Social capital formation: The role of NGO rural development programs in Bangladesh
Social capital can be generated by the expectations of the rural poor who are victimized by government and market failures. The demands of the rural poor of Bangladesh for economic and social goods and services, for example, have been instrumental to their economic and social well-being. Cooperation based on mutual trust and norms of reciprocity contributes to the creation of other kinds of capital, especially economic and human capital, that are mutually reinforcing. Both governments and the NGOs make use of social capital as a tool for implementing poverty policies.
The purpose of this paper is to study whether the central government in Sweden approves applications for temporary grants from municipalities according to political objectives. We also study factors that determine the municipal decision to apply for temporary grants. Two hypotheses are tested, that the central government supports municipalities with many swing voters in order to influence voters, and that the central government provides benefits to groups that share its ideology and that provide political support. Data is used from three election years 1982, 1985, and 1988. Under the Socialist governments municipalities with a high share of Socialist voters were more likely to apply for grants. The same pattern does not apply to the 1982 Conservative government. There is evidence that Socialist governments approved temporary grants on the basis of party tactical criteria. However, there is no indication of vote purchasing behaviour by the 1982 Conservative government.