Center for Integrative Studies Social & Community Development

1. Center for Integrative StudiesSocial & Community Development Nicholas Kang April 3, 2012

2. Interest in civic affairs. • History of rural areas raising questions about various disparities. • Fascination with every aspect of team building (multi-organizational, business-oriented, planning committees, etc.). Why Social & Community Development?

3. Exploration of Social & Community Issues • Skills Development for Social & Community Development Practice • Experiential Learning in Social & Community Development The Major

4. NURS 130 – Family Violence • MEDIA 160 – Mass Media • BI/ES 228 – Environmental Health • EDUC 290 – Education Psychology • IS 218 – Chronicles of the American Immigrant Experience Exploration of the Issues

5. ECON 121 – Principles of Economics (audit) • STAT 212 – Statistics for Science • PSCI 221 – Environmental Policy (Australia) • ECON 249 – Urban Economics • MGMT 251 – Management • MGMT 383 – Management Policy & Strategy Skill Development

6. IS 216: Ideals to Action • Academic Internships • Davis Project for Peace • Smart Step Youth Assoc. • School for Social Entrepreneurs (UK) • Community Economic Development (Opportunity International – Nicaragua) • External Experiences • Sarswati Foundation • Water Conservation Educator & Promoter Experiential Learning

7. Study various social change projects. • Analyze various project proposals. • Develop the STO Talks Conference. • Define social innovation, community development, and their synergies. Senior Project – Sem. I

8. GOAL: Investigate and analyze economic/community development strategies through their effects on economy and social capital. Senior Project – Sem. II

9. Implications of various Community Development Strategies for Rural Economic Regions An investigation of economic leakages, pull factors, and social capital.

10. Historical drain of rural economies. • Home to 19.5 million Americans. • Significant aspect of the production and manufacturing economy. • Civic leaders make short-term desperate decisions to stimulate population and economic growth. • Decisions have both economic and social effects on the community. Why rural economic regions?

11. Large Retail Transplants (ex. Wal-Mart, Target, etc.) Local Production & Sales (Community Supported Agriculture, Co-ops, etc.) Business Entry Types

12. Characteristics: • Introduction of the box-store and the one-stop-shop. • Provided a sustainable competitive advantage of economies of scale. • Provides numerous jobs. • Brings in high skilled managers. • Low price leads to high demand and pull factors. • Allows the local dollar to go further increasing the relative spending power of the consumer. Large Retail Transplants (LRTs)

13. Characteristics: • Local production and inputs that can be controlled – opportunity to reduce leakages. • Dollars spent stay within local economy causing multiplier effect. • Supply in excess can become an export and therefore a pull factor. • Low pull-factor reliance means less susceptible economy to the actions of neighboring economic regions. • Capitalizes on local entrepreneurship and community organization. Community Supported Agriculture (CSAs)

14. PART I Local Retail Transplants and Community Supported Agriculture groups & Co-ops effect on rural economies • Analysis using leakages & pull factors PART II Local Retail Transplants and Community Supported Agriculture groups & Co-ops effect on rural social capital • Analysis using Reimer, Putnam, and Coleman’s characterizations of social capital Effects on Rural Economies & Social Capital

15. Part I:Pull Factors & Leakages

16. Kenneth E. Stone’s Study of Wal-Mart • 10 year longitudinal study of 34 Iowan towns • Measuring pull factors and leakages via local sales and income generation • Findings • Wal-Mart regions showed initial increases in sales • Non-Wal-Mart regions showed steady decline in sales • Wal-Mart regions showed a steady rate of decline in sales in later years of the study Economic Effects of LRTs

17. Speculations of the Growth & Decline of Sales: • Growth phase – • Region regaining lost sales of prior leakages. • Develop their own pull-factors. • Regression phase – • New leakages develop. • Pull factors are lost as neighboring regions attain their own Wal-Mart or other large-retail stores. Economic Effects of LRTs

18. Conclusions • Large retail transplants force neighboring rural economic regions to enter an “arms race” to fight over pull factors and leakages. • Communities with greater spending power will continuously have the upper-hand. • Policy makers and politicians should be cautious of the long-term economic effects. • Growth in sales is not necessarily sustainable. Economic Effects of LRTs

19. Ken Meter & Jon Rosales Study • Study of the economic inputs and outputs of the current agriculture system in Southeastern Minnesota. • $866-million earned by farmers (1997) – still $80-million less than what it cost for them to produce. • $400-million of expenses are from imports (fertilizers, seeds, and interest on loans). Economic Effects of CSA

20. Implications from Meter and Rosales • Current agriculture system relies heavily on imports (fertilizers, manures, seeds, etc.) • Major leakages exist in the current system • Current agricultural system is an economic drain • Opportunity for practices to change Economic Effects of CSA

21. Conclusions: • Creating a local food economy • Focus on meeting the needs of the community • Less likely to cause an arms race with neighboring economic regions (subtle pull factors) • Controlling imports • Using local manures, fertilizers, and banks • Development of co-ops and communities for equipment sharing and sales • Result: reduced leakages. (Local food economies vs. Local production economies?) Economic Effects of CSA

22. Summary of Economic Impacts

23. Social Capital: “Features of social organization such as networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit” (Putnam 1995). Part II: Social Capital

24. James Coleman • Relation with human capital • Inputs of health and education • Robert Putnam • Bridging and Bonding • Formal and non-formal transactions • Bill Reimer • Four forms of social relations • Market-based • Bureaucratic-based • Associative-based • Communal-based. Social Capital

25. Health Education Coleman’s Inputs ofHuman and Social Capital

26. Bridging Bonding Formal Transactions Non-Formal Transactions Putnam & Reimer’s Synergies ofSocial Capital

27. AnalyzingSocial Capital (Coleman)

28. Analyzing Social Capital (Putnam/Reimer)

29. * Question the transferable skills of trainee courses, mentoring systems, and orientations. Social Capital:Wal-Mart & LRTs (Coleman)

30. Social Capital:Wal-Mart & LRTs (Putnam/Reimer)

31. Social Capital:Wal-Mart & LRTs (Putnam/Reimer)

32. Social Capital:CSA & Co-ops (Coleman)

33. Social Capital:CSA & Co-ops (Putnam/Reimer)

34. Social Capital:CSA & Co-ops (Putnam/Reimer)

35. Develops models of market/ bureaucratic relations adapted by other businesses. Increase in market/ bureaucratic relations. Increase in pull-factors and sales. No growth in communal relations & steadily decreasing sales due to a loss of pull factors. Decrease in human capital: education & health. Decrease in over-all leakages. Strategy Web:Wal-Mart & LRTs

36. Development of functional market/ bureaucratic relations from formalization of associative relations. Possible increase in local pull-factors. Founded on strong associative and communal relations. Decrease in over-all leakages, and human capital: health; and development of human capital: education. Development reaches limit as supply meets local demand. Disturbance of market/ bureaucratic relations. Strategy Web:CSA & Co-ops

37. Summary • Each strategy has various effects on the inputs and forms of social capital. • Various analyses tools provide a broader view of how these various strategies affect social capital as a whole. • Over developed market- and bureaucratic-based relations can create pressures on human capital inputs • Major increases in associative- and communal-based relations can disturb efficiencies and weaken competitive advantages Analyzing SocialCapital

38. Economic and Social Capital effects of CSA and cooperatives • Need to further investigate how CSA and cooperatives affect pull factors and leakages. Critique of social capital • What are the critiques of social capital and how do they apply to these analyses. Future Investigation &Study of Social Capital

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