BEYOND GDP: Should India Start Measuring Social Capital?
THE MEASUREMENT REVOLUTION
India has
become exceptionally good at measuring economic activity. It knows the size of
its economy, the rate at which it is growing, how much governments collect in
taxes, how much households consume, how much companies invest and how much the
country exports. Every quarter, the GDP number becomes a national event. Markets
react to it. Governments defend it. Economists analyse it. Newspapers turn it
into headlines. Yet there is a peculiar asymmetry in the way a country measures
progress. India can tell us with considerable precision how much economic
activity took place, but it is much harder to answer a different question: how
much capacity does Indian society have to trust, cooperate, participate and
withstand shocks?
That is
not an abstract philosophical question. It can determine whether economic
resources actually produce the results policymakers expect. A health programme
can have funding, doctors and infrastructure and still struggle if people do
not trust the institutions delivering it. A disaster-response system can
possess money and equipment but lose valuable time if local networks are too
weak to identify vulnerable households or coordinate assistance. A government
scheme can be perfectly designed on paper and underperform in practice because
citizens do not believe that institutions will deliver what they promise. The
problem is not that GDP is measuring the wrong thing. GDP is doing the job it
was designed to do. The problem is that a country's economic output is not
the same thing as its entire stock of social and institutional capacity.
This
distinction has become increasingly important internationally. The OECD's work
on measuring social capital recognises that the concept includes several
dimensions that conventional economic accounts do not capture neatly, including
personal relationships, social-network support, civic engagement, trust and
cooperative norms. The organisation has also acknowledged a fundamental
measurement problem: there is no single universally accepted way to define or
measure social capital, making comparisons across countries and over time more
difficult. That difficulty is not an argument for abandoning the concept. It is
an argument for becoming more precise about what we mean when we say that a
society is cohesive, trusting or capable of collective action.
The
instinct to measure everything that matters is not new. Modern states already
count education, health, employment, poverty, inequality, household consumption
and demographic change because policymakers eventually discovered that
financial output alone could not tell them enough about how a country was
functioning. The evolution of economic measurement itself reflects this lesson.
What began as an effort to understand production gradually expanded into
national income accounting, labour statistics, poverty measures and broader indicators
of human development. The question facing India now is whether the next stage
should include a more systematic measurement of the social relationships that
help institutions and communities function.
There is
an important warning here. Measuring social capital does not mean putting a
price on friendship. Nor does it mean creating a government score for how
“good” a community is. Human relationships are too complex to be reduced to one
number. The objective would be much more practical: to identify measurable
features of social life that have consequences for public policy and economic
resilience. How many people participate in community activities? How much time
do they contribute to unpaid work or volunteering? Do people have someone they
can rely on during a crisis? Do citizens trust institutions? Do communities
cooperate across social boundaries? Are relationships between citizens and
institutions strengthening or deteriorating?
India has
already begun collecting some of the information needed to ask these questions.
The 2024 Time Use Survey conducted by the National Statistics Office is
particularly revealing because it measures not only paid employment but unpaid
domestic services, caregiving, volunteer and other unpaid work, socialising,
community participation and religious practice. The survey found that, among
people aged six and above, 1.0% participated in unpaid volunteer, trainee
and other unpaid work on the reference day, while 90.3% participated in
socialising, communication, community participation and religious practice.
These categories are not measures of social capital themselves, and they should
not be presented as such. But they demonstrate that India already possesses
statistical instruments capable of observing parts of the social activity that
conventional economic indicators leave less visible.
The
distinction between these categories is crucial. Spending time at a religious
gathering is not automatically evidence of social capital. Participating in a
community activity does not necessarily mean a person trusts other members of
society. Volunteering does not automatically produce positive social outcomes.
But the existence of these measurements gives policymakers something valuable:
a starting point. Instead of pretending that social life is impossible to
quantify, India can begin asking which existing datasets can be combined with
new surveys to understand participation, networks, trust and resilience more
systematically.
The 2024
Time Use Survey also exposes another important feature of the measurement
problem. Much of the work that sustains households and communities is unpaid.
Among people aged six and above, the survey found that 54.1% participated in
unpaid domestic services for household members and 25.9% participated in
unpaid caregiving services during the reference day. Women carried a
substantially larger share of unpaid domestic and caregiving activity than men.
