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Radboud University Nijmegen

The Potential of

Collective Action

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Emil Ros

S4782143

Bachelor thesis Geografie, Planologie en Milieu

Faculteit der Managmentwetenschappen

Radboud University Nijmegen

Supervisor: Erwin van der Krabben

Word count: 16.071

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Preface

This here before you is my bachelor thesis, The Potential of Collective Action. For the past few months I have worked very hard on this and now the final product is finished. I want to thank everyone that helped me writing this thesis. Especially, I would like to thank my supervisor Erwin van der Krabben, who has given me a lot of advice during the writing process and during our stay in Seoul. Furthermore I would like to thank all the Korean students who helped us conducting the survey in Euljiro, and also I would like to thank Klaas Kresse for his support and expertise. Throughout the whole process of creating this bachelor thesis I could always count on the help of the other Radboud students that participated in this research in Seoul, therefore I would like to thank them as well.

I hope you enjoy reading my thesis, Nijmegen, 15 November 2019 Emil Ros

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Abstract

Urban planning has been a field controlled by the government for a long time. More recently we notice that there is an increasing amount of projects involving collaboration with private parties, but also citizens tend to be more involved in the planning process. Collaborations between governments, private parties and citizens are becoming much more common. Since this is a fairly new phenomenon, not a lot of research has been done on this particular

subject. One of the major issues within this development is the role that the government plays within this new landscape. Historically governments are used to having full control over planning projects, however,f the new phenomenon of citizen involvement asks for a different approach, one that is more facilitating instead of controlling. Although citizens want to be more involved in the planning process, not everybody is willing to participate in collaborative projects. So it is also a challenge to activate people to collaborate within their community. Different theories are heavily linked to these processes, the theory by Elinor Ostrom touches on how communities can establish forms of cooperation through a process of

self-organization, whereas Mancur Olson’s theory suggests that cooperation within communities can only be established through governmental incentives. Both of these theories provide an approach towards potentially successful collective action. However, there is a lack of

research exploring the implications of these theories in an urban setting. This research used a literature study to develop a thorough understanding of the theories of Olson and Ostrom and used them as the basis for developing the factors that influence collective action. The two main points that can be derived from the literature are the role of social capital and government interventions in the process of collective action. These concepts are central to the relations that are explored in this research. The first relation indicates that government interventions have an impact on social capital, and the second relation indicates that this social capital has an impact on collective action. These relations lead to the following main question that is central to this research: “What is the influence of social capital on the extent of collective action, and how does the government influence this process?”. To answer this question data was gathered from people in the neighborhoud of Euljiro in Seoul, South Korea using a survey. This area was picked because there used to be a lot of collaborative planning in Seoul, however, this has been declining for a while. The neighborhoud has a long history of entrepreneurs that keep their shops in Euljiro. Also, the neighborhoud seems perfectly fit for forms of collective action since the area needs to be redeveloped and

collective action would be a perfect alternative for complete redevelopment by the

government, this way the area would be preserved while still being renovated. The survey was conducted in collaboration with Korean students, they helped as translators to

communicate with the respondents. Eventually, we gathered 285 surveys, the results were then used to execute regression analysis that investigated the before mentioned relations. Two single linear regression analyses were performed, one analyzing the relation between the independent variable government interventions and the dependent variable social capital and one analyzing the relation between the independent variable social capital and the dependent variable collective action. The analysis results show that there is a connection between government interventions, social capital, and collective action. So these concepts play a role when trying to establish successful collective action. Governments should take into account how they approach spatial planning projects. There is a need for an approach that is more facilitating and less controlling, so that trust can be developed between

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increasing the chances of successful collective action. Follow-up research could focus on developing an even better understanding of this process to contribute to more successful collective action planning.

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Table of contents

Chapter 1, Introduction 7

1.1 Project framework 7

1.2 Planning history of Seoul 9

1.3 History of community life 9

1.4 Institutional organization 10

1.5 The neighbourhood of Euljiro 10

1.6 Research purpose 12

1.7 Research model 12

1.8 Research questions 13

1.9 Scientific relevance 14

1.10 Social relevance 14

Chapter 2, Theoretical framework: 15

2.1 Collective action and the “free-rider problem” 15

2.2 The collective action theory by Mancur Olson 17

2.2.1 The impact of government interventions on social capital 17

2.3 The theory of self organization by Elinor Ostrom 19

2.3.1 Social capital and its effects on collective action 20

2.4 Conceptual framework: 22 Chapter 3, Methodology: 23 3.1 Research Strategy 23 3.2 Research Material 23 3.3 Reliability 24 3.4 Validity 25 3.5 Survey 25 3.6 Operationalization 27 3.6.1 Government 27 3.6.2 Social capital 27 3.6.3 Collective action 28

