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Social Capital Creates Jobs in Rural Europe
added: 2007-11-07

Involvement in social networks in rural Europe enhances economic development, promotes entrepreneurialism, aids social inclusion and creates jobs. This is the key finding of a new report Social capital and job creation in rural Europe published by the European Foundation for the Improvement of Living and Working Conditions (Eurofound), the Dublin-based EU agency.

Social capital is defined in the report as ‘the interaction of individuals within formal and informal networks that builds trust, communication, participation and a cultural dimension’. Building of social capital is a key resource to counter the problems in many rural parts of Europe: outward migration of young and educated people; demographic ageing; high unemployment; poor infrastructure and inadequate public services.

‘Eurofound’s report is important given the shift in recent years from an approach which focused exclusively on agriculture to one emphasising broader rural job creation,’ says Jorma Karppinen, Eurofound’s Director, ‘The new territorial approach includes other sectors like forestry, tourism, food processing and services together with existing assets like natural and cultural amenities.’

The report gives examples of how regional and local authorities, social partners and NGOs in 10 EU countries - Bulgaria, Finland, France, Germany, Latvia, Poland, Portugal, Romania, Slovakia and Spain - created jobs through social capital and it makes policy recommendations for rural job creation throughout Europe. It argues that it is not enough to rely on individuals’ private actions. Instead, social capital needs to be supported by policymakers at EU, national, regional and local levels, and by social partners, public authorities and NGOs. They need to design and implement strategies to build social capital to foster rural jobs.

The report identifies strategies and programmes used in 15 case studies. All focused upon existing social networks or created new ones. Partnerships were important in many of the initiatives. Some involved partnerships between government, social partners and NGOs. Others saw public-private partnerships develop policy or empower rural enterprises. Business clusters or networks were important, such as for the joint distribution of products, building on local traditions or strengthening the local tourism sector. While each rural area is distinctive and that which works in one region might not be replicated elsewhere, the report provides a helpful overview of what can be done – and demonstrates the effectiveness of social capital initiatives.


Source: Eurofund

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