Linking Indigenous Social Capital to a Global Economy



upsurge in child suicides, breakdown of family authority and, in the long-run, the costs of
welfare dependency, alcoholism and child neglect that has been borne by American taxpayers as
well as, of course, Native Americans themselves. Native Americans describe this experience not
only as psychologically devastating but spiritually catastrophic in that it severely weakened the
social and cultural ties that gave persons their sense of identity and relatedness to the universe as-
a-whole.11 In short, this experience highlights the long-term personal and social disorganization
that can result from not recognizing how the societal benefits of indigenous bonding social
capital may be lost through clumsy efforts to quickly create bonding social capital.

Thus, the question remains, are there any viable alternatives that would produce effective
bridging social capital while, at the same time, maintaining some integrity to indigenous bonding
social capital? Two classic treatises in sociology and economics, respectively, suggest some
direction in finding an answer to this question. Emile Durkheim, in
The Division of Labor in
Society
.12 proposes new institutional and organizational arrangements to create more effective
linkages between traditional forms of community bonding and the centrifugal force of emerging
industrial capitalism. Joseph Schumpeter's13 historical analysis of the success of Western liberal
democracies in adapting to market failures and workers' challenges to inequality highlights the
importance of pragmatic responses that essentially spliced together disparate elements that
resulted in novel forms of welfare state intervention in the marketplace. These "non-heroic
"
responses, he argues, produced the enormous economic growth and rise in standard of living in
Western Europe and North America in the 20th century.

Following Durkheim's and Schumpeter's logic, we would argue that the problems that
result from the disconnection between highly exclusive indigenous bonding social capital and
bridging social capital call for a "non-heroic" incremental development of new institutional



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