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! ! ! ! The!Use!of!Social!Capital!in!Complementing!Social!Protection:! What!Works!in!the!Philippines! ! ! ! ! !
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The!Use!of!Social!Capital!in!Complementing!Social!Protection:!
What!Works!in!the!Philippines!
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Submitted!by ! Asuncion(M.(Sebastian (

!

On!!

8th(April(2011(

!

To!

!

Dr.( Ma.(Divina(Gracia ( Z.( Roldan (

Of!the!De!La!Salle!University! ! Political!Science!Department !

!

In!Fulfillment!of!the!Requirements!Under!the!Course! ! Seminar!on!the!Philippine!Development!Experience !

Table&of&Contents& &

Introduction

1 &

Social&Capital&Demystified

3 &

De finitions

3 !

Determinants

5 !

Dimensions

5 !

Filipinos’!Bayanihan!and!Social!Capital

7 !

Case&1:& Gawad&Kalinga

8 &

Backgrou nd

9 !

Group!characteristics

10

Generalized!norms

11 !

Togetherness

11 !

Everyday!sociability

11 !

Neighborhood!co nnections

12 !

Volunteerism

12 !

Trust

12 !

Case&2:& The&Socorro&Island&Community

13 &

Background

13 !

Group!characteristics

14

Generalized!norms

16 !

Togetherness

16 !

Everyday!Sociability

17 !

Neighborhood!connections

17 !

Volunteerism

17 !

Trust

17 !

Case&3:& The&Microfinance&Clients&Using&the&Grameen&Methodology

18 &

Background

18 !

The!Philosophy!behind!the!Grameen!Method

18 !

Grameen!Method!in!the!Philippines

20 !

Group!characteristics

21

Generalized!norms

22 !

Togetherness

22 !

Everyday!sociabi lity

22 !

Neighborhood!connections

22 !

Volunteerism

23 !

Trust

23 !

Comparison&of&the&Three&Cases

23 &

Conclusions

27 &

Suggestions&for&Future&Research

28 &

Works&Cited

29 &

The!Use!of!Social!Capital!in!Complementing!Social!Protection:!

What!Works!in!the!Philippines!

Introduction !

These!economies!(South!Korea,!Taiwan,!Thailand)! didn't!have!the!social! securities!that!you!find!in!the!European!welfareIcapitalism!model.!Asia's! leaders! kept! on! saying! that! such! securities! are! not! needed! in! Asia! because!of!‘Asian!Values’ — that!community!values! are!such!that!people! will!automatically!take!care!of!each!other!in!a!crisis. ! ! !

So!said!Amartya!Sen!(1999)!in!an!interview!but!which!he!ended!with!“ Well,!the! fact!is! they!didn't.”!The!question!is,! does& this&Asian& value& that&purports& that& people& will& take& care& of& each& other& hold& true& in& the& Philippines,& where& welfareOcapitalism’s&social&securities&are&often&insufficient?!

This!paper!thus!aims!to!do!the!following:!!

1. Examine!whether!social!capital!is!used!in!the!country!to!complement!the! social!protection!provided!by!the!government;!and!

2. Determine!what! dimensions!work! or! not!work!in! the!Philippine! context! using!Narayan!and!Cassidy!framework.! !

In!line!with!these!objectives,!the!paper!looks!into!three!Philippine!cases:!!

1. Gawad!Kalinga!

2. Socorro!Island!community,!and!

3. the! microfinance! centers! using! the! Grameen! (group)! lending! methodology! (alternatively! called! “Grameen! borrowers! in! the! Philippines”!in!this!paper).!

By! Resolution!No.!1,!Series!of!2007!of!the!Social!Development!Committee!(SDC)!

of! the!National! Economic! and! Development! Authority! (NEDA),! the! term! ‘social! protection’!is!defined!in!the!Philippines!as!follows:!

policies!and!programs! that! seek! to! reduce!poverty!and!vulnerability! to! risks! and! enhance! the! social! status! and! rights! of! the! marginalized! by! promoting! and! protecting! livelihood! and! employment,! protecting! against! hazards! and! sudden! loss! of! income,! and! improving! people’s! capacity! to!manage! risks. ! ! (Development!Academy! of! the!Philippines,!

2009)!

According! to! the! report! prepared! by! the! Development! Academy! of! the! Philippines!(2009),!there!are!four!components!or!categories!of!social!protection:! !

1. Labor&market&programs !are!enhancing!employment!opportunities!such! as! trade! policies! and! skills! development! and! training;! and! labor! protection!of!the!rights!and!welfare!of!workers. !

2. Social& welfare& programs! are! preventive! and! developmental! interventions! to! support! the! minimum! requirements! of! the! poor,! particularly! the! poorest! of! the! poor! and! oftentimes! comprise! direct! assistance.! These! are! intended! to! reduce ! risks! associated! w ith! unemployment,!resettlement,!marginalization!and!lifecycle!risks. !

3. Social& safety& nets! are! measures! that! serve! as! stop gap! or! urgent! mechanisms! to! address! effects! of! economic! shocks,! disasters! and! calamities! on! specific! vulnerable! sectors.! These! interventions! are! intended!to!provide!relief!and!transition.!

4. Social& insurance& programs! are! designed! for! beneficiaries! to! pay! a! premium!over!a!given!period!of!time!to!mitigate!income!risks!by!pooling! resources!and!spreading!risks!across!time!and!classes.!

Table!1!below!shows!which!of!these!areas!of!social!protections!the!case!subjects!

attempt!to!address.!

Table&1.&Type&of&Social&Protection&Provided&by&the&Case&Subjects&

 

Labor&Market &

Social&

Social&Safety&

Social&

Welfare &

Nets &

Insurance &

Gawad&Kalinga &

X

X

   

Socorro&Islan d&

 

X

X

 

Community &

Grameen&borrowers & O & Philippines &

X

   

X

2!

! The!social!protection!programs!are!founded!on!the!social!capital!within!the!area! of!operations!of!the!case!subjects.
!
The!social!protection!programs!are!founded!on!the!social!capital!within!the!area!
of!operations!of!the!case!subjects.
!
!
Social!Capital!Demystified
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!
Definitions) )
!
The!Social!Capital!Research!published! a!comparative!list!of!definitions!of!various!
authors! from! various! fields! of! disciplines.! There! has! been! no! definitive,!
undisputed!definition!of!social!capital;!however,!the!common !thread!among!the!
most!definitions!of!social!capital! is! that! they! focus!on!so cial!relations! that!have!
productive!benefits.!(Claridge,!2004)!
!
Annex! 1! summarizes! the! numerous! definitions! of! social! capital! found! in! the!
literature! (adapted! from! Adler! and! Kwon! 2002).! They! vary! depending! on!
whether! their! focus! is! primarily! on! (1)! the! rel ations! an! actor! maintains! with!
other!actors,!(2)!the!structure!of!relations!among!actors!within!a!collectivity,!or!
(3)!both!types!of!linkages!(Adler!and!Kwon!2002).! (Claridge,!2004)!
!
A!focus!on!external!relations! has!also!been!called!'bridging'!(Woolcock!1998)!or!
'communal'! (Oh! et! al.! 1999)! and! a! focus! on! internal! re lations! 'bonding'! or!
'linking'.! Similar!categorization!could!be!done!according!to!other!criteria!such!as!
strong!or!weak!ties,!horizontal!or!vertical,!open!or!closed,!structural!or!cognitive,!
geographically! dispersed! or! circumscribed,! and! instrumental! or! principled.!!
(Claridge,!2004)!
!
The!contemporary!discussions!on!social!capital!beginning! the!1980s!have!been!
dominated!by!three!authors:! Pieere!Bourdieu,! a!pure!sociologist;! James!Coleman ,!
a! sociol ogist! with! strong! connections! to! economics! through! rational e choice!
theory ;!and!Robert!Putnam ,!a!political!scientist.!(Claridge,!2004)!
!

Bourdieu! defined ! social! capital! as! “ the! aggregate! of! the! actual! or! potential! resources!which!are!linked! to!possession! of! a!durable!network! of!more! or!less! institutionalized! relationships! of! mutual! acquaintance! and! recognition! or! in!

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other!words,!to!membership!in!a!group!which!provides!each!of!its!members!with! the!backing!of!the!collectivity e owned!capital,!a!credential!which!entitles!them!to! credit,!in!the!various!senses!of!the!word” !(Bourdieu!1986,!web!page). ! Bourdieu's! original! w ork! on! social! capital! was! analyzed! within! the! context! of! his! critical! theory! of! society ,! and! of! the! three! contemporary! works,! his! contains! the! least! empirical! analysis! with! only! fragments! of! reference! to! it! (Adam! and! Roncevic, ! 2003). ! (Claridge,!2004)!

