Civil society
Economics

A strong civil society is often considered to be important for economic growth, with reasoning being that it can give important input on economic decisions, facilitate private enterprise and entrepreneurship, and prevent the state from stifling the economy. For example, labor leaders can ensure that economic growth benefits working people, faith leaders can advocate for greater inclusion in economic affairs, NGOs can flag and document harmful business practices, etc.

Essentially, civil society creates social capital, which the World Bank defines as "the institutions, relationships, and norms that shape the quality and quantity of a society's social interactions". With higher social capital comes a greater amount of social interdependence, which increases productivity and economic growth. For example, one study found that high school drop out rates in areas within the United States with better social networks were lower than in areas with weaker social networks.

Some, like Thomas Carothers, somewhat dispute this narrative. He argues that although civil society is beneficial toward economic growth, it is not necessary, which he illustrates through how South Korea's great economic success was built without a strong civil society, which only appeared after economic growth had more than took off, as well as how Bangladesh, with an incredibly rich civil society, has largely failed to grow its economy, remaining one of the poorest countries in the world. Going even further, Carothers also points out how too much civil society, at least in certain sectors, can lead to harmful economic impacts, citing how some economists believe labor unions in Latin America have restricted economic growth.
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