Definition of components and capitals in croplands

Authors: Constantinos Kosmas, Geoff Wilson
Editor: Alexandros Kandelapas

Editor's note: text for this article derived from D112-2.

Natural capital

Natural capital can be defined as the extension of the economic notion of capital, to goods and services related to the natural environment. Natural capital includes components, the importance of which in any given context may change over different spatial and temporal scales of observation. In cropland environments, natural capital components sustain, over time, the production of goods and services and accordingly play a critical role in shaping socio-economic development pathways through the provision of raw materials needed to sustain socioeconomic growth. Moreover, natural capital provides for various human activities, from life-support systems for human and non-human communities, to the production of goods and services.

In order to assess the role of natural capital in driving LEDD issues and in responding to LEDD in the study sites, it is important to define the main components relevant for cropland functions in environmental, economic and social terms. Availability and quality of natural capital resources, and the ecosystem services that they provide, is intrinsically linked to LEDD and responses to LEDD. The main natural capital components and characteristics relevant to cropland contexts are shown in the Table below.

 

Capital
conceptual definition
Components Characteristics (variables)
Natural capital is the natural environment from which emanates the goods and services that sustain life (IISD 2008). Climate Precipitation
Temperature
Aridity
Rainfall seasonality
Potential evapotranspiration
Soil Soil depth
Soil type (classification)
Soil texture
Slope gradient
Soil organic matter in the surface horizon
Water Water quantity
Water quality
Vegetation Vegetation cover

Source: LEDDRA Partners 2012

Although components of natural capital are discussed individually, they are intricately linked and interdependent and therefore, in reality, form an entity. Climate regimes influence soil and water, and the subsequent development of vegetation. Reciprocally, vegetation also has an influence on local climate and soil. This interdependence, complexity and non-linearity are, of course, characteristics of complex adaptive systems and are also true for the components of economic and social capitals.

Economic capital

Economic capital is the key foundation of financial and economic well-being of a society. In its broadest sense, ‘capital’ refers to stock or assets which are durable and which provide a flow of services over time. Thus, factors usually associated with economic capital include availability of funding, levels of income or established trade flows. ‘Landesque capital’ is also included here; this type of capital includes all kinds of infrastructure works such as irrigation networks, dams, roads, stone walls, terraces and drains which provide services beyond the life of an annual crop or crop cycle.

The assessment of economic capital is performed over different temporal scales and thematic components. The temporal scales correspond to the different states of the socio-ecological system (SES) of the area and the thematic components to the different aspects that constitute economic capital. Here, economic capital is considered to comprise a series of components that cover both produced and invested capital in various sectors of the economy of an area.

The Table below summarizes the economic capital components and their related characteristics and operational measures in cropland.

 

Capital
conceptual definition
Components Characteristics (variables)
Economic capital is durable stock or assets that provide flows of services over time. Produced Quantity of production
or
Value of goods
Value of services
Financial Subsidies
Remittances
Bank deposits
Disposal income
Landesque Irrigation systems; terraces; ditches; dams, wells, etc.
Physical Factories, farm structures, greenhouses, roads, railways, etc.
Technology Presence of various types of technologies by sector (farming, transport, electricity, telecommunications, manufacturing, etc.
Animal (Livestock) Number of animals
Types of animals
Plant Olive groves, orchards, cereals, etc.

Source: LEDDRA Partners 2012 

Social capital

In order to encompass the various dimensions of social capital within the LEDDRA approach, an aggregate and a specific concept of the term are used. Social capital, as an aggregate term, is comprised of complex social processes, political arenas, institutions, regulations and cultural factors. It includes the following components: demographic (the structural demographic features of a socio-ecological system), human (the skills and knowledge available in a society), cultural (society’s historical memory and experience, the arts, ideological standpoints of a society, traditions, habits, values), social (connectedness, trust, reciprocity and exchanges) and institutional (i.e. organisational ability, institutions, trust in institutions and processes). Each of the components of social capital is shown in the Table below.

 

Capital
conceptual definition
Components Characteristics (variables)
Social capital is a resource to collective action that concerns the ability and willingness of community members to participate in actions directed to community objectives and to processes of engagement.
Demographic Structural demographic characteristics of an area
Human Knowledge
Skills
Competency
Experience
Cultural
Attitudes
Beliefs
Spiritual aspects
Traditions
Values
Cultural identity
Social Connectedness
Networks and groups
Trust
Reciprocity and exchanges
Institutional Common rules
Norms
Sanctions
Governance

Source: LEDDRA Partners 2012

References

  • IISD (2008).  The Natural Capital Approach. A Concept Paper.  http://www.iisd.org/
  • Bourdieu, P. (2008).  The Forms of Capital.   Readings in Economic Sociology. Blackwell Publishers Ltd: 280-291.
  • Thampapillai, D. and Uhlin, H.-E. (1997).  Environmental capital and sustainable income: basic concepts and empirical tests.  Cambridge Journal of Economics, 21: 379-394.
2014-11-28 10:50:29