Agricultural growers across the world in general are price-takers rather than price-makers. It is the chain of intermediaries rather than agriculturalist which control the marketing in agriculture, broadly speaking. Consequently, the growers must be guaranteed a remunerative price which is very important for their growth and progress and can be given to them by offering them an efficient marketing system. The best way available to the agricultural growers is the formation of social and community organizations or committee of some sort to act on their behalf. The social and community organizations generate social capital. In its all-inclusive form, social capital denotes the social ties between people that enable productive and rewarding outcomes (Szreter 2000). It incorporates those agendas and frameworks of social trust and networks that people can draw upon to resolve collective problems and maximize social welfare. Social capital is a connecting link between social problems and economic problems (Adam and Roncevic 2003).
Social and community organizations in agriculture are used for the portrayal of the importance of public participation in improving agriculture outcomes and performance of agricultural goods in general and high-value horticulture goods in particular. If a person interacts and cooperates with his fellow beings, and they interact and cooperate with other fellows, it will generate social capital, which may immediately satisfy his own need coupled with social needs and maximize social welfare or may considerably improve the living conditions in the whole community.
The importance of social and community organizations together with social capital, lies in the fact that it assimilates several sociological philosophies, concepts and designs in the form of social interconnections, social structure, social equity, cohesion, integration, social support, social cooperation and social welfare (Requena, 2003 As cited by Claridge, 2004). And, the actual strength of the role of social and community organizations in the agricultural development of a country, and theories and treatise on social capital lies in the amalgamation and arrangement of large-level or macro sociological-historical contexts with micro-level causal frameworks. Research studies confirm that countries with high doses of social capital can have and develop economic and social institutions at lower transaction costs than those countries with very low doses of social capital. Furthermore, it is found that countries with a high number of social and community organizations have a high level of social capital and vice versa.
Social and community organizations by way of generating social capital amplify The Gross Domestic Product (GDP) in an economy, expands the labour market, (Kawachi et al., 1999 as cited by Claridge, 2004), and provide solutions to social problems (Dika & Singh, 2002. Also, social capital is a great contributor to the student’s academic success (Acar, 2011). Social capital formation plays an important role in economic development. In fact, active and efficacious use of physical capital and social capital itself is a function (dependent) of human capital. There is a positive significant relationship between social and community organizations and the level of education. Social and community organizations contribute significantly to the education level and training of a grower which positively affect the growth and development of agriculture. In fact, the political economy of a country is highly dependent upon the nature and type of social and community organizations and social capital. Better the nature and type of social and community organizations, better will be the economic and political performance of a country and vice versa.
Investment in social capital and human capital is the need of the hour because it can remove many of the weaknesses of the agriculture sector , in general and agriculture marketing in particular. Furthermore, it can remove many of the weaknesses of the labour market that act as stumbling block to higher production and productivity levels (yield per hectare), such as, low level of education and training, poor health system, rigidity, unyieldingness, inflexibility, and non-receptiveness to new technology, innovations, new knowledge, confrontation and opposition to change. Improvements in the social system, health system, and education system always consistently culminate to higher productivity levels in the economy. As social capital and human capital largely affect these systems, therefore, it is very important to invest in social capital and human capital so as to drive the economy on the path of economic development.
Adam, Frane, and Borut Roncevic. (2003). ‘Social Capital: Recent Debates and Research Trends.’ Social Science Information. Vol. 42: 155-183.
Acar, Erkan. (2011). Effects of social capital on academic success: A narrative synthesis. Educational Research and Reviews Vol. 6 (6), pp. 456-461.
Claridge, T. (2004). Social capital and Natural Resource Management: An important role for social welfare? Unpublished Thesis, University of Queensland Brisbane, Australia.
Dika SL, Singh K (2002). Applications of social capital in educational literature: A critical synthesis. Rev. Educ. Res., 72(1): 31-60.
Szreter, Simon. (2000). ‘‘Social Capital, the economy, and education in historical perspective.’’ Pp. 56-77 in Social Capital: Critical Perspectives, edited by Tom Schuller. Oxford University Press.
The author is a Research Scholar at the Department of Economics, Central University of Kashmir , an Academic Counsellor, IGNOU STUDY CENTRE 1209,S.P. College, Srinagar and Editor in EPH – International Journal of Business and Management Science & Asian Journal of Managerial Science. She is also am Ezine Articles Expert Author, and the IJRULA title awards, 2018 winner (Best Researcher, 2018).She can be reached at: firstname.lastname@example.org