social capital


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social capital

(J. Coleman, Public and Private High Schools: the Impact of Communities ,1987) the resources, trust and networks that are constitutive of social capacity and empowerment. The provision of improved access to social capital for previously socially excluded groups has been a central aspect of recent emphasis on SOCIAL INCLUSION and the politics of the THIRD WAY. The strategy also seeks to replace ‘deviant’ – BLACK ECONOMY or criminal -coping strategies of the poor.

Social Capital

 

the sum total of interrelated individual capitals. Like individual capital, social capital expresses the production relation between labor and capital, but unlike individual capital, social capital also expresses the production relation between the entire class of proletarians and the entire bourgeois class. The movement of social capital is the result of the turnover of the various individual capitals and takes place both in the sphere of production and the sphere of distribution.

Social capital exists in three forms: money capital, productive capital, and commodity capital. The interrelatedness of the turnover of the various individual capitals manifests itself on the markets for commodities, labor power, and loan capital. Social capital in commodity form constitutes the aggregate social product, the realization of which requires proportionality among the distinct elements of social production; above all, there must be a balance between subdivision I (means of production) and subdivision II (consumer goods).

The realization of commodity capital on the market, a process that presupposes exchange between individual capitals, is a function of commercial capital. New groups of proletarians are brought into the process of capitalist production through the labor market. The redistribution of labor power within a branch of the economy or among the different branches also takes place through the labor market. The capital market mediates the transfer of temporarily unutilized monetary resources from one enterprise to another or from one sector to another, thus providing the mechanism for capital investment. The capitalist credit system uses the savings of all strata of the population for capital formation. Because of the existence of credit relations, social capital partly takes the form of fictitious capital, that is, stocks and bonds.

The goal of the movement of social capital is the appropriation of surplus value, which, in the process of distribution and redistribution of the national income, takes the form of entrepreneurial and commercial profits, interest on loans, and land rents. The reallocation of surplus value among capitalists within one branch of industry, or different branches, or among industrial, commercial, and financial capitalists and landowners gives rise to a number of contradictions within the exploiting class. The growth of social capital is accompanied by an increase in the socialization of production. This tendency sharpens the fundamental contradiction of capitalism and prepares the way for a new socioeconomic formation. The contradiction between the social character of production and the private capitalist form of appropriation gives a cyclical character to the reproduction of social capital and inevitably brings on economic crises of overproduction.

Under imperialism the movement of social capital becomes more complex. This movement occurs in two related economic sectors: the monopolized and the nonmonopolized sectors. In the monopolized sector the goal of the movement of capital is to maximize monopoly profits. Monopoly banking and monopoly industrial capital merge, giving rise to finance capital. Seeking to achieve economic and political domination, the financial oligarchy comes into conflict not only with the proletariat but with the petite and middle bourgeoisie, that is, with the majority of the nation. The processes occurring under imperialism, within the framework of the world capitalist economic system, further extend and strengthen the front in the struggle against the financial oligarchy.

In the epoch of the general crisis of capitalism the movement of social capital occurs under conditions in which all the contradictions of bourgeois society become intensified. Among the tendencies that now become typical of the capitalist economy are underutilization of productive capacity, high unemployment levels, and retardation of technological progress. Under state-monopoly capitalism, increased regulation of the movement of social capital by the state and the monopolies is accompanied by the outbreak of severe new conflicts. Attempts at regulation therefore fail to eliminate the contradictions of capitalism as a social system.

REFERENCES

Marx, K., and F. Engels. Soch., 2nd ed., vol. 24, vol. 25, part 2. (See index.)
Politicheskaia ekonomiia sovremennogo monopolisticheskogo kapitalizma, 2nd ed., vol. 1. Moscow, 1975. Chapters 12–14.

V. M. RULEV

References in periodicals archive ?
Social capital is most important in case of an emergency,and it also works to manage initial capital requirements with the help of family, relatives and friends.
On the other hand, when the level of employees' internal social capital is low, trust and support from colleagues are rare.
Coleman (1988) identifies various characteristics of the social environment as influencing the strength and outcome, either positive or negative, of social capital in a community.
But the effect of social capital was three times larger than financial capital on math scores and five times larger on reading scores.
In the morning, Dr Law also attended the CIIF Forum on "Social Capital as a Solution".
Within this context, the sense of unity that holds the society together and the cooperation that ensures the continuity of the society is called the social capital. Although the importance of the physical, natural and the human capital in the economic development is often underlined in related studies, the answers of the questions like "how the development process is organized and how it is spread" have largely been ignored (Demir, 2011).
Organizations like government, business firms and NGOs function well with a high social capital. Their growth is fuelled by cooperation, partnerships, and trust.
Bourdieu (1986) described social capital mainly in terms of networks of relations.
The negative effects of social capital may be thought of in more than one way.
Understanding and definition of social capital above can then be used as a basis to summarize the understanding of social capital as aspects of social networks owned by individuals and communities that allow individuals to take action to achieve the desired goals.
The study tools consisted of a demographic checklist, the Social Capital Questionnaire [23], and the Diabetes Quality of Life (DQOL) questionnaire [24].