Use India’s social capital
for economic development
Social capital is the product of the network of
relationships that exist among people. It enables societies to function
smoothly. It is not visible like other assets. But it is critical to the
functioning of the societies, and the economies.
Relationships remained the basis of life in the traditional
societies. The modern western approaches have resulted in encouraging
unfettered individualism, leading to the destruction of natural relationships. Harvard
economist Stephen Marglin argues that the western economic theories of the past
few centuries have resulted in destroying relationships, leading ultimately to
the destruction of the close knit community networks.
Studies of the noted political scientist and Harvard
Professor Robert Putnam show as to how close relationships have been declining
in the United States over the past decades. When the relationships decline, the
result is the loss of social capital. In his Bowling
Alone: The Collapse and Revival of American Community published in 2000, he measured the
decline of social capital with different sets of data to show that many of the traditional
civic, social and fraternal organizations — such as the bowling leagues — had
undergone a massive decline in membership, even when
the number of people bowling had increased.
Different studies establish that many of the developed and the
western parts of the world have been witnessing steady erosion of social
capital. The situation is particularly alarming in countries such as the United
States and the United Kingdom. It is important to note that their academic
system, establishment and the intellectual circles have all played a role in it
leading to the present situation.
As a result, they are facing serious problems on several fronts.
We have to understand that social capital is not just about personal kinships,
friendly groups and close contacts alone. It is the relationships that determine
the behaviour and course of actions in the social, cultural and economic fields
of different groups. In fact the nature and direction in the movement of
different societies are influenced by the approaches, attitudes and behaviour
of people among themselves and towards others.
India, by nature, is a relationship oriented society. The lives
of Indians revolves around the network of families, friendships and a whole lot
of contacts. The family networks and kinships go on expanding and are the
products of relationships accumulated over many generations. Besides, the Indian
tradition treats even strangers as their own. As a result, Indians may perhaps
be the people with the largest number of relations and contacts in the world.
The relationship base of our people is helping India in many
ways. Maintaining peace and order at
different levels in the society becomes easy. Villages and localities continue
to be largely managed by the local communities without any need for much help
from the state. This is especially true in the traditional societies that
continue to keep their interdependent ways of life intact.
In different parts of Arunachal Pradesh the entire population of
the villages assemble on specific days and take up all the common activities
together. It may be laying of roads, constructing places of worship or other
village related works. Besides, on all important occasions in families,
everyone in the village takes part. There is a complete community orientation
in all their family and social activities. With the result, no one is allowed
to feel as an individual. Each one of them is a part of the village, with
his/her own role.
In the coastal regions of northern part of Tamil Nadu spread
over different districts, the life style and functioning of the pattinavar community of fishermen are
organised around their villages and the close knit society. All decisions
concerning the villages are taken by them in their regular meetings and
executed by their representatives chosen unanimously by the respective
villagers. In all important matters relating to the families, the elders and
the community leaders are involved. As a
result, the society functions as a coherent unit without much disputes and
rivalries. Hence there is a little requirement
for the law enforcing agencies of
the state. If anyone faces personal difficulties or financial problems, the
entire village supports him/her.
Even in the main lands, there are huge social and community
mechanisms working at different levels in our country. Such arrangements exist
not just within specific communities, but also between the different
communities of diverse backgrounds. These native mechanisms help keeping the functioning of our
villages and towns less acrimonious,
enabling people to lead peaceful lives.
Social capital plays a very important role in economic and
business transactions, paving way for development of the economy. The growth of
Indian economy over the years after independence, has been facilitated by the
relationship base of the Indian societies. The family and social relationships
enable entrepreneurs to mobilise savings easily and get all the possible support
of others around them in their pursuits.
Studies reveal that most of the funds required for investments
in the initial stages for entrepreneurial activities are raised from close
sources, based on relationships in different parts of the country. Besides, the
local communities evolve their own methods of raising funds using
relationships. Mahamai in southern
Tamil Nadu was a novel method developed by the local community when they
realised the need for funds to promote own initiatives. Ultimately it has transformed
them as one of the very vibrant business
communities in the country, by making them the dominant players in different
fields such as cracker manufacturing, match industry and retail trade at the
national and regional levels.
We all know that one of the main reasons for the success of
traditional business communities such as Marwaris
is their close knit relationship base. The same holds good for the new business
communities that have emerged successful over the past few decades after
independence. It is acknowledged that the close knit relationship base of
Patels have played a critical role to make them emerge as dominant players in
the global diamond industry and the US motel industry.
The Indian society is built on an inclusive approach. Hence
people from different backgrounds are naturally accepted as one among them,
especially in business related activities. This is the reason why one could see
people of diverse shades, irrespective of their linguistic, regional and even
religious backgrounds engaged in different businesses working closely with all
others in different parts of the country.
Social capital enables faster economic progress in many ways.
Closer coordination, faith and goodwill based approaches, lesser transaction
costs and speedy movements are possible when there is mutual relationship among
the transacting parties.
Hence the strong social capital prevailing in the country should
be used for the faster development of the economy. Suitable policies have to be
devised for this purpose. Here more emphasize need to be given for the
development of those sections who are yet to move up in the ladder.
References
1.
Stephen Marglin, Dismal Science: How thinking like an
economist undermines communities, Oxford University Press, New Delhi, 2008
2.
Robert Putnam, Bowling Alone: The collapse and revival of
American community, Simon and Schuster, 2001
( Yuva Bharathi, Vivekananda Kendra, Chennai, Jan. 2015)
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