The Paul H.
Nitze School of Advanced International Studies
Johns Hopkins
University
Course
Syllabus: Social Capital and Institutional Development
Spring Semester, 2004
Prof. Francis Fukuyama Office
Hours by Appointment
Office: Rome Building Room 732 (202) 663-5765
email:
fukuyama@jhu.edu Web site: www.francisfukuyama.com
Mondays 2:15-4:15 AM
Rome Building Room 533
This course will look at the role of
social capital in economic development.
Social capital is the instantiation of norms that permit people to
cooperate in groups, or what Alexis de Tocqueville called the “art of
association.” The concept was brought
into use by sociologist James Coleman in the 1980s and was popularized by
Robert Putnam in his works on Italy and the United States. Social capital has been seen as critical to
civil society, which is in turn a requirement of modern democracy; at the same
time, it is also important as the basis for economic activity. At the same time, many social scientists
dispute the use of the term. Some
sociologists dislike the use of an economic metaphor to describe moral and
social relationships, while economists have viewed the concept as a woolly one
incapable of quantification or even rigorous definition.
One problem with the concept of social
capital is that it is difficult to manipulate on a macro level directly through
policies, because it is often the byproduct of deeply engrained cultural
habits. Formal institutions, on the
other hand, can be shaped through policies, and social capital is a critical
aspect of institutional development.
This course will therefore look at the question of creating and
reforming institutions, and how social capital provides insights into the workings
of organizations.
We will
investigate the literature on social capital as it relates to the development
of poor countries, and seek to apply it to concrete situations. One of the
objectives of the seminar will be to take a hard look at the concept of social
capital, and to ask questions like: Is
social capital in fact a useful concept for understanding political and
economic behavior? Are there measures
of social capital, and if so, what are they?
Can it be plugged into economic models?
Does the social capital perspective offer realistic strategies for
fighting poverty? Or is this merely a
passing intellectual fad?
The
underlined readings on the electronic version of this syllabus can be accessed
on the web simply by clicking on it.
Some of the readings will require that you be logged on to a computer
that is part of the Johns Hopkins network.
If you have trouble accessing any of them, please let the instructors
know. All of the required readings
should be on reserve in the SAIS library.
There will be a class
bulletin board available at http://apps.sais-jhu.edu/bulletin_boards/Political_Economy/index.php. You must register for the bulletin board
and then be admitted by Prof. Fukuyama; thereafter you may post messages which
will be completely private to our class.
The syllabus is likely to be modified over the course of the semester;
the authoritative version will be the one posted on Prof. Fukuyama’s web site, http://www.francisfukuyama.com/.
This course
is a research seminar in which students will work towards a final paper. The paper will be an application of the
concept of social capital to the situation in some developing country (or, if
you are ambitious, comparatively to a group of countries). Requirements are as follows:
1.
Presentation #1, to be given during weeks 2-7
(Feb. 2-March 8), based on the course readings for that week. Each student must sign up to present during
one of these weeks. Presentations are
to be collective; students presenting on a particular week should meet ahead of
the class to discuss how to frame the issues raised in the readings in a way
that will provoke further discussion.
(20 percent of the final grade.)
2.
An outline of a research paper topic, due prior
to spring break (March 21), which I must approve. The paper must seek to apply the concept of social capital to
some aspect of development. It can
either look at how social capital functions broadly in different societies, or
it can seek to incorporate the concept in a concrete development project. It is very important to begin work on the
paper early in the semester, and to have something substantive to say about the
topic by the time of your presentation of it.
(10 percent of the final grade.)
3.
Presentation #2, to be given individually, on
the subject of the research paper, during weeks 8-13, March 23-April 26. (20 percent of the final grade.)
4.
The final research paper, from 15-25
double-spaced pages, due on the day of the final exam. (40 percent of the final grade.)
5.
In addition, all students are expected to
participate actively in class discussions and in critiques of each other’s
papers and presentations. (10 percent
of final grade.)
A signup sheet for presentations #1 and
#2 will be passed around on the first day of class. Based on this, I will post the schedule of presentations and
student email addresses so you can see who will also be presenting your week
and contact them.
·
Francis Fukuyama, State-Building: Governance and
World Order in the 21st Century. This book will be published
by Cornell University Press in March but will be available online for students
in this course.
·
Francis Fukuyama, Trust: The Social Virtues and
the Creation of Prosperity (New York:
Free Press, 1996)
ISBN: 0684825252.
·
William R. Easterly, The Elusive Quest for
Growth: Economists' Adventures and
Misadventures in the Tropics (Cambridge, MA: MIT Press, 2001) ISBN
0-262-05065-X.
