Social Economy, Social Capital, and Social Impact
Paper Session
Saturday, Jan. 4, 2025 10:15 AM - 12:15 PM (PST)
- Chair: Tonia Warnecke, Rollins College
Looking for Reasonableness in 21st Century Neoliberalism
Abstract
Since the 1980s, the world has been engulfed by neoliberalism. Neoliberalism has evolved from a revised version of free-market capitalism to the proliferation of frivolous ideas in support of liberal ideals. In the era of social media, those in power have the ability to shape what others perceive as “truth”; however, this “truth” often serves as a facade for vested interests, altering institutional entrepreneurship and the common people’s concept of liberty. When challenges arise within the framework of neoliberal capitalism, the suggested remedy often revolves around expanding markets, despite the root of the problem often lying in the fundamental mechanisms of market operation. When considering the concept of liberty, people feel empowered to not only ignore but also deny established scientific facts. The liberalism of the early 20th century paved the way for capitalism to descend into fascism and world wars. Today, fascism is experiencing a resurgence not seen since the Second World War. We may be destined to repeat the same tragic fate. This article explores alternative possibilities. The goal of our study is to propose potential regulations for capitalism in its first quarter of the 21st century iteration. By this version of capitalism, we mean a neoliberal system that may exhibit fascist characteristics. Implementing regulations would signify a shift towards a more reasonable form of capitalism under these circumstances.The role of social capital in institutional transformation
Abstract
Social capital includes social norms and networks of reciprocity, trust, and cooperation. Civil society encompasses non-governmental, not-for-profit self-governing organizations, and informal groups. However, the concept of social capital was reduced to institutional determinism. This simplified approach conceals the ability of the elite group to shape social capital through the power system, as well as the reflexivity of social capital itself in the confrontation. In real-world, social capital plays a regulating role in the process in policy formation、devolution and valution. They fill the blank of the binary paradigm opposition of market - government, central - local, individual - state, and become a reservoir in the interest tug of war, absorbing the tension and crisis. This paper explains the functional role of social capital as an intangible asset between the functional structure and social elements that connect society. By focusing on the interaction between the governance mechanisms of different levels of government in China and their impact on social organizations, we found that when the upper and lower levels is strained and the flexibility and elasticity of the lower levels are insufficient, the grass-roots government will pay more attention to mobilizing social capital to solve problems, and then form a "bypass" mechanism（借道机制）. Compared with the "economic rationality" emphasized by mainstream economics, China's public policies rely more on local governments to develop a "village community rationality"（村社理性）, and then form the Nationwide System with Chinese characteristics.Why Has the Decline of Regional Industry Not Stopped in Japan?
Abstract
In the past two decades, industrial policy has been widely discussed, with a growing consensus among policymakers and some economists that it is necessary to address the challenges of globalization (Rodrik, 2008; Cimoli et al., 2009). While most studies in the industrial policy literature focus on national-level policy making, industrial policies can range from local to national and even supranational levels. Among these, regional industrial policy plays a crucial role in promoting industrial development. Some studies have conducted successful case studies on regions and policies, particularly focusing on innovation policies (Bianchi and Labory, 2019; Gancarczyk et al., 2023). In contrast, Japan, under the second Abe administration established in 2012, pursued a “tourism-oriented” policy as its regional industrial policy. The objective was to revitalize the regional economy through tourism rather than focusing on developing advanced industries, as seen in the EU's “smart specialization” approach. In this paper, I show that the institutions that keep ruling parties such as the Liberal Democratic Party (LDP) in power are a disincentive to innovation in the region. In other words, the institutions that kept them in power were effective in promoting vested interests and industries that did not inhibit them, but not in developing advanced industries. This has led to the loss of good jobs in the region, which in turn has created a vicious cycle of population decline and aging in the region. This paper clarifies the institutional factors that led to the “emerging declining nation.”The Concept of “Wei Yu” and its Implication to the “Absolutivism-Relativism Debate” of Institutionalism
Abstract
The article delves into a Confucian concept “Wei-Yu” and its relevance to the absolutist-relativist debate within institutionalism. It traces the origins of Wei-Yu in ancient Chinese literature and its development through Confucian philosophy, emphasizing its role in self-cultivation and moral behavior. The concept is portrayed as a means-ends continuum, resonating with institutionalist values such as practical rationality and instrumental value. The article highlights how Wei-Yu's focus on adaptation and the generic ends of life parallels institutionalist principles of life-process continuity and community re-creation. It also discusses the modern interpretation of Wei-Yu by Pan Guangdan, who viewed it as a flexible criterion for individual and societal valuation, stressing pragmatism and progress. Relativism essentially erects theoretical barriers to the exercise of practical rationality across cultural contexts, and also prevents the instrumental value from transcending the boundaries of knowledge. Therefore, the article arguing that the universality of practical rationality is not confined to institutionalism and that cultural differences should not cover the commonalities among cultures.Entrepreneurship Ecosystems for Social Impact: An Institutional Perspective
Abstract
Entrepreneurship plays an important role in economic and human development outcomes worldwide. Some entrepreneurship improves productivity, creates jobs (directly or indirectly), and applies technologies in new ways that maximize value creation. Other entrepreneurship represents last-resort employment for those with few skills and no job alternatives and does not contribute to broader economic growth outcomes. Any type of business activity creates an impact on society and the environment; the question is whether that impact aligns with a social and solidarity economy or an economic system that widens existing inequalities and pushes our world farther away from climate change thresholds. Entrepreneurship does not occur in a vacuum; it occurs within an ecosystem of varied players and institutions with differing priorities. The way the ecosystem functions and the way the ecosystem components interrelate shape entrepreneurial activity and outcomes. This paper examines entrepreneurship ecosystems and considers differences in ecosystems for social entrepreneurship and traditional entrepreneurship, drawing from case studies in the global North and South to compare and contrast institutional environments. It also analyzes specific contextual issues, characteristics, and examples of ecosystem actors and institutions that are more likely to support social enterprise activity and considers broader policy supports that are necessary for such activity.JEL Classifications
- L0 - General
- O0 - General