Social Networks in the Arab World—The Hashemite Kingdom of Jordan

View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by SOAS Research Online World Development Vol. 37, No. 7, pp. 1235–1249, 2009 Ó 2009 Elsevier Ltd. All rights reserved 0305-750X/$ - see front matter www.elsevier.com/locate/worlddev doi:10.1016/j.worlddev.2008.12.004 ‘‘You Reap What You Plant”: Social Networks in the Arab World—The Hashemite Kingdom of Jordan HAMED EL-SAID Manchester Metropolitan Business School, Manchester, UK and JANE HARRIGAN * University of London, UK Summary. — The aim of this paper is threefold. First, to describe the general evolution of bonding and bridging social capital in Jordan. Second, to explore the role of state policies in affecting the various forms of social capital. Finally, to analyze how poverty and economic reform influence the extent and nature of social capital. Social networks, a crucial element of social capital, and cleavages are strongly affected by political and economic dislocations. The former include wars and civil wars, while the latter include state policies and economic conditions. Thus wasta, an old but still significant form of social capital in the Arab World, becomes helpful in good times but destructive in bad times. Successful economic reform requires a good understanding of the nature of social relations and of the ways in which social networks themselves are used by members during good times and bad times for both survival and advancement. Ó 2009 Elsevier Ltd. All rights reserved. Key words — Jordan, Middle East, social capital, bonding, bridging, trust 1. INTRODUCTION formal resources of the state. In their work on Middle Eastern societies, Cunningham and Sarayrah (1993, p. 1) also con- Over the past fifteen years, the Hashemite Kingdom of Jor- cluded that informal and social networks remain a major dan (hereafter referred to as Jordan) has experienced an in- ‘‘force in Middle Eastern societies,” determining most eco- crease in poverty, inequality, and unemployment; volatile nomic and political outcomes. Yet, the literature on SC is lar- economic growth and low productivity; a significant increase gely characterized by absence of any contribution from the in nepotism and corruption in public institutions; a rise in Arab World (Francis, 2002, p. 8). the rate of crime and civil violence; and pervasive lack of trust Jordan is chosen as a case study in order to fill a gap in the not only between citizens themselves but also between them existing literature. Not unlike other Muslim societies of the re- and their formal institutions. This lack of general trust, ‘‘a cen- gion, Jordan is a country traditionally vibrant with social net- tral element of social cohesion, or social capital” (World Bank, works that operate on the basis of trust and reciprocity. 2002, p. iii), is one of the main constraints to sustainable eco- Jordan is also usually cited by the International Monetary nomic growth and development in Jordan. It is also poten- Fund (IMF) and World Bank, as a show case of reform and tially threatening to the country’s social cohesion and globalization (Harrigan and El-Said, 2009a, 2009b). Yet, it is political stability. a country experiencing increasing levels of inequality and pov- This paper contributes to the growing body of literature on erty. Jordan therefore provides an interesting case to study social capital (SC) by focusing on the role of public policy and factors that affect SC and how the latter affects and is affected other main factors that affect the level, type, and nature of SC by social and economic factors. observed in a society, an area where ‘‘efforts have been suc- The paper argues that public policy and general political cessful only to a very limited degree” (Grootaert & Van Bastel- and economic conditions are crucial factors that affect the le- aer, 2002, p.77). It thus attempts to answer a question that still vel and nature of SC in a country. Abrupt market reform and looms high in the literature on SC: ‘‘where does social capital increased poverty can force the poor to withdraw from vibrant come from-and how might public policy affect it?” (Miguel, social networks that provide important opportunities and re- 2003, p. 196). sources. Thus wasta, an old but widespread phenomenon Social networks and SC are a widespread phenomenon not and a significant form of SC in the Arab World, becomes help- only in Jordan and the Arab World, but also in almost every ful during good times and destructive during bad times. We Muslim society beyond the region, including in Bosnia and will argue in this paper that this plus public policy, influenced Herzegovina, former Soviet Muslim states, and Asia and Afri- by the demands of local nationalists particularly after the 1971 ca (see Kuehnast & Dudwick, 2004; World Bank, 2002). While this paper focuses on SC in Jordan, the latter’s case is informa- tive and relevant to observers working on SC issues elsewhere. * The UK Department for International Development (DFID) supports With regard to the Arab World in particular, Singerman policies, programs, and projects to promote international development. (1995, p. xi) noted that because of high demands of everyday DFID provided funds for this study as part of that objective but the views life in an environment characterized by strong bureaucracy, and opinions expressed are those of the authors alone. The authors also repression, and authoritarianism, people evolved and sus- like to thank the British Academy for funding to help with this study. tained informal social networks that provide alternatives to Final revision accepted: December 12, 2008. 