These activities should not simply be relabelled as social capital; they are
different concepts. But they demonstrate how much productive human activity can
remain outside the most visible measures of market production.
This
matters because measurement systems shape policy attention. What governments
measure regularly becomes easier to compare, budget for and discuss. What
remains invisible tends to depend on anecdotes. A minister can point to the
number of kilometres of road constructed. A finance ministry can report tax
receipts. A central bank can track credit growth. But if a district's most
important development asset is a dense network of community organisations
capable of mobilising volunteers during a flood, the value of that network may
appear nowhere in the official statistics used to assess the district's
capacity.
The
problem becomes even more striking when we consider prevention. Suppose a
trusted community organisation helps resolve a local dispute before it
escalates. Suppose volunteers identify vulnerable households before a disaster.
Suppose a local network persuades families to use a health service early enough
to prevent a more serious problem. In each case, the social value may partly
consist of something that does not happen. There is no hospital bill for
the illness that never became severe. There is no reconstruction expenditure
for the damage that was prevented. There is no emergency deployment for the
crisis that never materialised. Conventional accounting is naturally better at
recording transactions than avoided losses.
This
creates a fundamental challenge for any attempt to measure social capital. A
simple count of organisations is inadequate. A count of volunteers is
inadequate. A survey of trust is inadequate. Even a sophisticated index can
mislead if it compresses fundamentally different relationships into one number.
The measurement system must therefore distinguish between inputs,
relationships, behaviours and outcomes.
Consider
volunteering. India can measure how many people report volunteering and how
much time they spend doing unpaid volunteer work. That tells us something
important about participation. But it does not tell us whether the volunteering
was effective. Ten people spending one hour cleaning a public space and ten
people spending one hour organising an emergency response may both generate ten
volunteer-hours, but their immediate outputs are very different. Nor does time
alone reveal whether the activity strengthened relationships that continue
after the event.
The same
problem applies to trust. Asking people whether they trust others can reveal
something meaningful about social attitudes. But trust is not one-dimensional.
A person may trust family members but not strangers. They may trust neighbours
but distrust government departments. They may trust local institutions but have
little confidence in national institutions. They may trust people from their
own community while remaining suspicious of outsiders. A single national trust
score would conceal these distinctions.
This is
why the next generation of social measurement will need to become more
sophisticated rather than simply more ambitious. India does not need a single
number called “Social Capital Index: 72.4.” Such a number would create
an illusion of precision. What India needs is a dashboard of complementary
measures that reveal different dimensions of social capacity.
One
measure could track interpersonal trust: whether people believe others
can generally be trusted. Another could examine institutional trust:
confidence in public institutions and service providers. A third could measure social-network
support: whether people have someone they can rely on for practical,
emotional or financial assistance. A fourth could track civic participation:
involvement in community organisations, associations and collective activities.
A fifth could examine volunteering and unpaid contributions. A sixth
could look at bridging relationships—whether people cooperate across
social, economic, religious, linguistic or geographic boundaries. A seventh
could examine resilience: how communities respond when faced with
disasters, economic shocks or disruptions.
None of
these measures would replace GDP. They would sit beside it.
That
distinction is fundamental because the phrase “Beyond GDP” can easily be
misunderstood. It does not mean “GDP is useless.” GDP remains indispensable for
understanding economic production and activity. A country needs to know how
much it produces, earns and invests. Governments cannot design fiscal or
monetary policy without national income statistics. Businesses cannot plan
without information about economic demand. Investors cannot evaluate markets
without understanding growth. The argument is not to demote GDP. It is to stop
asking GDP to answer questions it was never designed to answer.
The same
principle applies to inflation. A consumer-price index can tell us how prices
are changing. It cannot tell us whether citizens trust the institutions
responsible for delivering public services. Employment statistics can tell us
whether people are working. They cannot fully capture the quality of
relationships within the communities in which those workers live. Household
income can tell us something about material resources. It cannot tell us
whether a family has a reliable network to turn to during a crisis.
The world
has already begun experimenting with broader frameworks. The OECD's work on
well-being and its broader Beyond GDP agenda treats economic resources
as only one component of how societies perform. Its measurement work considers
dimensions such as social connections, civic engagement and trust because these
can influence both individual well-being and the functioning of institutions.
