{ Center for Integrative Studies Social & Community Development Nicholas Kang April 3, 2012.
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Transcript of { Center for Integrative Studies Social & Community Development Nicholas Kang April 3, 2012.
{
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.
{
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
Works Cited
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