Asimina Christoforou

On the Determinants of Social Capital in Greece Compared to Countries of the European Union

Social capital refers to the stock of social relations, based on norms and networks of cooperation and trust that spill over to the market and state to enhance collective action between actors and achieve improved social efficiency and economic growth. The aim of the present paper is to discuss the implications of contemporary literature and empirical findings on social capital for the growth prospects of Greece, compared to the member-states of the European Union. In order to examine the potential of social capital to enhance growth, we must look into the factors that determine the nature and context of trust, norms and networks that have emerged in our multinational, multiethnic and multicultural Europe.The contribution of this paper is to offer insight on the determinants of social capital in Greece, compared to the European Union (EU - former 15 member-states). For this purpose, we regress an index of individual group membership, derived from the European Community Household Panel (ECHP), on a set of individual as well as aggregate factors of social capital. Regression results provide evidence of the impact of both individual and institutional characteristics on group membership. Differences on the extent of group membership between countries might be indicative of the historical and cultural differences that have affected the evolution of social capital across Europe. Particularly in Greece, the relatively low level of group membership compared to the other EU countries might provide further evidence of its low levels of civicness. Historically, its weak civil society has been a result of a prior civic tradition of clientelism under arbitrary rule, the interference of special-interest groups and the lack of credibility and impartiality from the part of the state. And these factors might be responsible for the slow pace in reform and growth observed compared to the rest of the EU. Nevertheless, the findings on the determinants of social capital may direct us to possible means of rebuilding patterns of participatory and cooperative behavior, especially in countries with low levels of trust and civicness, such as Greece.

Social capital and human development: an empirical investigation across European countries

In this paper, we offer an empirical investigation of the relationship between social capital and human development across European countries for the post-war period. We argue that social organizations contribute directly to broader welfare aspects of development as part of the third sector of the economy, which undertakes the provision of public goods, such as health and education, in synergy with state institutions. This is counter to views that associate social organizations with anti-growth rent-seeking and lobbying activities. We begin with a multivariate regression analysis, which reveals that membership in social organizations is positively associated with human development, along with state institutions of public expenditure and the quality of governance. We then conduct a case study analysis to explore further the historical and cultural contextual factors of European welfare systems that determine the capacity of third sector organizations to enhance generalized co-operation, synergistic relations and social welfare against particularist interests.

Social Capital: A Roadmap of Theoretical and Empirical Contributions and Limitations

Abstract The general idea of social capital is that relationships matter. In this sense, the trust, cooperation and reciprocity involved in these relationships can have a positive impact on the wealth of society by reducing transaction costs, facilitating collective actions, and lowering opportunistic behavior. This work sheds light on the different theoretical and empirical problems that a scholar is likely to face in dealing with social capital research and analysis. We propose a critical roadmap of the social capital theories and applications for a general audience, nonusers included, with particular attention to the works of political and social economists. We provide a critical debate on the different definitions and measures produced, the theoretical frameworks developed, and the empirical techniques adopted so far in the analysis of the impact of social capital on socio-economic outcomes. We turn to the limitations of these techniques and suggest some basic strategies to reduce the magnitude of these limitations.

Social capital and rural development in Southern European regions: the case of EU-funded LEADER projects

The objective of this chapter is to examine the role of social capital in regional, rural development in the South of Europe through the EU-funded LEADER programme. LEADER’s aim is to provide rural communities with a method to tackle problems of local development by building new forms of partnerships and linking activities across various economic sectors, social groups and levels of governance. In this regard LEADER is inextricably connected to the neo-endogenous approach and relies heavily on local social capital. It has considerable appeal in rural areas of southern Europe, which have been hit hard by the crisis and are characterized by specific cultural and historical conditions and chronic structural problems. Yet we observe that funding and decision-making bodies at all levels have not explicitly and formally addressed and assessed the role of social dynamics and specifically of social capital in promoting rural development by exploiting LEADER funds. We argue that this must be remedied if we wish to enhance the effectiveness of these projects. The chapter begins with an overview of policy reports and case studies to examine the role of social capital in rural development and LEADER, particularly in areas of innovation, governance and marginalized groups. Then we use the lessons learnt from case studies in Greek and Italian rural areas in southern Europe to discuss alternative definitions and measures of social capital that take into account: economic and non-economic dimensions of local development; process-oriented evaluation methods; and context-specific characteristics of regions. Finally, we suggest ways to re-contextualize social capital in development programmes to improve their design, implementation and evaluation.