The organisation's continuing work on measuring social capital also reflects a recognition
that the challenge is no longer whether social relationships matter, but how
statistical systems can observe them without oversimplifying them.
For
India, the opportunity is unusually large because the country already possesses
an enormous statistical infrastructure. The question is whether existing
information can be connected intelligently rather than simply creating another
bureaucratic database. The Time Use Survey, household surveys, administrative
records, disaster data, public-service outcomes and carefully designed trust
surveys could potentially illuminate different parts of the same problem. The
objective would not be to turn citizens into data points. It would be to
understand the conditions under which communities and institutions are able to
cooperate.
There is
also an important democratic argument for doing this carefully. If the State
begins measuring trust, participation and community relationships, it must
avoid turning measurement into surveillance. A social-capital framework should
never become a mechanism for identifying politically desirable communities or
judging citizens according to their associations. The purpose should be to
understand aggregate patterns and improve policy, not to create a behavioural
ranking system for individuals or organisations.
Privacy
therefore becomes part of the measurement question. So does representation.
People who are easiest to reach through surveys are not necessarily
representative of people who are socially isolated. Digital data can provide
enormous quantities of information but can also systematically exclude people
with limited connectivity. Administrative data can be comprehensive in one
dimension and completely blind in another. Community organisations can provide
rich local knowledge but may themselves reflect the biases of the communities
they serve.
This
means the measurement revolution cannot simply be a technology project. It is
fundamentally a statistical and institutional design problem. India
needs to decide what should be measured, why it should be measured, who should
collect it, how frequently it should be updated, how privacy should be
protected and how policymakers should interpret the results.
The
question of frequency is particularly important. GDP is measured regularly
because economic conditions can change quickly. Social capital moves
differently. Trust can deteriorate rapidly after a major institutional failure,
but rebuilding it may take years. Volunteer participation can surge during a
disaster and then fall sharply afterward. Community networks may strengthen
gradually through repeated interaction. A useful measurement system therefore
needs both regular indicators and longer-term assessments.
Geography
matters too. India's national averages can conceal enormous local differences.
A national trust figure might look stable while trust is falling sharply in one
region and rising in another. A national volunteering figure could hide
substantial differences between urban and rural areas. A district with strong
community organisations may have a very different social-capital profile from a
neighbouring district with similar income and infrastructure but weaker
networks.
That
suggests the possibility of a Social Capital Map of India—not a ranking
of which states are morally superior, but a statistical picture of where
different forms of social capacity are strong, weak or changing. Such a map
could eventually help policymakers identify places where infrastructure
investment is being undermined by weak institutional trust, where community
networks could strengthen disaster preparedness, or where public programmes
might benefit from stronger partnerships with local organisations.
But even
this would not be enough.
The
ultimate challenge is connecting measurement to outcomes.
If a
district reports high trust, what difference does that make? Does it correspond
with higher vaccination uptake? Faster disaster recovery? Greater participation
in local government? Better use of public services? Lower transaction costs?
Stronger economic resilience? Greater willingness to cooperate during crises?
Better educational outcomes?
These are
the questions that turn social capital from an attractive concept into a
testable policy proposition.
The
Indian evidence already suggests that such connections can be studied. The
rural Uttar Pradesh immunisation research examined social cohesion at community
level and found an association with childhood immunisation, while carefully
stopping short of claiming that social capital alone caused the outcome. That
distinction should become the standard for India's emerging measurement debate:
measure relationships, examine outcomes, test associations and investigate
causality rather than assuming it.
The same
discipline should apply to volunteering. If the 2024 Time Use Survey tells us
that people devote time to unpaid volunteer and other unpaid work, the next
question is not simply how large that number is. It is where that activity
occurs, who participates, what kinds of organisations receive that contribution
and what outcomes follow. The official statistics provide the beginning of the
investigation, not the end of it.
This
could eventually transform the way India thinks about civil society. Instead of
asking only how many organisations exist or how much money flows through them,
policymakers could begin asking what institutional capacity exists
within communities. Which organisations have durable local networks? Where are
volunteer systems strongest? Where do citizens trust community institutions but
distrust government? Where does government have strong capacity but weak local
connections? Where do different organisations collaborate successfully?
That
would represent a major shift.
The first
two investigations in this series asked where the money goes and whether India
can accurately understand the organisations that make up its nonprofit
ecosystem. The trust-economy investigation then asked what those organisations
may create beyond their financial statements: relationships, networks,
cooperation and resilience. The next step is unavoidable.
