Negative Social Capital
It has been noted that social capital may be not always be used for positive ends. An example of the complexities of the effects of social capital is violent or criminal gang activity that is encouraged through the strengthening of intra-group relationships (bonding social capital). The negative consequences of social capital are more often associated with bonding vis-à-vis bridging.
Without "bridging" social capital, "bonding" groups can become isolated and disenfranchised from the rest of society and, most importantly, from groups with which bridging must occur in order to denote an "increase" in social capital. Bonding social capital is a necessary antecedent for the development of the more powerful form of bridging social capital. Bonding and bridging social capital can work together productively if in balance, or they may work against each other. As social capital bonds and stronger homogeneous groups form, the likelihood of bridging social capital is attenuated. Bonding social capital can also perpetuate sentiments of a certain group, allowing for the bonding of certain individuals together upon a common radical ideal. The strengthening of insular ties can lead to a variety of effects such as ethnic marginalization or social isolation. In extreme cases ethnic cleansing may result if the relationship between different groups is so strongly negative. In mild cases, it just isolates certain communities such as suburbs of cities because of the bonding social capital and the fact that people in these communities spend so much time away from places that build bridging social capital.
Social capital (in the institutional Robert Putnam sense) may also lead to bad outcomes if the political institution and democracy in a specific country is not strong enough and is therefore overpowered by the social capital groups. "Civil society and the collapse of the Weimar Republic" suggests that "it was weak political institutionalization rather than a weak civil society that was Germany’s main problem during the Wihelmine and Weimar eras." Because the political institutions were so weak people looked to other outlets. “Germans threw themselves into their clubs, voluntary associations, and professional organizations out of frustration with the failures of the national government and political parties, thereby helping to undermine the Weimar Republic and facilitate Hitler’s rise to power.” In this article about the fall of the Weimar Republic, the author makes the claim that Hitler rose to power so quickly because he was able to mobilize the groups towards one common goal. Even though German society was, at the time, a "joining" society these groups were fragmented and their members did not use the skills they learned in their club associations to better their society. They were very introverted in the Weimar Republic. Hitler was able to capitalize on this by uniting these highly bonded groups under the common cause of bringing Germany to the top of world politics. The former world order had been destroyed during World War I, and Hitler believed that Germany had the right and the will to become a dominant global power.
Later work by Putnam also suggests that social capital, and the associated growth of public trust are inhibited by immigration and rising racial diversity in communities. Putnam's study regarding the issue argued that in American areas with a lack of homogeneity, some individuals neither participated in bonding nor bridging social capital. In societies where immigration is high (USA) or where ethnic heterogeneity is high (Eastern Europe), it was found that citizens lacked in both kinds of social capital and were overall far less trusting of others than members of homogenous communities were found to be. Lack of homogeneity led to people withdrawing from even their closest groups and relationships, creating an atomized society as opposed to a cohesive community. These findings challenge previous beliefs that exposure to diversity strengthens social capital, either through bridging social gaps between ethnicities or strengthening in-group bonds.
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