Cents and Sociability: Household Income and Social Capital in Rural Tanzania

This paper examines empirically the effect of some commonly used indicators of social capital, such as the prevalence of trust on community members and the participation in voluntary secular and religious organizations, on the incidence of violent crimes. This is a cross-country study whose basic sample consists of 39 developed and developing countries and whose dependent variable is the national intentional homicide rate. The paper identifies and deals with three challenges in the empirical estimation of the effect of social capital on the incidence of violent crimes. The omittedvariable problem is dealt with by including income inequality and economic growth as additional determinants of a country’s violent crime rate. The joint endogeneity (or reverse-causation) problem is accounted for by using instrumental variables for social capital in the crime regression. The specificity problem, that is the potentially opposite effects of group-specific and society-wide social capital, is noted and addressed only indirectly by emphasizing the results applied to the social capital indicators that have application for society as a whole. The main result of the paper is that only the component of social capital measured by trust on community members has the effect of reducing the incidence of violent crimes. The results regarding measures of other indicators of social capital are rather unclear. This may be due to a combination of limited samples, inability to fully control for reverse causation, and most likely, the opposite effects that society-wide and group-specific social capital may have on violent crime. ∗ Lederman and Menendez are economists with the Office of the Chief Economist for Latin America and the Caribbean of the World Bank. Loayza is a senior economist with the research department of the Central Bank of Chile, and he is currently on leave from the Development Economics Research Group of the World Bank. The opinions expressed herein should not be attributed to the World Bank. The authors are grateful to Ed Glaeser, Jeff Grogger, Gale Johnson, Sanjay Marwah, Steve Messner, Nicholas Sambanis, and an anonymous referee for invaluable comments and suggestions. The authors are responsible for any remaining errors.

Globally, financial inclusion is regarded as being crucial for balancing an economy’s financial system. However, despite the significance of financial inclusion, it still needs to be clarified to identify what factors are responsible for the diverse trend of financial inclusion in the forty-five Sub-Saharan Africa (SSA) countries from 1999 to 2024. The main rationale of the study empirically investigated these determinants of financial inclusion in forty-five Sub-Saharan Africa (SSA) countries from 1999 to 2024, which covers three distinct periods: which is the pre-COVID, 2020–2022 is the COVID period, and the post-COVID period from 2023 onward, but examined as a whole from 1999 to 2024 for easy policy formulation for SSA countries. The study was anchored on two main research objectives: firstly, to examine the factors influencing financial inclusion in Sub-Saharan Africa (SSA) in these three distinct periods, and lastly, to present the policy implications of the result of these factors in enhancing financial inclusion in the post-COVID era in SSA. The study used the Panel Least Squares (PLS) technique in the data analysis. The result revealed that economic growth (GRO), Islamic banking (ISMAIC), money supply (MSS), internet users (USERS), and credit availability (CREDIT) positively and significantly enhance financial inclusion with coefficients of 0.001298, 4.926809, 1.08 × 10−6, 0.459388, and 0.657431, respectively, with significant p-values of 0.0008, 0.0023, 0.0000, 0.0000, and 0.000, respectively. On the flip side, internet servers (SERVER) have a negative coefficient value of 4.63 × 10−6 with a p-value of 0.000. Though inflation (INFL) and interest rate (INT.) have negative coefficient values of −0.02853 and −0.08317, they have insignificant p-value impacts of 0.2841 and 0.2501, respectively. The result indicates that many of the variables have a significant impact on financial inclusion. This is shown from the probabilities of the t statistics of each of the independent variables in the estimated model, which are significant at the 5% level. The policy implications of these results include the following: firstly, SSA governments should promote economic growth through investment in productive sectors, infrastructure development, and job creation programs to indirectly improve financial inclusion. Secondly, SSA countries’ policymakers should maintain price stability through sound monetary and fiscal policies to ensure inflation does not hinder access to financial services. Thirdly, SSA countries’ governments and central banks should promote lower interest rates and enhance credit accessibility, especially for marginalized groups, through subsidized loans and targeted credit schemes. Fourthly, policymakers should support the expansion of Islamic finance by improving regulatory frameworks and increasing awareness about Sharia-compliant financial products.