If
something matters enough to influence development, should a country try to
measure it?
The
answer cannot simply be yes.
The
harder question is how.
Because
the moment India begins measuring social capital, it will have to confront a
problem that economists have struggled with for decades: some of the most
important things in society are not traded in markets, do not carry prices and
cannot be reduced to a single number without losing part of what makes them
valuable.
And that
is where the real Beyond GDP debate begins.
BUILDING A SOCIAL BALANCE
SHEET
The most
interesting question is no longer whether social capital can be measured. It is
whether India could build a measurement system useful enough to inform policy
without pretending that human relationships can be reduced to a single score.
The international experience suggests that this is possible, but only if
measurement is treated as a multidimensional exercise. The OECD's work
separates social capital into distinct dimensions such as personal
relationships, social-network support, civic engagement and trust, while its
more recent work examines how different sources of data can be combined to make
social capital more visible. The lesson for India is straightforward: the
objective should not be to manufacture one grand number called social capital,
but to build a statistical architecture capable of showing its different
components.
The first
component would be trust. That sounds straightforward until the question
becomes: trust in whom? A person may trust family members but not strangers,
neighbours but not government departments, local organisations but not national
institutions. They may trust a doctor but distrust the hospital administration,
or trust a particular community organisation without having confidence in the
State. A serious Indian framework would therefore need to distinguish
interpersonal trust from institutional trust and, wherever possible, trust
within communities from trust across social boundaries. The value of the
exercise would lie not in declaring that India is a “high-trust” or “low-trust”
country, but in identifying where confidence exists and where it is weakening.
The
second component would be participation. India already has evidence that
enormous quantities of human activity take place outside conventional
employment. The 2024 Time Use Survey recorded socialising, communication,
community participation, religious activity, unpaid domestic work, caregiving
and volunteer activity. These categories cannot simply be renamed social
capital. But they demonstrate that the statistical system can observe parts of
social life that are often absent from conventional economic narratives. The
next step would be to understand which forms of participation build
relationships, which create collective capacity and which remain essentially
private activities.
That
distinction is essential because activity alone does not equal social value.
Two people can each spend ten hours participating in community activities and
produce very different outcomes. One may help organise a disaster-response
network; another may participate in an activity that creates little continuing
cooperation. A national measurement system should therefore move beyond
counting participation and begin asking what that participation enables. Does
it create new relationships? Does it connect people who otherwise would not
interact? Does it create capabilities that remain after the immediate activity
ends?
The third
component would be social-network support. One of the most revealing questions
a national survey could ask is also one of the simplest: if something went
seriously wrong tomorrow, who could you turn to? The answer could expose a
dimension of resilience that income statistics cannot capture. A household with
modest financial resources but strong family, community and institutional
connections may have access to forms of assistance unavailable to another
household with similar income but weaker networks. Conversely, material
prosperity does not automatically eliminate social isolation.
This
becomes particularly relevant as India urbanises and its population becomes
more mobile. People increasingly move for education and employment, live away
from extended families, interact with institutions they do not personally know
and maintain relationships through digital platforms. Economic mobility can
therefore alter the geography of social capital. The traditional neighbourhood
network may weaken while professional, digital or geographically dispersed
networks grow. A useful measurement system would need to capture both.
The
fourth component would be bridging capacity. This may be the most important
dimension for a country as diverse as India because strong internal networks do
not necessarily produce cooperation across communities. A women's collective
may have extraordinary solidarity among its members but limited relationships
outside its own network. A religious institution may mobilise volunteers very
effectively within its community but have few connections beyond it. A local
organisation may have strong relationships with government but weak connections
with other civil-society groups.
The
question, therefore, is not simply how connected India is. It is how
connected across boundaries India is.
That
distinction could fundamentally change the way social capital is measured. A
district with thousands of associations might appear socially vibrant, yet
those associations could operate almost entirely within separate networks.
Another district might have fewer organisations but unusually strong
collaboration between community groups, government agencies, businesses,
schools and healthcare institutions. The second could possess greater bridging
capacity even though its organisational count is lower.
