Local Institutions, Poverty, and Household Welfare in Bolivia

The authors empirically estimate the impact of social capital on household welfare in Bolivia--where they found 67 different types of local associations. They focus on household memberships in local associations as being especially relevant to dail...

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Main Authors: Grootaert, Christiaan, Narayan, Deepa
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2001/07/1552002/local-institutions-poverty-household-welfare-bolivia
http://hdl.handle.net/10986/19594
id okr-10986-19594
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTABILITY
AGED
AGRO-ECOLOGICAL ZONES
AUTONOMOUS ORGANIZATIONS
BASIC SERVICES
CITIZEN
CLIMATE
COLLECTIVE ACTION
COLLECTIVE DECISIONMAKING
COMMUNITY ASSISTANCE
COMMUNITY LEADERS
COMMUNITY LEVEL
COMMUNITY ORGANIZATION
COMMUNITY SERVICES
CULTURAL IDENTITY
DATA COLLECTION
DATA SET
DATA SETS
DEMOCRACY
DEMOCRATIC STATE
DEVELOPMENT NETWORK
DISCRIMINATION
ECONOMIC ACTIVITY
ECONOMIC CHARACTERISTICS
ECONOMIC CONTEXT
ECONOMIC MANAGEMENT
ECONOMIC REFORMS
ECONOMIC STRUCTURE
EDUCATION LEVEL
EMPLOYMENT
EMPLOYMENT STATUS
ETHNIC GROUPS
EXPENDITURE PER CAPITA
EXTREME POVERTY
FIELD WORK
FINANCIAL SUPPORT
FORMAL INSTITUTIONS
GIRLS
GROWTH RATES
HEALTH CENTERS
HOSPITALS
HOUSEHOLD DURABLES
HOUSEHOLD EXPENDITURE
HOUSEHOLD HEAD
HOUSEHOLD HEADS
HOUSEHOLD LEVEL
HOUSEHOLD MEMBERS
HOUSEHOLD SAMPLE
HOUSEHOLD SURVEY
HOUSEHOLD WELFARE
HOUSING
HUMAN CAPITAL
INCIDENCE OF POVERTY
INCOME
INCOME GROWTH
INDIGENOUS GROUPS
INDIGENOUS PEOPLES
INEQUALITY
INSTITUTIONAL ARRANGEMENTS
INSTITUTIONAL ENVIRONMENTS
ISOLATION
LAND REDISTRIBUTION
LAND REFORM
LAND TENURE
LOCAL ASSOCIATIONS
LOCAL DEVELOPMENT
LOCAL ECONOMY
LOCAL GOVERNMENT
LOCAL GRASSROOTS ORGANIZATIONS
LOCAL INSTITUTIONS
LOCAL LEVEL
LOCAL PEOPLE
MANAGERS
MIGRANTS
MIGRATION
MUNICIPAL GOVERNMENT
MUNICIPAL GOVERNMENTS
MUNICIPALITIES
MUNICIPALITY
NATIONAL LEVEL
POLICY IMPLICATIONS
POLICY RESEARCH
POLITICAL PARTIES
POOR COUNTRIES
POOR PERSON
POVERTY ISSUES
POVERTY LINE
POVERTY REDUCTION
PRIMARY EDUCATION
PRIMARY SCHOOL
PRIVATE TRANSFERS
PROVISION OF SERVICES
PUBLIC ENTERPRISES
PUBLIC SECTOR
QUALITATIVE DATA
QUALITY OF SERVICE
QUANTITATIVE DATA
RADIO
RELATIVE POVERTY
RELIGIOUS GROUPS
RESEARCH TEAM
RESOURCE ALLOCATION
RURAL AREAS
RURAL COMMUNITIES
RURAL POPULATION
RURAL POVERTY
SAMPLE HOUSEHOLDS
SAMPLING FRAMEWORK
SCHOOLS
SERVICE DELIVERY
SERVICE PROVISION
SOCIAL CAPITAL
SOCIAL COHESION
SOCIAL DEVELOPMENT
STRUCTURAL ADJUSTMENT
SUSTAINABLE DEVELOPMENT
UNEQUAL DISTRIBUTION
URBAN AREAS
URBAN POVERTY
VILLAGE SOCIAL CAPITAL
WATER RESOURCES
WORKERS
spellingShingle ACCOUNTABILITY
AGED
AGRO-ECOLOGICAL ZONES
AUTONOMOUS ORGANIZATIONS
BASIC SERVICES
CITIZEN
CLIMATE
COLLECTIVE ACTION
COLLECTIVE DECISIONMAKING
COMMUNITY ASSISTANCE
COMMUNITY LEADERS
COMMUNITY LEVEL
COMMUNITY ORGANIZATION
COMMUNITY SERVICES
CULTURAL IDENTITY
DATA COLLECTION
DATA SET
DATA SETS
DEMOCRACY
DEMOCRATIC STATE
DEVELOPMENT NETWORK
DISCRIMINATION
ECONOMIC ACTIVITY
ECONOMIC CHARACTERISTICS
ECONOMIC CONTEXT
ECONOMIC MANAGEMENT
ECONOMIC REFORMS
ECONOMIC STRUCTURE
EDUCATION LEVEL
EMPLOYMENT
