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COLLEGE OF SOCIAL SCIENCE

COLLEGE OF SOCIAL SCIENCE

capital is: Social

capital is: Social capital has been defined in various terms. Bourdieu (1986) defines social The aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition-or in other words, to membership in a group which provides each of its members with the backing of the collectivity-owned capital, a “credential” which entitles them to credit, in the various senses of the word (p. 248- 249). In other words, the relationships of individuals in a social network provide social capital (Burt 2000; Lin 2005), because it is a resource embedded in a social network. Putnam (1995, p. 2) argues that “social capital refers to features of social organization such as networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit.” Fukuyama (2000) argues that social capital is a norm that generates cooperation among people, which is instantiated through human relationships. This norm arises through iterated Prisoner’s Dilemma games. One shot Prisoner’s Dilemma game does not produce the social capital because defection problems generate Nash equilibrium for both players. However, if iterated, both players may produce a better outcome by using tit-for-tat types of strategies. In other words, if people interact repeatedly, then they can be honesty and reliable to the other persons. This overcomes the problems of Hobbian self-interest. In “Governing the Commons,” Ostrom (1990) provides many cases of cooperative norms generated through repeated community interaction. Even though social capital has many faces depending on the definitions, the core element in social capital argument is Burt’s (2000) perception of social capital as “a metaphor about advantage.” As Burt (2000) argues that better connected people can do better, this advantage comes out from the socially relational structure. The central implication of capital is that an investment should yield some kind of return for the investor. Therefore, social capital is a return, or resource that is yielded from their investment in a social network (Coleman 1990). However, unlike physical and human 31

capital, social capital is embedded in, and asset of, the relations themselves (Coleman 1990). The repeated interactions might form institutions that generate rules, norms, and values providing advantages to address a certain issue. The network creates the institutional norms, which affect the individuals within the structure. The policy network regarding environmental conservation plays a role as informal rules and norms. First, environmental concerns in local land use regulation need collective actions of various local actors because environmental issues are usually cross-jurisdictional. A development in a jurisdiction might have spillover effects on surrounding jurisdictions. Therefore, efforts to preserve environment confirm the need to address collective action problems. In addition, land use policy making requires much of information regarding technical issues and requirements of state and regional laws. Local governments’ interactions regarding these planning issues and other local service activities provide local governments, who participate in the networks, upper hands of information power as well as make them stick together a certain policy issue such as environmental policy. Based upon Burt (2000) argument, this interaction means connectedness among local governances, which provides better instruments to give cooperative incentives to local governments and, thus increase higher possibility to provide more environmental goods. Actors do benefits and transaction costs analysis in the context of informal institutions as well as formal institutions. Therefore, the network of local governance reduces information costs and opportunistic behaviors. Social capital for environmental concerns is to address collective action problems and to help providing socially accepted policy outcomes, which are embedded in informal institutional rules and norms. Configuration of institutions. The other important part of this study is that institutions are not always additive; rather it has “configural nature of rules” (Ostrom et al. 1994). Mostly used analysis for land use policy is to separate the whole into several component parts and analyze the influence of one component ceteris paribus. As Ostrom (1999) argues, incentives and constraints of one rule are not independent of the configuration of other rules. In the land use policy settings, local political institutions 32

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