Social networks themselves constitute capital with measurable productive value

Evidence

By analogy with notions of physical capital and human capital—tools and training that enhance individual productivity—the core idea of social capital theory is that social networks have value. Just as a screwdriver (physical capital) or a college education (human capital) can increase productivity (both individual and collective), so too social contacts affect the productivity of individuals and groups. … Whereas physical capital refers to physical objects and human capital refers to properties of individuals, social capital refers to connections among individuals—social networks and the norms of reciprocity and trustworthiness that arise from them. In that sense social capital is closely related to what some have called “civic virtue.” The difference is that “social capital” calls attention to the fact that civic virtue is most powerful when embedded in a dense network of reciprocal social relations. A society of many virtuous but isolated individuals is not necessarily rich in social capital. — Robert D. Putnam, Bowling Alone The Collapse and Revival…, 33

Categorization

• XREF: Connects directly to the many social capital readings in my library — Coleman, Milgrom, Bernstein’s diamond trade extralegal work; also of a piece with my earlier collected claims that social capital’s benefits mostly accrue to others. — connects to: Social capital exists as obligations, information flows, and sanctioned norms — Coleman, SocialCapitalCreation-1988, 236; Economic transactions are governed by their embeddedness in social networks — TOMASZ OLEJNICZAK, Development of Trust in Low-Trust…, 17; Social capital is productive, structural, and defined by its function. (+10 more)
• DEEPTHINKING: The whole corpus of past work on social capital, trust, and reputation hangs off this definition; a society of virtuous-but-isolated individuals being poor in social capital is the load-bearing claim.

Broader Connections

• Social capital exists as obligations, information flows, and sanctioned norms #expands (0.82) — Coleman, SocialCapitalCreation-1988, 236
• Social capital is productive, structural, and defined by its function. #corroborates (0.78)
• Economic transactions are governed by their embeddedness in social networks #exemplifies (0.75) — TOMASZ OLEJNICZAK, Development of Trust in Low-Trust…, 17
• Trust functions as social capital enabling collective purposes. #exemplifies (0.75) — Russell Hardin, Trust and Trustworthiness, 399
• Social trust is an outcome and byproduct of social capital #qualifies (0.72) — Adelin-Costin Dumitru, Forging the Resistive Republic, 41
• Economic institutions depend on personal networks that generate trust and enforce norms #exemplifies (0.72) — Coleman, SocialCapitalCreation-1988, 28
• Financialization lets capital extract value from social life without destroying its creative source ecosystems #expands (0.70) — Max Haiven, Cultures of Financialization, 572
• Capital is a social relation conferring extractive power, not just machinery #complicates (0.70) — Yanis Varoufakis, Technofeudalism, 792
• Social capital serves harmful as well as beneficial ends #qualifies (0.70) — Robert D. Putnam, Bowling Alone The Collapse and Revival…, 1099
• Organizations outlast their original purpose and remain usable as social capital #expands (0.70) — Coleman, SocialCapitalCreation-1988, 129