Coleman Social Capital

The focus of Coleman’s piece is the discussion of social capital and how it is involved in other forms of capital, namely human capital. Coleman explains that social capital is defined by 2 main elements. First, all forms of social capital contain some aspect of social structures. Second, social capital facilitates certain actions of actors within such structure. Hence, social capital is created by changes in social relations and/or social structures. Human capital, on the other hand, is created by changes in one’s skill and capabilities. Coleman argues that social capital can shape a person’s trajectory in education; affecting the amount or type of human capital one is able to get or one’s ability to obtain this valuable capital to begin with. Coleman describes several examples of how social norms, expectations and relationship can affect the economy, and the creation of human capital. One example of social capital in practice can be seen in credit associations. There is a certain expectation that these associations are rotating; meaning that there will be a new beneficiary after every cycle. Another critical expectation is that no one will reap the benefits without accruing some of the costs. These expectations are meant to prevent abuses like free-riding. However, in order for …show more content…
For instance, a creditor may decide to freeload after a credit cycle and leave the credit association after raking in funds for the month. It can be assumed that the free-rider will forever be ashamed and ignored by his/her community. However, this may not be a harsh consequence if the creditor believes that taking the money and cutting ties with association presents a much more favorable opportunity cost. Furthermore, the creditor may view his/her relationship with fellow creditors very differently from the rest of the association (creditor considers relationship with the rest of the network as a weak