Coleman ! draws! together! insights! from! both! sociology! and! economics! in! his! definition! of! social! capital.! It! is! not! a! single! entity,! but! a! variety! of! differ ent! entities!having!two!characteristics!in!common:!they!all!consist!of!some!aspect!of! social!structures,!and!they!facilitate!certain!actions!of!actors!whether!persons!or! corporate!actors!within! the! structure! (Coleman, !1988,!p.!S98). ! Coleman's!work! represen ts!an!important!shift!from!Bourdieu's!individual!outcomes!(as!well!as!in! network e !based!approaches)!to!outcomes! for!groups,!organizations,!institutions! or! societies, ! which! represents! a! tentative! shift! from! egocentric! to! sociocentric! (Adam! and! Roncevic, ! 2003;! Cusack, ! 1999;! McClenaghan, ! 2000).! Coleman! explores!how!the!productive!nature!of!social!capital!might!offset!deficiencies!in! other! capital! such! as! human! and! cultural! capital! (Teachman! et! al.! 1997).! Coleman!extended!the!scope!of!the!concept!from!Bourdieu's!analysis!of!the!elite! to!encompass! the!social!relationships!of!none elite!groups!(Schuller!et!al.!2000).!

(Claridge,!2004)!

Robert!Putnam,! on!the!other!hand,! was!responsible!for!popularizing!the!concept! of! social! capital! through! the! study! of! civic! engagement! in! Italy! (Boggs, ! 2001;! Schuller! et! al. , ! 2000).! Such! was! Coleman's!influence! over! the! scholarly! debate,! Putnam! cited! Coleman's! Foundations! of! Social! Theory! as! a! central! source! (Routledge! and! Amsberg , ! 2003).! Putnam! gave! the! following! definition:! social& ca pital& refers& to& features& of& social& organization,& such& as& trust,& norms,& and& networks& that& can& improve& the& efficiency& of& society& by& facilitating& coordinated&actions& (Putnam!et!al.!1993,!web!page). ! (Claridge,!2004)!

4!

Determinants) )

The!determinants! of!social!capital! are!numerous!and!varied, !and,!as!pointed!out! by! Claridge! (2004), ! there!is! both!a!lack! of! consensus!and!a!lack! of!evidence! to! support!the!propositions.!!

Aldridge,! Halpern ! et! al! (2002)! suggested! that! the! main! determinants! of! social! capital!include! the! following:!history!and!culture;!whether!social!structures!are! flat! or! hierarchical;! the! family;! education;! the! built! environment;! residential! mobility;!economic!inequalities!and!social!class;!the!strength!and!characteristics! of! civil! society;! and! patterns! of! individual! consumption! and! personal! values.!

(Claridge,!2004)!

Pantoja! (1999)! identified! a! different! set! again,! including! these: ! family! and! kinship! connections;! wider! social! networks! of! associational! life! covers! the! full! range! of! formal! and! informal! horizontal! arrangements;! networks;! political! society;!institutional!and!policy!framework , !which!includes!the!formal!rules!and! norms!that!regulate!public!life;!and!social!norms!and!values.! (Claridge,!2004)!

The!majority! of! these! claims! originates!in! applied! t heory! and! stem! from!much! work! done! on! other! concepts! such! as! network! analysis,! civic! society,! cultural!

studies,!education,!psychology,!and!many!others.!(Claridge,!2004)!

The!authors,!however,!were!not!clear!about!how! these! factors!determine!social! capital, !i.e.!does! flat!or!hierarchical!structure,!high!or!low!mobility,!high!or!low! level!of!education,!create!social!capital? !

Dimensions) )

The!main!dimensions!of!social!capital!are!commonly!seen!as! follows:! (Claridge,!

2004)!

Trust! (Coleman! 1988;! Collier! 1998;! Cox! 1997;! Kawachi! et! al.! 1999a;! Kilpatrick! 2000;! Leana! and! Van! Buren! III! 1999;! Lemmel! 2001;! Putnam!

1993;!Putnam!et!al.!1993;!Snijders!1999;!Welsh!and!Pringle!2001)!

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Rules! and! norms! governing! social! action! (Coleman! 1988;! Collier! 1998;!

Fukuyama!2001;!Portes!and!Sensenbrenner!1993) !

Types!of!social!interaction!(Collier!1998;!Snijders!1999)!

Network!resources!(ABS!2002;!Kilpatrick!2000;!Snijders!1999)!

Other! network! characteristics! (Burt! 1997;! Hawe! and! Shielle! 2000;!

Kilpatrick!2000;!Putnam!1995)!adapted!from!(Hean!et !al.!2003,!p.!1062). !

I nformal!social!ties,!formal!social!ties,!trust,!and!norms!of!collective!action !

(Liu!and!Besser,! 2003)! !

Narayan!and!Cassidy!(2001)!identify!a!range!of!dimensions!illustrated!in!

Figure!1!on!the!next!page. !

This!framework!would!be!used!in!assessing!the!dimensions!of!social!capital!that!

are!at!work!or!apparent!in!each!of!the!cases. !

The!authors’!definitions!and/or!measures!of!each!dimension!are!presented!in!the!

Annex!2.! ! & & & & & & &
Annex!2.! !
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Figure&1.&Dimensions&of&Social&Capital&(Narayan&and&Cassidy,&2001) &

2001) & ! Filipinos’)Bayanihan)and)Social)Capital ) ! What!

!

Filipinos’)Bayanihan)and)Social)Capital )

!

What! Narayan! and! Cassidy’s! framework! does! not! capture! is! the! indigenous! Filipino!value!of! bayanihan.! The!term!“bayanihan”! originally!refers!to!neighbors! carrying! a! hut! or! house! to! a! new! location.! People! now! use! it! to! describe!

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community! spirit,! with! members! helping! one! another! without! selfe serving! interests!but!without!necessarily!living!or!operating!within!the!same!community.! As!of!late,!this!term!has!been!used!to!describe!that!phenomenon!when!myriads! of! peop le! from!all! over!go! out! of! their!way! to! help! the! victims! of,! for!example,! calamities,!as!what!happened!during!the!super!typhoon!Ondoy.!

In! the! two! cases! presented! in! this! paperGawad! Kalinga! and! Socorro! Island! Community— bayanihan! is! explicitly! cited! as! a! f oundation! of! their! systems.! In! fact,!Gawad!Kalinga’s! Empowerment!Session!on!Natione Building !has!three! talks,! entitled! “Bayan”! (Nation),! “Bayani”! (Hero)! and! “Bayanihan”! (Being! a! Hero! to! Others) .! The! goal! of! this! session!is! to! encourage! the!local! government! units! to! adopt! and! support! the! G awad! K alinga ! program! and! reduce! squatting! and! poverty!in!their!areas!by!as!much!as!30!percent!in!the! two!years . !

Among! the! microfinance! Grameen! practitioners,! some! interpret! group! liability! and!mutual!support!that!are!expect ed!in!each!center!(or!unit)!as!the!moderne day! expression! of! the! agee old! Filipino! tradition! despite! Grameen’s! roots! from! Bangladesh;!however,!the!attribution!to!this!value!is!not!as!strong!as!in!the!first! two!cases.! !

Fundamentally,! bayanihan! may!be!a!combination!of!three!dimensions!in!Narayan! and! Cassidy’s! model:! 1)! generalized! norms;! 2)! neighborhood! connection! (although! the! authors! have! vague! description! of! this! dimension);! and! 3)! volunteerism.! !

Case!1:!Gawad!Kalinga !

This!section!is!based!entirely!on!the!case!“Tony!Meloto:!The!Man!at!the!Helm!of! Gawad! Kalinga”! published! by! Asian! Institute! of! Management! and! Microfinance! Management!Institute!(2007).! !

The!development!model!of!Gawad!Kalinga!shows!that!social!capital!works!at!two! levels:!1)!within! the!low e inc ome!community;!and!2)!among! the! volunteers!and!

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donors,! both! individuals! and! institutions,! that! wished! to! contribute! to! the! transformation!of!the!communities.!! !

Background) )

Tony!Meloto!founded!Gawad!Kalinga!in!1995,!with!this!realization:!!

I! discovered! th at! the! poor’s! problem! was! not! joblessness! but! their! perception!of!their!loss!of!human!potential!to!live!a!productive!life.!They! did! not! have! a! sense! of! security.! I! also! realized! that! they! could! not! be! helped! individually! so! the! intervention! had! to! be! commu nityIbased. ! (Sebastian,! Tony! Meloto:! The! Man! at! the! Helm! of! Gawad! Kalinga,!

2007)!

With! this! guiding! philosophy,! Gawag! Kalinga! aims! at! eradicating! poverty! by! building!villages!and!communities!for!squatters!all!over!the!country.!It!provides! the! community! wit h! food,! clothing,! health! care,! education,! and! housing,! and! focused! on! community empowerment for self-governance and self-reliance. Its! thrust!was! alleviating! poverty!by!building! the!nation! through!various! channels:! first,! by! addressing! the! basic! needs! such ! as! land,! housing,! and! food! and! then! later,! by! trying! to! move! people! from! mere! consumption! to! production.! The! livelihood!component!provided!skills!training,!capital,!materials,!and!markets!for! the! products! of! the! villagers.! Self e sufficiency! in! food! was! also! encouraged! through! vegetable! gardens,! urban! agriculture,! quail e raising,! and! fish! culture,! among!others.! (Sebastian,!Tony!Meloto:!The!Man!at!the!Helm!of!Gawad!Kalinga,!

