The presence of a Wal-Mart store reduces a community's level of social
capital, according to a new study by economists Stephan J. Goetz and
Anil Rupasingha.
Bowling Alone author Robert Putnam defines social capital this way:
"Social capital refers to features of social organization such as
networks, norms, and social trust that facilitate coordination and
cooperation for mutual benefit." Social scientists generally measure a
community's social capital by looking at such factors as how many civic
and social organizations it has and the degree to which residents
participate in public affairs.
Communities with higher levels of social capital are healthier and
more resilient, and their members are better able to work together to
solve problems. Economists have found that social capital also
contributes to economic growth and poverty reduction.
"Our results indicate that the presence of Wal-Mart depresses social
capital stocks in local communities," concluded Goetz and Rupasingha in
their study, "Wal-Mart and Social Capital," which was published by the American Journal of Agricultural Economics.