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Center for Integrative Studies

Social & Community Development

Nicholas KangApril 3, 2012

Interest in civic affairs. History of rural areas raising questions

about various disparities. Fascination with every aspect of team

building (multi-organizational, business-oriented, planning committees, etc.).

Why Social & Community Development?

The Major

Exploration of Social & Community Issues

Skills Development for Social & Community Development Practice

Experiential Learning in Social & Community Development

NURS 130 – Family Violence MEDIA 160 – Mass Media BI/ES 228 – Environmental Health EDUC 290 – Education Psychology IS 218 – Chronicles of the American

Immigrant Experience

Exploration of the Issues

ECON 121 – Principles of Economics (audit)

STAT 212 – Statistics for Science PSCI 221 – Environmental Policy

(Australia) ECON 249 – Urban Economics MGMT 251 – Management MGMT 383 – Management Policy &

Strategy

Skill Development

IS 216: Ideals to Action Academic Internships

Davis Project for Peace Smart Step Youth Assoc. School for Social Entrepreneurs (UK) Community Economic Development

(Opportunity International – Nicaragua) External Experiences

Sarswati Foundation Water Conservation Educator & Promoter

Experiential Learning

Study various social change projects.

Analyze various project proposals. Develop the STO Talks Conference. Define social innovation, community

development, and their synergies.

Senior Project – Sem. I

Senior Project – Sem. II

GOAL: Investigate and analyze economic/community development strategies through their effects on economy and social capital.

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Implications of various Community Development Strategies for Rural Economic Regions

An investigation of economic leakages, pull factors, and social capital.

Historical drain of rural economies. Home to 19.5 million Americans. Significant aspect of the production

and manufacturing economy. Civic leaders make short-term

desperate decisions to stimulate population and economic growth.

Decisions have both economic and social effects on the community.

Why rural economic regions?

Business Entry Types

Large Retail Transplants(ex. Wal-Mart, Target, etc.)

Local Production & Sales

(Community Supported Agriculture, Co-ops,

etc.)

Characteristics: Introduction of the box-store and the

one-stop-shop. Provided a sustainable competitive

advantage of economies of scale. Provides numerous jobs. Brings in high skilled managers. Low price leads to high demand and

pull factors. Allows the local dollar to go further

increasing the relative spending power of the consumer.

Large Retail Transplants (LRTs)

Characteristics: Local production and inputs that can be

controlled – opportunity to reduce leakages.

Dollars spent stay within local economy causing multiplier effect.

Supply in excess can become an export and therefore a pull factor.

Low pull-factor reliance means less susceptible economy to the actions of neighboring economic regions.

Capitalizes on local entrepreneurship and community organization.

Community Supported Agriculture (CSAs)

PART ILocal Retail Transplants and Community Supported Agriculture groups & Co-ops effect on rural economies Analysis using leakages & pull factors

PART IILocal Retail Transplants and Community Supported Agriculture groups & Co-ops effect on rural social capital Analysis using Reimer, Putnam, and

Coleman’s characterizations of social capital

Effects on Rural Economies & Social Capital

Part I:

Pull Factors & Leakages

Kenneth E. Stone’s Study of Wal-Mart 10 year longitudinal study of 34 Iowan

towns Measuring pull factors and leakages via

local sales and income generation

Findings Wal-Mart regions showed initial increases in

sales Non-Wal-Mart regions showed steady

decline in sales Wal-Mart regions showed a steady rate of

decline in sales in later years of the study

Economic Effects of LRTs

Speculations of the Growth & Decline of Sales:

Growth phase – Region regaining lost sales of prior

leakages. Develop their own pull-factors.

Regression phase – New leakages develop. Pull factors are lost as neighboring

regions attain their own Wal-Mart or other large-retail stores.

Economic Effects of LRTs

Conclusions Large retail transplants force

neighboring rural economic regions to enter an “arms race” to fight over pull factors and leakages.

Communities with greater spending power will continuously have the upper-hand.

Policy makers and politicians should be cautious of the long-term economic effects.

Growth in sales is not necessarily sustainable.

Economic Effects of LRTs

Ken Meter & Jon Rosales Study Study of the economic inputs and

outputs of the current agriculture system in Southeastern Minnesota.

$866-million earned by farmers (1997) – still $80-million less than what it cost for them to produce.

$400-million of expenses are from imports (fertilizers, seeds, and interest on loans).

Economic Effects of CSA

Implications from Meter and Rosales Current agriculture system relies heavily

on imports (fertilizers, manures, seeds, etc.)

Major leakages exist in the current system

Current agricultural system is an economic drain

Opportunity for practices to change

Economic Effects of CSA

Conclusions: Creating a local food economy

Focus on meeting the needs of the community

Less likely to cause an arms race with neighboring economic regions (subtle pull factors)

Controlling imports Using local manures, fertilizers, and banks Development of co-ops and communities for

equipment sharing and sales Result: reduced leakages.

Economic Effects of CSA

(Local food economies vs. Local production economies?)

Summary of Economic Impacts

Social Capital:“Features of social organization such as networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit” (Putnam 1995).

Part II:

Social Capital

James Coleman Relation with human capital Inputs of health and education

Robert Putnam Bridging and Bonding Formal and non-formal transactions

Bill Reimer Four forms of social relations

Market-based Bureaucratic-based Associative-based Communal-based.

Social Capital

Coleman’s Inputs ofHuman and Social Capital

Education

Health

Putnam & Reimer’s Synergies of

Social Capital

Bridging Bonding

FormalTransactions

Non-Formal Transactions

Analyzing Social Capital (Coleman)

Input Indicator

Human Capital: Health

Does the strategy promote the health security and/or services of the rural region?

