The strength of a country\u2019s network of social relationships \u2013 what can be described as its stock of \u2018social capital\u2019 \u00ad\u2013 has a significant influence on a broad range of socio-economic indicators, including measures of health, inequality, productivity and economic growth.<\/p>\n\n\n\n
Data for the UK as a whole and for Scotland indicate that, going into the crisis, social capital was declining. It is unclear whether or not the pandemic will exacerbate this trend. But given widespread evidence of the positive effects of social capital and the dramatic effects that Covid-19 has had on so many parts of our lives, it is likely to play an important role in the post-pandemic recovery.<\/p>\n\n\n\n
It is therefore worthwhile examining how Covid-19 has affected these vital networks in the UK and what policies might be needed to strengthen or rebuild them.<\/p>\n\n\n\n
Social capital means different things to different people and there is no single widely accepted definition. But there is a commonality of the relevant factors and concepts that underpin the various interpretations.<\/p>\n\n\n\n
For example, social capital has been described as \u2018an instantiated set of informal values or norms shared among members of a group that permits them to cooperate with one another. If members of the group come to expect that others will behave reliably and honestly, then they will come to trust<\/em> one another\u2019 (Fukuyama, 1999)<\/a>.<\/p>\n\n\n\n Similarly, it is argued that social capital \u2018generally refers to trust, concern for one\u2019s associates, a willingness to live by the norms of one\u2019s community and to punish those who do not\u2019 (Bowles and Gintis, 2002<\/a>). For others, \u2018social capital refers to connections among individuals \u2013 social networks and the norms of reciprocity and trustworthiness that arise from them\u2019 (Putnam, 2000<\/a>).<\/p>\n\n\n\n Trust seems to be the key word that captures the central element of what social capital is all about.<\/p>\n\n\n\n Mutual trust underwrites our interactions, whether they are private, social, economic or political in nature. From an economic perspective, firms can benefit from the cooperative trust embodied in various types of networks, since this can reduce transaction and monitoring costs, and help to facilitate an efficient allocation of resources.<\/p>\n\n\n\n In contrast, society wastes resources when people distrust each other and are dishonest. For example, management may have to introduce complex monitoring and surveillance systems in the workplace to ensure staff to fulfil their work time obligations.<\/p>\n\n\n\n At the macroeconomic level (in other words, looking at the economy as a whole), it has been demonstrated that inter-personal trust is strongly linked to GDP growth (Knack and Keefer, 1997<\/a>). It has also been shown that \u2018trust-based cooperative relations\u2019 between different organisations have contributed to the competitive advantage of manufacturing enterprises in Germany and Japan, as well as in parts of Italy (Humphry and Schmitz, 1998<\/a>).<\/p>\n\n\n\n Further, a variety of studies have demonstrated that social capital is positively associated with improved health outcomes along a number of dimensions, as well as reduced inequality and a reduction in crime rates (OECD, 2000<\/a>; OECD, 2010<\/a>). When there is trust embedded in our communities, individuals and society as a whole benefit.<\/p>\n\n\n\n The most recent study of social capital in the UK by the Office for National Statistics (ONS) was published in February 2020 and included data for the year up to the end of Autumn 2019 (ONS, 2020<\/a>). The ONS measures social capital in terms of personal relationships, social network support, civic engagement, and trust and cooperative norms \u2013 using 25 indicators of social capital in total.<\/p>\n\n\n\nWhat are the benefits of social capital?<\/h3>\n\n\n\n
What are the recent trends in social capital in the UK and Scotland?<\/h3>\n\n\n\n
Figure 1: Trust (%) in national government in the UK, 2004-2019<\/h4>\n\n\n