1.

Social Capital

Harvard political scientist Robert Putnam popularized this term in his landmark book Making Democracy Work: Civic Traditions in Modern Italy. Putnam and his colleagues observed how different regions of Italy handled their social programs over a 20-year period. They found that in southern Italy very little progress was made, while in the north new programs flourished. The difference, they concluded, lay in the different civic traditions. Governance in southern Italy was dominated by a long tradition of top-down, patron-client relationships, while in the north there was a rich tapestry of civic associations, formal and informal, engaged in active networks of cooperation. Social initiatives, they concluded, have a much greater chance of success when the civic culture is able to play a dynamic role in creating change.

Some other definitions of social capital are broader than Putnam's. They frequently include formalized institutions necessary for governance and hierarchical associations like corporations. Regardless of the definition, civil society remains as necessary support for the implementation of sustainable development. The better civil society is organized - that is, the higher its level of social capital - the better it is able to express this social demand and to provide leadership in the effort to meet it. Civil society organizations (CSOs) provide a voice for those who have a tangible interest in sustainable development, especially those who are poor and marginalized. They also provide knowledge, expertise, political pressure, and monitoring functions necessary to pursue and implement sustainable development strategies.

Some see the state and civil society as competing forces, but in fact civil society needs an effective state to create the conditions necessary for the growth of social capital. Governments must be strong enough to protect the human rights of free speech and freedom of association and assembly. They must not themselves prohibit or repress these rights. The state must protect civil society activities from attack, ensure the rule of law and provide much of the physical and social infrastructure necessary for freedom and security to function. Where the state is too weak to ensure these essentials, civil society is also weak and the level of social capital is low.

As Putnam discovered, certain cultural traditions help to create social capital and foster the capacities of civil society. Social capital also grows with higher levels of education, higher incomes, new opportunities for women, new occupational opportunities, and greater access to information. All of these combine to create a " virtuous circle " of factors that both spring from and nurture the growth of social capital.

[factors necessary for the growth of social capital]

Sectors

• public sector - governance structures of the State which serve the third party interests of their citizens and maintain public order and security.
• private sector - profit-motivated, economic organizations which serve the third party interests of customers, boards and shareholders.
• civil sector - associations and organizations brought together by shared values to fulfill social needs which may advocate on behalf of the third party interests of 'target groups' such as the poor, children, etc. and/or the environment or may serve their own members' interests.