The fifth
component would be institutional confidence. This is where social-capital
measurement intersects directly with governance. Citizens who believe that
institutions are competent, fair and predictable may be more willing to use
public services, comply with regulations and cooperate with government
programmes. When confidence collapses, governments may have to spend more
effort persuading, enforcing and correcting. Trust is therefore not merely an
attitude. Under certain conditions, it can affect the cost and effectiveness of
governance.
India
could track this over time without turning it into a political scoreboard. The
important information would be the direction of change. If trust in a
particular public service declines sharply, policymakers would have an early
signal that something may be wrong. If confidence rises following
administrative reform, that would provide another piece of evidence about
whether the reform is being experienced positively by citizens. The measurement
would not explain the cause by itself, but it could tell policymakers where to
investigate.
The sixth
component would be volunteer capacity. The Time Use Survey has already
established that volunteer and other unpaid activity can be measured. The more
difficult task is understanding the organisational infrastructure around that
activity. Who receives volunteer labour? How long do people remain involved?
What skills do they contribute? Are volunteers trained? Can they be mobilised
during emergencies? Do they move between organisations? Does volunteering
create durable community relationships?
This
suggests that India should eventually distinguish between volunteer hours
and volunteer capability. One hour contributed by a trained emergency
responder is not equivalent to one hour of unskilled assistance, even though
both are valuable. A mature measurement system could therefore examine not
merely how much unpaid labour exists, but what capabilities are embedded within
it.
The
seventh component would be resilience. This is where the measurement of social
capital could become directly relevant to national planning. India faces
floods, cyclones, heatwaves, pandemics, economic disruptions and other shocks.
Physical infrastructure remains indispensable in responding to these events,
but so do communication networks, community leadership, local knowledge and the
ability of citizens to organise rapidly.
A
district-level resilience framework could therefore examine whether communities
possess established channels for sharing information, whether local
organisations can mobilise volunteers, whether citizens have reliable sources
of support and whether public institutions can work effectively with community
networks. It would not predict when the next disaster would occur. It would
help identify where the social capacity to absorb a shock may be stronger or
weaker.
The
eighth component would be organisational connectivity. This would take the
investigation beyond the question of how many NGOs exist. India could begin
examining how organisations interact with one another and with other
institutions. Which organisations collaborate repeatedly? Which ones work with
hospitals, schools, local governments or disaster agencies? Which communities
have several organisations working together? Where are there gaps? Where are
there networks that exist on paper but rarely cooperate?
That
would transform the NGO database from an inventory into something much more
useful: a map of institutional relationships.
Such a
map could reveal something a conventional registry cannot. Knowing that a
district contains 500 registered organisations tells policymakers relatively
little about its actual social capacity. Knowing that 100 of those
organisations have functioning partnerships with local government, healthcare
institutions, schools and community networks tells a very different story. The
second measure begins to reveal the architecture through which resources,
information and trust move.
But the
more sophisticated the measurement becomes, the greater the danger of misuse. Social
capital is partly about relationships, and relationships are personal. A system
designed to understand networks could easily become a system capable of mapping
individuals. India would therefore need a clear distinction between measuring
social patterns and monitoring citizens.
The
purpose should be aggregate understanding, not behavioural surveillance.
Policymakers may need to know that institutional trust is declining in a
particular district. They do not need a database identifying which individual
citizens distrust a particular institution. They may need to know that
volunteer capacity is weak in an area vulnerable to flooding. They do not need
to rank individual citizens according to their civic behaviour.
The same
principle should apply to civil-society organisations. Greater transparency
about institutional activity can strengthen accountability, but a
social-capital framework should not become another mechanism for politically
classifying organisations. Its purpose should be to understand capacity,
participation, relationships and outcomes while respecting lawful privacy,
institutional independence and due process.
There is
another danger that policymakers should understand before building such a
system: once an indicator becomes a target, people begin optimising for the
indicator. If governments reward volunteer hours, organisations may find
ways to increase reported hours. If donors reward beneficiary numbers,
organisations may prioritise activities that produce impressive counts rather
than durable outcomes. If institutions are judged primarily through trust
surveys, they may become more interested in improving perceptions than
improving performance.
The
solution is to distinguish measurement from ranking. A social-capital framework
should primarily be diagnostic. It should tell policymakers what is happening,
where it is happening and what may require investigation. It should not
automatically become a competition in which states, districts, communities or
organisations are rewarded simply for producing a better-looking number.
