The New Face of the Development: Social Capital

Abstract

Classical models were insufficient in measuring development differences in countries because of focusing only capital stocks. On the other hand, new approaches discuss development with countries’ social capital. Social capital which shows relations between countries depend on confidence and affect a country’s economic, politic and social success.

The confidence element has an important role in the social capital. The researches show that a society is called an underdeveloped one when the confidence is weak in that society. The existence of the social capital is mentioned in the societies with high confidence levels. Societies with the high level social capital together with human capital experience a rise in their life qualities. Many elements in the researches done come into prominence when the standards of the social capital are examined. When these are examined generally, the existing number of institutions and confidence elements are found.  Although many researches are shown as a standard of the social capital, it is the confidence element that occupies an important place among them.  At the same time, the existence of the social capital and the confidence element provide a decrease in temporal and monetary costs. The works operate in a busier and more rational way when in that society people’s and institutions’ reliability arise. The interaction here completely relies on confidence. Since this element exists in most of the developed countries, their level of success is higher.