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SOCIAL CAPITAL
Imagine your ideal community. One in which youâve got plenty of friends, and plenty of time to spend with them. A society where your street is lively and safe, and neighbours are happy to mind your dog when youâre on holiday. Local cafĂ©s where people know your name. Creative communities telling Australian stories. More local sporting teams than you can shake a cricket stump at. The kind of politics where people work together to solve local problems, rather than bickering about leaders, slurs and slip-ups.
Suppose that this sense of common purpose extended to the workplace, so that people felt fulfilled in their jobs, respected by their co-workers and valued by their managers. Imagine employment thatâs flexible by default, so the boss doesnât scoff when you say youâd like to work a four-day week so you can care for a relative â or just practise your favourite hobby.
Picture, too, an Australia in which friendships comfortably bridge traditional divides, in which everyone shares a pride in the nationâs 60,000-year Indigenous heritage, volunteers to help those who are down on their luck and takes the time to check in on neighbours whoâve newly arrived from overseas. Envisage the strength that such a connected society has when adversity strikes: volunteer fire brigades at the ready, foodbanks well stocked, community centres prepared.
Itâs a world weâd all like to live in â but too often the reality of modern life is rushing past your neighbours (who you really must introduce yourself to one day), getting stuck in traffic, rolling your eyes at the latest social media outrage and wondering how anyone ever finds time to catch up with friends. In Reconnected, we look at how Australia has become more disconnected â and how together we can turn it around.
Living in a more connected way isnât just pleasurable, it enables us to tackle larger challenges. Problems such as climate change, inequality, inactivity and loneliness threaten our future. Solving them will require collective action. In all of human history, thereâs few instances in which a crisis was resolved by one person acting alone.
The missing pieces of Australiaâs community-building puzzle are hiding in plain sight. Australia is fortunate to have thousands of inspirational social entrepreneurs in our midst. From sporty types organising weekend fun runs to altruists providing laundry services to homeless people, âsocial capitalistsâ are helping to grow a more connected community. Better yet, many are deploying tactics that can be replicated elsewhere. Identifying these common threads is the purpose of our book.
But first, thereâs a core concept we need to understand: social capital.
Four hundred and fifty kilometres south of New Zealandâs South Island lies Auckland Island, a cold and hilly landmass. For most of human history, the island has been uninhabited. Then in 1864 something unusual happened.1 In the space of four months, two Australian ships were wrecked at opposite ends of the island: the Invercauld on the northwest, and the Grafton on the south-east.
The Invercauld was under the command of Captain George Dalgarno, who when disaster struck seems to have been focused only on his own survival. Dalgarnoâs attitude of âevery man for himselfâ saw six of the twenty-four sailors under him perish in the shipwreck, including a sick young crewman. In the coming weeks, the survivors roamed the island, repeatedly abandoning those who were ill to die on their own. When they caught wild pigs, each man ate as much as he could. One night, William Hervey threw another of the shipwrecked sailors, Fred Hawser, out of their stick shelter on the basis that he was being a ânuisanceâ. Hawser died. A few days later it was discovered that âHervey had been eating some of Hawserâ. A year after the shipwreck, a rescue ship arrived. Only three of the Invercauldâs original twenty-five crew survived.
On the other side of the island, things unfolded differently. Commanding the Grafton was Captain Thomas Musgrave. When his ship hit a rocky beach and foundered, Musgrave ordered his men to stay aboard and wait until daylight. They then took ashore food, a gun and a dinghy, and even managed to transfer a critically ill crewmate. Over the coming months, the five Grafton sailors worked together to build a cabin with a stone chimney, dining table and desk. They made a chess set to keep themselves entertained and brewed beer by fermenting a sweet root they dug up (âIt is not very good, but still it is preferable to cold water,â Musgrave wrote in his diary).2 Under Musgraveâs leadership, they built blacksmithâs bellows and used them to enlarge the dinghy. Eighteen months after being wrecked, they made the 450-kilometre sea journey to New Zealandâs South Island. Because the boat could only carry three safely, two men stayed behind. The voyage was a success, and a rescue vessel returned to pick up the other two sailors. Everyone survived.
The story of the Invercauld and the Grafton tells us something vital about how groups survive and thrive. While one group resorted to cannibalism, the other set about community building. It is telling that Musgrave and his men built a chess set â playing games maintained their morale and their mutual efforts forged a sense of common purpose. The crew of the Grafton built what is known as âsocial capitalâ, and all survived to tell their stories.
To economists, capital is an asset that can produce a valuable return. One form of capital is physical capital, such as cars and computers. Another is human capital, such as education and know-how. If youâre running a company, you need both the right machines and appropriately skilled workers â a mix of physical and human capital.
But your company probably wonât get far if your workers are constantly bickering, and thatâs where social capital comes in. Social capital is the idea that the ties that bind us together have an inherent value. In a society where people donât trust each other, you have to be on the lookout for cheats and crooks. Commerce becomes tediously complicated. But in a âhigh-trustâ society, things flow smoothly.
The two extremes can be found in the diamond market. In the diamond mines of South Africa, workers are heavily monitored to ensure they do not steal the stones. Pat-downs, x-ray machines and cameras are used at the end of a shift to check that employees have not swiped diamonds. Workersâ uniforms do not have pockets or cuffs. Crafty employees have been known to swallow diamonds or hide them in their shoes. Employers donât trust their workers, and subject them to extreme scrutiny. But when diamonds arrive in New York, itâs a different story.3 Almost half the worldâs diamonds are handled by merchants on 47th Street. A diamond might pass through the hands of seven or eight people, as it is inspected and matched to the right buyer. Each personâs profit margin can be as thin as 1 to 2 per cent, so the payoff from cheating is huge. But the New York Diamond Dealers Club works on trust, with diamonds exchanged based on a handshake or a signature on a receipt. Joining the club is notoriously difficult, because it involves establishing oneâs character. Most of the dealers are Orthodox Jews with strong religious and cultural ties to one another. Without such high levels of trust, the 47th Street diamond dealers could never have created such a successful conglomerate.
