In the context of any country, which one of the following would be considered as part of its social capital?
- (a) The proportion of literates in the population
- (b) The stock of its buildings, other infrastructure and machines
- (c) The size of population in the working age group
- (d) The level of mutual trust and harmony in the society ✓ UPSC's answer
Why the answer is (d)
• Social capital refers to the networks, norms, trust and cooperation that enable people in a society to act together effectively (Putnam, Coleman) — option (d).
• Literacy (a) and the working-age population (c) are aspects of human capital and demography; buildings, infrastructure and machines (b) are physical capital.
• High social capital lowers transaction costs and strengthens institutions and collective action.
• Hence option (d).
Why the other options are wrong
- (a) The proportion of literates in the population
- Literacy is human capital.
- (b) The stock of its buildings, other infrastructure and machines
- Buildings and machines are physical capital.
- (c) The size of population in the working age group
- Working-age population is a demographic measure, not social capital.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2019, held on 2 June 2019. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.