A Simple Complementary Development Mechanics for African Countries

Soumyananda Dinda ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides a simple development mechanism for African nations, where economic development is low due to not only low level of physical capital but also poor social capital that leads to lot of conflicts. The study suggests for development of social capital, which is a broader concept containing the social norms and networks that generate shared understandings, trust and reciprocity, which underpin co-operation and collective action for mutual benefits that creates the base for economic prosperity. Social capital like trust could be accumulated when people interact in a purposeful manner with each other in workplaces, associations and range of informal and formal meeting places. These social activities increase with development of human capital through schooling. Educated individuals are interested in dialogue and conversation, which enables people to build societies, to commit them each other, and thereby to knit the social fabric and allow nation to advance smoothly. This study deals with the building of bridging and linking social capital through human capital formation that is created from productive consumption. This paper develops mechanism through which such social capital forms and contributes to economic growth in endogenous growth framework. Poor African countries can overcome low level equilibrium trap with creating social capital.

Keywords: Social Capital; productive consumption; reciprocity; human capital; economic development; low level equilibrium trap; bridging social capital; Linking social Capital (search for similar items in EconPapers)
JEL-codes: D11 E21 I15 I18 I25 I32 J24 O15 Z13 Z18 (search for similar items in EconPapers)
Date: 2009-03, Revised 2014-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/55307/1/MPRA_paper_55307.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:55307

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().