The economics of social institutions

The economics of social institutions has been a well-established research field for over a century, one that continues to expand and to develop new areas of investigation. Here Professor Davis and Dr Christoforou bring together in one easily accessible volume the most significant contributions by leading figures in this area.

Democratisation of Economic Research and Policy by Building a Knowledge Commons: Inspiration from Cooperatives

Abstract We argue that the virtual reality of homo economicus dominates our economic theories and policies, producing inefficient and unjust outcomes and thus leading to wasteful use or/and unequal distribution of resources. Thus we believe there is need to incorporate substantive aspects of human life and well-being as well as to embrace the plurality of people’s values, priorities and rationalities. To this end, we propose the democratisation of economic research and policy by building a knowledge commons and drawing inspiration from cooperatives. We begin our analysis by envisioning knowledge as a commons where all interested parties within science and society participate and deliberate on the basis of democratic principles and practices. To concretise our arguments, we introduce the historical example of cooperatives, which can play a prefigurative and transformational role by fostering democratic participation, redistribution and reciprocity. We describe specific ways in which these alternative economies can inspire economists to democratise research and policy.

Evaluation of Social Capital in LEADER: What’s In and What’s Out?

The European Common Monitoring and Evaluation Framework (CMEF) determines the different types of common indicators for the evaluation of the two pillars of the Common Agricultural Policy, inclusive of LEADER. Moreover, the European Evaluation Network on Rural Development, under the responsibility of the EC Directorate-General for Agriculture and Rural Development, proposes guidelines for enabling evaluation practices at different European, national, regional as well as local levels. This chapter reveals some of the shortcomings in the conceptualisation and operationalisation of social capital in LEADER and consequently it raises critical questions relating to the current evaluation system proposed for LEADER. This points to the need to propose an innovative evaluation method, which explicitly operationalises social capital and rural governance in LEADER initiatives, by thoughtfully considering the requirements set by the EU regulations.

Connecting Theory with Practice: Lessons from Bourdieu

[B]ecause the social world is present in its entirety in every ‘economic’ action, we have to equip ourselves with instruments of knowledge which, far from bracketing out the multidimensionality and multifunctionality of practices, enable us to construct historical models capable of accounting, with rigour and parsimony, for economic actions and institutions as they present themselves to empirical observation.

Innovative Elements of the Proposed Evaluation Method and Indications for Improving Monitoring and Evaluation Activities in Rural Development Policy

This chapter presents the innovative elements proposed in the method for quantifying and qualifying the endowment of social capital in Local Action Groups of the EU LEADER initiative. In sum, the innovative elements of the evaluation correspond to a deep scrutiny of the economic implications of social capital in rural areas; the identification of different dimensions and sub-dimensions of social capital and rural governance; the use of Social Network Analysis for the elaboration of data regarding information sharing, reputational power, and trust among actors; the proposal of a large set of indicators selected after a careful phase of testing in the field; the validation of a methodology in the field; and a first attempt at measuring governance in relation to social capital. The chapter concludes with recommendations on the implementation of the method for improving monitoring and evaluation activities in rural development policy.

Practicing Social Capital in Local Development: How the Method Applies to Real-World Cases

The proposed method for the evaluation of the endowment of social capital in LEADER has been developed following different sequential steps. In this chapter, we show that this stepwise process can be applied to European Local Action Groups (LAGs), it can be used for comparing values across indicators for both monitoring and evaluation, and the results obtained can unveil the intervention logic of “social capital” at different steps of aggregation. As promised in the introductory chapters of the book, we show the steps taken for opening the “black box” and identify how this method fits within the 2014–2020 programming period and specifically contributes highlighting the value added of LEADER.