Cultural
variation creates another complication. Community life does not look identical
across India. Formal membership in associations may be common in one region
while informal cooperation is more important elsewhere. Urban networks may
operate differently from rural ones. Some communities may organise through
religious institutions, others through self-help groups, neighbourhood
associations, cooperatives or informal networks. A measurement system designed
around one model of civic participation could therefore systematically
underestimate forms of social capital that do not resemble it.
The
answer is not to abandon measurement. It is to design the measurement around
multiple forms of participation and support. The purpose should be to
understand how people cooperate, not to impose a preferred model of how they
should organise.
India has
a major advantage here: it already possesses a substantial statistical
infrastructure. Household surveys, time-use data, administrative records,
public-service outcomes and disaster information can provide different pieces
of the picture. The challenge is to connect them intelligently while
maintaining clear methodological boundaries. A trust survey cannot replace
administrative data. An NGO registry cannot measure social cohesion. Time-use
statistics cannot reveal institutional confidence. Each source tells us
something different.
The
logical next step could be a National Social Capital Observatory—not
necessarily another large government bureaucracy, but a coordinated statistical
framework linking existing datasets with carefully designed new measurements.
Its purpose would be to bring together information about trust, participation,
social support, volunteering, organisational networks and resilience so that
policymakers could examine them alongside conventional economic and social
indicators.
Such an
observatory could eventually support an annual India Social Capital Report.
Instead of producing one headline number, the report could show whether
interpersonal trust is changing, whether civic participation is rising or
falling, whether people have access to reliable social support, whether
volunteering is expanding, whether institutional confidence is strengthening
and whether communities are becoming more or less connected across social
boundaries.
The
report could also make geography visible. National averages can hide enormous
differences. A country-wide trust indicator could remain stable while trust
collapses in one region and rises in another. A national volunteering rate
could conceal large differences between urban and rural communities. A district
with strong community organisations might possess much greater crisis-response
capacity than another district with similar income, infrastructure and
population but weaker networks.
That
raises the possibility of a Social Capital Map of India. Properly
designed, it would not be a league table ranking communities as good or bad. It
would be a diagnostic instrument showing where different forms of social
capacity are strong, weak or changing. Policymakers could then ask why a
particular region has strong community networks but weak institutional trust,
why another has excellent government capacity but weak local participation, or
why some districts appear unusually resilient during disasters.
But
measurement becomes truly useful only when it is connected to outcomes.
If a
district reports high levels of trust, what difference does that make? Does it
correspond with greater use of health services? Faster disaster recovery?
Higher participation in local governance? Better uptake of government
programmes? Greater willingness to cooperate during emergencies? Stronger
economic resilience?
These are
the questions that turn social capital from an attractive idea into something
that can be tested.
The
Indian evidence already demonstrates that such relationships can be studied.
Research from rural Uttar Pradesh found an association between community-level
social cohesion and childhood immunisation, while appropriately stopping short
of claiming that social capital alone caused the outcome. That distinction
should become a standard rule for future measurement: observe the
relationship, measure the outcome, investigate the mechanism and test causality
rather than assuming it.
The same
discipline should apply to volunteering. If India can measure how much time
citizens devote to unpaid activities, the next question should be what happens
because of that contribution. Does volunteer activity improve disaster response?
Does it strengthen access to public services? Does it create lasting networks?
Does it increase participation in local institutions? Does it reduce the burden
on formal systems? Measurement should progressively move from how much
activity exists to what that activity enables.
This
could eventually change how policymakers understand India's civil-society
ecosystem. An organisation would no longer be visible only as a legal entity
receiving money and spending it. Its contribution could increasingly be understood
through the relationships it creates, the communities it connects, the
volunteers it mobilises and the institutional capacity it helps build.
There is
also an important economic reason for taking this seriously. Social capital
does not necessarily replace physical, financial or human capital. It can
complement them. A hospital requires doctors, equipment and money, but it also
needs patients to trust the institution. A disaster-response system requires
roads, communications and equipment, but it also needs communities capable of
sharing information quickly. A welfare programme requires funding and
administrative machinery, but it also depends on citizens believing that
participation is worthwhile.
