The dimensions of social capital and rural development: evidence from Water Communities in the Republic of Macedonia

Abstract

Abstract Drawing on Nahapiet and Ghoshal's (1998) distinction between the structural, relational, and cognitive dimensions of social capital, this paper analyses the performance of Water Communities (WCs) in the Bregalnica region of the Republic of Macedonia. WCs are farmer-managed local irrigation systems which are critical to livelihoods in Bregalnica. Data on the performance of the WCs and role of social capital was collected via -depth interviews and in a farm survey (n=249) of both members and nonmembers. Results highlight the importance of social capital in explaining the -decision to join a WC, the satisfaction of members with their WC, and payment behaviour. Key words: social capital, rural development, irrigation, rural development JEL codes: O13, P32, Q15 1. Introduction Nahapiet and Ghoshal (1998) distinguishbetween the structural, relational, and cogniti ve dimensions of social capital. Structural dimensions of social capital refer to the impersonal configuration of linkages between people and units, sometimes labelled network configuration or morphology (Tichy et al. 1979). Relational social capital is the bonds between actors (Hakansson and Snehota, 1995), particularly regarding obligations and trust. The cognitive dimension relates to shared representations and systems of meaning between parties (Nahapiet and Ghoshal, 1998). This paper analyses the importance of these dimensions of social capital for the performance of Water Communities (WCs) in the Republic of Macedonia.