Social capital is vital for business, but it also makes for a more pleasurable life. A wide network of friends gives you more social options on a Saturday night, and more people with whom to share your joys. Friends, Marcel Proust said, are âthe charming gardeners who make our souls blossomâ.4 Being a member of a club or having a sense of belonging to your neighbourhood increases the likelihood that you feel happy and satisfied with your life.5 Drawing support from family and friends is especially good for wellbeing.6 Social connections can also provide a safety net when hard times hit. Those close to us provide a buffer against loss â in the words of Helen Keller, âwalking with a friend in the dark is better than walking alone in the lightâ. Distant connections can help too â if youâre fired, a broad network of loose acquaintances can be useful in helping you find work. Sociologist Mark Granovetter argued that when it comes to job-hunting, what really helps is to have a strong network of âweak tiesâ.7
Friends may be good for your health. There is a strong association between longevity and the strength of a personâs social relationships.8 Indeed, some have argued that social isolation is as dangerous as smoking fifteen or more cigarettes each day, and more dangerous than binge drinking or obesity. Randomised trials that have improved participantsâ social capital and then measured their health relative to a control group find weaker evidence of the link between social capital and health. But even among these more rigorous studies, there is some evidence that improved social capital leads to better self-reported health and wellbeing.9
Volunteering is also linked to a range of positive outcomes. Researcher Stephen Post found that volunteering is associated with happiness, health and longevity.10 Volunteers feel healthier, sleep better, are less stressed and better able to adjust to change, and have a higher sense of self-worth and value to their community. Post argues that volunteering is so beneficial that doctors should prescribe it to their patients, just as many currently prescribe exercise.11 Community-sector leader Joanne Fritz suggests that volunteering builds community, reduces loneliness, increases socialising, creates new bonds and friendships, helps people develop emotional stability, improves self-esteem, helps people cope with mental illness, increases longevity, reduces the risk of Alzheimerâs, leads to graceful ageing, burns fat, saves lives, improves educational experiences, enhances job prospects, develops corporate communities and is just plain fun.12
Postâs and Fritzâs claims read like the riff of an old-time medicine show, and should be viewed with the same scepticism. After all, correlation doesnât mean causation. For example, itâs possible that happier and healthier people are more inclined to volunteer in the first place. But a modicum of randomised evidence suggests there may be a modicum of truth in the causal claims. In one experiment, a group of secondary school students were randomly assigned either to do volunteer work assisting younger children or to a control group.13 Four months later, the volunteers had significantly lower cholesterol levels and body mass indices than students in the control group. Another experiment asked primary school students to perform three acts of kindness each week.14 Compared with a randomly selected control group, students who performed the acts of kindness were rated as more popular by their peers, gaining an average of 1.5 more friends over the four-week period. As developmental psychologist Marilyn Price-Mitchell puts it, the finding supports the idea that ânice guys finish firstâ.15
Strong social capital may also help political institutions work more effectively. In 1993, political scientist Robert Putnam wrote a pioneering book that aimed to answer the question of why government had always functioned so much more effectively in northern Italy than in southern Italy. Making Democracy Work found that the difference went back to medieval times, with the north having more social institutions, such as football tournaments, choral societies and neighbourhood associations. Drawing on the work of sociologist James Coleman, Putnam concluded that local governments work best where civil society is strongest â a finding that has since been reinforced in dozens of different studies around the globe.
Social capital is also intertwined with egalitarianism. In their 2020 book The Upswing, Putnam and Shaylyn Garrett describe the Gilded Age era of the late 1800s in the United States as âhighly individualistic, starkly unequal, fiercely polarized, and deeply fragmentedâ. By the 1960s, the country had become more equal, more generous and more socially engaged. But then the trend reversed, and America today is increasingly split apart. The United States has gone from being an individualistic âIâ society to a connected âweâ society, then back to an individualistic âIâ society again. Globally, it turns out that countries which are more equal are also more socially cohesive.16 As the French might put it, Ă©galitĂ© and fraternitĂ© go together. If you care about reducing the gap between rich and poor, you should worry about how Australian social life is coming apart.
Recognising the importance of social capital, researchers set about tracing the trends in community life. While no single measure sums up the level of social capital in a community, a variety of indicators point in a similar direction. In his 2000 book Bowling Alone, Putnam documented the decline in civic community from the 1960s to the 1990s by drawing on surveys showing that Americans were less likely to know their neighbours and less inclined to trust one another. Fewer families ate dinner together or had friends over to their homes. And since Bowling Alone was published, the decline has continued. Americans have fewer close friends and are less trusting of each other.17 Confidence in business, media and religious organisations and politicians has decreased.
Across many other advanced nations, research teams uncovered similar trends. Voter turnout at elections, membership of political parties, union membership and church attendance have fallen.18 In many European nations, including Britain, Germany, France and Spain, civic institutions are fraying.
In Australia, my (Andrewâs) book Disconnected was published in 2010, a decade after Bowling Alone. It found that Australians are less likely to be active members of any organisation than we were in the 1960s. Specific mass-membership organisations â such as Scouts, Guides, Rotary and Lions â attracted a smaller share of t...