2007)!

Each!Gawad! K alinga!village!has !between!10!and!20!caretakers, !all!of!whom!were! members! of! Couples! for! Christ! (CFC),! an! affiliate! Catholic! group! of! Gawad! Kalinga,! with! many! non e CFC! volunteers! as! well .! The! caretakers! visited! the! villages!two!to!three!times!a!week!to!check!on!the!residents!and!look!over!their! formation,!which!entailed!27! sessions!of! values! formation!program.! (Sebastian,!

Tony!Meloto:!The!Man!at!the!Helm!of!Gawad!Kalinga,!2007)!

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Group)characteristics )

At! the! community! level,! Gawad! K alinga ! helped! the! people! establish! neighborhood! associations! to! inculcate! the! values! of! citizenship! and! accountability,! team! effort! and! cooperation,! unity! and! a! community! spirit.! The! neighborhood! association! served! as! a! mechanism! for! sustainable! development! as! it! institutionalized! the! principle! of! he lping! the! poor! help! themselves.!

(Sebastian,!Tony!Meloto:!The!Man!at!the!Helm!of!Gawad!Kalinga,!2007)!

At!the!volunteer!level,!Mr.!Meloto!had!in!mind!the!vast!network!of!CFC!when!he! formed! the! organization.! As! of! 2006,! CFC! had! 5,000! chapters! with! a! total! of ! 1! million! members! in! over! 1,000! towns! in! the! Philippines! alone.! It! also! had! a! presence!in!143!countries.! Over!the!years!Gawad!Kalinga!workers !sustained!the! program! through! the! “padugo”! system,! or! what! was! called! “bleeding! for! the! cause”! whereby! each! caretaker! shared! what! he! or! she! could! in! the! form! of! m oney,! service,! materials,! or! labor.! Although! some! caretakers! donated! land! to! Gawad!Kalinga,!a!source!claimed! that!less! than!10!percent!of! the!CFC!members! belonged!to!the!upper!middle!class;!the!rest!were!essentially!poor!and!many!did! not!have!their!own!homes!either.! (Sebastian,!Tony!Meloto:!The!Man!at!the!Helm!

of!Gawad!Kalinga,!2007)!

Meanwhile,!a t! the!donor!level,! Gawad!Kalinga! wanted! to! build!its!programs! on! relationships.! They! wanted! “ something! that! attracts! unity,! convergence,! and! partnership,!which!are!not!possible!in!a!purely!donore donee!arrangement”.!Thus,! ! the! movement! sought! out! and! welcomed! the! participation! of! all! sectors! of! Philippine! society! while! serving! as! a! hub! in! the! multie sectoral! partnership.! Volunteers! and! public! att ention! poured! in! begin ning! 2001.! Gawad! Kalinga! received! support! from! President! Arroyo! in! 2002,! then! from! former! President! Aquino! in! 2003.! Later,! some! 300! mayors! and! 300! corporations! joined! the! movement . ! Its! current! partners! came! from! several! local! government! units,! national! gov ernment! agencies,! business! corporations,! civic! organizations,! schools! and! professional! associations,! youth! groups,! and! an! array! of! ordinary,! concerned! citizens.! According! to! Mr.! Meloto,! the! organization! leveraged ! in!

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! sustaining! its! operations:! the! poor’s! labor! equity,! the! local! governments’! land! and!infras
!
sustaining! its! operations:! the! poor’s! labor! equity,! the! local! governments’! land!
and!infras tructure!development,!the!donors’!material!and/or!labor!contribution,!
and!Gawad!Kalinga’s! volunteer!caretakers.! (Sebastian,!Tony!Meloto:!The!Man!at!
the!Helm!of!Gawad!Kalinga,!2007)!
!
Generalized)norms )
)
!
In! t he!Gawad!Kalinga! communities,! particularly!in!its! pilot!area!Bagong!Silang,!
young! people! sniffing! rugby! (solvent)! in! the! streets! in! broad! daylight! were!
rehabilitated.! Crime! rate! was! also! to!have! decreased! significantly!as!a! result! of!
community! rehabilita tion! in! Gawad! Kalinga’s! 12! rollout! provinces! including!
Cebu,! Bacolod,! and! Davao.! (Sebastian,! Tony! Meloto:! The! Man! at! the! Helm! of!
Gawad!Kalinga,!2007)!
!
In! effect,! Gawad! Kalinga! was! able! to! strengthen! the! social! capital! within! the!
community! by! building! the! tru stworthiness! of! people.! Thus,! in! this! angle,! one!
may! conclude! that! Gawad! Kalinga! worked! not! because! of! the! inherent! social!
capital! in! the! community,! but! because! Gawad! Kalinga! helped! build! the! social!
capital!within.!!
!
Togetherness )
!
This! dimension! could! be! p resent! in! the! relationship! between! the! community!
members! and! the! caretakers! (see! Volunteerism! for! details).!However,! the! case!
has!no!information!on!the!kind!of!relationship!people!in!the!community!have.!
!
Everyday)sociability) )
!

The!case!presents!no!indicative!data!on!the!“Everyday!Sociability”!of!the!Gawad! Kalinga!communities.!However,!one!may!safely!assume!that!since!they!live!in!the! same!community,!undergo!the!same!training!provided!by!program,!and!enjoy!the! same!services!extended!to!them,!the!framework’s! suggested!measures— such!as! the! time! spent! outside! the! household!in!other!ways,! for!example,!doing ! chores,! shopping,!talking,!drinking,!or!just!spending!time!together,!and!visiting!people!at! their!homes— are!not!remotely!possible.!

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Neighborhood)connections )

The!caretakers! saw!Gawad! K alinga !as!a!mission — not!a!project,!not!a! feele good! venture,!neither!an!outreach!program,!nor!a! fieldtrip.!They!said!Gawad! K alinga ! was! the! Filipino! bayanihan! in! action,! which! meant! dividing! the! burden! of! responsibility!so!that!the!w ork!was!evenly!distributed.! (Sebastian,!Tony!Meloto:! The! Man! at! the! Helm! of! Gawad! Kalinga,! 2007)! From! this! statement,! one! may! deduce!that!the!community!has!relatively!highly!connected.!

Volunteerism )

This! dimension! of! social! capital! is! most! apparent! at! the! levels! of! donor! individuals!and!institutions.! !

Gawad! Kalinga! expressed! that!it! relied! on!its!members’! spirit! of! volunteerism.! Aside! from! the!caretakers,!architects!and!engineers!worked!in! the!construction! of! structures,! while! doctors! and! nurses! served! in! the! medical! missions.! Most! importantly,! the! caretaker! team! spent! time! with! the! community! and! built! friendships! along! the! way.! T hrough! these! relationships,! Mr.! Meloto! said,! the! poor’s! dignity! was! restored! because! they! were! treated! as! equals.! (Sebastian,!

Tony!Meloto:!The!Man!at!the!Helm!of!Gawad!Kalinga,!2007)!

This! kind! of! relationship! between! caretakers! and! community! members! could! very!well!be!under!the!dimension!of!“Togetherness”,!too.!

Trust )

The! residents!in!Bagong!Silang!(and!in! the! first! few!succeeding!sites!where! the! Gawad!Kalinga!program!was!first!implemented)!were!initially!not!very!receptive! to! the! program .! They! asked! the! Gawad! Kalinga! volunteers! questions! such! as! “Who’s!the!politician!behind!this?”!and!“What’s!the!catch?”!The!poor!had!become! wary! of!offers!of!help,!especially!from!politicians!who!had! abused!and!exploited! them!in!the!past.! Eventually,!the!volunteers!were!able!to!gain!the!poor’s!trust!by! simply!doing! their!jobs!(“ because!you!cannot!h ave!it!in!speeches!and! forums”).! Gawad!Kalinga’s!mission! became!social!work,!providing!for!the!people’s!physical!

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needsfood,! clothing,! health! care,! and! education and! in! the! process! gain ing! the! trust! of! the! villagers. ! ! (Sebastian,! Tony! Meloto:! The! Man! at! the! Helm! of!

Gawad!Kalinga,!2007)!

The!case!is!lacking!in!this!area!such!that!no!data!could!serve!as!evidence!of!the! level! of! trust! of! people! in! the! neighborhood,! business! owners,! and! local! government,!among!others.! !

Case!2:!The!Socorro!Island!Community! !

This! section! is! based! entirely! on! the! unpublished! case! study! entitled! “The! Cantilan! Bank! Socorro! Branch:! A! Rural! Bank’s! Venture! into! a! Harde toe Reach! Area”! commissioned!by!the!Microfinance!Council!of!the!Philippines!in!2006. !

