Creating social capital from the outside: insights from a cocoa global value chain in Peru

In: Seminar presentations
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Sausman C ,  
Donovan J A , Fearne A , Garcia M , Silva A C
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Creating social capital from the outside: insights from a cocoa global value chain in Peru

Abstract: 

Set within the context of Peru's Alternative Development Program, this paper presents an in-depth case study to explore how social capital, separated into its structural and cognitive dimensions, was formed in a farmer cooperative when integrated into a quasi-hierarchical Global Value Chain. Using field interviews with multiple stakeholders along the chain, we find that institutional actors (government, donor agencies) and buyers had a significant impact on the creation of structural social capital. However cognitive social capital was less receptive to outside intervention and may have been negatively impacted by the asymmetric nature of a quasi-hierarchical governance structure and the sharp rise in structural social capital. We conclude that the cultural and historical embeddedness of cognitive social capital makes it harder to influence from the outside.