Social Capital Can Pay for Human Capital

A Counterpoint written in response to Lorraine Ahearn’s Sunday (February 1, 2009) Greensboro News-Record story on refugees hit hard by the economic downturn. The Counterpoint appeared on February 12, 2009. This is the full essay.)


















MS. AHEARN'S COMPASSIONATE and thoughtful article about the plight of refugees in our area asks whether there is an alternate to the "crazy quilt", "hit or miss" collection of services and chance that determine the success or failure of our newest Americans. With the downturn in the economy, expected huge cuts in the state budget that has supported refugee resettlement, mass layoffs, and failure of many businesses, one answer is to cut or reduce services and allow African refugee families like those depicted in the reporter's story to further suffer. At some point, the nonprofits which deliver these services will be so depleted that their existence will be put in jeopardy and as the economy worsens, they will disappear. Of course, there are always our churches to turn to. These are already burdened with providing social services and care for the poor and struggling so as things get progressively and dramatically worse, area refugees will directly compete with the Triad's Joe the Plumber and his family for help.

A second answer to Ms. Ahearn's question is for the area's so-called creative class to start becoming creative and develop new models that would allow important social services and nonprofits to continue to exist and function. The downturn will be releasing thousands of experienced, talented high tech workers and managers faced with the choice of relocating to a place which may just as hard hit or staying here. In the buzz words of the times, we are challenged to develop "human capital" (such as our refugee population) for which we can only offer "social capital" to these creative workers as payment. Since there's no money to be had, social capital — new partnerships, new professional contacts and working relationships — increasingly becomes more valuable. The Triad should work hard to keep talented people here since recovery, when it comes, will be difficult without them. At the same time, the Triad must realize that all its regional plans and dreams of becoming a technology or innovation center, an “aerotropolis” or logistical center for the Southeastern US cannot come true, even in the best of times, with big high school dropout rates and so much undeveloped talent languishing in low-pay, low-skill jobs, bereft of proper health care and insurance.

As usual, the Triad's response is to wait until the full force of events — in this case, at least a year or more of suffering and struggle for everyone — is here and then start a regional committee to "examine" it. If our centers for innovation in business, education, and government do not encourage and support new models of employment, investment, and community, the region will be hollowed out by the end of this recession.