Could social capital help Czech agriculture?

Abstract

Recent literature and research on social capital has demonstrated the economic importance of social features, such as trust and norms that facilitate cooperation. This article focuses on the role of social capital in the context of the Czech agricultural sector. Obtaining credit, sharing machinery, and proliferating information serves as examples where an awareness and reliance on the social capital of rural communities matter. By forming groups and strengthening existing networks, Czech farmers can improve their productivity, as well as their welfare. The article concludes by warning that the Czech state cannot invest directly in social capital, but should create the necessary legal and economic incentives to encourage the formation of social capital.

Keywords

• social capital
• cooperation
• transition
• agriculture