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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

JUNE 2011<br />

VOL 3, NO 2<br />

and causes people to trust their government. Increasing social capital facilitates achieving the<br />

objectives. For sure executing these policies, needs the government's confidence and relative<br />

social capital.<br />

The aim of preparing the 20-years vision program is to avoid short-term and personal decisions<br />

to achieve and predict long-term goals; one of the main problems of the administration after the<br />

Islamic revolution victory is lack of commitment of them to the planned programs (Karimi1386).<br />

One of the problems which have affected economy is that long-term plans have not been<br />

considered .if there is not long-term plans, the government will be busy with daily problems and<br />

different, conflicting and temporary goals will be objected by the administration and the facilities<br />

will be devoted to the daily goals instead of planned ones.<br />

C-5) Corruptions and Embezzlement Reduction<br />

Social capital encourages all people to consider positive norms and values and isolates sinners<br />

so, social networks are considered as obstacles against crime, corruption and embezzlement.<br />

Other studies show that lower social capital causes more crime and theft. Also, the neighborhood<br />

intervention to protect their common benefits depends on their conditions of mutual confidence<br />

and social correlation among them (Share pour, 1383). When theft decreases, cost saving<br />

increases and this can cause increasing production. Also there is negative relation between<br />

corruption indicator and human resources development and income index and there is positive<br />

relation between corruption and unequal income distribution (Dyni Torkman, 1385).<br />

CONCLUSION<br />

From this survey and other studies, some conclusions have been made. Some of the most<br />

important results are as follows:<br />

1-Regarding social capital importance in economic increasing and development by factors<br />

reviewed in this <strong>paper</strong>, in current economical situation of our country which faces long-term<br />

unemployment and inflation and social capital is decreasing slowly, it is required to raise social<br />

capital. Lending money and fund distribution does not create jobs and employment. Especially<br />

new investments are necessary for young generation.<br />

2-Adherence to 5-year development plan and vision goals is the product of social capital which<br />

promotes it and the commitment of the administration to the plan, causes public confidence to a<br />

better future. Building confidence between government and political sides is important in this<br />

field.<br />

3-While, social capital facilitates contracts and accelerates their operation, and reduces the<br />

transaction coast; it protects ownership rights which are a key factor for production<br />

advancement.<br />

4-Economic performance improvement of the government is effective on economical growth.<br />

This is very important in Iran with its large government. The government should also create and<br />

facilitate business for institutions.<br />

5- In countries with high social capital, governments are trusted more and their promises and<br />

policies are more valid and economical laws and guarantees are not revised again and again.<br />

People find these countries a safer place for investment and choose production approach in them<br />

which is more effective and optimal in long – term period of time (Nek and Kifer, 1997). Serial<br />

changes in economic policies, causes instability in the market and makes the economic agencies<br />

distrust the market.<br />

6-Every motion which causes people not to trust the administration, affects economy. Especially,<br />

confidence is a key factor for investment and production.<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 508

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