Chapter 4, Research analysis 29

4.1 Data file 29

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4.2.1 Age 30

4.2.2 Gender 31

4.2.3 Educational title 32

4.2.4 Type of entrepeneur 33

4.2.5 Exploitation 34

4.2.6 Current living situation 35

4.2.7 Annual net income 36

4.2.8 Relation to the neighbourhood 37

4.2.9 For how long have you been located in this neighbourhood 38

4.2.10 Employment status 39

4.2.11 Location 40

4.3 Statistics related to collective action 42

4.4 Statistics related to social capital 43

4.5 Statistics related to the impact of the government 44

4.6 Cronbach’s alpha test 45

4.7 Regression Analysis 47

4.7.1 Assumptions 47

4.7.2 Single linear regression: Government Interventions and Social Capital 51 4.7.3 Single linear regression: Social capital and collective action 52

5. Conclusion 54

5.1 Recommendations 55

5.1.1 Practical recommendations 55

5.1.2 Follow-up research 56

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Chapter 1, Introduction

1.1 Project framework

In the realm of spatial planning and urban development collective action could be a

productive solution to many problems that occur in these fields. However, the main obstacles to these sorts of actions are characterized by collective action problems. This research aims to provide more clarity about the functioning of collective action and the role of collective action problems in spatial planning. In the field of spatial planning, we see that civic involvement gets more emphasis over recent years. Approaches like collaborative and participatory planning have been introduced in many countries over the world. This tendency towards more civic involvement should give room for forms of collective action in spatial planning (Boonstra & Boelens, 2011). The question is how we can make collective action work. The successfulness of collective action depends on a lot of factors, therefore different outcomes may occur in different areas. In this research, we will be looking at how we can apply collective action to the case of spatial planning in Seoul. Different theories will provide an understanding of the functioning and aspects of collective action and how this concept can be applied to spatial planning.

We need to understand what collective action means in the context of spatial planning. Urban development often requires input from local inhabitants of the area under

development. Ideas can either come from bottom-up projects or the governmental level, but both have in common that the policy or project involves local inhabitants in some way. Therefore collective action can help tackle challenges in the field of urban development. Collective action could play an important role in the planning process, in an increasingly fragmenting world with more intensive networks the need for an inclusive and sustainable planning process is necessary (Boonstra & Boelens, 2011). Collaboration between the planner and citizens seems crucial, collective action fits in this train of thought. Collective action can be achieved, either through processes of self- organization or through a facilitating government.

The crux in the discussion about collective action lies in the additional collective action problems that are inherent to the process. In spatial planning, we encounter different

phenomena that could be described as commons that require collective action for them to be properly managed. Urban space, for example, can be seen as a public good, it can be used by everyone and needs collective management to preserve it as a space accessible for everyone. Urban spaces that are not properly managed lead to degradation of the public space, for example, criminal gangs that occupy street corners. What is true for urban spaces is also true for other practices that are part of the urban landscape. However, one could say that in spatial planning there are more intangible commons that also hold great significance. These are for example the sense of security or sense of belonging, this also ties in with the amount of social capital in a community. We can argue that communities with a high level of social capital would also have a higher sense of security or belonging and would be more successful in establishing forms of collective action (Parker & Johansson, 2011).

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There are a lot of approaches towards and ways of thinking about collective action problems. Some argue that collective action does not work when trying to overcome problems,

especially early thinkers argue that collective action problems can only be overcome by the interference of institutions. They believe that members of groups always choose personal gain over common group objectives, furthermore, they argue that this is a rational choice and that the only way to steer members in the direction of common group objectives is by forcing them to do so (Olson, 1965). The ‘free rider’ problem is a logical outcome according to Olson because people would rather have another member pay the entire cost instead of sharing the cost of collective action. The ideas of these early thinkers are challenged by a lot of research, especially the research of Elinor Ostrom poses a different approach to collective action problems. The earlier thinkers argued that there were two ways of tackling collective action problems: a strong central government or forms of regulation. Ostrom argues that individuals can create their system of management, institutions, and agreements; self- organization. Individuals can organize and govern themselves even when facing temptations of free-riding (Dagsupta and Beard, 2007). However, early thinkers like Olsen do to some degree find common ground with the ideas of Elinor Ostrom. Olson admitted that smaller groups are less vulnerable to the free-rider problem. Ostrom builds her theories on small scale common pool resources, thus dealing with small groups. Concluding from both theories one might suggest that small groups are a better fit for self-organization. Different scholars have identified factors that influence the working of collective action. These are factors like economic and social heterogeneity, the mediating role of institutions, the existing relations between actors and, as mentioned before, group size. On the

community level, there are also a few factors that might affect the outcome of collective action: trust, reciprocal exchange and social networks (social capital) (Dagskupta and Beard, 2007; Carpenter et al., 2004). Carpenter et al. argue that communities that possess or cultivate enough social capital can effectively assemble collective action to tackle problems in their community. These scholars show that there are a lot of factors that play a role in determining the structure of collective action problems, communities differ on all sorts of levels. This suggests that it might be important to look at the local social context of

communities when trying to deal with collective action problems since no community shares the same contextual characteristics. Therefore solving collective action problems might require different approaches in different situations.