EMPLOYMENT STATUS
ETHNIC GROUPS
EXPENDITURE PER CAPITA
EXTREME POVERTY
FIELD WORK
FINANCIAL SUPPORT
FORMAL INSTITUTIONS
GIRLS
GROWTH RATES
HEALTH CENTERS
HOSPITALS
HOUSEHOLD DURABLES
HOUSEHOLD EXPENDITURE
HOUSEHOLD HEAD
HOUSEHOLD HEADS
HOUSEHOLD LEVEL
HOUSEHOLD MEMBERS
HOUSEHOLD SAMPLE
HOUSEHOLD SURVEY
HOUSEHOLD WELFARE
HOUSING
HUMAN CAPITAL
INCIDENCE OF POVERTY
INCOME
INCOME GROWTH
INDIGENOUS GROUPS
INDIGENOUS PEOPLES
INEQUALITY
INSTITUTIONAL ARRANGEMENTS
INSTITUTIONAL ENVIRONMENTS
ISOLATION
LAND REDISTRIBUTION
LAND REFORM
LAND TENURE
LOCAL ASSOCIATIONS
LOCAL DEVELOPMENT
LOCAL ECONOMY
LOCAL GOVERNMENT
LOCAL GRASSROOTS ORGANIZATIONS
LOCAL INSTITUTIONS
LOCAL LEVEL
LOCAL PEOPLE
MANAGERS
MIGRANTS
MIGRATION
MUNICIPAL GOVERNMENT
MUNICIPAL GOVERNMENTS
MUNICIPALITIES
MUNICIPALITY
NATIONAL LEVEL
POLICY IMPLICATIONS
POLICY RESEARCH
POLITICAL PARTIES
POOR COUNTRIES
POOR PERSON
POVERTY ISSUES
POVERTY LINE
POVERTY REDUCTION
PRIMARY EDUCATION
PRIMARY SCHOOL
PRIVATE TRANSFERS
PROVISION OF SERVICES
PUBLIC ENTERPRISES
PUBLIC SECTOR
QUALITATIVE DATA
QUALITY OF SERVICE
QUANTITATIVE DATA
RADIO
RELATIVE POVERTY
RELIGIOUS GROUPS
RESEARCH TEAM
RESOURCE ALLOCATION
RURAL AREAS
RURAL COMMUNITIES
RURAL POPULATION
RURAL POVERTY
SAMPLE HOUSEHOLDS
SAMPLING FRAMEWORK
SCHOOLS
SERVICE DELIVERY
SERVICE PROVISION
SOCIAL CAPITAL
SOCIAL COHESION
SOCIAL DEVELOPMENT
STRUCTURAL ADJUSTMENT
SUSTAINABLE DEVELOPMENT
UNEQUAL DISTRIBUTION
URBAN AREAS
URBAN POVERTY
VILLAGE SOCIAL CAPITAL
WATER RESOURCES
WORKERS
Grootaert, Christiaan
Narayan, Deepa
Local Institutions, Poverty, and Household Welfare in Bolivia
geographic_facet Latin America & Caribbean
Bolivia
relation Policy Research Working Paper;No. 2644
description The authors empirically estimate the impact of social capital on household welfare in Bolivia--where they found 67 different types of local associations. They focus on household memberships in local associations as being especially relevant to daily decisions that affect household welfare and consumption. On average, households belong to 1.4 groups and associations: 62 percent belong to agrarian syndicates, 16 percent to production groups, 13 percent to social service groups, and 10 percent to education and health groups. Smaller numbers belong to religious and government groups. Agrarian syndicates, created by government decree in 1952, are now viewed mainly as community-initiated institutions to manage conmunal resources. They have been registered as legal entities to work closely with municipalities to represent the interests and priorities of local people in municipal decisionmaking. The effects of social capital operate through (at least) three mechanisms: sharing of information among association members; the reduction of opportunistic behavior; and better collective decisionmaking. The effect of social capital on household welfare was found to be 2.5 times that of human capital. Increasing the average educational endowment of each adult in the household by one year (about a 2.5-percent increase) would increase per capita household spending 4.2 percent; a similar increase in the social capital endowment would increase spending 9 