UPSC Prelims 2019 Q80: Indian Economy – Human Development, Poverty & Employment Schemes
- (a) The proportion of literates in the population
- (b) The stock of its buildings, other infrastructure and machines
- (c) The size of population in the working age group
- (d) The level of mutual trust and harmony in the society
Answer: (d) The level of mutual trust and harmony in the society
Explanation
Social Capital: Concept
| Option | Type of capital |
|---|---|
| (a) Literacy proportion | Human capital - skills, education |
| (b) Buildings, infrastructure, machines | Physical capital - tangible productive assets |
| (c) Working-age population | Demographic dividend / labour force - not social capital |
| (d) Mutual trust and harmony in society | SOCIAL CAPITAL - networks, trust, norms of reciprocity that enable cooperative action |
Social capital (Robert Putnam, James Coleman) = the networks, trust, and norms in a society that enable individuals and groups to cooperate for mutual benefit.
Answer: (d) The level of mutual trust and harmony in the society.
Why each option is right or wrong
- (a) Incorrect. Literacy proportion is human capital (Amartya Sen's capability approach), not social capital.
- (b) Incorrect. Buildings and machines are physical capital.
- (c) Incorrect. Working-age population is demographic capital / labour force.
- (d) CORRECT. Social capital = mutual trust, networks, norms of reciprocity that enable cooperation - Putnam and Coleman's classic definition.
Key point
Capital types: Physical (buildings, machines), Human (skills, education), Financial (money, credit), Natural (resources, ecosystems), SOCIAL (trust, networks, norms), Cultural (art, heritage).
Remember
In the context of a country, the level of mutual trust and harmony in the society would be considered as part of its social capital. Social capital refers to the networks, trust, and norms of reciprocity that enable individuals and groups to cooperate for mutual benefit.
Common mistakes
- Confusing social capital with social security - unrelated (social security = welfare schemes).
- Assuming social capital means literacy or education - that is human capital.
- Not knowing Putnam's 'Bowling Alone' (2000) popularised the concept of declining social capital.
Exam tip
Robert Putnam typology: Bonding social capital (within a group), Bridging social capital (across groups), Linking social capital (between citizens and institutions). All important for democracy and development.
Sources
- Robert Putnam - Bowling Alone: The Collapse and Revival of American Community (2000)
- NCERT Class 11 - Indian Economic Development (Human capital vs social capital)