Regional Revitalization Utilizing the Three Major Capitals in Social Capitalism

As a form of “new capitalism” (Social Capitalism), I propose a theory of regional revitalization driven by Social Common Capital, Social Capital, and Human and Cultural Capital.

• What Is Social Capitalism?
• Community DLR Theory
• Social Common Capital
• Social Capital
• Human and Cultural Capital
• How to Avert “Japan Sinks”

What Is Social Capitalism?

In the work Social Capitalism, compiled over three years, it emphasizes that a “new capitalism” should support quality of life through “Social Common Capital” give priority to erosion and flood control for disaster prevention and enrich the “Social Capital” people possess. At the same time, a “child-first” policy should foster each individual’s “Human and Cultural Capital” through compulsory and higher education (Figure 1).

Figure 1 Social Capitalism Model　

Source: Compiled by the author

Social Capitalism seeks to integrate private economic capital with these three major forms of capital, thereby enabling stable livelihoods and future prospects for all generations, maintaining “enhanced adaptive capacity” across all areas of the socio-economic system, and aiming to create an open society in which intergenerational cooperation (金子, 2024) and social mobility are possible (金子, 2023: 368).

The DLR Theory of Community

In the final chapter that advanced the concept of Social Capitalism, “regional revitalization” was discussed because it was positioned as a strategy to respond to “demographic transformation”: while the national number of births had fallen into the 700,000 range and the declining birthrate was accelerating, the elderly population was projected to continue increasing for about fifteen more years. Based on the newly refined DLR theory of community, and with consideration of the balance among “towns, people, and work,” the aim was to revive various forms of regional revitalization, spanning from major cities to depopulated areas (金子, 2023, ch.11).

Here, D (Direction) refers to the “objectives of community building,” that is, clarifying which areas to focus on—such as production, distribution, sales, consumption, tourism, education, healthcare, nursing care, or welfare. For the achievement of these objectives, “regional leadership and residents’ motivation” are essential, and this constitutes L (Level). More specifically, the question of “what to produce, and through which resources as the medium” generates the domain of work, forming the R (Resource) axis.

Social Common Capital

In Figure 1, the priority infrastructure for towns, from large cities to depopulated areas, is the "repair, renewal, consolidation, and integration" of "social common capital" (宇沢, 2000:21), including roads, ports, railways, water supply and sewerage, electricity, gas, communications, schools, and hospitals. However, this infrastructure is already severely aging, and the Kishida Cabinet's "Basic Policy on Economic and Fiscal Management and Reform 2024," released on June 21, also listed "strategic social capital development" (:49) as an administrative issue (Figure 2).

Figure 2 Share of Social Common Capital Over 50 Years Since Construction

(Note)Reproduced from the Cabinet Office Minister of State for Economic and Fiscal Policy, “Basic Policy on Economic and Fiscal Management and Reform—Policy File” (June 2024) (内閣府特命担当大臣（経済財政政策）「経済財政運営と改革の基本方針～政策ファイル」（2024年6月）).

It is precisely the development of Social Common Capital—directly connected to erosion and flood control, which is of great significance for disaster prevention—that underpins “Social Capitalism” as a new socio-economic system. Its “repair and renewal, consolidation and integration” will not only protect vital aspects of citizens’ lives from disasters more effectively than the often-emphasized DX (digital transformation) or GX (green energy transition), but will also broaden the foundation for diverse economic activities.

Social Capital

The second, Social Capital,” was highlighted by Putnam (2000/2006) who employed this technical term and marshaled evidence showing that the utilization of personal connections is effective not only in promoting health and community building, but also in strengthening democracy, thereby underscoring the practical power of an academic concept.

In addition to the development of Social Common Capital in the “town” that focuses on the hard infrastructure, social capital encompasses the social participation woven by “people,” as well as psychological elements such as reciprocity and trust in relationships. Thus, the useful information obtained through social relations—comprising both strong and weak ties—cultivates networks (“human connections”) that extend into diverse areas of “work,” serving both as a driving force and as a spark for regional revitalization.

Human and Cultural Capital

The third form, Human and Cultural Capital, can be divided into (Bourdieu, 1979 [2020]: 7):

1) Embodied cultural capital (knowledge, cultivation, and values accumulated by the individual through family upbringing and schooling),
2) Objectified cultural capital (cultural assets such as books, paintings, tools, or machines that can be materially owned), and
3) Institutionalized cultural capital (academic credentials or qualifications conferred through educational systems).

Of these, what is particularly important is 1) : the knowledge, cultivation, and values acquired by “people” in the families in which they were raised.

Interestingly, although the term “human and cultural capital” is not used, the Kishida Cabinet’s Basic Policy on Economic and Fiscal Management and Reform 2024 refers instead to a “Vision for the First 100 Months of Growth” (p. 46), emphasizing the importance of child-rearing during the early childhood period of eight years and four months.

How to Avert “Japan Sinks”

For the Social Capitalism envisioned in Beyond the End of Capitalism to succeed, everything depends on the active utilization of these three major forms of capital. This is because it represents, in my own way, a response to the conclusion introduced at the beginning of this book—Morishima’s (森嶋, 1999) warning that “if the quality of the people who form the foundation is poor, Japan will decline.”

Accordingly, apart from Figure 1, Part II, Dynamics of a Demographically Transforming Society, and Part III, A Decarbonized Society, should also be discussed together. In order to avoid a projected social “Japan Sinks (national decline),” it is essential to advance nationwide regional revitalization while drawing on the four practical axes: (1) M: Mobility (movement and progress), (2) I: Innovation (creativity and ingenuity), (3) S: Settlement (residence and everyday bonds), and (4) D: Diversity (plurality and individuality).

(First published in the August 2024 issue of "EN-ICHI FORUM")

References

• Bourdieu,P.,1979,La distinction:critique sociale du judgement, Éditions de Minuit.( ＝ 2020　石井洋二郎訳『ディスタンクシオン1』[ 普及版]　藤原書店).
• 金子勇,2023,『社会資本主義』ミネルヴァ書房.
• 金子勇編,2024,『世代と人口』ミネルヴァ書房.
• 森嶋通夫,1999,『なぜ日本は没落するか』岩波書店.
• Putnam,R,D.,2000,Bowling Alone:The Collapse and Revival of American Community,Simon & Shuster.( ＝ 2006, 柴内康文訳『孤独なボウリング』柏書房).
• 宇沢弘文,2000,『社会的共通資本』岩波書店.

Community Opinions