Thursday, September 18, 2008

Social capital and building our society

The World Values Survey, mentioned in my previous post, paints a grim picture about levels of trust in South Africa. However, this survey probably does not give the full story. The Survey asks a simple question:

“Generally speaking would you say that most people can be trusted, or that you can’t be too careful when dealing with people?”

with the following response options:

1. Most people can’t be trusted
2. You can’t be too careful when dealing with people
3. Don’t know

Tracy Jooste’s article (also mentioned in my previous post) suggests that one of the difficulties with this question is that it offers no positive response options, and she argues that trust is a situational concept that cannot easily be measured in a general sense. A more nuanced approach is called for. While people may give a negative response to a generalised question, if you ask them about particular engagements (eg. with neighbours, members of their community etc) you may find different responses.

Social capital exists in trusting relationships between people in their interactions in communities, organisations and society in general. It is increasingly recognised worldwide as a valuable form of capital, (although the value of it is harder to measure than financial or physical capital).

South African economist JP Landman has argued in Business Day that social capital is one of four factors that can lay the basis for sound economic development of the country. The four factors he identifies are: a growing economy; ‘re-creating’ social capital; strengthening institutions, and enforcing rules (I guess with underpinned by the concept of the rule of law).

I especially like one of his comments: "It's nice to live in a society where people are getting richer, but it's also nice to live in a society that's getting nicer".

Realising the full potential of stimulating social capital development requires a new focus. Currently, we as a country put huge resources into human capital development – essentially training people in specific skills to be able to meet the skills shortages in the country. In relative terms, we put practically nothing into creating social capital. Increasingly there is evidence showing that stimulating social capital can bring returns by way of increased innovation, creativity and smart thinking – all badly needed if we are to be able to solve complex problems in this country and the continent.

Affirmative action going backwards?

The latest Employment Equity Commission Report (2007/8) makes disturbing reading. The Report indicates progress being made at normalising the demographics of the South African workplace through the implementation of employment equity plans in companies employing 50 people or more.

While progress in bringing in previously disadvantaged people to senior levels is still slow, there is worse news at the middle Professionally Qualified & Middle Management levels.

At these levels the representation of black people generally showed a decrease of 8.7% from 50.0% to 41.3%. The representation of white people increased by 8% from 49.2% to 57.2% over the same period.

As these are the levels from which the next cadre of senior managers are recruited, the indications are not good for creating a more representative senior manager level in the short-medium term. It makes one wonder what is actually happening in companies if the reported numbers are going in the wrong direction?

While this is not good news, it does make one wonder about all the whinging from white people who claim that they cannot get jobs due to reverse discrimination.

1 comment:

Joitske said...

Hi Mark, great that you started a blog! If you like writing, I think you'll enjoy it as a way of structuring your thinking. I'll add it to my list of blogs to read!