-operation.

The premise of sociology addresses social capital as one of the few most important paradigms that offer growth and progress to the society. Since, the co-operation leads nowhere but to the development of people living in places that are different, in terms of, culture, language and other dynamics of the everyday livelihood. It asserts that the social capital has been based upon the strength of social networking, rather than, the notion that nations grow together for the betterment of each other. It is extracted from the connection between individuals that cooperate with each other on the basis of their connectivity and contact, and therefore, leads to the benefit that is rendered to both of the individual connected through the network (Halpers, 2005).

Social capital is about everything that is yielded as a result of the social connection, it is very productive in the premise of economic development. It is about two people coming together in the walk of life to co-operate and share, and therefore, extract an output that is valuable to both of them, as well as, the society. Social capital is a wide-range term that encompasses of all the output driven through social intercourse of people.

Background

By the end of 20th century, the term was made familiar to the world. The term came into being due to the notion that societies are run more by the social interaction of people, rather than, the economic forces. Economic forces devastate the parts of the society, such as, making living difficult and miserable; however, societies could survive till the eradication of intangible social elements, such as, traditions, expression, mutual sympathy, goodwill, fellowship, co-operation and understanding comes into play. Social capital is not about those tangible components, but it is simply the idea that the world has a round surface, and the people who come into contact with each other and form social network through their everyday course benefit the society, one way or the other.

The co-relation with economy

The term capital describes that it has to have something pertaining to the economy. It implies that the idea behind the derivation of the benefits that are rendered by the social intercourse, as well as, the networking of people who build societies together is rendering an all-dimensional benefit to the society. Social capital is the economic benefit driven from the interaction of people. The notion of the development of the economic benefit is at the heart of people coming together, and co-operating for the purpose of achieving of ...