·
James C. Scott, Seeing Like A State: How
Certain Schemes to Improve the Human Conditions have Failed (New Haven:
Yale University Press, 1998) (ISBN 0300078153).
·
Hernando De Soto, The Mystery of Capital: Why
Capitalism Triumphs in the West and Fails Everywhere Else (London: Bantam
Press, 2000) ISBN 0465016154).
·
James S. Coleman, "Social
Capital in the Creation of Human Capital," American Journal of
Sociology Supplement 94 (1988): S95-S120.
·
Francis Fukuyama, “Culture
and Economic Development,” from the Encyclopedia of the Social and
Behavioral Sciences, Elsevier, 2002.
·
Francis Fukuyama, Trust: The Social Virtues and
the Creation of Prosperity (New York:
Free Press, 1996), chapter 1, pp. 3-12.
·
Christiaan Grootaert and Thierry van Bastelaer, Understanding
and Measuring Social Capital: A Synthesis of Findings and Recommendations
(Washington, DC: World Bank SCI 24, 2001).
·
Francis Fukuyama, “Social
Capital and Civil Society,” IMF Working Paper WP/00/74, April 2000.
·
Robert M. Solow, “Notes on Social Capital and
Economic Performance,” in Ismail Serageldin and Partha Dasgupta, eds., Social
Capital: A Multifaceted Perspective
(Washington, DC: World Bank, 2000).
·
Easterly, William R., The Elusive Quest for Growth:
Economists' Adventures and Misadventures in the Tropics (Cambridge,
MA: MIT Press, 2001), chaps. 1-7, pp. 5-139.
·
Hernando De Soto, The Mystery of Capital: Why
Capitalism Triumphs in the West and Fails Everywhere Else (London: Bantam
Press, 2000), Chapters 1-2, pp. 1-31.
·
James C. Scott, Seeing Like A State: How
Certain Schemes to Improve the Human Conditions have Failed (New Haven:
Yale University Press, 1998), Introduction, pp. 1-8.
·
James A. Robinson and Daron Acemoglu, The Colonial Origins of Comparative
Development: An Empirical Investigation
(Washington, DC: NBER, working paper 7771, 2000).
·
Stephen Knack and Philip Keefer, Does Social Capital Have an
Economic Payoff? A Country Investigation
(College Park, MD: Univ. of Maryland IRIS, 1997).
·
Stephen Knack and Paul J. Zak, Trust and Growth (College
Park, MD: IRIS Working Paper 219, 1998).
You may skip over the description of the model, pp. 7-16 and the
appendix.
·
Joseph E. Stiglitz, Towards a New
Paradigm for Development: Strategies,
Policies, and Processes (Geneva: 1998 Prebisch Lecture, UNCTAD, 1998).
·
Michael Woolcock and Deepa Narayan, "Social
Capital: Implications for Development Theory, Research, and Policy,"
World Bank Research Observer 15 (2000): 225.
·
ID21 Insights Issue #34: “It’s
not what you know, it’s who you know!
Economic Analysis of Social Capital.”
·
Woolcock, Michael, "Social Capital and
Economic Development: Towards a Theoretical Synthesis and Policy
Framework," Theory and Society
27 (1998): 151.
·
Francis Fukuyama, Trust: The Social Virtues and
the Creation of Prosperity, chaps. 8, 9, 14, 15, pp. 69-95, 161-183.
·
Marcel Fafchamps and Bart Minten, "Relationships
and Traders in Madagascar," Journal of Development Studies 35
(1999): 1-35.
·
Marcel Fafchamps, Networks,
Communities, and Markets in Sub-Saharan Africa: Implications for Firm Growth and Investment (Oxford, UK: CSAE
WPS/99-24, 1999).
·
Diane Singerman, Avenues of
Participation: Family, Politics, and
Networks in Urban Quarters of Cairo (Princeton, NJ: Princeton University
Press, 1995), chapter 3, “Networks: the
Political Lifeline of Community.”
·
Sara Berry, No Condition is Permanent: The
Social Dynamics of Agrarian Change in Sub-Saharan Africa (Madison, WI:
University of Wisconsin Press, 1993), Chap. 7, “Investing in Networks: Farmers’ Use of Income and their
Significance for Agrarian Change.”
·
Avner Greif , 1993. "Contract
Enforceability and Economic Institutions in Early Trade: The Maghribi Traders' Coalition," American
Economic Review 83(3): 525-48.