The
implication is that national capacity may be interactive rather than simply
additive. Physical infrastructure, human capability, financial resources
and social relationships can reinforce one another. Weakness in one dimension
can reduce the effectiveness of investment in another. A new road can create
physical connectivity, but the benefits may be smaller if communities remain
disconnected from the institutions and markets the road was intended to reach.
A digital platform can connect millions of people, but connectivity does not
automatically create trust.
This is
where the Beyond GDP debate becomes more serious than an argument about
happiness or national mood. It becomes a question of productive capacity.
A country that measures economic output knows how much activity took place. A
country that also understands its social infrastructure may gain a better sense
of how resilient that activity is, how effectively institutions can implement
policy and how capable communities are of cooperating when conditions change.
That does
not mean social capital should simply be converted into rupees and inserted
into GDP. In many cases, that would create false precision. The more useful
approach may be to maintain a parallel set of national capability indicators
alongside the economic accounts. GDP would continue measuring production.
Human-development indicators would measure health, education and living
conditions. Environmental accounts would measure natural assets and ecological
pressures. Social-capital indicators could measure trust, participation,
relationships, civic capacity and resilience.
Together,
these would offer something no single indicator can provide: a broader picture
of the country's capacity to generate prosperity and sustain it.
The
objective, therefore, should be visibility rather than monetisation.
India
does not necessarily need to discover the rupee value of trust. It needs to
know whether trust is rising or falling. It needs to know whether citizens have
networks they can rely on. It needs to know whether communities can mobilise
during crises. It needs to know whether institutions are becoming more or less
credible. It needs to know whether social networks are creating bridges or
reinforcing divisions.
Those are
not impossible questions.
They are
measurable questions.
And once
they become measurable, they can become policy questions.
Imagine
an Indian national development report in which GDP growth appears alongside
indicators of institutional trust, volunteer participation, social-network
support, civic engagement, bridging relationships and community resilience. The
headline would no longer tell us only whether India became richer during the
year. It could begin telling us whether India became more capable of acting
together.
That
would represent a significant change in how national progress is understood.
It would
also complete the intellectual journey of this investigation. The first article
in this series asked where the money flowing through India's civil-society
ecosystem actually comes from. The second examined the difficulty of even counting
the organisations involved. The third moved beneath the financial data and
asked what those organisations may create in the form of relationships, trust,
cooperation and resilience. This article has taken the next step: if those
things matter, India needs better ways of seeing them.
But
measurement is only the beginning.
Once
India can see its social infrastructure more clearly, the next question becomes
much more practical. Can the country use technology to make that infrastructure
more transparent without destroying the trust on which it depends? Can
fragmented NGO databases communicate with one another? Can open data help
citizens understand funding and impact? Can artificial intelligence identify
gaps in service delivery while protecting privacy? Can digital public
infrastructure help civil-society organisations become more interoperable
without turning them into instruments of surveillance?
The
technology to attempt some of these things already exists.
The real
question is whether India can assemble it into something worthy of the scale of
its civil society.
That is
the next investigation:
COULD INDIA BUILD THE
WORLD'S MOST TRANSPARENT NGO ECOSYSTEM?
Because
once a country learns to see its social infrastructure, the next challenge is
to make that infrastructure visible, interoperable and accountable—without
destroying the trust it is supposed to measure.
Sources & References
1.
OECD — For Good Measure: Trust and Social Capital
A foundational OECD framework for understanding
and measuring social capital, including personal relationships, social-network
support, civic engagement, trust and cooperation. It is particularly useful for
the article's argument that social capital is multidimensional and cannot
sensibly be reduced to one number.
OECD — For Good Measure: Trust and Social Capital
2.
OECD — Measuring Social Connectedness in OECD Countries
This 2024 OECD working paper reviews how
countries currently measure social connections, including social support,
loneliness and frequency of socialising, and identifies continuing problems of
consistency, frequency and comparability. It directly supports this article's
argument that measurement is possible but methodologically difficult.
OECD — Measuring Social Connectedness in OECD Countries
3.
OECD — Beyond GDP / Well-being Measurement
The OECD's wider well-being and Beyond GDP
programme provides the international context for measuring dimensions of
national progress that extend beyond conventional economic output, including
social connections and trust.
OECD — Well-being and Beyond GDP
4.