Background )

Socorro! Island,! a! fifth e class 1 ! island! municipality ! in! Northern! Mindanao, ! is! considered! harde toe reach!area! in!the!microfinance!parlance! primarily!because!of! its!physical!characteristics.! It! could!be!reached!by!pump!boat! from! the!ports!of! Surigao!City,!Dapa,!Claver,!and!Cantilan. & In!a!day,!the!boats!from!these!ports!had! only! one ! scheduled! trip! to!Socorro!and! back.! During! typhoons!and! the! amihan ! (northeast!monsoon)!season!from!November,!or!some!say!as!early!as!September,! to!January,!turbulent!waters!made!boat!rides!to!the!island!very!risky,!as!attested! to!by!several!drowning!incid ents.! !(Sebastian,!The!Cantilan!Bank!Socorro!Branch:! A!Rural!Bank’s!Venture!into!a!Harde toe Reach!Area,!2006)!

During! typhoons,! too,! people! who! lived! in! nipa! huts! barely! survived! the! typhoons! and! had! to! spend! days!in! their! relatives’! or! friends’! houses! unti l! the! bayanihan! group 2 ! was! able! to! rebuild! their! typhoon e damaged! houses.! When! traveling!by!sea!became!unsafe!due!to!the! amihan ! or!typhoons,!boats!did!not!sail! in! and! out! of! the!island,! thereby! cutting! off! supplies! of! gasoline,! rice,! fish,! and!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

1 Department Order No.32-01 of 2001 of the Department of Finance defined fifth-class municipalities as those with an average total revenue of at least Php7 million per annum (US$137,255 using the 2001 exchange rate of US$1 = Php51), but not exceeding Php13 million (US$254,902). 2 In the case, the term bayanihan refers both to the tradition of house building or to the ethnic group of house-builders (if spelled with capital B).

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other!necessities.!On!such!instances,!the!people!had!to!rely!on!canned!and!dried! produce!for!food.! (Sebastian,!The!Cantilan!Bank!Socorro!Branch:!A!Rural!Bank’s! Venture!into!a!Harde toe Reach!Area,!2006)!

Group)characteristics )

The! presence! of! several!microenterprises!in! the! area! could! be! an!indication! of! the! local’s! enterprising! spirit.! They! were ! thrifty,! loan e averse ,! and! were! more! receptive!to!the!idea!of!savings!and!credit!discipline!than!those!from!the!cities!or! urban!areas. !The!locals!were!used!in!putting! their!money! in! the! religion e based! cooperative!rather!than!in!banks!though.! (Sebastian,!The!Cantilan!Bank!Socorro! Branch:!A!Rural!Bank’s!Venture!into!a!Harde toe Reach!Area,!2006)!

Although!people!were!generally!hospitable,! they!were!also!clannish,!which!was! something! at tributed!to!economic!necessity— a!survival!instinct!triggered!by!the! harsh! environment! when! people! from! different! provinces! started! to! settle! in! Socorro— and! demographics.! (Sebastian,! The! Cantilan! Bank! Socorro! Branch:! A! Rural!Bank’s!Venture!into!a!Hard e toe Reach!Area,!2006)!

The!locals’! being! clannish! could! also! be! explained! by! their! agee old! tradition! of! grouping! households:! Bayanihan,! Suhoton ,! and! De! Oro! to! name! a! few! groups.!!

There!were!21!groups,!each!having!its!own!specialization!and!comprising!some!

95! percent! of! the! town! population.! The! biggest! group! Bayanihan,! for! example,! wa s!composed!of!some!5,000!housee builders !(or!42!percent!of!Socorro’s!voting! population! estimated! at! 11,799! as! of! 2004).! (Sebastian,! The! Cantilan! Bank! Socorro!Branch:!A!Rural!Bank’s!Ven ture!into!a!Hard e toe Reach!Area,!2006)!

Group! membership! wa s! passed! on! to! the! next! generation:! if! the! parents! belong ed! to! Bayanihan,! their! children,! when! they! start! earning! a! living,! would! automatically!b e!part!of!that!group.!Intere group!marriages!as!well!a s! changing!of! membership! were! allowed! although! they! seldom! happened.! The! membership! wa s! also! based! on! religion:! only! those! who! we re! baptized! under! the! Iglesia! Filipina! Independiente! (IFI)! or! the! Philippine! Ecumenical! Christian! Church!

14!

!

(PECC)! may! be! part! of! the! groupings.! (Sebastian,! The! Cantilan! Bank! Socorro! Branch:!A!Rural!Bank’s!Venture!into!a!Harde toe Reach!Area,!2006)!

!

Each!group!was!headed!by!a!President,!who!could!pass!on!his/her!leadership!to! anyone! of! his/her! children! who! he! deemed! fit! to! the! position! and! at! a! time! prescribed! by! their! Church.! The! children! we re! presented! to! the! group! but! the! final!decision! would!come!from!the!out e going!President.!The!Vicee President!and! the ! Secretary,! on! the! other! hand,! we re! elected! by! members. ! (Sebastian,! The! Cantilan! Bank! Socorro! Branch:! A! Rural! Bank’s! Venture! into! a! Harde toe Reach!

Area,!2006)!

!

Every! July,! which! was! considered! the! bayanihan! or! housee building! month,! the! men! who! belonged! to! the! group! were! required! to! give! 50! percent! of! their! monthly!income!(if!salaried!workers)!or!labor!hours!equivalent!to!one!working! month!to! the!house e building!activity!of!the!community .!The!female!members,!on! the! other! hand,! were! required! to! give! 25! percent! of! their! monthly! income! (if! salaried! workers)! or! their! labor! hours! equivalent! to! two! working! weeks.! The! money! collected! from! the!members!went! to! the! group! secretary’s! safekeeping.! The! financial!condition!of! the!group!was!presented! to! the!body!every!month— the! group’s! way! of! auditing! the! accounts.! The! fund! was! normally! used! for! providing! free!health!services!to!the!members,!assistance!to!the!needy!especially! during! calamities,! and! other! facilities! such! as! swimming! pool,! rest! house,! and! pump! boat,! that!were! made! available! to! the!members! for! free.! (Sebastian,! The! Cantilan! Bank! Socorro! Branch:! A! Rural! Bank’s! Venture! into! a! Harde toe Reach!

Area,!2006)!

!

During! this! season,! too,! houses! were! built! free! of! charge! for! the! needy! and! homeless! members.! The! membere beneficiary! only! had ! to! provide! the! building! materials!and!food!for!the!laborers!(two!meals! and!two!snacks!in!a!day).! During! the! same! season,! too,! the! tradition! of! housee building! was! prioritized! over! the! conduct! of! business! such! that! people! were! so! focused! on! bayanihan! and! only! those! who! could! still! manage! to! run! their! businesses! while! participating! in! bayanihan! maintained! their! loan! accounts! with! the! banks.! (Sebastian,! The!

15!

Cantilan! Bank! Socorro! Branch:! A! Rural! Bank’s! Venture! into! a! Harde toe Reach!

Area,!2006)!

While! the! members’! pooling! of! their! resources! every! July! is! first! categorized! under! “Grou p! Characteristics”! as! it! explains! the! community’s! “source! of! group! funding”,! it! may! also! fall! under! “Helpfulness! of! people”! as! well! as! under! “Volunteerism”.!! !

As! a! source! observes,! people! from! Socorro! were! laid! back,! creating! a! very! relaxed!atmosphere!in! the! community.!This!trait!also!made!it!difficult!for!them!to! have! a! change! in! mindset,! e.g.! many,! if! not! all,! fisherfolks! still! do! not! use! motorized! boats! in! fishing.! (Sebastian,! The! Cantilan! Bank! Socorro! Branch:! A! Rural!Bank’s!Venture!into!a!Hard e toe Reach!Area,!2006)!

Generalized)norms )

As! mentioned! in! the! previous! section,! the! culture! of! bayanihan! may! also! be! classified!under!“Generalized!norms”!particularly!under!“Helpfulness!of!people”.!

This! helpfulness! especially! in! times! of! needs,! coupled! by! the! strong! spirit! of! cooperation,! were! considered! an! obstacle! by! those! who! wished! to! extend! services! to! the! community,!e.g.! financial! services! by! the! banks.! (Sebastian,! The! Cantilan! Bank! Socorro! Branch:! A! Rural! Bank’s! Venture! into! a! Harde toe Reach! Area,! 2006)! The! inherent! social! system! enabled! the! community! to! be! selfe sufficient!thus!they!hardly!saw,!if!at!all,!the!need!to!get!into!transactions!with!the! outsiders.!

Togetherness )

Business!establishments,!such!as!banks,!preferred!hiring!someone!outside!of!the! communit y.! Although! homegrown! talents! would! have! an! edge! of! knowing! the! culture! and! being! part! of! the! social! network,! hiring! them! often! resulted! in! a! highly!unprofessional! barkada!(peer!group)!system!that!could!sometimes!lead!to!

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control! issues.! This! situation! coul d! be! an! indication! of! the! level! of! people’s! “Togetherness”!in!Socorro. !

Everyday)Sociability) )

As!of!2003,!Socorro!consisted!of!14!villages!and!3,071!households.!Its!population!

then! reached!17,932,!which!was!even! smaller! than! the! student!population! of!a! secondary! school! in! Manila! or! was! just! about! the! size! of! a! barangay! in! Metro! Manila.! Since! the! people! were! confined! in! an! island! and! had! regular! church e based! activities,! chances! are,! they! had! high! everyday! sociability.!However,! one! could! only! deduce! this! conclusion! from! the! context,! as! no! data! related! to! this! issue!were!presented!in!the!case. !

