Q7.Explain the term social capital. How does it enhance good governance? (Answer in 150 words)

Social capital refers to the networks of relationships among people in a society, characterized by trust, norms of reciprocity, and social networks, enabling effective societal functioning.

How Social Capital Enhances Good Governance

• Fosters citizen participation and collective action in decision-making processes, leading to more inclusive policies.
• Promotes transparency and accountability of public institutions through community oversight and demand for ethical conduct.
• Facilitates efficient service delivery by building trust and cooperation between citizens and administration, streamlining processes.
• Reduces transaction costs and conflicts, as shared norms and trust minimize the need for extensive formal regulations and enforcement.
• Strengthens social cohesion, creating a more stable environment conducive to effective and responsive governance.

Thus, social capital is crucial for building a participatory, transparent, and efficient governance system, ultimately leading to sustainable development and public welfare.