Dissertation Draft, Chapter Six

Social Capital Formation and the Micro-to-Macro Problem

     

     In his "Foundations of Social Theory" educational sociologist James Coleman stated:

"The major problem for explanations of system behavior based on actions and orientations at a level below that of the system is that of moving from the lower level to the system level. This has been called the micro-to-macro problem, and it is pervasive throughout the social sciences."

     This "micro-to-macro" problem according to Coleman relates to the common failure of social theories to adequately relate theoretical processes at the individual-level and the social-level.

     Within the model I am presenting, social capital is defined at the micro level as voluntary uncompensated prosocial behavior, i.e. an individual level behavior. But I use it to explain social capital formation, which is a system process, so I have a "micro-to-macro" issue. In this chapter I'll address this "micro-to-macro" issue by trying to show logically that social systems sometimes need voluntary prosocial behavior by individuals to arrive at higher levels of fairness and efficiency.

     Of course, in reality making this argument hardly seems necessary. Afterall, probably almost everyone would agree intuitively that social systems sometimes need people to voluntarily behave prosocially to function well. Think of Dewey's hypothetical example of the doctor and the epidemic discussed in chapter three for example. We just know intuitively that at times uncompensated voluntary prosocial behavior is needed to overcome pressing social problems. However still it's interesting to think about why this might be so. So in this chapter I try to make a logical argument that voluntary prosocial behavior is sometimes necessary. Also, I'll try to show how the argument I make applies specifically to the situation where I did my fieldwork in Colonia La Herencia. The argument that I make in this chapter is based on the dichotomy between distributive and commutative justice.

     According to St. Thomas Aquinas there are two types of justice. One is "distributive justice", which corresponds to charity or simply giving what is needed. The other is "commutative justice", which corresponds to the justice of a fair trade, or what in economics is known as "an arms length transaction".

     Obviously for social progress both types of justice are necessary. For example, commutative systems are very effective for coordinating the needs of different people within a social system. So normally societies ought to function based on theories of commutative justice. Societies as they move ahead normally do so mainly based on commutative justice, and multiple trades and asset conversions repeated many times in succession. Fair trades between individuals help both individuals maximize their utility.

     However commutative systems alone cannot be relied upon to always arrive at the best forms of social organization. In other words, commutative justice alone has its limitations. Once a basic injustice is established within a system, commutative justice alone cannot be counted upon to overcome it. Because commutative justice involves repeating the same transactions over and over again, injustices within a society become perpetuated through the same commutation systems, and they can be passed down from generation to generation.

     Within the situation dealt with in my dissertation study, for example, based on commutative systems the social system had reached a point in which there was an inequitable distribution of access to computer resources in the area. When I arrived in Colonia La Herencia the situation was as follows. Many people told me that most of the children in the area did not have access to computer training and that they did not have computers at home. I believe this to have been true because when we finally started our classes I was surprised to see how many of the children had no idea how to do the simplest operations on a computer keyboard, such as how to make a capital letter or how to insert a blank space between words. I also heard that some of the local families sent their children by bus to computers schools in other parts of the city, which costs about $140 dollars per month, an amount far beyond the reach of the typical families of Colonia La Herencia. Other parents who could afford it paid for their children to go to a local Café Internet to do school homework. One mother told me she at times paid up to $20 dollars per week for her kids to go to the Café Internet to do their homework. These were efforts to increase computer access grounded in theories of commutative justice. Yet despite all the money that was being spent on this purpose around the neighborhood, very many of the children in Colonia La Herencia still did not have access to computers.

     So access to computer resources in Colonia La Herencia was clearly inequitable. An important point to realize about situations like the inequitable distribution of access to computers in Colonia La Herencia is that these situations clearly arise out of the workings of systems which basically operate on theories of commutative justice. Thus we can think of the inequitable distribution of access to computer technology within Colonia La Herencia as an example of a commutative system which had reached a plateau or an equilibrium at a sub-optimal level. Although this is a minor example of social injustice, it shows how commutation systems sometimes arrive at stasis at sub-optimal levels of fairness or efficiency. Logically too it shows that once this happens, internal commutative forces alone are not necessarily adequate to remedy the injustice and inefficiency within the system.

     Government policies in Mexico also seem to contribute to the lack of access to computers for school children in Mexico. Colonia La Herencia is very close to the U.S. border, and many very serviceable computers are available for donation to schools from the U.S.. It would be quite easy to bring in a large number of computers from the United States for schools in Mexico, but the government of Mexico would either forbid this or would charge such a large importation tax on the donated computers for schools that it would not be financially viable to import the computers. I have no idea why Mexican officials won't let nonprofit organizations bring in good used computers to give to their schools, but it is a perfect example of how social systems can arrive at states of equilibrium which are unjust and inefficient.

     Another salient example of a system which is at sub-optimal equilibrium within Colonia La Herencia is the road system. The roads are terrible, and this results in the average driver spending a great deal more on vehicle and tire repair. Actually it would be much cheaper to improve the roads than for everyone to continue paying these extra costs of vehicle maintenance in perpetuity. However at the moment no individual has sufficient incentive to undertake the political effort needed to get the roads improved. So the road system can be thought of as being another example of a commutative system which has reached a sub-optimal equilibrium.

     As these two examples from Colonia La Herencia demonstrate, systems operating commutatively are liable to go off track and arrive at sub-optimal equilibrium points in which commutative systems cannot move them further. If the system is truly deadlocked based on commutation, actions motivated by distributive theories of justice may be the required corrective factor needed to correct the errors of the past.

