Social Capital

In November the Economist published a ranking of democracies in the world. The ranking had 4 categories: full democracy, defective democracy, mixed regimes and authoritarian states. SA was classified in category 2 as a “defective democracy” and ranked 29th out of 167 countries

Britain , the mother of parliamentary democracy, came in at 23 and the US at 17. Sweden, Iceland and the Netherlands took the first 3 places. The winners of the Soccer World Cup, Italy, came in at number 34. The world’s largest democracy, India, came in at 35.
SA misses the category of full democracy due to concerns about “political culture” – specifically whether there is enough “social cohesion” also known as social capital.

Definition
What is social capital? It relates to values, trust, reciprocity and thru these the degree of cohesion in society. As one expert put it: “Financial capital sits in the bank, human capital in skills and social capital in relations with others.”
Thus, you pay your taxes and expect everybody else to pay theirs; you do not litter, because tomorrow you want to use the road and would like it clean; you do not buy stolen goods, because you would not like your goods to be so traded; you subscribe to common values and act accordingly in the expectation that others will do so as well.
The great guru of social capital is Robert Putnam, now from Harvard. Putnam made his name with his book “Bowling Alone” (2000). For us in SA, however, his most important contribution was that he illustrated quite convincingly that social capital explains the legendary difference between the Northern and Southern regions of Italy (1990).

In Japan the new prime minister has made reform of education law his top priority. A new bill he proposed is now getting flak because it is not strong enough on (hold your chair) “school violence, bullying, students’ refusal to attend classes, declining achievements”. (FT, 30 Nov 06). Sounds familiar?
In the UK the Blair government has launched several unsuccessful assaults on “yobbing”.
In Europe and the US the lack of social cohesion around Muslims/Christians and immigrants/locals is well documented. Call the issue one of “tolerance” (Netherlands), “integration” (France), “solidarity” (Germany), “Spanish immigration” (US). It all comes down to social cohesion, common values, trust and reciprocity … or social capital.

Why? Why is there a decline in cohesion; why the rupture in old values and practices that gave us cohesion? Could it be that increasing consumerism and its counterpart, increasing individualism, undermine solidarity and thus cohesion? Globalisation reinforces these developments enormously. Is the downside of globalisation the destruction of social capital as we know it? And if so, can it be re-created? The debate rages and research continues.

And in SA
SA is a textbook case of a society that will struggle with social cohesion. Simply because its differences are so enormous: white/black; black/not-black-enough (Western Cape ruptures); English/Afrikaans (the Stellenbosch shenanigans); rich/poor; immigrants/locals (Somali murders in the Western Cape); Christian/Muslim; traditional/modern (gay marriages uproar); skilled/unskilled and so the list carries on.
The SA divisions were neatly summarised by the New York Times Magazine (3 Dec 06) who quoted a Nobel laureate: “In the mid-’80s, J. M. Coetzee famously asserted that the great South African novel — a book that would encompass all strata of society the way “War and Peace” did for Russia — would be impossible to write in a country so divided.”

Given these divisions, 29 out of 167 in the democracy ratings is quite remarkable. The marvel is that the country is enjoying the cohesion it has. But make no mistake we are paying through crime, corruption and some weak delivery for the lack of social capital.

So What?
Can SA overcome its divisions and create the social capital that will strengthen social cohesion and the quality of its democracy? The following is a checklist:

1. Economic growth is a huge creator of social capital. It binds people in and gives them a stake. For cohesion, it is the single most important task SA has to get right.
2. More jobs to let more South Africans work. Currently about 40% of the 15-65 year olds in SA work. That number should preferable rise to 65% and more. (The figures for the EU and US are 66% and 72% respectively). On current demographic and employment trends it will take time to get there. (Ok, 55% would still be a huge improvement.)
3. After jobs, more health, education and property ownership to reduce social exclusion. That means water, sanitation, clinics, houses, farms and so on.
4. Build a social security net for the excluded and marginalized.
5. Leadership. We have had a good run with the two Ms (Mandela & Mbeki). Did you expect an ANC president at P.W. Botha’s funeral?
6. Integrated Minorities. Some Coloureds are unhappy and some whites display secessionist tendencies. (Although I would not equate these two – the one has a genuine gripe!)
7. Develop new institutions of continuity. The Constitution is the main and critical one. In this respect 2006 has been a good year.
• The authority of the Court went unchallenged both in the gay marriage legislation and the non-introduction of the death penalty (the Constitutional Court ruled unambiguously on these two issues). This was courtesy of the ANC, because virtually all other parties wanted constitutional changes.
• On the other hand, the government was forced by public pressure to withdraw bills that could have impacted on the Constitution and Court.

In my opinion, the Constitution should not be changed to cater for popular opinion…. be it the death penalty or property rights! Stick to core values, create continuity.
With the basics of democracy established and the economy growing as it has not for decades, SA is now busy with its most difficult task – creating the social capital needed for modernity. We can become like Southern Italy or develop social capital and become like Northern Italy. Decide for yourself on the above checklist – for me the trend is discernible. But of course, it can be “a damn close run thing”.

Enjoy the festive season!