·
World Bank, Attacking Poverty (World
Development Report 2000/01) (Oxford:
Oxford University Press, 2000), Chapter 7, Removing Social Barriers and
Building Social Institutions.
·
Ivan H. Light and Steven J. Gold, Ethnic
Economies (San Diego, CA: Academic Press, 2000), chaps. 1-2, pp. 3-54.
·
Ashutosh Varshney, "Ethnic
Conflict and Civil Society: India and
Beyond," World Politics 53 (2001): 362-98.
·
Edna Bonacich, "A
Theory of Middleman Minorities," American Sociological Review
38 (1972): 583-594.
·
Nat J. Colletta and Michelle L. Cullen, Violent
Conflict and the Transformation of Social Capital: Lessons From Cambodia,
Rwanda, Guatemala, and Somalia (: World Bank, 2000), chap. 1, pp. 3-16,
chaps. 6-7, pp. 85-123.
·
Jane Jacobs, The Death and Life of Great
American Cities (New York: Random House, 1961), Chap. 2, pp. 29-54.
·
Peter Evans, “Introduction,” and Wai Fung Lam,
“Institutional Design of Public Agencies and Coproduction: A Study of Irrigation Associations in
Taiwan,” in Peter B. Evans, State-Society Synergy: Government and Social
Capital in Development (Berkeley: University of California Press, 1997),
pp. 1-47.
·
James C. Scott, Seeing Like A State: How
Certain Schemes to Improve the Human Conditions have Failed (New Haven:
Yale University Press, 1998), chapter 2, “Cities, People, and Language,” pp.
53-83, chapter 7, “Compulsory Villagization in Tanzania,” pp. 261.
·
Francisco E. Thoumi, “Why
a Country Produces Drugs and How This Determines Policy Effectiveness: A general model and some applications to
Colombia.” March 2002.
·
Robert C. Ellickson, Order without Law: How Neighbors Settle Disputes
(Cambridge, MA: Harvard University Press, 1991), pp. 137-166.
·
Francis Fukuyama, The Great Disruption: Human Nature and the Reconstitution of
Social Order (New York: Touchstone,
2000), chapters 8-11, pp. 143-193.
·
Elinor Ostrom, Governing the Commons: The Evolution of Institutions for Collective
Action (Cambridge: Cambridge University Press, 1990), chap. 1, “Reflections
on the Commons,” pp. 1-28; Chap. 3, “Analyzing Long-enduring, Self-Organized,
and Self-Governed CPRs,” pp. 58-102; chap. 6, “A Framework for Analysis of
Self-organizing and Self-governing CPRs,” pp. 182-216.
·
Mark S. Granovetter, "The
Strength of Weak Ties," American Journal of Sociology 78
(1973): 1360-80.
· Matt Ridley, The Origins of Virtue: Human Instincts and the Evolution of Cooperation (New York: Viking, 1997), pp. 51-84.
·
Hernando De Soto, The Other Path: The Invisible Revolution in the Third World
(New York: Harper and Row, 1989), Chap. 1, “Introduction,” pp. 3-13; Chap. 5,
“The Costs and Importance of the Law,” pp. 131-187.
·
World Bank, The State in a Changing World
(World Development Report 1997), chapter 1, pp. 19-28.
·
Francis Fukuyama, State-Building, chapter
1, “The Missing Dimensions of Stateness.”
Instructions for online access will be given in class.
·
Douglass North, Institutions, Institutional
Change and Economic Performance (New York:
Cambridge University Press, 1990), chapters 1-3, pp. 3-26.
·
World Bank, Building Institutions for
Markets (World Development Report 2002)
(New York: Oxford University Press
2002), chapter 1, pp. 3-27.
·
Hernando De Soto, The Other Path: The Invisible Revolution in the Third World
(New York: Harper and Row, 1989), Chap. 1, “Introduction,” pp. 3-13; Chap. 5,
“The Costs and Importance of the Law,” pp. 131-187.
·
Hernando De Soto, The Mystery of Capital: Why
Capitalism Triumphs in the West and Fails Everywhere Else (London: Bantam
Press, 2000), chaps. 3-4, pp. 32-92; chaps. 6-7, pp. 137-209.
·
Easterly, William R. and Levine, Ross, 2002. Tropics, Germs,
and Crops: How Endowments Influence
Economic Development (Cambridge, MA: NBER Working Paper 9106).
·
Marcel Fafchamps and Bart Minten, Property
Rights in a Flea Market Economy (Oxford, UK: CSAE WPS/99-25, 1999).
· Marcel Fafchamps, "The Enforcement of Commercial Contracts in Ghana," World Development 24 (1996): 427-48.