to 10.5 percent. They measured social capital along six dimensions: density of memberships, internal heterogeneity of associations (by gender, age, education, religion, etc.), meeting attendance, active participation in decisionmaking, payment of dues (in cash and in kind), and community orientation. The strongest effect came from number of memberships. Active membership in an agrarian syndicate is associated with an average 11.5 percent increase in household spending. Membership in another local association is associated with a 5.3-percent higher spending level. Empirical results partly confirm the hypothesis that social capital provides long-term benefits such as better access to credit and a higher level of trust in the community as a source of assistance in case of need.
format Publications & Research :: Policy Research Working Paper
author Grootaert, Christiaan
Narayan, Deepa
author_facet Grootaert, Christiaan
Narayan, Deepa
author_sort Grootaert, Christiaan
title Local Institutions, Poverty, and Household Welfare in Bolivia
title_short Local Institutions, Poverty, and Household Welfare in Bolivia
title_full Local Institutions, Poverty, and Household Welfare in Bolivia
title_fullStr Local Institutions, Poverty, and Household Welfare in Bolivia
title_full_unstemmed Local Institutions, Poverty, and Household Welfare in Bolivia
title_sort local institutions, poverty, and household welfare in bolivia
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2001/07/1552002/local-institutions-poverty-household-welfare-bolivia
http://hdl.handle.net/10986/19594
_version_ 1764440115581550592
spelling okr-10986-195942021-04-23T14:03:43Z Local Institutions, Poverty, and Household Welfare in Bolivia Grootaert, Christiaan Narayan, Deepa ACCOUNTABILITY AGED AGRO-ECOLOGICAL ZONES AUTONOMOUS ORGANIZATIONS BASIC SERVICES CITIZEN CLIMATE COLLECTIVE ACTION COLLECTIVE DECISIONMAKING COMMUNITY ASSISTANCE COMMUNITY LEADERS COMMUNITY LEVEL COMMUNITY ORGANIZATION COMMUNITY SERVICES CULTURAL IDENTITY DATA COLLECTION DATA SET DATA SETS DEMOCRACY DEMOCRATIC STATE DEVELOPMENT NETWORK DISCRIMINATION ECONOMIC ACTIVITY ECONOMIC CHARACTERISTICS ECONOMIC CONTEXT ECONOMIC MANAGEMENT ECONOMIC REFORMS ECONOMIC STRUCTURE EDUCATION LEVEL EMPLOYMENT EMPLOYMENT STATUS ETHNIC GROUPS EXPENDITURE PER CAPITA EXTREME POVERTY FIELD WORK FINANCIAL SUPPORT FORMAL INSTITUTIONS GIRLS GROWTH RATES HEALTH CENTERS HOSPITALS HOUSEHOLD DURABLES HOUSEHOLD EXPENDITURE HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD SAMPLE HOUSEHOLD SURVEY HOUSEHOLD WELFARE HOUSING HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME GROWTH INDIGENOUS GROUPS INDIGENOUS PEOPLES INEQUALITY INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL ENVIRONMENTS ISOLATION LAND REDISTRIBUTION LAND REFORM LAND TENURE LOCAL ASSOCIATIONS LOCAL DEVELOPMENT LOCAL ECONOMY LOCAL GOVERNMENT LOCAL GRASSROOTS ORGANIZATIONS LOCAL INSTITUTIONS LOCAL LEVEL LOCAL PEOPLE MANAGERS MIGRANTS MIGRATION MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPALITIES MUNICIPALITY NATIONAL LEVEL POLICY IMPLICATIONS POLICY RESEARCH POLITICAL PARTIES POOR COUNTRIES POOR PERSON POVERTY