1235 1236 WORLD DEVELOPMENT civil war, played a significant role in undermining cross-cutting individuals and groups. Such sturdy norms of reciprocity also ties in Jordan, thus weakening general trust, contributing to help reduce the free rider problem and opportunistic behavior. increased poverty, social and economic polarization, and At a community level, mutual trust and reciprocity are of political instability. primary importance particularly in countries and communities This paper is divided into five main sections. The next sec- where property rights are weakly developed or enforced, as is tion sets the theoretical framework by providing a definition the case in Jordan and most other Arab Middle Eastern states. for and a description of the theory of SC. It also provides Knack and Keefer (1997, p. 1260) argue that the impact of so- empirical support for effects of social capital, and the main cial capital or trust on growth should be higher in countries dimensions and questions that are usually used in assessing with weak property rights, especially ‘‘if trust is more essential the level of SC in a country. The third section describes the where contracts are not reliably enforced by the legal system, general evolution of social capital in Jordan, including a back- and where access to formal sources of credit is more limited ground to the traditional networks that existed before political due to an underdeveloped financial sector”. Under these cir- independence in 1946. It also explores the way social capital cumstances, mutual trust and reciprocity can facilitate both was affected by the population movements of the 1948 and collective decision and action for public benefit. Examples in- 1967 wars, as well as of the 1970–71 civil war in Jordan. The clude mobilization to effectively manage common resources fourth section attempts to measure the decline in the level, and maximization of their yield. and the change in the nature and function of SC in an environ- However, SC alone does not ensure better performance or ment characterized by increased poverty and scarcity over the favorable economic and social outcomes. A host of other fac- past fifteen years. The final section summarizes the main tors, including in particular the degree of group and commu- points in the paper and concludes with some remarks. nity homogeneity, government actions, and the overall governance structure and environment, ‘‘have been shown to 2. have a critical bearing on the performance of collective action” (Kahkonen, 2002, p. 266). Different countries vary (a) Theoretical framework in their effectiveness, performance, regime type, and capacity to influence their societies and communities. SC develops un- The focal point of the theory of SC 1 is that ‘‘social net- der all types of states. But weak, hostile, corrupt states that works,” which provide important assets and resources to their restrict associational life have a profoundly different impact members, ‘‘have value” that tend to improve productivity of on community life and development projects than states that both individuals and groups in similar ways to physical capital are transparent, fight corruption, uphold the rule of law, hon- and human capital (Putnam, 2000, pp. 18, 19). In a similar or contracts, have fair and independent judiciary, promote manner to a tractor (physical capital) and a training course associational life, and respect civil liberties. The former, by or years of experience (human capital) which can yield more restricting associational life and not providing legal recogni- output (both individual and collective), social contacts can tion for civil society organizations, undermine the SC of their also affect individual and collective productivity. communities. They also undermine their own accountability While contentious debate remains over whether SC can be and credibility by preventing the emergence of vibrant civic called capital 2, very few doubt its value and importance, society that demands transparency and better governance and all agree that SC is ‘‘relationale” (Narayan, 1999, p. 20), structure, and monitors the actions of state officials and there- and ‘‘truly social” (Grootaert & Van Bastelaer, 2002, p. 70). fore helps in reducing corruptive behavior (Knack & Keefer, To exist in the first place, SC must be shared with others. As 1997, p.

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