Page 1

Inter-American Development Bank Sustainable Development Department Marco FERRONI, Deputy Manager

Social Capital and Social Cohesion: Definition and Measurement Taller de Consulta sobre MEDICION DE LA CALIDAD DE VIDA IDB, Washington DC December 8, 2006


The strategic importance of the social agenda • The Latin American social reality is one of persistent poverty, deep inequality, economic polarization, and, frankly, frustration. • Improvements in living conditions worldwide, democratization, urbanization and globalization are – Rendering more visible the problems of exclusion and desprotección. – Strengthening many citizens’ perception of being disenfranchised and betrayed.

• The economic and political costs are widely felt.


The relevance of the concepts of social capital and social cohesion • In this context, social capital and social cohesion, as cumulative societal concepts to be defined below, and as both means to attain certain desired results and ends in themselves, clearly are relevant dimensions of the standard of living anywhere. • They are increasingly invoked as desiderata in the evolving discussion of the social agenda and social rights in LAC.


This presentation

• The purpose of this presentation is to propose a definition specifically of the concept of social cohesion and an approach to measuring it. We proceed in two parts: Part I:

Cumulative definition and measurement. Part II: Exploration and measurement of key contributing dimensions: Solidarity, social protection, citizenship.


Part I

Cumulative definition and measurement


Definition of social cohesion

• Social cohesion is the capacity for cooperation in society based on the set of positive effects accruing from social capital, in addition to the sum of factors promoting equity in the distribution of opportunities among individuals.


Why an index of social cohesion? • To synthesize the state of cohesion in different countries. • To enable a systemic view, not limited to the individual components observed in isolation. • To permit examination of the relationships between levels of cohesion and variables of choice.


Social cohesion index

Distribution of Opportunities

Social cohesion

Positive effects

Social capital Negative effects

Poverty incidence GINI Size of the middle class Educational GINI Intergenerational mobility Compliance with the law Interpersonal trust Trust in public institutions Trust in politicians Labor conflict Crime victimization Homicide rate


Issues and challenges • • • • • • • •

Theory and architecture of index. Choice of variables flowing from definition. Data and observations. Soft (i.e., perception) vs. hard data. Standardization. Weights. Sensitivity analysis, robustness. Future directions.


Annual Growth in GDP per Capita

Social cohesion vs. growth ˆ‡ CHL

ˆ± PAN DOM ARG

ˆÜ SLV

ˆ

PER

BOL GTMCOL NIC

ˆ0

HON

CRI URY

MEX ECU

BRA

VEN

C = .554* ˆ[

PRY

k

… î

:

Ò Social Cohesion Index

* Correlation is significant at the 0.05 level

Source: IDB, 2006.

k

·


Social cohesion vs. innovation Index of technological innovation

(~ CHL

(å BRA

(K SLV COL

MEX

ARG

CRI URY

DOM PAN VEN

PER

(² HND

GTM BOL

(

NIC

ECU PRY

C = .627**

( ™

î

D

ï

Social cohesion index ** Correlation is significant at the 0.01 level

Source: IDB, 2006.

D

š

ï


Part II

Key contributing dimensions: • Solidarity (revenue and spending). • Social protection (employment, social programs, social security and pensions). • Citizenship (trust, institutions, and more).


The tax burden today

Source: ECLAC, 2006.


Social expenditure trends

Source: ECLAC, 2006.


Solidarity: The agenda ahead • Revenue: – Improve equity and revenue-raising potential of tax systems. – Reduce informality. – Reduce corruption.

• Expenditure: – Basic universalism. – Effective and transparent targeting where appropriate. – Break the vicious cycle of:  Insufficient contributions  weak institutions  low delivery performance  citizen dissatisfaction.


Unemployment and growth


Social programs: In health, high out-of-pocket spending a key source of vulnerability for the poor

Source: ECLAC, 2006.


Pension reform has not addressed the needs of women, informal workers, and the poor Labor Force Coverage, Before Reform and in 2002 (percent of labor force, except as indicated) Coverage before reform Model/Country Substitutive Chile Bolivia Mexico El Salvador Dominican Republic Nicaragua Parallel Peru Colombia Mixed Argentina Uruguay Costa Rica Ecuador Averageb

Year before % reform Contributors

Coverage in 2002

Poverty Rate

Participants

Contributors

%a

1980 1996 1997 1996 2000 2002

64 12 37 26 30 16

111 23 72 40 -

58 11 30 19 16

21 61 41 50 30 68

1993 1993

31 32

28 59

11 24

48 55

1994 1997 2000 2002

50 73 53 21 38

69 d 77 e 65 63

24 d 60 e 48 21 27

c

25 10 21 61 42

Source: Crabbe (ed), 2006.


Social protection: The agenda ahead • Labor market reform. • Technology and human capital for enhanced “labor market capability.” • Pro-poor, inclusive systems of services and protection (health, disability, unemployment, old age). • Comprehensive advances in social assistance based on broadly framed risk analysis, an understanding of fuerzas potenciables at the family and community level, and evaluation.


Interpersonal trust 1996-2004

81

79

20

21

16

18

15

18

19 96 -2 00 4

78

20 04

82

20 02

76

19 99 /2 00 0

77

19 98

19 96

100 80 60 40 20 0

One can trust in the majority of people One can never be sufficiently careful in relations with others


Trends in support for democracy and satisfaction with democracy 1996-2005 70

63

61

60

59

60

47

50

40

36

40 30

55

35

33

27

25

53

53

53

28

29

30

20 10

Support for Democracy

Source: Latinobarometer, 1996-2005

20 05

20 04

20 03

20 02

20 01

20 00

19 99 /

19 98

19 97

19 96

0

Satisfaction with Democracy


Confidence in institutions 1996-2005 90 80 70 60 50 40 30 20 10

Legislature

Parties

Source: Latinobarometer, 1996-2005

Judiciary

20 05

20 04

20 03

20 02

20 01

19 99 /2 00 0

19 98

19 97

19 96

0

Armed Forces


Confidence in institutions 1996-2005 90 80 70 60 50 40 30 20 10

Legislature

Parties

Source: Latinobarometer, 1996-2005

Judiciary

20 05

20 04

20 03

20 02

20 01

19 99 /2 00 0

19 98

19 97

19 96

0

Armed Forces


Confidence in institutions 1996-2005 90 80 70 60 50 40 30 20 10

Legislature

Parties

Source: Latinobarometer, 1996-2005

Judiciary

20 05

20 04

20 03

20 02

20 01

19 99 /2 00 0

19 98

19 97

19 96

0

Armed Forces


Confidence in institutions 1996-2005 90 80 70 60 50 40 30 20 10

Legislature

Parties

Source: Latinobarometer, 1996-2005

Judiciary

20 05

20 04

20 03

20 02

20 01

19 99 /2 00 0

19 98

19 97

19 96

0

Armed Forces


Citizenship and institutions: The agenda ahead • • • • • •

Promote political inclusiveness through better institutions of representation and participation. Make legal rights accessible and effective for all citizens. Build open and inclusive markets that work for the poor. Design policies and service delivery institutions to provide access to the poor. Voice and the right incentives for key actors. Intelligent regulation.


Inter-American Development Bank Sustainable Development Department

Social Capital and Social Cohesion Taller de Consulta sobre MEDICION DE LA CALIDAD DE VIDA IDB, Washington DC December 8, 2006


social capital and social cohesion: definition and measurement  

the purpose of this presentation is to propose a definition of the concept of social cohesion and an approach to measuring it. we proceed in...

Advertisement
Read more
Read more
Similar to
Popular now
Just for you