Social capital and developmental outcomes : a case study of black communities in Cederberg and Matzikama municipalities in the mid-2000s

Transforming economic growth into tangible benefits for poor communities appears to have frustrated development practitioners and policy makers. Despite the net positive growth achieved between 1994 and 2014 the face of poverty and inequality remains largely unchanged in South Africa. In such circumstances there is a pressing need for scholars to rethink the social foundations of economic activity and policy (Chang, 2006; Fine, 2001, 2005). One specific line of enquiry that has attracted attention among economists (Stiglitz, 2000; Woolcock, 2001; Fine, 2001) is that of social capital. This thesis seeks understanding of the relationship between social capital and the socioeconomic advancement of poor African/Black residents, particularly those in rural municipalities where there is a lack of financial and other resources. With this in mind, Robert Putnam’s path-breaking theory will be reformulated to explore the relationship during the mid-2000s between social capital, trust, political participation and socioeconomic outcomes in two rural municipalities in the Western Cape province of South Africa, namely Cederberg and Matzikama. The research questions the adequacy of Putnam’s theory of social capital, arguing that it is conceptually simple and inadequate as a description of how membership in social groups (networks) lead to better socioeconomic outcomes in the context of marginal, rural African/Black communities residing in under-capacitated municipalities. The thesis argues that an alternative conceptual framework is required, capable of depicting the complexity of the social processes required to translate social group membership into tangible benefits for poor households, as an explanation of why African/Blacks in Cederberg experienced better socioeconomic outcomes than their counterparts in Matzikama. To answer the address the research question, a number of sub-questions are investigated: • What are the different levels of social group membership in Cederberg and Matzikama amongst the African/Black population group? • To what extent is the Putnam thesis adequate as an explanation of the transmission mechanism from social group membership to better socioeconomic outcomes in the context of marginal groups residing in rural municipalities? • What are the insights from the literature that needs to be considered in the design of an alternative conceptual framework which is more nuanced and complex, capable of explaining the social processes in the transmission mechanism from social group membership to better socioeconomic outcomes? • Which forms of organisations are best suited for transmitting social capital into socioeconomic outcomes? • What type of leadership is necessary for transmitting social capital into socioeconomic outcomes? The thesis postulates an alternative to Putnam, arguing that social groups (networks) differ in terms of the characteristics with which they are imbued, making some of them more effective than others and that agency, often in the form of community or state agency, is more likely to be the driving force in the transmission from social networks to better socioeconomic outcomes. The scope of the research is limited to the municipal boundaries of Cederberg and Matzikama municipalities in the West Coast region of the Western Cape province of South Africa. Although the quantitative findings are reported for all race groups for illustrative reasons, the research is primarily focused on the comparative experiences of the African/Black residents. The study uses a mixed method approach—i.e. both qualitative and quantitative methods to measure social capital. The quantitative research method entailed the conducting of municipality-wide surveys in both Cederberg and Matzikama municipalities. A fully structured face-to-face interview technique was used for the survey method. The data was analysed using descriptive and inferential statistics and path analysis. The findings shed light on the nature of social capital in rural municipalities and showcase how social capital impacts on socioeconomic outcomes. It is hoped that the research will deepen our understanding of how communities can mobilise their social capital more effectively towards the improvement of public policy outcomes.