Neighborhood)connections )

Same! as! in! “Everyday! sociability”! although! no! data! related! to! this! issue! were! presented!in!the!case.!

Volunteerism )

As! mentioned! in! the! previous! section,! the! culture! of! bayanihan! may! also! be! classified!under!“Volunteerism”.! !

Trust )

The!people’s!houses!and!farms!were!situated!in!what!were!considered!“ancestral! lands”,! that! were! nonetheless! untitled.! Parcels! of! land! were! considered! as! belonging! t o!particular! families!based!on! tradition;!squatting!was!not!practiced! in! the! area.! Hence,! ownership! could! not! be! proved. ! According! to! sources,! the! people! of! Socorro! did! not! see! the! need! to! have! their! land! titled,! as! economic! activities!in!the!island!were!l imited!to!begin!with.! (Sebastian,!The!Cantilan!Bank! Socorro!Branch:!A!Rural!Bank’s!Venture!into!a!Harde toe Reach!Area,!2006)!From! the!social!capital!perspective,!this!scenario!is!an!indication!of!high!level!of!trust! of!people!in!neighborhood!(i.e.,!no!felt! threat!of!land!grabbing).! !

17!

! However,!the!level!of!trust!of!the!community!toward!the!outsiders!was!quite!low.!
!
However,!the!level!of!trust!of!the!community!toward!the!outsiders!was!quite!low.!
The!only!bank!that!operated!in!the!island!initially! found!it!hard!to!sell! financial!
products!to!the!locals!because!of!trust!issues.!!Despite!its!aq uaculture!resources,!
too,! the! community! dealt! only! two! traders.! (Sebastian,! The! Cantilan! Bank!
Socorro!Branch:!A!Rural!Bank’s!Venture!into!a!Harde toe Reach!Area,!2006)!
!
The! same!was! true!with! regard! to!people!coming! from! outside! the!island— t he!
mainland! Surig aonons! had! this! opinion! of! the! Socorro:! as! island! people,! they!
tend!to!look!at!everyone!from!outside!their!island!as!their!enemy.!
!

Given!these!characteristics,!the!Socorro!people!could!be!classified!as!exclusive!or!

binding.!!!

! !

Case! 3:! The! Microfinance! Cli ents! Using! the! Grameen! Methodology !

Background )

The!Philosophy!behind!the!Grameen!Method!!

The! group! micro! lending,! which! eventually! became! known! as! Grameen! methodology,!was!first!applied!in!Bangladesh,!as!used!in!a!project!by!Muhammad! Yunus.!! !

Grameen’s!focus!was!on!the!landless!poor,!those!who!had!no!choice!but!to!earn! by! selling! labor,! and! on! women.! Grameen! had! for! two! reasons! for! choosing!

women:!1)!women!in!the!Bangla!society!did!not!have!access!to!financial!services!

apart! from! their! husbands! or! male! figures! in! the! family,! and! constitute! the! majority! of! the! poor,! the! underemployed,! and! the! economically! and! socially! disadvantaged;!and!2)!credit!given! to!women!brought!about!change! faster! than! when!given!to!men.! !(Yunus,!1999) !

Loan! payment! was! good! for! 50! weeks,! repayments/! amortization! was! made! weekly! and! started! one! week! after! the! loan! release.! Interest! rate! was! at! 20! percent.!When! people! borrowed! for! survival,! such! as! to! buy! food! or!medicine,!

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! they! found! it! difficult! to! get! repay! such! loan! and! would! often ! borrow!
!
they! found! it! difficult! to! get! repay! such! loan! and! would! often ! borrow! from!
another! source! to! repay! the! loan! used! for! consumption.! Some! people! also! got!
loans! from! traders! who! bought! produce! from! these! people! at! a! pree set! price,!
which!was!often!below!market!price,!in!exchange!for!the!loan.!!If!these!producers!
could! get ! a! capital! such! that! they! did! not! have! to! get! into! a! contract! with! the!
traders!and! thus!would!get! to!sell! their!produce!at! the!market!price,! then! they!
would!not!be!caught!in!the!vicious!cycle!of!poverty.! (Yunus,!1999) !
!
Yunus! (1999)! started! a! project,! the! p redecessor! of! today’s! Grameen! Bank.! He!
took! out! a! loan! from! a! bank! and! gave! it! out! to! the! poor! women! producers! as!
micro!loans!at!$25!without!collateral — he!served!as!guarantor!to!these!poor!and!
transacted! with! the! bank! in! their! behalf.! Following! were! his! in sights,! which!
formed!the!philosophy!behind!the!Grameen!lending!method:!
!

To! my! great! surprise,! the! repayment! of! loans! by! people! who! borrow! without! collateral! has! proven! to! be! much! better! than! those! whose! borrowings!are!secured!by!assets.!The!poor!know!that! this!credit!is!their! only!opportunity!to!break!out!of!poverty.!They!do!not!have!any!cushion! whatsoever!to!fall!back!on. !

!

(Then)! we( discovered( that( support( groups( were( crucial( to( the( success( of( our( operations ,! we! required! that! each! applicant! join! a! group! of ! like Iminded! people! living! in! similar! economic! and! social! conditions.! Convinced( that( solidarity( would( be( stronger( if( the( groups( came( into( being( by( themselves,( we( refrained( from( managing(them,(but(we(did(create( incentives(that(encouraged(the( borrowers( to( help( one( another( succeed( in( their( business.( Group( membership( not( only( creates( support( and( protection( but( also( smoothes(out(the(erratic(behavior(patterns(of(individual(members,( making(each( borrower(more( reliable( in( the( process. ! (emphasis! by! the!author) !

!

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!

If! an!individual!is! unable! or! unwilling! to! pay! back! her!loan,! her! group! may! become! ineligible! for! larger! loans! in! subsequent! years! until! the! repayment! problem! is! brought! under! control.! This! creates! a! powerful! incentive!for!borrowers!to!help!each!other!solve!pro blems!and!to!prevent! problems. ! (Yunus,!1999) !

!

This!is!the!sentiment!of!almost!every!Grameen!borrower:!!

!

All!her!life! she!has!been! told! that…(her!family)!could!not!afford! to!pay! her!dowry…that!she!should!have!been!killed!at!birth,!aborted,!or!starved.! To!her!family,!she!has!been!nothing!but!another!mouth!to!feed,!another! dowry!to!pay.!For!the!first!time!in!her!life!(with!the!loan!given!her),!an! institution!has!trusted!her!with!a!great!sum!of!money.!She!promises!that! she!will!never!let!down!the!institution!or !herself. ! (Yunus,!1999) !

!

As! in! the! case! of! Gawad! Kalinga’s! building! communities! and! in! the! process! strengthening! their! social! capital,! what! Yunus! did! to! the! women— giving! them! access! to! resources! and! pulling! them! together! into! support! groups— built! the! socia l!capital!within! their!group.!His!statements!above!show!how!social!capital! was!used!to!make!the!Grameen!system!work. !

Grameen!Method!in!the!Philippines!

!

Yunus! (1999)! thought! that! Grameen! has! succeeded! not! because! of! culture! but!

despite! the! culture.!He! said! that! establishing! Grameen! Bank! required! them! “to! create! a! counterculture! that! values! women’s! economic! contribution,! rewards! hard!work,!and!punishes!corrupt!practices.!Grameen!discourages!the!practice!of!

dowry!payments.”!

!

In!1989,!three!non e government!orga nizations!replicated!the!Grameen!method!in! the! Philippines:! Ahon! sa! Hirap! Incorporated! (ASHI),! Negros! Women! for! Tomorrow! Foundation! (NWTF),! and! Center! for! Agriculture! and! Rural! Development!(CARD).!!Yunus!(1999)!thought!“operating!a!Grameen e type!lending! pro gram!in! the! Philippines! would! be! a!lot! easier! than! doing! so!in! Bangladesh,!

!

20!

where! long e standing! poverty,! low! status! of! women,! and! frequent! natural! disasters!are!more!extreme”.!

Initially,! only! Grameen! method! was! used! in! the! country! until! the! late! 1990s! when ! many! microfinance! institutions! (MFIs)! adopted! the! individual! lending! method! that!originated!also! from!Bangladesh.!Providing!other!services!has!also! become! a! trend— micro! insurance,! business! development! services,! and! livelihood! or! skills! training,! among! others.! Today,! only! few!MFIs! are! using! the! original!Grameen!method!and!many!are!combining!it!with!the!individual!method! to!come!up!with!a!hybrid!program.!One!of!the!Grameen!implementers!remarked,! “our!group!method!is!now!dysfunctional”.!One!now!begins!to!ask! what!it!is!that! makes!Grameen!method,!which!is!based!on!the!social!capital!of!women,!work!or! not!work!in!the!Philippine!setting.!