‘Staying in the Nationalist Bubble’

Career success is defined as the positive psychological or work-related achievements one obtains through work experiences. For individuals, career success reflects the self-actualization of individuals. In an organization, employees' personal career success means the organization's making the best of its human resources and eventually contributing to its success. As career success is of concern not only to individuals but also to organizations, many researchers continue to identify the individual and organizational factors that facilitate employees' career success. At the individual level, demographic, social capital, human capital, motivational and work-family variables are possibly associated with career success. At the organizational level, organizational variables such as firm size, industry sector, organizational support and geographic location may also be related to career success. Though Chinese organizational researchers have identified many determinants of career success and some have qualitatively reviewed partially the related literature, no large-scale systematic attempt has been made to systematically summarize the existent literature. In order to quantitatively review the career success literature, we use meta-analysis which is of appropriate for several reasons. Firstly, meta-analysis is a quantitative review technique that can reduce the measurement error from sampling and unreliability in individual studies. Secondly, a critical review and synthesis of the related body of research can play an important role in theory development and building. Thirdly, as former scholars have already identified some factors that determined objective and subjective career success, it would, therefore, be theoretically valuable to review and compare the strength of predictors in determining the objective and subjective career success in order to guide future research and management practices. In this study, we use meta-analysis to examine the relative importance of three career competencies(i.e., human capital, social capital, and psychological capital) and their underlying mechanism of predicting career success. Four inclusion criteria were used to select individual studies for this. Firstly, we focused on studies with dependent variables including at least one kind of operationalizations such as promotion, salary or subjective career success. Secondly, participants had to be employees in Mainland China. Thirdly, correlations were reported in the study. Fourthly, if the same sample was repeatedly included in different studies, then only the study that including most number of variables would be used in the present study. According to the above four criteria, we identified 76 studies that covered 78 dependent samples and 21,570 employees. Based on the intelligent career framework, contest and sponsored mobility, the theory of market transition, and the imbedding perspective of social capital, we put forward our hypotheses. To test our hypotheses, we obtained a correlation matrix first through four steps(i.e., encoding, correcting for correlations, composition of correlations and calculation of effective seizes). Then, we utilized LISREL8.30 to test our hypotheses. The results showed:(1) human capital, social capital and psychological capital were positively related to objective and subjective career success;(2) while human capital could explain more variance of objective career success, psychological capital could explain more variance of subjective career success;(3) organization sponsorship partially mediated the relationship between human capital, social capital and career success; it also partially mediated the relationship between psychological capital and subjective career success. The relationship between psychological capital and objective career success was fully mediated through organization sponsorship;(4) psychological capital could predict better much better organization sponsorship. This study contributes to the career success literature. One major contribution is that our results reveal the differential effects of the three career competency on objective and subjective career success. This finding isimportant both to theoretical development and to the methodology of measuring career success. Secondly, we examined the underling mechanism on how human, social and psychological capital may affect career success. Thirdly, it is important to find the kind of criteria used by elites and its agents to give candidates sponsorship. This theoretical question is examined in the present study using meta-analysis. Our study also offers implications for managerial practices. First, managers should focus on developing subordinates' human, social and psychological capital. Second, individuals should be aware of the fact that career success does not only affect human, social and psychological capital, but also others sponsorship. Several limitations have been noted in the current study. First, potential moderators may exist in the relationships among the three career competencies and career success. But we have not examined the moderating effects. A third limitation of this study is that we have not been able to explore the synergy among the three career competencies by examining their interactions due to the limitation of meta-analysis. Third, like other meta-analyses that examine mediating process, the current meta-analysis has not included control variables in hypotheses testing because many studies have not provided correlations with these control variables.

