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: Created 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

The reason why "regional revitalization" was discussed in the final chapter, which put forward the concept of "social capitalism," is that it was positioned as a strategy to respond to "demographic changes" in which the birth rate nationwide has fallen to around 700,000, and the number of elderly people is expected to increase for about 15 years. Based on the newly refined DLR theory of community, the aim was to revive various forms of regional revitalization, from large cities to depopulated areas, by considering the balance of "town, people, and work" (Kaneko, op. cit.: Chapter 11).

Here, D (Direction) refers to clarifying the "goals of town development," that is, which aspects to focus on, such as production, logistics, sales, consumption, tourism, education, medical care, nursing care, and welfare. And to achieve those goals, "regional leadership and the motivation of residents" are important, which becomes L (Level). More specifically, jobs are created in the sense of "what to produce using what resources as a medium," and the R (Resource) axis is formed.

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 term, "social capital," was highlighted by Putnam (2000=2006) when he used this term to gather evidence supporting the effectiveness of leveraging personal connections in health promotion, community development, and even democracy, thereby highlighting the practical power of this academic concept.

In addition to developing "social common capital" in "cities" that are focused on the hard infrastructure, "social capital" condenses the social participation woven by "people," as well as psychological elements such as reciprocity and trust in relationships. Therefore, the valuable information obtained from social relationships, which are composed of connections of varying strengths and weaknesses among individuals, cultivates "networks" for "work" in various fields, and can become both a driving force and a starting point for regional revitalization.

Human and Cultural Capital

The third type of "human cultural capital" can be divided into:

① embodied cultural capital (knowledge, culture, and values ​​accumulated by individuals through home education and schooling);
② objectified cultural capital (cultural assets that can be owned as physical objects such as books, paintings, tools, and machinery);
③ institutionalized cultural capital (academic qualifications and certifications granted through the school system, etc.)

(Bourdieu, 1979=2020:7). Of these, the most important is ① the knowledge, culture, and values ​​that a person acquires in the home in which they grow up.

Interestingly, although the term "human cultural capital" is not used, the Kishida Cabinet's "Basic Policy on Economic and Fiscal Management and Reform 2024" also expresses this as "a vision for the first 100 months of development" (:46), emphasizing the importance of how children are raised during the 8 years and 4 months of early childhood.

How to Avert “Japan Sinks”

For the "social capitalism" envisioned in "Beyond the End of Capitalism" to succeed, it all boils down to the active utilization of these three major forms of capital. This is because it is also my own answer to the conclusion by Morishima (1999), which I introduced at the beginning of my book, that "if the quality of the people that form the foundation is poor, Japan will decline."

Therefore, in addition to Figure 1, I would also like to discuss Part II, "Dynamics of a Population-Transforming Society," and Part III, "A Decarbonized Society." In order to avoid the anticipated social "sinking of Japan," it is necessary to build up regional revitalization efforts nationwide while making use of the practical axes of ① <M> Mobility (movement and progress), ② <I> Innovation (creativity and ingenuity), ③ <S> Settlement (settling down and daily bonds), and ④ <D> Diversity (diversification 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.

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