Government of India — Time Use Survey, 2024
The National Statistics Office, Ministry of
Statistics and Programme Implementation, conducted India's second all-India
Time Use Survey during January–December 2024. It measures paid and unpaid
activities, including unpaid domestic work, caregiving, volunteer work,
socialising, community participation and religious practice. The survey found
that 1.0% of people aged six and above
participated in unpaid volunteer, trainee and other unpaid work on the
reference day, while 90.3%
participated in socialising, communication, community participation and
religious practice.
Government of India — Time Use Survey 2024
5.
World Bank — A Matter of Trust: Social Capital and Economic Development
This World Bank research examines the
relationship between interpersonal networks, trust and economic development
while also warning that social capital can produce negative outcomes when
networks are directed toward narrow interests. This is particularly important
for the article's argument that social capital should not automatically be
treated as beneficial.
World Bank — A Matter of Trust: Social Capital and Economic
Development
6.
World Bank — Social Capital and Development
The World Bank's broader research on social
capital provides the theoretical foundation for examining trust, networks,
cooperation and institutional relationships as factors affecting development
and collective action.
World
Bank — Social Capital and Development Research
7.
Indian Evidence — Social Capital and Childhood Immunisation in Rural Uttar
Pradesh
The empirical study used in the article
examined 2,239 children, 1,749 households
and 346 communities and found an association between community-level
social cohesion and completion of the third DPT vaccination dose. The study
reported an adjusted odds ratio of 1.25.
Importantly, the article correctly presents this as an association rather than
proof that social capital alone caused the outcome.
Rural Uttar Pradesh Social Capital and Immunisation Study
Editor's Note
A Note on Evidence, Interpretation and Measurement
This article examines social capital as an analytical concept, not as a
universally recognised financial asset with a single monetary value.
The term “social capital” has been defined and
measured differently across economics, sociology, political science and
development research. This article therefore draws on established frameworks
from institutions including the OECD and World Bank while recognising that
there is no single universally accepted method for measuring social capital.
The OECD's work identifies multiple dimensions, including personal relationships,
social-network support, civic engagement, trust and cooperation.
The article distinguishes between trust, social connections, civic participation,
volunteering, social cohesion, institutional confidence and resilience.
These concepts overlap, but they are not interchangeable. References to their
potential economic or institutional value should therefore be understood as
evidence-based analytical propositions rather than claims that each can be
converted directly into a rupee value.
The discussion of India's 2024 Time Use Survey is based on
official data from the National Statistics Office. The survey measures how
people allocate time across paid and unpaid activities, including domestic
work, caregiving, volunteering, socialising, community participation and
religious practice. These measurements are used here as evidence that aspects
of social activity can be statistically observed; they are not presented as direct measures of social
capital.
Where empirical research is cited, the article
preserves the distinction between association
and causation. The rural Uttar Pradesh immunisation study, for
example, found an association between community-level social cohesion and
childhood immunisation outcomes. The finding does not establish that social capital
alone caused the observed difference. That distinction is essential when
interpreting social-capital research.
The article also uses expressions such as “social-capital balance sheet,” “resilience
capital” and “social infrastructure” as analytical frameworks. They
are not presented as established categories within India's national accounting
system. In particular, “resilience capital” is used here as a conceptual
description of the capacity that social networks may contribute to a
community's ability to absorb and respond to shocks.
The discussion of religious institutions is
deliberately non-sectarian. Temples, churches, mosques, gurdwaras and other
religious institutions are referenced as examples of institutions that may
generate volunteering, charitable activity, community networks and social
support. The article does not assign a special economic or social value to any
particular faith or religious organisation.
The article does not argue that GDP is obsolete. GDP remains an essential
measure of economic production and activity. Nor does the article argue that
social capital should simply be converted into monetary terms and inserted into
GDP. The proposition is narrower: economic
output does not capture every form of social and institutional capacity
relevant to a country's long-term development, resilience and ability to
cooperate.
The purpose of the investigation is therefore
not to put a price on human relationships.
It is to ask whether India can become better
at seeing, measuring and understanding
the social capacities that allow millions of people to cooperate.
And that distinction matters.
Because once something becomes visible in
reliable data, policymakers can begin asking a much harder question:
What
should they do with it?
WHO REALLY FUNDS INDIA'S NGO SECTOR? Following the Money Behind the Forgotten Economy
And
CAN INDIA ACTUALLY COUNT ITS NGOs? The Great Data Mystery Nobody Talks About
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