two preoccupations are not mutually exclusive. Superficially, they share the common concern that liberalization is insufficient to resolve the subSaharan food crisis. At a deeper level, the two preoccupations are more intimately interrelated via the correspondence that links initial wealth to risk exposure and to behavior in both production and asset accumulation. A number of recent empirical studies of risk in low-income countries find that households are able to employ their accumulated assets to smooth consumption in the face of adverse agricultural production shocks. 3 Missing from these studies is explicit attention to the fact that the effective risk from which households insulate consumption is not that of production shocks directly, but of those shocks as socially articulated by institutions and property rights. This article explores the creation and distribution of effective risk, estimating how environment, technology, and social factors interact to construct it endogenously. 4 Put differently, this article develops the notion that the risk from which households ex post try to insulate consumption is not an immutable natural or technical feature of the landscape. As Michael Watt’s contrast between precolonial and colonial Nigeria forcefully demonstrates, the effective risk presented by an unchanged set of environmental and technical circumstances can

Dear Editor-in-Chief Social capital includes volume and quality of relations between human beings, which can facilitate cooperation between them. Based on numerous studies about development in the different world countries from 1988, it has been specified that social capital has an important role on development and progress of societies (1). For better understanding of social capital and its effects on society health, we start our discussion with a question: Why two societies that each of them have same demographic and economic situation, one of them has healthier population than other? Studies in different countries with same financial capital show that a progressive health care system can decrease all causes of death, improve health situation and save the costs (2–4). By coordinating and integrating different sections of health system (inter and between-sectoral), efforts for society health improvement bring better and more results and in this way a comprehensive model create for health care. Synergistic effect of cooperation between different parts can develop social capital and decrease inequity. Otherwise, for example, lack of health facilities in small cities and rural areas can increase immigration and marginalization in the big cities and endanger society health (2). Because of great gap in the health, education, workforce and people participation, inequity has expanded in the world (5). Two main measures to confront inequity are improving access to health care services in the poor regions and development of social solidarity. The results of different studies show that whatsoever the gap between poor and rich increases, citizens’ health worsen (6). This gap is because of individuals’ unequal access to skills not their income (7). Administration of health programs in the schools, offices, public places and so on can decrease the gap in the access to health services between poor and rich. Through development in the social and human capital, managers can deal with health challenges properly (8). Different definitions have been published for welfare but the important issue is that welfare is not only having economic capital but includes 3 other forms of capital: Social capital, natural capital and human capital. To build a healthy society, it is necessary to consider all capital levels namely social, natural, human and economic capital. - Social capital is like glue that consolidate the societies formal and informal. Citizens have equitable access to infrastructure resources for a better health. - Natural capital means having a high quality nature, healthy ecosystem, resources compatible with nature, nature protection and biodiversity. - Human capital means the people who are healthy, literate, skilled, innovative and creative. - Economic capital means access to appropriate level of welfare and prosperity (9). It is estimated that 20% of the world wealth is in the natural capital, 20% in the economic capital and remaining 60% is in the combination of social and human capital.

Social capital and human capital are two important elements that complement each other in the development of modern economies. While human capital refers to the economic contribution based on the knowledge, skills and abilities of individuals, social capital covers relational factors such as trust, cooperation and social networks within society. The synergy between these two types of capital increases innovation, supports economic growth and strengthens social solidarity. In modern economies, the value of human capital can be increased through investments in education and skills development programs, while social capital develops through strong social networks based on cooperation, trust and sharing. Especially in the digital world, social capital plays a critical role in the rapid dissemination of knowledge and the promotion of innovation. With education, workforce development and the strengthening of social relations, both human capital and social capital can grow in parallel. This process increases not only economic efficiency but also social welfare. The combination of social capital and human capital in the modern economy is not limited to the economic contributions of individuals; it also deeply affects social cooperation, trust and innovation processes. While human capital increases through education, experience and skills, social capital is shaped by the bonds that individuals establish with each other and the impact of these bonds on economic efficiency. Strong social networks, especially in the business world, accelerate knowledge sharing and create a collaborative innovation culture. This unity is a critical factor in economic sustainability and growth. For example, a highly educated workforce (human capital) in companies can only perform at their best with a strong environment of cooperation and trust (social capital). This increases the competitive advantage of companies and increases social welfare. As a result, policies that support equal access to social and human capital can make these two types of capital more effective in all segments of society. Education, professional development and strengthening social networks can make not only individuals but also the economy as a whole more flexible, creative and competitive. Keywords: social, human, capital, economy, development, experience, skills, workforce.

