Social Capital and Local Economic Development: The Key to Success and Sustainability of LED in Developing Countries
Abstract
Social capital is currently considered an abstract and normative concept, therefore, it is difficult to understand its mode of operation. This study aims to provide a detailed and descriptive operational understanding of the three types of social capital, namely bonding, bridging, and linking in accordance with the Local Economic Development (LED) based on community empowerment. Data were obtained from a review of various literatures to clarify the conceptual framework and analytical description of the various benefits. The result showed that bonding social capital needs to be improved in the early stages of the LED program because it provides a strong impetus for group awareness to bind and strive to be independently free from poverty and under-development. Assuming the strong nature of bonding social capital is properly managed, irrespective of its ability to create group primordialism it fosters the confidence of the target community. Meanwhile, bridging and linking of social capital need to be improved to create a synergistic relationship between the target community and external parties. In conclusion, the LED program is key to the successful sustainability of the LED program in developing countries.
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DOI: http://dx.doi.org/10.18415/ijmmu.v10i5.4576
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