An Analysis Of The Factors Of Formation And Change Of Social Capital

Social capital is built on certain social structures and formal or informal social networks and the corresponding cultural and social norms, which lead to trust and cooperation. Structural and cognitive are the two aspects of social capital, formal and informal system must be compatible. There are level and vertical type of social capital, and level social capital, promoting trust and cooperation between people, it is productive, vertical relationship can not produce trust and cooperation, it is distributional, China should foster the level social capital, such as various non-governmental organizations, is conducive to the formation of civil society and social justice. Compact Type of social capital is on the basis of the family, which is the foundation of traditional society, and the bridge of social capital links with different groups and other regions. Bridge social capital is characterized by weak ties; it is the basis of market economy and democracy, which is supported by the rule of law. Traditional social capital is built on the narrow and special trust, the trust radius of modern social capital is big, and there is the feature of general trust, both essential for modern society.Social capital is the factor of economic growth, it can increase individual human capital, social norms and improvement of the general trust can increase total factor productivity of society. Social capital has Information dissemination function, can promote changes in social structure and economic endogenous growth. Social capital is the supplement of government and market, richness in social capital can promote the improvement of government performance, social capital is a source of entrepreneurship and innovation.Social capital formation is the unity of structure and cognition, culture is a set of informal norms shaping people's behavior. System of social capital requires both social structure and the organizational structure,rules and procedures and role, values and attitudes is also essential for cognitive, trust and cooperation is ultimately spiritual. Theory of formation of cognitive social capital that cultural beliefs and moral feelings are determinants of behavior is conducive to the all-round development of people. Theory of structure social capital guide economic and social transition.Changes in social capital start from the historical and cultural traditions.Our starting point of the change of social capital, said Professor Liang summing "ethical standard" and said Professor Feixiaotong, the "differential pattern," ethics-based social life, there is neither of personal freedom nor organizations, in state-led industrialization, the formation of social capital units, has attribute of closed vertical and distributional. The construction of social capital is based on the role of traditional Confucian ethics, to expand the radius of trust, to increase community organizations fostering civil society and people's public spirit. We must change from the special trust between the families to the general trust.Changes of China's social capital are a process of market-oriented and in the process of agricultural country industrialization. It brings about the establishment of industrial organization and production of public space, industrialization promote ideas and lifestyle changes, industrialization, the traditional virtues such as honesty, integrity, diligence, discipline can be extended outside the families, industrialization can bring about changes of social institution and organizational structure. Industrialization is the modernization of agriculture and rural. Rural community development and rural-urban migration promotes rural social capital changes. To promote the value of the market economy, such as law, independent and free personality, adventure spirit, change our life attached to such concepts; help establish a democratic rule of law, freedom and equality and justice. Central China's economic development is a long history of cultural constraints of official culture deeply rooted in the struggle centered philosophy,static, armorist,closed, it is essential to achieve the standard change in official position, struggle, and static form dynamic culture. Wenzhou is the catalyst for economic development, the people of the economic liquidity of the market economy spirit of pioneers.China's traditional culture has universal essence. Confucianism is still the trend of world civilization; Confucian idea of "benevolence" is to get along with his true self and other people. Confucianism is benefit to promote "faith"under the market economy in order to reduce transaction costs. China's traditional emphasis on "and different" is conducive to good human ecological environment. Imitation of Nature's idea is viable, the serious consequences of industrial civilization requires people to return to nature, to attach importance to both extrinsic material life and peace of mind desires, way under the weak appearance, there is infinite vitality and creativity, it create all things, not fight,full of great human spirit. Entrepreneurship is an inevitable requirement of market economy, and entrepreneurship is characterized by profit preference, risk-biased, liquidity, innovation, the entrepreneur must take the "intelligence, faith, benevolence, bravery and strict".