Conversion of Social Capital in Ukraine: Contradictions, Principles and Prospects

Abstract

The article is devoted to theoretical problems of social capital conversion in modern conditions based on modern ideas and taking into account the specifi cs of social capital formation in Ukraine in recent years as well as the latest achievements of social practices in European countries. The article is relevant due to the need to accelerate the processes of social capitalization and its conversion into open productive forms for social consensus, social development and economic growth. The novelty of the study lies in the formation of a system of views on the nature of social conversion, its contradictions, identifi ed on the basis of systematization of existing relationships and interdependencies in this area, as well as substantiation of models to minimize possible negative consequences for society. The positions of social capital in the structure of total capital, its connection with natural, physical, fi nancial and human capital are conceptually defi ned, and the leading role of open social capital in the formation of a democratic society is proved. The specifi cs of the conversion of social capital in comparison with other forms of capital are revealed. It is established that currently the contradiction between national and corporate social capital is gaining signs of stability. The basic principles and methods of conversion of social capital, adequate to the conditions of formation of a democratic society, are substantiated. Based on the assessment of real trends in socio-economic development and common social practices, three possible models of minimizing the contradictions that arise during the conversion of domestic social capital are proposed, each of which is subject to specifi c tasks and achieving certain development goals. The model of mobilization adaptation is based on the formation of new values in society, norms by public authorities using mostly ideological resources of infl uence on the basis of authority and trust in it by citizens. The model of modernization is focused on updating the statutory norms and rules through their approximation to real economic needs and social practices in accordance with the notion that any law is a normalized ingrained tradition. The model of compromise solutions involves achieving a balance between formal and informal norms in order to achieve a synergistic eff ect from the conversion of social capital.