Group)characteristics )

Women!borrowers!recruited!their!own!coe members!that!would!be!formed!into!a! group!of!five!and!10!groups! made!up!center.!The!idea!was!that!the!women!would! recruit!only! those!people!whom! they! trust.!However,!at! times,! they!just!invited! anyone,!even!those!who!were!not!inclined!to!do!business,!just!so!that!they!could! form!a!group;!otherwise,!they!would!not!be!granted!loans. !

Aside! from!group!liability,!where!members!were! obliged! to! pay! for! the!loan! of! their!defaulting!co e members,!they!also!pooled!money!for!center!activities!or!for! social!insurance!(especially!for!those!MFIs!that!neither!have!any!agreement!with! thirde party!insurers!nor!have!their!own!insurance!companies).!As!in!the!original! model,! the! borrowers! met! every! week! for! their! center! meetings! where! they! decided! where! to! accept! a! woman! into! the! center! or! not! and! how! much! loan! would! be! granted! each! member! based! on! their! existing! business! or! business! proposal.!They!were!also!supposed!to!meet!for!mutual!support!and!skill!training.! Loan!disbursement!and!collection!were!also!done!during!center!meetings.!There! were!instances,!however,!when!center!meetings!had!become!nothing!more!than! just!a!venue!for!business— disbursement!and!collection!of!payments.!Some!even!

21!

perceived! it! merely! as! a! time! away! from! their! business! and! home,! thus! they!

would!have!preferred!to!have!individual!loan!instead. !

Generalized)norms )

The! centers! were! conceptualized! to! serve! as! a! support! system! to! the! women!

members— helping! one! another! in! their! business,! even! in! their! personal,!

concerns.!In!many!cases,!women!like!their!being!part!of!a!center!in!that!they!saw!

it!as!an!opportunity!to!socialize.!However,!in!many!cases!too,!what!they!did!not!

like!about!it!was!the!shared!liability,!which!was!often!perceived!as!“not!fair”,!this!

despite! the! MFIs’! explanation! that! they! were! the! ones! who! chose! their! group!

members!and!that!they!were!supposed!to!help!one!another,!thus!they!were!held!

responsible!for!one!another’s!liability.!!

Togetherness )

Borrowers!in!almost!all!cases!got!along!well — there!had!been!no!reported!cases!

of! animosity.! The! borrowers’! level! of! togetherness,! however,! varied— while!

some!lived!within!the!same!neighborhood,!especially!in!the!rural!and!suburban!

areas,! others! lived! quite! far! apart! that! they! only! saw! one! another! during! the!

weekly!center!meetings.! !

Everyday)sociability) )

This!dimension!is!related!to!the!aspect!of!“Togetherness”!in!the!previous!section.!

Neighborhood)connections )

The! pattern! of! “Neighborhood! connections”! follows! that! of! “Togetherness”— !it!

seemed!stronger!and!more!apparent!in! rural!and!suburban!areas!where!it!was!

not!unusual! to! find!some!people! from! the!same!center!gathered!in! a!member’s!

house.!They!normally!knew!who!just!gave!birth,!whose!husband!lost!a!job,!and!

the!like.! !

!

!

!

!

22!

Volunteerism )

Volunteer! work! among! the! borrowers! was! often! initiated! by! the! MFIs,!

particularly! in! their! social! responsibility! programs— coastal! cleanup,! tree!

planting,!feeding!programs,!among!others.!The!magnitude!and!frequency!of!these!

activities!were!limited!though. !

Trust )

Among! the! various!MFI! borrowers,! there!were! no! cited! cases! of!mistrust!as!in!

the!case!of!Socorro!Island!community!or!cases!of!building!trust!as!in!the!case!of!

Gawad!Kalinga.!!!

Comparison!of!the!Three!Cases !

The!three!cases!may!be!analyzed!using!the!more!easily!observable!and!verifiable!

determinants!of!social!capital,!as!suggested!by!Aldridge!et!al!(2002)!and!Pantoja!

(1999):!

Table&2.&Comparison&of&Select&Determinants&of&Social&Capital&in&Three&Cases&&

 

Gawad&Kalinga &

Socorro&Island &

 

Grameen&

borrowers&in&PH&

History!and!

Evolution/! transformation!of! communities!

Old,!strong,!

The!lending!

culture!

established,!

m

ethod!started!in!

preserved!

1989!but!the!

started!in!1995!

traditions !

centers!formed!

since!did!not!

necessarily!stay!

intact!

Family!connection !

Relatively!strong,!

Very! strong,! inter! generational !

Relatively!weak!as!

community!

membership!

membership!

 

changes!over!time!

rather!stable!

Mobility !

Low!mobility!due!

Low!mobility!in!

Relatively!high!!

to!security!

isolated!island!

provided!by!land!

community !

ownership!

Social!norms!and!

Established!

Established!by!

Tended!to!adopt!

values!

through!values!

tradition !

the!local!cultures,!

formation!

n

o!norms!of!their!

programs!of!

own!

Gawad!Kalinga!!

23!

Using!the!above!framework,!it!can!be!concluded!that!social!capital!is!strongest!in! the!Socorro!Island!because!of!history!and!culture,!which!are!also!related!to!social! norms!and!values,!and!low!level!of!mobility!of!members.!The!Church!and!social! structures! in! the! island! community! also! helped! in! strengthening! connections! among!the!members. !

On!the!other!hand,!social!capital!is!weakest!in!the!case!of!the!Grameen!borrowers! because!of!their!apparent!weakness!in!the!four!determinants.!Perhaps,!the!“long e standing! poverty,! low! status! of! women,! and! frequent! natural! disasters! (being)! more! extreme”! in! Bangladesh! worked! in! establishing! social! capital! among! the! Bangladeshi! women — these! factors! could! have! resulted! in! stronger! sense! of! culture,! connection,! and! social! norms! and! values! such! that! they! made! the! Grameen!method!worked!better!in!Bangladesh!than!it!is!now!in!the!Philippines.!

In! terms! of! the! seven! dimensions! of! social! capital — group! characteristics,! generalized! norms,! togetherness,! everyday! sociability,! neighborhood! connections,! volunteerism,! and! trust — the! analysis! of! the! three! cases! is! summarized!in!Table!3!on!next!page. !

In!the!analysis!of!social!capital!dimensions,!Socorro!Island!also!appears!to!have! the!strongest!base!(except!for!Trust!under !which!there!are!no!sufficient!data!and! whose! measures! require! further! ine depth! research).! Perhaps,! because! of! the! community’s! physical! and! socioe economic! context,! people! have! learned! to! be! selfe sufficient,!relying!only!among!themselves!rather!on!other!sectors!and!on!the! government! for! their! needs.! While! Socorro! Island! has! strong! determinants! of! social!capital,!it!likewise!has!relative!strength!in!almost!all!dimensions,!especially! in! Group! Characteristics,! Generalized! Norms,! Everyday! Sociability,! and! Volunteerism.! !

24!

Table&3.&Summary&of&Dimensions&of&Social&Capital&in&Three&Cases&

 

Gawad&Kalinga &(GK) &

Socorro&Island &

 

Grameen&borrowers&in& the&Philippines &

Group&Characteristics &

Relatively&strong& identification&to&GK &

Strong&and&distinct &

No&strong&and&distinct& chara cteristic &due&to& unstable&membership &

Number!of!

Village/community!level! per!GK!area !

Municipality !

 

Group!recruitment!of!40!

memberships* !

 

members !

Contribution!of!money !

Sweat!equity !

Sweat!

equity!

and!

Loan!liability! and! group! fund !

monetary!contributions !

Frequen cy!of!

Continuous !

Continuous !

Depending!on!loan!term !

participation !

Participation!in!decision! making !

No!data !

No!data !

Active !

Membership!

Community e specific !

Community e specific !

 

Self e selection !

heterogeneity !

 

Source!of!group!funding !

External !

Internal !

Internal !

Ge neralized&Norms &

Strong&and&sustained& spirit&of&Bayanihan &

Strong&and&sustained& spirit&of&Bayanihan & across&generations &

Relatively&weak &

Helpfulness!of!people !

Identified!with!value!of! Bayanihan !

Identified!with!the!value! of!Bayanihan !

Mixed!culture !

Trustworthi ness!of!

Maybe!gauged!in!the! reliability!of!Bayanihan !

High !

Mixed !

people !

Fairness!of!people !

No!data !

No!data !

Expressed!negative! sentiment!against!group! liability !

Togetherness &

Context&conducive&to& togetherness& &

Context&conducive&to& togetherness &

Relatively&go od &

How!well!people!get!

High!level!of!

High!level!of!

 

Generally!good !

along !

cooperation !

cooperation !

Togetherness!of!people !

Living!within!the!s ame! community !

Living! within! the! s ame! community !

Mixed !

Everyday&Sociability &

Average &

 

High &

Context/area&

 

dependent &

Neig hborhood!

Provided!measures!are! limited!to!make! judgment !

Provided!measures!are! limited!to!make! judgment !

Provided!measures!are! limited!to!make! judgment !

Connections**! !

