Regulations of Social Capital Formation in Ukraine: Theoretical Framework and International Context

Abstract

In the paper, the regularities of the formation of social capital as a component of the problem of capitalization of social interaction have been studied. The methodological approach of the research includes two aspects: theoretical, the purpose of which is to substantiate the theoretical structure of the regularities of the formation of social capital; analytical, according to which the manifestation of the revealed regularities in Ukraine and other countries has been assessed. Four main regularities have been considered (empathy, risk reflectivity, migration impact, norm correspondence), which determine the functioning of the essential elements of social capital, as well as the features of transformation and conversion of its forms. The selection of proper economic indicators that reflect trends in the manifestation of social capital formation has been performed. The results of analytical assessment of the actualization of the specified regularities in Ukraine compared to other countries have been presented. The research revealed that empathy, as a relationship between rationality and sociality of human interaction, constitutes a solid foundation for the development of social capital and has the most vivid and positive manifestations in Ukrainian society when economic agents readily and carefully respond to the needs of their counterparts in social relations. The paper demonstrates the features of the differentiation of forms of social capital according to the direction of internal connections within social networks and the homogeneity (density) of social networks. The determinism of the variability of the forms of social capital is substantiated by the different perceptions of risks by the agents of social interaction. The low tolerance of Ukrainian economic agents to risk has been registered. This determines their preferences regarding participation in vertical and closed social networks. The relationship between migration (mobility) and social trust is revealed. It is argued that the relationship manifests itself in the generally ambiguous impact of immigration to Ukraine and emigration from Ukraine on the functioning of trust networks. This testifies to the possibilities and reserves of managing such an impact to increase social capital in the country. The objective relationship between trust in social norms (the degree of their social recognition and acceptance) and the productivity of social capital is specified. It has been observed that in Ukraine, a critically low level of trust in social norms and norm-setting institutions contributes to the development of corruption and destructive social networks.