Global Trust Exchange

GTX

 

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WHAT SOCIAL CAPITAL IS


"Social Capital" is made up of personal bonds of trust and reciprocity. It has been simply defined as "the collective value of whom we know and what weíll do for each other." Like other forms of capital, people invest in it as they help others achieve their objectives, and draw upon it in order to achieve their own objectives. In this sense, social capital is fundamental to formation of other types of capital: financial capital, human capital, intellectual capital. That is, whenever a bond of trust and reciprocity is established, the flow of other forms of capital becomes more fluid and richer.

HOW SOCIAL CAPITAL IS EXCHANGED

Social capital is exchanged whenever one person makes a trusted referral to another person. This effectively transfers some level of trust and reciprocity that has accumulated in an established relationship to a new relationship. However, unlike money, when social capital is exchanged, no one has to give it up in order for someone else to get the benefit of it. Social capital is only lost when trust and reciprocity arenít maintained as people expect them to be. For example, if I say Iíll help you if youíll help me, and then I donít help you as you expected, then my social capital will diminish. Likewise, if I suggest to you that John is someone you can trust to get something done, and then John turns out to be incompetent or dishonest, then John will lose social capital (trust and reciprocity) with me, and I will lose social capital with you.


There are already established networks and protocols to support exchange of other types of capital, i.e., stock exchanges, commodities exchanges, information and knowledge exchanges.


Establishing an exchange for trust and social capital is naturally the last exchange to be enhanced by technology and global protocols, because trust and social capital are extremely personal, private, and hardest to standardize or commoditize (if not impossible).


Yet, the value of improving the efficiencies of exchange of trust are immense for all sectors of society: business, civil society, and government.

To understand how the Trust Exchange works, see Enabling Technology.

 

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