POVERTY AND SOCIAL CAPITAL

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ZAHEDI M.J.; MALEKI A.; HEYDARI A.A.

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Journal Paper

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Journal: Social Welfare Year:2008 | Volume:7 | Issue:28 Page(s): 79-106

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Information Journal Paper

Title

POVERTY AND SOCIAL CAPITAL

Author(s)

ZAHEDI M.J. | MALEKI A. | HEYDARI A.A. | Issue Writer Certificate

Keywords

COMBINATION GROWTHQ2

GINI INDEXQ2

INCOME DISTRIBUTIONQ2

KUZNETS HYPOTHESISQ3

SHARE OF SECTORSQ2

Abstract

Objectives: The Social capital can be considered as one of the major concept of development-centre approved in studying of poverty. The importance of these two social variables is to the extent that in both modern theoretical and practical approach, the production of social capital is considered as one of the most useful strategies in poverty alleviation. Therefore based on the importance of the role of the social capital and its direct relation ship with the promotion of social welfare and poverty alleviation, we test this hypothesis through a comparative study of this variable for the homilies sponsored by the Committee Emdad Imam Khomaini in Ghazvin as representative of families under poverty and rich residents of the city.This study test the hypothesis stating that there is a significant difference in the average of social capital and its components (social trust, social relations and participation and organizational membership) between the poor and the rich families.Method: This is a survey - based study .The data is collected through questioner. The target group under the statistical study is the families sponsored by the Committee Emdad Imam Khomaini out of which a group of 311 families from the poor and 50 families from the rich have been selected by Cochran equation through random analysis a system. Data processing and the statistical analysis are conducted through the spss software package.Findings: The findings of the study show that there is a significant difference in social capital and its components between the rich and the poor. Also the finding shows that poverty has a negative strong correlation with the social capital and the poor have lower average of social capital and its all components. The social capital is approximated as the following regression analysis there is an inverted U shape relationship between index of INCOME DISTRIBUTION and income per capita. In other words, KUZNETS HYPOTHESIS states that at early phases of development the income disparity increases but in later phases of development the inequality decreases. Considering the conclusion of this study, and based on available statistical data from 1968-2003, the suggested pattern to investigate the factors that have an impact on INCOME DISTRIBUTION and the level of economic inequality in Iran, is a new Model that rejects KUZNETS HYPOTHESIS in Iran.Results: According to the resultants of calculation of model 2 from table 1, it could be suggested that to reduce the level of economic inequality in Iran, economic policies must be directed to the agricultural growth, the sector that includes the less skilled and low-income segments of the population. The empirical observations imply that in the development process, the industrial sector has a pioneer role and the role of agriculture is reduced. This has pushed many countries of the world to accept policies that have negative impacts on agriculture and emphasize on transferring investment resources from agriculture to industries and general sector. ( Not that the development policies in 1950s and 1960’s, favored ‘taking the excess capital from the agricultural sector’, and investing it in other developing sectors of economy).it is illustrated that how combination and SHARE OF SECTORS in economic growth affect on INCOME DISTRIBUTION methods. One the major factors of unequal INCOME DISTRIBUTION in Iran is the presence of sectoral duality. Implementing policies to create an economic balance among existing sectors, not only could reduce the present income inequality, but also could create a sustainable economic growth. These policies could cover areas such as research, irrigation and agricultural development, rural education, creation of rural infrastructures (roads, electricity, communications), and could reduce of rural poverty and regional inequality (Shifting geographical concentration). On this basis, in present conditions of our country that INCOME DISTRIBUTION is imbalanced and the level of national income is below average, the distribution model along with growth or pro poor growth is strongly suggested, because poverty reduction and income growth, not only are compatible, but also are related in practice.

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