·
World Bank, Building Institutions for Markets,
chap. 5, pp. 99-116.
·
Fukuyama, State-Building, chapter 2. Instructions for online access will be given
in class.
·
World Bank, Building Institutions for Markets,
chap. 3, pp. 55-74.
·
Herbert Simon, "Organizations
and Markets," Journal of Economic Perspectives 5(2), 1991:
25-44.
·
Michael Woolcock and Lant Pritchett, “Solutions when the Solution is the
Problem: Arraying the Disarray in
Development,” Center for Global Development Working Paper No. 10, Sept.
2002.
·
Hernando De Soto, The Mystery of Capital: Why
Capitalism Triumphs in the West and Fails Everywhere Else (London: Bantam
Press, 2000), chaps. 3-4, pp. 32-92; chaps. 6-7, pp. 137-209.
·
James C. Scott, Seeing Like A State,
Chapter 9, “Thin Simplifications and Practical Knowledge: Metis,” pp. 309-341.
·
William R. Easterly, The Elusive Quest for
Growth: Economists' Adventures and
Misadventures in the Tropics (Cambridge, MA: MIT Press, 2001), chap. 11,
“Governments Can Kill Growth,” pp. 217-240; chapter 12, “Corruption and
Growth,” pp. 242-253.
·
Judith Tendler, Good Government in the
Tropics (Baltimore, MD: Johns Hopkins University Press, 1997), chapter
6: “Civil Servants and Civil Society,
Governments Central and Local.”
·
Mary Kay Gugerty and Michael Kremer, Outside Funding of
Community Organizations: Benefiting or Displacing the Poor?
(Washington, DC: NBER Working Paper No. W7896, 2000).
·
Anthony Bebbington, "Social Capital and
Rural Intensification: Local
Organizations and Islands of Sustainability in the Rural Andres," Geographical
Journal 163 (1997): 189-97.
·
Marina Ottaway and Thomas Carothers, Funding
Virtue: Civil Society and Democracy
Promotion (Washington, DC: Carnegie Endowment, 2000), chapters 1, 11, pp.
3-16, 293-310.
·
John Harriss, De-Politicizing
Development: The World Bank and Social
Capital (London: Wimbledon Publishing Company, 2002).
·
Norman Uphoff, “Understanding Social
Capital: Learning from the Analysis of
Experience of Participation,” in Ismail Serageldin and Partha Dasgupta, eds., Social
Capital: A Multifaceted Perspective
(Washington, DC: World Bank, 2000), pp. 215-249.
·
Bernardo Kliksberg, "Social Capital and
Culture: Master Keys to Development," CEPAL Review (1999): 83-102.
·
Abigail M. Barr, Enterprise Performance
and the Functional Diversity of Social Capital (Oxford, UK: CSAE WPS/98-1,
1998).
·
Abigail M. Barr, Social
Dilemmas and Shame-Based Sanctions:
Experimental Results from Rural Zimbabwe (Oxford, UK: CSAE
WPS/2001.11, 2001).
·
Jonathan Isham, The
Effects of Social Capital on Technology Adoption: Evidence from Rural Tanzania (College Park, MD: IRIS
Working Paper 235, 2000).
·
Enrique Pantoja, Exploring
the Concept of Social Capital and its Relevance for Community-based Development
(Washington, DC: World Bank, SCI 18, 1999).
·
Sheoli Pargal and Mainul Huq, Social
Capital in Solid Waste Management: Evidence from Dhaka, Bangladesh
(Washington, DC: World Bank, SCI 16, 1999).
·
Jonathan Fox, "How Does Civil Society
Thicken? The Political Construction of
Social Capital in Mexico," World Development 24 (1996): 1089-103.
·
Deepa Narayan and Christiaan Grootaert, Local
institutions, poverty, and household welfare in Bolivia (Washington, DC:
World Bank Pol. Res. Working Paper, 2001).
·
Abigail M. Barr, Familiarity
and Trust: An Experimental
Investigation (Oxford, UK: CSAE WPS/99-23, 1999).
·
Abigail M. Barr, Trust and
Expected Trustworthiness: An Experimental
Investigation (Oxford, UK: CSAE WPS/2001.12, 2001).
·
Jonathan Morduch, "Between
the State and Market: Can Informal
Insurance Patch the Safety Net?" World Bank Research Observer 14
(1999): 187-207.
·
Deepa Narayan and Lant Pritchett, "Cents
and Sociability: Household Income and Social Capital in Rural Tanzania,"
Economic Development and Cultural Change 47 (1999): 871.