Tuesday, August 14, 2007

Relationships Matter

Tuesday, August 14, 2007
It took me a long time to finish my master’s thesis – with endless drafts going back and forth between me and my adviser and several other rounds including my reader and members of my thesis defense panel. In retrospect, it dawned on me that those 117 pages of academic blah can be summarized in two words:

Relationships matter.

That’s it. That’s the whole point of my paper. The relationships that we nurture with others, termed as social capital, is as (or even more) important as financial, physical and other forms of capital. What do we need material comforts for if we don’t have anybody to share it with? The basic idea of social capital is that a person’s family, friends and associates constitute an important asset, one that can be called on in a crisis, enjoyed for its own sake, or leveraged for gain.

The central element in maintaining relationships or building social capital is trust. In economic jargon, trust minimizes transaction costs by making the informal self-enforcement of contracts possible without the need for any third party enforcement, and thereby improving economic outcomes. In real speak, keeping and upholding trust is what make any relationship work. Without it, relationships inevitably crumble.

1 comments:

jacqueline said...

"...keeping and upholding trust is what make any relationship work. Without it, relationships inevitably crumble."oh SO true! :)

 
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