PurposeThe purpose of this paper is to investigate the determinants of financial inclusion (FI) in Sub-Saharan Africa (SSA).Design/methodology/approachThe paper uses the World Bank country-level data from 20 SSA countries for the year 2014.FindingsThe empirical findings in this study indicate that illiteracy is the major hindrance to FI in SSA. The findings provide useful information to government agencies and international development organisations. Also, the findings can help accelerate and strengthen FI strategies among SSA countries.Research limitations/implicationsSome countries were excluded from the final analysis due to lack of data.Practical implicationsIn the last two decades, there has been renewed interest in fighting financial exclusion in Africa. Therefore, this study provide evidence which clearly shows that enhancing literacy levels in a country can immensely contribute towards building the financially inclusive societies in the SSA region.Originality/valueTo the best of the author’s knowledge, this is the first study to empirically test the determinants of FI in SSA using the World Bank FI data set. Furthermore, this is the first attempt to estimate the determinants of FI with a combined data of SSA countries.

Trust or bust: Growth effects of knowledge, human and social capital revisited

The impact of social and human capital on the income attainment of Dutch managers

ABSTRACT: Financial inclusion plays a critical role in economic growth and development, offering policy makers in Sub-Saharan Africa (SSA) a powerful tool to address numerous socio-economic challenges. Despite concerted efforts by both the public and private sectors, financial inclusion in SSA remains relatively low, necessitating the exploration of alternative policy approaches. While deposit insurance is widely recognized for its role in supporting the banking sector, which fosters financial inclusion, its direct relationship with financial inclusion in SSA has not been thoroughly examined in the literature. This study addresses that gap by evaluating the effectiveness of deposit insurance as a policy tool for promoting financial inclusion in SSA. Using panel data extracted from the World Bank Global Findex database (WBGFD) and the World Development Indicators (WBWDI) database, we analyze financial inclusion along access and usage dimensions. The WBGFD provides metrics for new measures of financial inclusion for 2011, 2014, 2017, and 2021, as well as annual data on traditional measures of financial inclusion; while the WBWDI supplies data on other relevant socio-economic variables. Our methodology incorporates test of means, exogenous regression models – fixed effects models (FEM), random effects models (REM) – as well as the system generalized method of moments (GMM) which account for endogeneity in the nexus. Key findings reveal that deposit insurance—measured by the practice of Explicit Deposit Insurance Systems (EDIS) and membership in the International Association of Deposit Insurers (IADI)—significantly promotes financial inclusion across both access and usage dimensions. These effects are robust across traditional and new measures of financial inclusion, and remain statistically significant even after controlling for other policy-tractable drivers. The results demonstrate that the higher levels of financial inclusion observed in EDIS-practicing and IADI-member countries, compared to IDIS-practicing and non-IADI-member countries, are not solely due to other drivers but also reflect the positive impact of deposit insurance itself. Additional drivers that positively influence financial inclusion include economic growth, per capita income, banking sector development, financial sector development, infrastructure (mobile subscriptions), and education duration (years of formal education). Based on these findings, we recommend that SSA countries adopt and deepen the practice of EDIS and consider IADI membership to enhance financial inclusion. These strategies, when combined with efforts to strengthen other drivers, can significantly improve financial inclusion and support broader socio-economic development in the region.

