Conflicts and social capital and economic development in Latin America
Conflicts and social capital and economic development in Latin America Keywords: social capital, economic development, conflict, cooperation. JEL CLASSIFICATION: O17; 043; O57. Abstract This study aims to discuss the economical behavior of Latin America, considering the importance of the attributes directly related to social capital (interpersonal trust, which leads to association and civic commitment, resulting in what Putnam calls 'civic community') pari passu governance, ie the formal attributes related to the behavior of economic agents in the presence of the state, which make up a 'backdrop' for the establishment of social, political and economic relations. Together, these two dimensions can enable to explain the economical behavior of conflict or cooperation in different countries. This is because the rational decision of cooperating or not is related to two factors: (1) the expected behavior of other agents ('I cooperate if and just if I hope the others will cooperate with me') and (2) the existence of standards, patterns or rules that prevent or hinder opportunism (otherwise the cooperative behavior would seem a 'foolâ€™s choice'). The key question when added together the two dimensions is predictability. In other words, understanding the game' and the reluctance in facing the penalties imposed in cases of wrongful conduct. The expected behavior of other agents depends on the trust relationships that are established between them. The more 'general trust' is (replacing the purely interpersonal attributes), it is expected more cooperation. The 'generalized trust' occurs when one recognizes itself in the other or when others are part of 'my group'. Hence the importance of activities that brings together a large and different number of people and groups, named 'bridging' associations, which allow the inter-relationship between 'different' individuals. The more social capital is reflected in the amount of cross-cutting relationships; bigger will be the advantages of economic environment. The lack of confidence or associative participation leads to a 'social isolationism' that is characteristic of places and countries where economic or social fragmentation can be find. This situation can lead to positive results that are appropriated by some groups in private but not by all the collectivity. Conflict occurs when different interests collide: either because they are isolated benefits or privately appropriated ones, gathered in the expense of others groups; or because the benefits are not extended to everybody because of the context of institutional weakness. Using quantitative analysis this paper analyses correlations between social capital and growth in Latin America as well as between GDP per capita and institutional conditions (political and civil liberties, property rights, stability of political power, judicial independence and the rule of law).
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," World Bank Research Observer, World Bank Group, vol. 15(2), pages 225-249, August.
- World Bank, 2009. "World Development Indicators 2009," World Bank Publications, The World Bank, number 4367, April.
- Sriya Iyer & Michael Kitson & Bernard Toh, 2005. "Social capital, economic growth and regional development," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1015-1040.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p591. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.