Social capital
Social capital and job creation in rural Europe
Rural areas of Europe have experienced profound changes over recent decades. Changes in the agricultural sector, the migration of young people towards urban centres and the resulting demographic imbalance, and insufficient population and infrastructure density to support economic development and entrepreneurial activity have led to a loss of employment. However, one resource that rural areas may be able to draw upon is their ‘social capital’: the interaction of individuals participating and communicating in formal or informal networks in which higher levels of trust develop.
In 2003, the Foundation launched a project aiming to assess the usefulness of regional social capital and its possible role in the improvement of social inclusion and employment. The report Regional social capital in Europe provides examples of, and strategies for, regional social capital initiatives in six Member States, suggesting new ideas and approaches for policymakers.
A second report published in 2007 documents the relationship between social capital and economic development, with a specific focus on Social capital and job creation in rural Europe. Based on research carried out in 10 Member States, including five of the new Member States, the report gives examples of initiatives developed by local and regional authorities, social partners and NGOs to boost employment levels in rural areas. The findings show that involvement in social networks positively affects economic development, leading to entrepreneurship and consequent economic growth, employment and social inclusion.
To promote the results of the research, a conference on social capital and job creation in rural Europe was organised during the Portuguese Presidency on 8-9 November 2007 in Lisbon, in cooperation with the EC Leader + Observatory and the Portuguese Ministry of Agriculture, Rural Development and Fisheries.