The literature has widely covered the factors that determine the success of entrepreneurial ventures from financial and organizational perspectives. This study intends to tackle how the Financial Capital, the Human Capital, the Social Capital, and the Psychological Capital of the Entrepreneur affect Entrepreneurial Success. Despite that the Financial, Human, and Social Capitals are extensively examined in the literature as they relate to entrepreneurial success, this paper will add the psychological capital of the entrepreneur and examine its effect on entrepreneurial success in Egypt.This study aimed to investigate the effect of Financial Capital, Human Capital, Social Capital, and Psychological Capital on Entrepreneurial Success using a cross-sectional survey. Respondents were the owners and founders of small and medium enterprises (SMEs) in Cairo, Egypt. The results revealed that Social Capital and Psychological capital had a statistical significance as well as a positive strong relationship with Entrepreneurial success, while the Financial Capital and the Human Capital had statistical insignificance as well as a positive weak to a very weak relationship with Entrepreneurial success respectively.The study findings suggested that entrepreneurial success is strongly connected to the intangible resources of the entrepreneur, which are Social Capital and Psychological Capital, and that the Psychological Capital had the highest impact on Entrepreneurial success. However, the impact of the Financial Capital and Human Capital on Entrepreneurial Success was statistically insignificant.

Human and social capital plays a significant role in the development of modern civil societies. When the structure and quality of the society deteriorates, one can observe concurrent social and human capital deficiency. In this work the author made an attempt to evaluate the causes, conditioning and the results of these penomena with emphasis placed on the psychological aspects of this deficiency within both types of capital. Such analyses are frequently not considered in sociological-economical studies. Therefore the diagnosis of the relationships between the socio-economic situation, the functioning of the society and the resources of human and social capital may be incomplete. In this work the author has examined the existence of two-sided relationships like feedback between the quality and the structure of the society and the resources of social and human capital. The deterioration of the functioning of society structures may be the cause as well as the result of deficiency within these capitals. The quality of human and social capital may be affected by psychobiological fac-tors connected with the general state of the society including personality features and structure in the individual and social aspect. doi:10.5200/sm-hs.2012.028

Background Recent research investigating the conditions under which science teachers can successfully implement science education reforms suggests that focusing only on professional development to improve content knowledge and teaching skills—often referred to as human capital—may not be enough. Increasingly, possessing social capital, defined as capacities acquired through direct and indirect relationships in social networks, has become an important teaching characteristic to develop, however, more empirical research needs to be conducted. Purpose This article details our efforts to examine the relative influence of teachers’ social and human capital on instruction in the science classroom. The following research question guided our analysis: “What is the impact of teachers’ social and human capital on their classroom enactments, and what implications does this have for implementing science reform projects?” Setting This research was conducted in a large urban public school district in the northeast region of the United States. Teachers participated in professional development activities focused on learning about, constructing, and implementing nanoscale content through problem-based and inquiry-based units, integrated with technology applications such as computer simulations. Population The teacher group was comprised of 10 males and 11 females, eight of whom identified as African American and 13 as White. Teaching experience ranged from 1 to 33 years, with a mean of 11.18 years. Data were collected from 545 students in their classes, of whom 52.19% were African American and 65.03% received free or reduced-priced lunch. Students ranged in level between eighth and 12th grade in the subject areas of biology, chemistry, and physical science. Research Design The research design entailed a within group comparison assessing variables that quantified teacher's social and human capital as discreet measures. They were then compared to survey outcomes collected from their students that indicated change in instructional enactments as they were related to the nanoscale units. Data Collection and Analysis A regression analysis was used in the study. Student surveys of perceptions of instructional enactments in two factors—cognitively-rich pedagogies and computer-related technology use–were used as the predicted variables. The social and human capital measures were established from application surveys and year-end interviews of teachers and used as predictor variables. Results With both predictors in the model, only social capital was found to be predictive of teachers’ successful implementation, indicating that social capital was a stronger predictor than human capital. Conclusions The study shows that focusing on the development of a teacher's social capital may be an important feature of professional development activities alongside the development of human capital particularly in urban populations where access to resources is limited.

Social and human capital in immigrant adaptation:: The case of Canadian business immigrants