VET and social capital: A paper on the contribution of the VET sector to social capital in communities

There has been a growing international and Australian interest in the concept of social capital. The impact of the dynamic global knowledge society and economy on communities has brought with it a heightened interest in the role of social capital and the ways in which social and economic policy coalesce to drive economic progress and community well being.

Internationally, this is reflected in the work of OECD and the World Bank, while in Australia the Productivity Commission, Australian Bureau of Statistics, and other government agencies have addressed the issue of social capital.

While there have been some individual initiatives, the VET sector overall has not been active in this area, and little prominence has been given nationally (in reports such as that of the Productivity Commission) to the role of the VET sector in contributing to social capital in communities. This paper has been prepared to provide for discussion of the VET contribution to social capital and the implications of this concept for VET policy and practice.

The paper adopts the OECD definition of social capital.

Social capital is networks together with shared norms, values and understandings that facilitate co-operation within or among groups.

This definition draws attention to the three key elements: the networks which link people in communities for joint action, the norms and values that bind these networks, and the significance of these components for the culture of a community.

The paper distinguishes bonding, bridging, and linking forms of social capital.

Social capital brings a spectrum of economic, social and cultural benefits to a community. It is particularly significant in combating exclusion and building inclusive and cohesive communities able to adapt to changing conditions. The links between social capital, human capital, and economic outcomes are discussed in terms of a model developed by OECD.

The VET Contribution to Social Capital

In considering the VET contribution to social capital, the paper follows the work of the World Bank in identifying seven key sources of social capital:

families, communities, firms, civil society, public sector, ethnicity, gender

The paper argues that the VET contribution to social capital could, in principle, relate to each of these sources of social capital, although at present this contribution is more developed in some of these areas than in others.

The paper identifies and discusses eight types of VET contribution to social capital. These types are:

1. building social capital in firms;
2. building networks of businesses, especially in the small business sector;
3. developing employability skills which contribute to social capital in both firms and civil society;
4. fostering values and norms that underpin social capital;
5. contributing to inclusive and cohesive communities through equity strategies for disadvantaged groups;
6. initiating and contributing to learning community initiatives;
7. innovating in the use of information and communication technology to build virtual communities;
8. contributing to civil society as a good citizen.

Examples of VET action across these areas are given, including the VET role in learning community initiatives. The current VET National Aboriginal and Torres Strait Islander Strategy for 2000-2003 ( Partners in a Learning Culture ) is given as a good example of a VET strategy with a strong social capital component.

Measuring Social Capital

Measurement of social capital is difficult, although the World Bank has developed measures of social capital which have been applied in surveys of Third World countries. In Australia, the Australian Bureau of Statistics has developed a Social Capital Framework and a draft set of social capital indicators. These are currently being revised with a view to the inclusion of social capital indicators in the 2005-06 General Social Survey. Against this background, a possible VET approach to measuring performance is discussed.

Implications for VET Policy and Practice

Social capital is an important issue for VET in the context of social and economic shifts associated with the impact of the global knowledge society and economy.The VET vision and strategic objectives for 2004-2010 with the triad of objectives in serving business, people, and communities, provide an opportunity to strengthen the VET contribution to social capital.

The paper concludes with a set of twelve propositions relating to VET and social capital. These are brought forward to engender discussion of the VET contribution to social capital, and the implications for VET policy and practice.

1. The concept of social capital is highly relevant to the VET role in serving employers, individuals, and communities and in building human capital.
2. While VET already makes a contribution to most sources of social capital in communities, this contribution is variable and uneven and could be strengthened in more integrated and holistic strategies.
3. The fundamental interdependence between social capital, human capital and economic and community well-being should be recognised. This will lead to value added outcomes for all stakeholders.
4. Building a social capital dimension into VET policy and practice will require addressing questions of norms and values in the work of the sector.
5. The implementation of employability skills by VET, which should also be seen as life skills relevant to building social capital in communities, provides an opportunity for innovation in the VET contribution to social capital.
6. Future directions for the Australian Flexible Learning Framework beyond 2004 also provides an opportunity to strengthen the VET contribution to social capital in communities in innovative ways through the role of information and communication technology.
7. Social capital considerations are relevant to professional development of VET staff under strategies such as Re-framing the Future directed at staff development for high-performing VET organisations.
8. Local partnership strategies, such as learning communities, have considerable value in building social capital and a local social infrastructure for innovation across economic, social, cultural, and educational sectors.
9. Social capital is important in the capability of communities to adapt to changing conditions, and in the dissemination of new ideas to stimulate innovation.
10. The success of VET equity strategies is likely to depend to a considerable extent on the linkages made to social capital and community building processes, so that social capital networks support these strategies and contribute to building inclusive and cohesive communities.
11. Information and communication technology, and innovative approaches to e-learning in a range of community contexts, has the potential to add value to social capital, in particular in strengthening bridging and linking forms of social capital.
12. VET should develop performance indicators to monitor its contribution to social capital, aligning with the work of the Australian Bureau of Statistics in developing social capital indicators for its Social Capital Framework with self-assessment by VET institutions of their social and community role and impact, an appropriate starting point assisted by guidelines developed by ANTA.