Crisis, Connections, and Class: How Social Ties Affect Household Welfare

Abstract

Summary In this paper, I illustrate the effects of different types of social ties on the welfare of Indonesian households and draw out implications for debates around state and community development efforts, empirical analysis, and project design. Guided by social capital theory, the analysis indicates that certain social ties can be a means of improving welfare for poor families. The distribution of different ties varies with socio-economic class, however, and each type is linked to distinct resources. The distribution of ties may be shifting in Indonesia, with greater access for poor households to state-sponsored ties and accompanying resources.