Does the strategy promote a healthy lifestyle for the region?

Human Capital: Education

Does the strategy affect local education providers?

Does the strategy encourage and facilitate intellectual growth, independence, and development of transferable skills?

Input Indicator

Market-based Relations a

Does the strategy improve the exchange of goods and services and free information flow?

Does the strategy promote product mobility? b

Bureaucratic-based Relationsa

Does the strategy encourage and facilitate impersonal and formal relationships as a result of social structures and hierarchies in society?

Associative-based Relationsa

Does the strategy organize individuals with shared interests and facilitate the processes to define and achieve focused objectives?

Communal-based Relationsa

Does the strategy improve the community’s ability to develop meaningful relationships, surplus financial or human capital, and surplus services?

Analyzing

Social Capital (Putnam/Reimer)

Social Capital:

Wal-Mart & LRTs (Coleman)

Input Strategy’s Effect on Social Capital

Human Capital: Health

Reduced benefit packages and wages lead to greater reliance on public services.

Sets “low-cost” tone for other businesses – all jobs shift to lower wages and benefit packages.

Jobs created are not physically or mentally demanding.

Human Capital: Education

Rigid managerial practices are taught– experiential learning restricted.

Forces local businesses to be “entrepreneurial” for survival.

Trainee courses, mentoring systems and orientation programs to develop values, policies, and best practices.*

* Question the transferable skills of trainee courses, mentoring systems, and orientations.

Input Strategy’s Effect on Social Capital

Market-based Relations a

Introduce efficient means of exchanging goods and services and acts as a feeler and pre-curser for other LRT entries.

High contract-related trust due to transaction numbers. Economic gains from the market-based relations leak to HQs.

Bureaucratic-based Relationsa

Rigid managerial systems provide stability and order to the workplace and members of the community increasing overall efficiency.

Can provide the framework for other small but developing businesses to incorporate more structure in the ventures.

Social Capital:

Wal-Mart & LRTs (Putnam/Reimer)

Input Strategy’s Effect on Social Capital

Associative-based Relations a

Restricted by bureaucratic-based relations developing the internal structure.

Associative relations that form between LRTs and the community are slim to none.

Corporate social responsibility projects often indirect. (ex. Wal-Mart stores are located in rural economic regions, charity is provided in urban centers or overseas.)

Communal-based Relationsa

Training processes and organizational culture develops “family-like” relationships.

First-name basis for all interactions (internal & external) breaks down hierarchal differences from client to manager.

Externally, no development of informal or formal trust.

Social Capital:

Wal-Mart & LRTs (Putnam/Reimer)

Social Capital:

CSA & Co-ops (Coleman)

Input Strategy’s Effect on Social Capital

Human Capital: Health

No affect on the availability of health benefit packages and health insurance.

May play positive role in community health through the promotion and distribution of fresh agriculture products to the immediate community.

Human Capital: Education

CSA can play as significant learning tools for students – farmers incentivized to know the customer.

Entrepreneurship and leadership developed organically through the organization of the CSA movement or cooperative.

Business and organizational development skills are developed through trial and error processes.

Input Strategy’s Effect on Social Capital

Market-based Relations

Acts as a major disturbance to the already established market relations of a monoculture, cash crop agricultural system.

Products for local consumption inhibit product mobility through exports.

Bureaucratic-based Relations

Initial disturbance of current bureaucratic relations leading to inefficiencies.

Formal identity of association in the long-term improves efficiencies of sharing best practices, equipment, and financial capital through contracts and trust.

Social Capital:

CSA & Co-ops (Putnam/Reimer)

Input Strategy’s Effect on Social Capital

Associative-based Relations

CSA groups and cooperatives are founded on individuals with shared goals and objectives.

Limits of size exist in CSA groups and cooperatives as they meet local market demands.

Example of how associative-based relations can develop into market-based relations and income generation.

Communal-based Relations

Shared investment in CSA and cooperative strategies facilitates meaningful relationships.

Weaker bureaucratic relations provide CSA and cooperative strategies flexibility to have stakeholders to be more invested in the goals and objectives.

Social Capital:

CSA & Co-ops (Putnam/Reimer)

Strategy Web:

Wal-Mart & LRTs

Increase in pull-factors and sales.

Decrease in human capital: education & health.

Develops models of market/ bureaucratic relations adapted by other businesses.

Decrease in over-all leakages.

No growth in communal relations & steadily decreasing sales due to a loss of pull factors.

Increase in market/ bureaucratic relations.

Strategy Web:

CSA & Co-ops

Founded on strong associative and communal relations.

Disturbance of market/ bureaucratic relations.

Development of functional market/ bureaucratic relations from formalization of associative relations.

Decrease in over-all leakages, and human capital: health; and development of human capital: education.

Possible increase in local pull-factors.

Development reaches limit as supply meets local demand.

Summary Each strategy has various effects on

the inputs and forms of social capital. Various analyses tools provide a

broader view of how these various strategies affect social capital as a whole.

Over developed market- and bureaucratic-based relations can create pressures on human capital inputs

Major increases in associative- and communal-based relations can disturb efficiencies and weaken competitive advantagesAnalyzing

Social Capital

Economic and Social Capital effects of CSA and cooperatives

Need to further investigate how CSA and cooperatives affect pull factors and leakages.

Critique of social capital What are the critiques of social capital

and how do they apply to these analyses.

Future Investigation &

Study of Social Capital

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