The dynamics of social capital in Serbia (II)

Abstract

This is the second part of the paper that is presented at the conference of EBEN 29-31.2003. In this part of paper I am dealing with the constellation in Serbia after 2000. I take certain dimensions of social capital (civil mindedness, readiness to react to the corruption in business practice etc) and analyze their positions in the business-context in Serbia. This experience confirms that it is not enough to take into account the formal productive sector in treating the dynamics of social capital. The paper calls for the careful weighing of the impact of social capital on the transformation of meaning of business. It is necessary to avoid the trap that there is direct causal relationship between rich social capita! and market-based coordination. In Serbia we can report on the prevailing of the informal bonding social capital over the bridging formal social capital. There are negative impacts of social capital manifested in powerful social groups, which are not accountable to citizens at large. The over embedded ness in the previous form of informal social capital may appear as hindrance for the developing of the formal social capital.