ISSUES POVERTY LINE POVERTY REDUCTION PRIMARY EDUCATION PRIMARY SCHOOL PRIVATE TRANSFERS PROVISION OF SERVICES PUBLIC ENTERPRISES PUBLIC SECTOR QUALITATIVE DATA QUALITY OF SERVICE QUANTITATIVE DATA RADIO RELATIVE POVERTY RELIGIOUS GROUPS RESEARCH TEAM RESOURCE ALLOCATION RURAL AREAS RURAL COMMUNITIES RURAL POPULATION RURAL POVERTY SAMPLE HOUSEHOLDS SAMPLING FRAMEWORK SCHOOLS SERVICE DELIVERY SERVICE PROVISION SOCIAL CAPITAL SOCIAL COHESION SOCIAL DEVELOPMENT STRUCTURAL ADJUSTMENT SUSTAINABLE DEVELOPMENT UNEQUAL DISTRIBUTION URBAN AREAS URBAN POVERTY VILLAGE SOCIAL CAPITAL WATER RESOURCES WORKERS The authors empirically estimate the impact of social capital on household welfare in Bolivia--where they found 67 different types of local associations. They focus on household memberships in local associations as being especially relevant to daily decisions that affect household welfare and consumption. On average, households belong to 1.4 groups and associations: 62 percent belong to agrarian syndicates, 16 percent to production groups, 13 percent to social service groups, and 10 percent to education and health groups. Smaller numbers belong to religious and government groups. Agrarian syndicates, created by government decree in 1952, are now viewed mainly as community-initiated institutions to manage conmunal resources. They have been registered as legal entities to work closely with municipalities to represent the interests and priorities of local people in municipal decisionmaking. The effects of social capital operate through (at least) three mechanisms: sharing of information among association members; the reduction of opportunistic behavior; and better collective decisionmaking. The effect of social capital on household welfare was found to be 2.5 times that of human capital. Increasing the average educational endowment of each adult in the household by one year (about a 2.5-percent increase) would increase per capita household spending 4.2 percent; a similar increase in the social capital endowment would increase spending 9 to 10.5 percent. They measured social capital along six dimensions: density of memberships, internal heterogeneity of associations (by gender, age, education, religion, etc.), meeting attendance, active participation in decisionmaking, payment of dues (in cash and in kind), and community orientation. The strongest effect came from number of memberships. Active membership in an agrarian syndicate is associated with an average 11.5 percent increase in household spending. Membership in another local association is associated with a 5.3-percent higher spending level. Empirical results partly confirm the hypothesis that social capital provides long-term benefits such as better access to credit and a higher level of trust in the community as a source of assistance in case of need. 2014-08-21T19:49:05Z 2014-08-21T19:49:05Z 2001-07 http://documents.worldbank.org/curated/en/2001/07/1552002/local-institutions-poverty-household-welfare-bolivia http://hdl.handle.net/10986/19594 English en_US Policy Research Working Paper;No. 2644 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Bolivia