Volunteerism &

Strong &

Strong&and&sustained & across&generations &

Relatively&w eak &

Expectations! of!

Expected!from!members !

Expected!from!members !

Voluntary !

volunteering !

Criticism!for!not!

No!data !

Monitored!by!the!

 

No!data !

volunteering! !

Church!/!group !

Fair!contribution!to!

Embedded!in!the!system !

Embedded!in!the!system !

No!data !

neighborhood !

Trust*** !

Not!c omparable!due!to!

Not!comparable!due!to! lack!of!data !

Not!comparable!due!to! lack!of!data !

lack!of!data !

*Membership!could!be!even!expanded!to!include!selection!and!expulsion!process,!which!can!contribute!to!the! cohesion!of!the!group!and!thus!to!social!capita l. ! **The!expressed!gauge!of!Neighborhood!Connection!in!the!framework! is!rather!limited !thus!it!is!taken!out!in! this!analysis. !In!the!previous!section,!this!dimension!is!analyzed!based!on!the!proximity!of!the!members!of!the! group!and!their!contexts. ! *** ! M ea sures !of!this!dimension !require!further!in I depth!research . !

25!

Unlike! Socorro! Island,! the! Gawad! Kalinga! communities! has! no! long! history! to! speak!oftheir!identity!could!only!be!as!old!as!Gawad!Kalinga!which!started!in! 1995and!no!culture!of!its!own as!com munity!members!were!migrants! from! outside!Manilathat!could!be!a!source!of!social!capital.!In!this!case,!the!Gawad! Kalinga! movement! built! the! social! capital! in! the! community! over! time! by! promoting!the!spirit!of!Bayanihan,!expressed!through!various!mechanisms.!One! of!the!most!important!factors!in!its!model!is!providing!community!members!with! permanent! residence! through! the!housing!program! that!limited! the!mobility!of! the!informal!settlers!and!thus!eventually!allowing!them!to!establish!connections.! Another!critical! factor!is!the!support!of!the!caretakers!that!influence!the!norms! and! values! of! the! emerging! communities.! As! a! result,! the! social! capital! within! Gawad! Kalinga! communities! became! strong,! particularly! in! the! areas! of! Group! Characteristics,!Generalized! Norms,!and!Volunteerism,!and! did!well! on!average! in!other!areas!(except!again!in!Trust). !

The!comparison!on!Table!3!shows!the!relative!weakness!of!social!capital!among!

the! Grameen! borrowers,! except! in! the! area! of! “Togetherness”.! The! original! Bangladesh! microfinance! model! was! built! on! the! created! social! capital,! which! was! apparently! assumed! to! have! existed! in! the! Philippine! society! when! the! model! was! replicated! in! the! country.! Compared! with! Gawad! Kalinga! program,! the!Philippine!microfinance!approach!is!less! geared!towards!building!community! or! the! social! capital! within! it,! probably! because! they! assumed! that! it! existed! already.!However,!it!was!not!the!case. !

The!weakness!in!Philippine!Grameen’s!determinants!of!social!capital!could!have! led! to! the! weakness! of! i ts! dimensions! as! well.! The! microfinance! institutions,! should!they!intend!to!build!the!social!capital!of!its!centers,!could!therefore!learn! from! the! Gawad! Kalinga! model.! They! could! initiate! interventions! to! build! the! social!capital!within!the!groups;!the!challenge,!however,!would!be!the!members’! dispersion! in! various! locations! unlike! in! the! case! of! two! other! samples! where! their!members!live!together!in!the!same!community.!! !

26!

Conclusions !

Authors!have!theorized!that!social!capital — that!which! refers!to!feature s!of!social! organization,!such!as!trust,!norms,!and!networks!that!can!improve!the!efficiency! of!society!by!facilitating!coordinated!actions! (Claridge,!2004)— compensates!for! the!weakness!or!absence!of!social!securities!in!certain!countries,!particularly!in! Asia.!! !

In!the!Philippines,!the!three!cases!that!have!been!cited!to!have!used!social!capital! to!provide!social!protection!proved!that!indeed!social!capital!can!compensate!for! the!lack! of! social! securities!in! societies,!generally!with! the!members!and! other! external! parties! pooling! their! resources! in! order! to! do! so.! Gawad! Kalinga! provided!basic!needs!to!its!supported!communities— food,!clothing,!health!care,! education,! and! housing — as! well! as! means! of! livelihood! that! include! skills! training,!capital,!materials,!and!markets! for! the!products.! It!also!promoted!selfe sufficiency!in!food! and!self e governance.!In!Socorro!Island,!the!indigenous!system! ensured! that! every! community! member! was! provided! with! housing! as! well! as! with! health! services,! calamity! assistance,! and! even! access! to! common! recreational! facilities!such!as!swimming!pool,!rest!house,!and!pump!boat.!Finally,! Grameen!replicators!provide!micro!savings,!micro!insurance,!marketing!services,! and!skill!training!to!their!clients,!in!addition!to!the!traditional!micro!credit!where! members!share!liability.!That!the! Asian!value!that!purports!that!people!will!take! care! of! each! other! holds! true! in! the! three! Philippine! cases! though! in! varying! degrees. !

Although! the!elements!considered!in! the!analysis!of!both! the!determinants!and! dimensions!of!social!capital!are!limited,!one!may!observe!the!logical!connection! of!the!two:!strong!determinants!lead!to!strong!dimensions!of!social!capital.!Thus,! in! analyzing! social! capital,! these! two! elements! should! be! considered! alongside! each! other.! The! strength! or! weakness! of! a! dimension! could! be! explained! by! certain!determinant/s. !

27!

Regardless!whether!social!capital!is!inherent!(as!in!the!case!of!Socorro!Island)!or! exogenous! (as! in! the! case! of! Gawad! Kalinga! and! the! original! Grameen! microfinance! in! Bangladesh),! the! strength! of! its! determinants! could! also! be! translated! into! strengths! in! the! demonstrated! dimensions,! which,! in! turn,! sets! the!ground! for!sustainability!of! the!provision!of!social!protection.!The!common! strong! dimensions! in! the! two! working! models! are! Group! Characteristics,! Generalized!Norms,!and!Volunteerism.!Development!models!or!programs!should! therefore! consider! these! areas! to! increase! their! chance! of! success! and! sustainability!in!providing!social!protection!if!they!intend!to!use!soc ial!capital!as! a!strategic!base!or!input.! !

Suggestions!for!Future!Research!!

The!measures!used!in!defining!the!determinants!and!dimensions!of!social!capital! are! vague,! if! not! too! narrow! or! limited.! There! are! also! some! overlaps:! connections,! and! norms! and! values! are! identified! both! as! determinants! and! dimensions.! The! frameworks,! however,! if! developed! further,! could! be! useful! tools! in! the! further! analysis! of! social! capital! and! how! it! works! in! the! development!context.!

The!authors!of!most!literature!on!social !capital,!who!admitted!that!social!capital! is! stronger!in! the! East,!are!ironically!Westerners.! Future! research!may! thus! be! valuable!in!exploring!the!possible!difference!in!the!experience!and!use!of!social! capital!in!the!East!and!West. !

Finally,!research!ma y!be!done!to!further!the!issue!of!whether!social!capital!is!any! different!from!leadership!and!network!power.!!

28!

Works!Cited !

Claridge,!T.!(2004).!Social!Capital!and!Natural!Resource!Management.!Brisbane,!

Australia. !

Development!Academy!of!the!Philippines.! (2009).! Review!and!Strengthening!of! the!National!Social!Protection!and!Welfare!Program!. !Project!Terminal! Report. !

Narayan,!D.,!&!Cassidy,!M.!F.!(2001).!A!Dimensional!Approach!to!Measuring!

Social!Capital:!Development!and!Validation!of!a!Social!Capital!Inventory.! Current!Sociology ! ,!49 !(2).!

Sen,!A.!(1999,!December!15).!Humane!Development.!(A.!Kapur,!Interviewer)!

The!Cantilan!Bank!Socorro!Branch:!A!Rural!Bank’s!Venture!into!a!Harde toe Reach! Area!(2006). !

Tony!Meloto:!The!Man!at!the!Helm!of!Gawad!Kalinga,!AIM e 1e 07e 0001e CS!(2007). !

Yunus,!M.!(1999).! Banker!to!the!Poor. !New!York,!New!York,!USA:!Public!Affairs. !

29!

 

ANNEX&1 &

 

Summary&of&Definitions&of&Social&Capital& (Claridge,&2004) &

External&

   
 

versus&

Authors !

Definitions&of&Social&Capital !

Internal !

External/B

 

'a!resource!that!actors!derive!from!specific!social!structures! and! then! use! to! pursue! their! interests;! it! is! created! by! changes! in! the! relationship! among! actors'! (Baker! 1990,! p.!

619). !

ridging/Co

Baker !

m

munal !

 

Belliveau,!O'Reilly,!

'an! individual's! personal! networ k! and! elite! institutional!

Wade !

affiliations'!(Belliveau!et!al.!1996,!p.!1572). !

 

Bourdieu !

