Social Capital

Social capital is capital that consists of informal norms that create the trust and cooperation among individuals. The values and norms such as honesty, trust and reciprocity will create social capital that brings benefits to the survival of the peoples in any political system. The trust values and spirit of the group must be existed for create good social capital. In layman definition to understand the social capital is "if you know me and I will know you", this showed that to bound the peoples they need to know each other and have norms or values that can be shared. Example; In Malaysia we can see many groups and association (political parties & society groups) existed, this shows that social capital exist. This is because when they without trust, reciprocity, honesty or same values they cannot creating social capital which is bring them in cooperation or association. According to the Fukuyama stress on the radius of trust should be existed to have a social capital in the society or organization. The social capital also is one of the idea that create the civil society groups or institutions because when they this kind of trust they will have an associations. In modern economic the social capital will assist the economic spurred because the values of trust exist among the buyer and seller, because who will buy the goods & services if they not have this social capital among the society? it showed that no social capital mean no transactions or business