Is social capital the 'missing link' in economics? In this vital new book, the authors argue that the 'forgotten' production factor of social capital is as crucial in economic decision-making as the other more traditional factors of production such as physical, financial and human capital. They attempt to bridge the gap between theory and reality by examining the main factors that determine entrepreneurship, co-operative movements and the creation and destruction of social capital. To address the question of how social capital is created and destroyed, the authors develop an interdisciplinary approach combining political science, economics, anthropology, sociology and history. They show how bridging social capital enforces personal contact and acts as a lubricator for human co-operation, whereas bonding social capital enforces distance between people, increasing mistrust and, consequently, transaction costs. They demonstrate how entrepreneurship can facilitate voluntary collective action and create inclusive forms of social capital. Crucial in this respect is that entrepreneurs are motivated not only by economic incentives but also by social motives. Applying historical and contemporary case studies, they identify the serious human and economic consequences that result when social capital is disregarded. The authors believe that the implications of such a discovery demand a re-evaluation of traditional economic theory. This book will contribute substantially to academic and popular debates on social capital and will be an invaluable source of reference for all social scientists. It will particularly appeal to students and scholars of public policy, economics, sociology, political science, anthropology and history.

This book is a powerful and incisive contribution to the debates on social capital, trust and the welfare state. The reader will find an informed, insightful explanation of how the Scandinavian welfare state has been largely able to escape its inherent social dilemma: how generous social provisions have not been accompanied by widespread free-riding. The answer lies, according to the authors, in social capital and trust. The authors not only offer a compelling argument about the inner workings of how the Scandinavian welfare state functions, but also an original theoretical approach - Bourdieuconomics - to the study of the forms of capital in general and of social capital in particular. This is social science research at its best.' - Francisco Herreros, Spanish National Research CouncilDenmark exemplifies the puzzle of socio-economic success in Scandinavia. Populations are thriving despite the world s highest levels of tax, generous social benefits and scarce natural resources. It would appear to be a land of paradise for free-riders and those who want 'money for nothing'. However, the national personality is characterized both by cooperation in everyday life and the numerous 'hard-riders' who make extraordinary contributions. Applying Bourdieuconomics, the authors focus on contemporary case studies to explain how social capital and trust are used to counteract free-riding and enable the flight of the Scandinavian welfare state 'bumblebee'. Insightful and interdisciplinary, the authors' approach offers qualitative case studies which explore trust, social capital and wealth in the Scandinavian welfare state. Key to the topic is the authors' discussion of free-riders versus 'hard-riders' as well as civic engagement in the welfare state. The application of Bourdieuconomics, a new theoretical approach, to a range of examples using economics, sociology, anthropology and history, will make this highly cross-disciplinary book accessible to a broad group of readers. This unique work will be of great value to researchers, students, policy makers and all of those who are interested in the fundamental question of how economies work, specifically how people build, exchange and convert tangible as well as intangible forms of capital.

Is social capital the 'missing link' in economics? In this vital new book, the authors argue that the 'forgotten' production factor of social capital is as crucial in economic decision-making as the other more traditional factors of production such as physical, financial and human capital. They attempt to bridge the gap between theory and reality by examining the main factors that determine entrepreneurship, co-operative movements and the creation and destruction of social capital. To address the question of how social capital is created and destroyed, the authors develop an interdisciplinary approach combining political science, economics, anthropology, sociology and history. They show how bridging social capital enforces personal contact and acts as a lubricator for human co-operation, whereas bonding social capital enforces distance between people, increasing mistrust and, consequently, transaction costs. They demonstrate how entrepreneurship can facilitate voluntary collective action and create inclusive forms of social capital. Crucial in this respect is that entrepreneurs are motivated not only by economic incentives but also by social motives. Applying historical and contemporary case studies, they identify the serious human and economic consequences that result when social capital is disregarded. The authors believe that the implications of such a discovery demand a re-evaluation of traditional economic theory. This book will contribute substantially to academic and popular debates on social capital and will be an invaluable source of reference for all social scientists. It will particularly appeal to students and scholars of public policy, economics, sociology, political science, anthropology and history.