'the!aggregate!of!the!actual!or!potential!resources!which!are! linked! to! possession! of! a! durable! network! of! more! or! less! institutionalized! relationships! of! mutual! acquainta nce! or! recognition'!(Bourdieu!1986,!p.!248). !

'made! up! of! social! obligations! ('connections'),! which! is! convertible,!in!certain!conditions,!into!economic!capital!and! may! be! institutionalized! in! the! form! of! a! title! of! nobility'! (Bourdieu!1986,!p.!243). !

 

Bour dieu!

'the!sum!of!the!resources,!actual!or!virtual,!that!accrue!to!an! individual! or! a! group! by! virtue! of! possessing! a! durable!

Wacquant !

network! of! more! or! less! institutionalized! relationships! of! mutual! acquaintance! and! recognition'! (Bourdieu! and! Wacquant!199 2,!p.!119). !

 

Boxman,!De!Graai.!

'the! number! of! people! who! can! be! expected! to! provide!

support! and! the! resources! those! people! have! at! their! disposal'!(Boxman!et!al.!1991,!p.!52). !

Flap !

   

'friends,! colleagues,! and! more! general! contacts! through! whom! you! re ceive! opportunities! to! use! your! financial! and!

Burt !

human!capital'!(Burt!1992,!p.!9). ! 'the! brokerage! opportunities! in! a! network'! (Burt! 1997,! p.! 355). !

   

'the!process!by!which!social!actors!create!and!mobilize!their!

Knoke !

network! connections! within! and! between! org anizations! to!

gain!access!to!other!social!actors'!resources'!(Knoke!1999,!p.!

18). !

   

'the! ability! of! actors! to! secure! benefits! by! virtue! of!

Portes !

membership! in! social! networks! or! other! social! structures'! (Portes!1998,!p.!6). !

Internal/!

 

'the! web! of! cooperative! relationships! between! citizens! that! facilitate! resolution! of! collective! action! problems'! (Brehm! and!Rahn!1997,!p.!999). !

Bonding/!

Bre hm!Rahn !

Linking !

 

Coleman !

'Social! capital! is! defined! by! its! function.! It! is! not! a! single! entity,! but! a! variety! of! differ ent! entities! having! two! characteristics!in!common:!They!all!consist!of!some!aspect!of!

social! structure,! and! they! facilitate! certain! actions! of!

individuals!who!are!within!the!structure'!(Coleman!1990,!p.!

302). !

   

'the!ability!of!people!to!work!toget her!for!common!purposes!

Fukuyama !

in!groups!and!organizations'!(Fukuyama!1995,!p.!10). ! 'Social! capital! can! be! defined! simply! as! the! existence! of! a!

   

certain! set! of! informal! values! or! norms! shared! among! members! of! a! group! that! permit! cooperation! among! them'! (Fukuyama!1 997). !

 

Inglehart !

'a!culture!of!trust!and!tolerance,!in!which!extensive!networks!

of!voluntary!associations!emerge'!(Inglehart!1997,!p.!188). !

 

Portes!

'those!expectations!for!action!within!a!collectivity!that!affect! the! economic! goals! and! goal '! seeking! behavior! of! its!

Sensenbrenner !

members,!even!if!these!expectations!are!not!oriented!toward! the! economic! sphere'! (Portes! and! Sensenbrenner! 1993,! p.! 1323). !

   

'features!of!social!organization!such!as!networks,!norms,!and!

Putnam !

social! trust! that! facilitate! coordin ation! and! cooperation! for! mutual!benefit'!(Putnam!1995,!p.!67). !

   

'those!voluntary!means!and!processes!developed!within!civil!

Thomas !

society!which!promote!development!for!the!collective!whole'! (Thomas!1996,!p.!11). !

Both!types !

Loury !

'naturally! occurring! so cial! relationships! among! persons! which! promote! or! assist! the! acquisition! of! skills! and! traits! valued! in! the! marketplace.! .! .! an! asset! which! may! be! as! significant! as! financial! bequests! in! accounting! for! the! maintenance! of! inequality! in! our! society'! (Loury! 1 992,! p.! 100). !

   

'the! sum! of! the! actual! and! potential! resources! embedded! within,! available! through,! and! derived! from! the! network! of!

Nahapiet!Ghoshal !

relationships!possessed!by!an!individual!or!social!unit.!Social!

capital!thus!comprises!both!the!network!and! the!assets!that! may! be! mobilized! through! that! network'! (Nahapiet! and! Ghoshal!1998,!p.!243). !

   

'the! web! of! social! relationships! that! influences! individual!

Pennar !

behavior! and! thereby! affects! economic! growth'! (Pennar! 1997,!p.!154). !

   

'the! set! of! eleme nts! of! the! social! structure! that! affects!

Schiff !

relations!among! people!and!are!inputs! or!arguments! of! the! production!and/or!utility!function'!(Schiff!1992,!p.!160) !

 

Woolcock !

'the!information,! trust,!and!norms!of!reciprocity!inhering!in!

one's!social!networks'!(Wo olcock!1998,!p.!153). !

ANNEX&2 & Elements&of&Dimensions&of&Social&Capital& (Narayan&&&Cassidy,&2001)&

Group!characteristics!

 

o

How!many!groups!or!organizations!do!you!belong!to?!These!could!be! religious! groups,! sports! teams,! or! just! groups! of! people! who! get!

 

tog ether!regularly!to!do!an!activity!or!tasks.! !

 

o

On! the! average,! how! much! money,! if! any,! do! you! contribute! to! the! groups!to!which!you!belong!in!a!month?! !

o

On! average,! how! often! do! you! participate! in! the! activities! of! the! groups!t o!which!you!belong!in!a!month? !

o

To! what! extent! do! you! participate! in! the! group(s)’(s)! decision e making? !

o

Thinking!about! the!members! of! this!group,!would! you! say! that!most! are!from!the!same:!

 

Neighborhood/village/community?! !

Family!or!kin!group?! !

Tribe/ca ste/ethnic/linguistic!group?!

Religious!group? !

Educational! background!and!income!level?! !

Gender? !

Generalized!norms!

 

o

Generally! speaking,! would! you! say! that! you! can’t! be! too! careful! in! dealing!with!people,!or!that!most!people!can!be!trusted?! !

o

Would! you! say! that!most! of! the! time! people! are!just!looking! out! for! themselves,!or!they!are!trying!to!be!helpful? ! !

o

Do! you! think! that!most!people!would! try! to! take!advantage! of! you!if! they!got!the!chance,!or!would!they!try!to!be!fair? ! !

Togetherness!

 

o

How! well! do! people! in! your! community/village/! neighborhood! get! along !these!days?! !

o

How!would!you!rate! the! togetherness!or! feeling!of!belonging!in!your!

 

neighborhood/village/community?! !

Everyday! Sociability! e ! In! addition! to! participating! in! group! activities! or! associations,! people! also! do! many! activities! informally! with! others.! How! often!do!you!do!each!of!the!following?! !

 

o

On!the!average,!how!often!in!a!month!do!you!get!together!with!a!group! of!people!to!do!arts,!crafts,!or!other!recreational!activities?!!

o

Who! are! these! people! with! whom! you! do! arts,! crafts,! or! other! recreational!activities?!!

o

Who!are!the!people!with!whom!you!get!together!to!play!cards,!games,! or!board!games? !

o

On!average,!how!often!do!you!get! together!with!others! to!play!cards,! games,!or!board!games? !

o

Who!are!the!people!with!whom!you!spend!time!outside!the!household! in!other!ways,!such!as!doing ! chores,!shopping,!talking,!drinking,!or!just! spending!time!together?! !

o

Who!are!the!people!who!vis it!you!at!home? !

o

Who!are!the!people!with!whom!you!eat!meals!outside!the!home?!!

Neighborhood!connections !

o

How!likely!is!it!that!you!would!ask!your!neighbors!to!take!care!of!your! children!for!a!few!hours!if!you!were!sick?!

o

How!likely!is!it!that!you!would!ask!your!neighbors!for!help!if!you!were! sick? !

Volunteerism !

o

In!your!community/neighborhood,!it!is!generally!expected!that!people! will! volunteer!or!help!in!community!activities. !

o

People! who! do! not! volunteer! or! participate! in! community! activities! are!likely!to!be!criticized!or!fined. !

o

Most! people! in! your! community/neighborhood! make! a! fair! contribution!to!community/neighborhood!activities. !

o

On ! average,! how! many! times! per! month! do! you! volunteer! in! community!activities? !

Trust !

o

How! much! do! you! feel! you! can! trust! the! people! in! each! of! the! following!groups?!

 

People!in!your!tribe/caste/race/religion/!or!ethnic!group?!!

People!in!other!tribes/castes/race /religion/or!ethnic!groups?!

People!in!your!village/neighborhood?!

People!who!belong!to!the!same!clubs,!organizations,!or!groups! as!you? !

The! business! owners! and! traders! you! buy! things! from! or! do! business!with ? !

Politicians?!

People!in!your!family? !

Government! service! providers! (education,! health,! electricity,! water,!etc.)? !

Local/municipal!government? !

Judges/courts/police?!