     For example, commutative justice was not going to resolve the inequitable distribution of computer resources in Colonia La Herencia. Prior to the study, a certain amount of access was available, and individuals who could afford it did have access. But many individuals did not have access to computers, and it did not seem likely that actions based strictly in theories of commutative justice were likely to yeild this access any time soon. If it had been economically or politically expedient for all the children in Colonia La Herencia to have computer access, it would have already happened prior to the time of my study. However if the start-up costs can be overcome, greater levels of efficiency and social justice can be achieved. People will develop trust in the new system, see its advantages, and afterwards the new system becomes the norm. But in order to arrive at the new system there are start-up costs or entry barriers. Thus distributive justice is needed at times to help reorganize systems which cannot progress based on commutative systems.

     According to this theory, each type of justice serves a particular role in social progress. Commutative systems are needed to coordinate the needs of different people within a social system, so normally societies ought to function based on theories of commutative justice. When societies operating commutatively go off track, charity is the corrective factor which corrects the egregious errors of the past. Charity is the consciousness that let's us see something is wrong, and if we don't have it then we are forced to inherit the errors of the past.

     On the other hand, whereas distributive justice is necessary at times, it also has it's limitations. As Adam Smith said in "The Wealth of Nations", no one wants to have to depend on charity. The reason for this of course is that there are a lot more needs than there are willing donors. Every person in the world has different ideals about the way things should be and the physical world simply cannot accommodate the ideal worlds of each of us. There aren't enough village greens, so to speak. Therefore a world run strictly on charity could never work. Also, every time you give something to someone you in effect are taking it from someone else, so distributive justice is a zero-sum game.

     Thus the primary role of distributive justice is seen within this model as to transform commutative systems, rather than to take the place of commutative systems.

     Based on this analysis, I theorize that social capital, (which we pragmatically defined in the second chapter as voluntary, uncompensated prosocial behavior), has a special role to play in system level social capital formation, although this role is often misunderstood and there are some things social capital can't do. I theorize that the role of social capital primarily ought to be to support transitions between various systems which are operated basically based on theories of commutative justice. Thus I see the micro-to-macro relationship between social capital and social progress as follows. In order for an entrenched inefficient social system to move to a more efficient organization, an infusion of social capital, (i.e. uncompensated voluntary prosocial behavior), will at times be needed, precisely to develop the new institutional environment which is the embodiment of the automatization of the relationships between the people, i.e. that which coordinates their actions more efficiently. In other words, the theoretical function of prosocial behavior is conceptualized as necessary to overcome the "start-up costs", (often underestimated costs by the way), of going from the old customary and accepted ways of doing things to better, more efficient and more enlightened commutative systems of social organization.

     This relationship is seen as a general relationship which applies in any particular situation or context. The social system reorganization which is being made may be a very big change, such as a national civil rights movement or agricultural reform, or more commonly it will need to be something minor, such as installing a needed drinking fountain, but whether big or small in scope the role of social capital in development is conceptualized within this model as always the same, and social capital is always needed for the same purpose. It bridges the gap to promote change where the existing equilibrium, i.e. the economic or political forces in commutation within a given context are not sufficient in and of themselves to bring about a positive social change.

     Conceptually, this movement from a legacy system to an improved organization is equated with social capital formation at the level of the social system, assuming that the new system really becomes established. Normally once the new system has operated for awhile, if the new system is truly an improvement and once people see its benefits, they would not wish to return to the old system. At that point the system won't backslide. However people first need some experience working with the new system. Based on this experience with the new system they will adjust their expectations and trust levels. When this happens the new system is truly established, and at this point the system participants themselves will resist any effort to go backwards to the old commutative - system because they can see the new system is better. However the new system must also be commutative, because resources to support the transition between systems are always limited.

     As with the example of setting up the community computing center in Colonia La Herencia, making the transition between old and new forms of social organization involves cost, and these costs are not necessarily going to be compensated from within the system. As I said above, if it had been economically or politically expedient for all the children in Colonia La Herencia to have computer access, it would have already happened prior to the time of my study. However if the start-up costs can be overcome, greater levels of efficiency and social justice can be achieved.

     If the change is indeed to a better organization, once it is established people will not want to return to the old system. Within our small project in La Herencia, the new system is far more efficient than the old form of organization for many reasons. First of all, since the computers and the Internet access is shared, a small number of computers can be shared by hundreds of people. This is inherently more cost effective than for each family to buy a computer for their homes. And practically speaking most of the families who use our center could not have afforded to purchase a computer for their homes, whereas at our center they and their children have access to the use of new computers and the Internet for free. At the center we have many active volunteers from the community teaching not only computers but other subjects as well. In addition to reducing the costs this helps to build community and provides a practical experience in civics education for the young people who help out with the work. The center is in a community space which is available for the community rent free. In many ways this new form of organization is more efficient than the prior system which only provided computer access to a lucky few. More importantly the new system represents a greater degree of social justice, because so many more people have access to computers now than prior to when we set up our center. Of course ours was a very small project. But I believe the basic relationship, as illustrated by our project in Colonia La Herencia, reflects the general "micro-to-macro" relationship of voluntary prosocial behavior to social capital formation. In general this relationship is seen as follows:

     In instances where the legacy system has developed inequities and inefficiencies which cannot be resolved through commutation, voluntary prosocial behavior based on theories of distributive justice may be needed to support the transition to an improved system also to be operated essentially based on theories of commutative justice.

     This basic micro-to-macro relationship is seen as applying whether a project under consideration be big or small.

Very preliminary draft: Please do not quote without permission.
Comments welcome at KenDaniszewski@yahoo.com
© Copyright by Kenneth Stanley Daniszewski 2004