In the context of any country, which one of the following would be con

In the context of any country, which one of the following would be considered as part of its social capital?

[amp_mcq option1=”The proportion of literates in the population” option2=”The stock of its buildings, other infrastructure and machines” option3=”The size of population in the working age group” option4=”The level of mutual trust and harmony in the society” correct=”option4″]

This question was previously asked in

UPSC IAS – 2019

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The correct answer is D. The level of mutual trust and harmony in the society would be considered as part of its social capital.

Social capital refers to the collective value of all social networks (who people know) and the inclinations that arise from these networks to do things for each other (norms of reciprocity). It involves the quality of social interactions, networks, and shared norms, values, and trust that facilitate cooperation and collective action for mutual benefit.
Option A (proportion of literates) relates to human capital (education and skills).
Option B (stock of buildings, infrastructure, machines) relates to physical capital.
Option C (size of working age population) is a demographic factor related to the potential labor force, which contributes to human capital.
Option D (level of mutual trust and harmony in the society) directly captures the essence of social relationships, norms, and trust that constitute social capital. High levels of trust and harmony can reduce transaction costs, facilitate cooperation, and improve overall societal well-being and economic performance.

Social capital is often seen as a key factor in economic development and effective governance. It is built through various social interactions, institutions, and cultural factors within a community or society.

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