THE DESIGN OF IDEAL SOCIAL CAPITAL FOR THE DEVELOPMENT OF TRADITIONAL MARKET IN THE MIX -BARTER TRANSACTION IN PASAR BLANTE KAWANGKOAN

Abstract

This paper discusses the role of social capital and shares the concept of \designing the social capital for the development of traditional market. The mix-barter transaction in Pasar Blante Kawangkoan is taken the case to reflect the existence of the social capital and its role. The choice of Pasar Blante is related to the fact that this traditional market is very contributive to the local economic activities and local regency income. As a qualitative study, this paper based its data collection on the tringulation of interview, observation and documentation. The data were analyzed using the Spradleys model. The findings revealed that the role of social capital in the market transaction can be seen in the forms of sharing the information on both consumer and product price, obtaining qualified cattle, agreeing low cost transaction, and accessing the financial resources in the local market. It is also found that the more this social capital is applied, the more it lessens the risk of economic transaction in the market. However, there was potential hindrance for the application of the social capital. Therefore, the need for an ideal design of the social capital is required to revitalize its institutionalization (rules of the game) for both formal that is government and informal that is people involved in the economic transaction in the market. This is important for the survival of the market and economic transaction within it.