When we relate this to collective action problems in spatial planning, the planning culture might be a relevant factor in the way that collective action is established. And it might also contribute to solving collective action problems. An important concept is that different

planning actors from different cultures may value risk, trust, and co-operation differently. This may have important implications for the potential of collective action, as the planning culture might influence the effectiveness of collective action (van der Krabben, 2019). As seen in the case of value capture policies in Seoul a high level of trust in public institutions leads to more collaborative agreements between actors, this suggests that collective action might be more successful when the level of trust between actors is high (Van der Krabben and Kresse, 2019). Building on this the planning culture consists of many actors, actors that are

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2008). Therefore the role of the government in collective action could be interesting as well as the characteristics of the community.

1.2 Planning history of Seoul

This section will take a brief look at the spatial planning history of the city to have a better understanding of the context of planning in Seoul. Since the Korean war, there have been three phases of spatial planning. The first phase took place during a period of rapid urbanization, land readjustment was the major land policy used in this period. In this construction, landowners provide land contributions in exchange for public planning efforts and cost equivalent land to finance the development. The main characteristic of this period is that the public manages urban development without taking financial responsibilities or risks. The second phase came about in a period of consolidated development, that started in the 1980s. The most used land policy shifted towards joint redevelopment, this was necessary due to a lack of easy-to-develop sites and the need to upgrade the housing stock within the city to facilitate the upcoming middle class. Two crucial conditions that enabled joint

redevelopment to be successful, a supportive housing market and the collaborative local public authority that maintained a lenient view towards increasing densities in the city. The landowners receive compensation based on the land value they contributed, whereas the construction company profits from the sale of surplus apartment units. Public services and facilities are provided through the increment of the land value.

The third phase started around 2009 and is still functional today, the city has now moved to a phase of matured development. The urban development in this phase is mainly focused on outdated public facility sites, these sites are very attractive for developers due to the

increasing scarcity of developable land available in the city of Seoul (Van der Krabben & Kresse, 2019). Reflecting on the different phases of development throughout Seoul’s recent history one can observe that the period of joint redevelopment could be analyzed as a form of collective action. However, some problems that prevented the joint redevelopment projects(JPR) from being successful. The projects intended to make a profit for developers instead of improving the living conditions of poor civilians. Furthermore the JRP’s destroyed poor communities, basically the policy was used to exploit the poor instead of giving them a chance to better their community (Ha, 2001). These issues are important when trying to introduce forms of collective action in present Seoul. Lessons can be learned from the flaws of the JRP’s, especially with regard to the role of the government in providing the right conditions for collective action to come about in local communities.

1.3 History of community life

Ha (2001) also elaborates on the community ideas in Korean culture. Traditionally, the neighbourhood has been an important concept in Korea, people highly value the idea of family and community. In Korea community indicates commitment and solidarity. Nowadays things have shifted a bit, social relationships are no longer confined to community

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boundaries. People’s connections have spread beyond their local neighbourhood since there are increasing options to decide where to go and whom to mix with. The community thus seems to be less important in Korean daily life than it used to be traditionally. However, this does not mean that the concept of community has lost its usefulness in urban areas. In urban areas where people live in densely populated neighbourhoods, people are more likely to form social and emotional ties. Based on this, many people in urban areas still have a sense of community. The community in this case often indicates a certain subculture, with people who share the same interests or face the same particular struggles. However, the community needs have been neglected by government institutions, especially in Seoul, urban redevelopment projects have instead focused solely on profit-making.

1.4 Institutional organization

In 2017 the government in South Korea switched administrations, from the Park Geunhye administration to the Moon administration. The Park Geunhye administration had caused a lot of frustration amongst the population. Therefore the Moon administration promised to make the political system in South Korea more democratic, more decentralized and less corrupt. Also enhancing opportunities for citizen participation (Kalinowski & Rhyu, 2018). Korean citizens have access to a lot of information. Despite this political questions are massively personalized as a struggle between individuals instead of a discussion about the actual policies. This makes it hard for people to form their own political opinion, since the political opinions in the public are very narrow. In addition, and partly because of this Koreans have a low level of trust in the government. (Kalinowski & Rhyu, 2018).

1.5 The neighbourhood of Euljiro

After describing the planning history of Seoul, this section will zoom in on the specific

neighbourhood where the research will be conducted. The neighbourhood of Euljiro in Seoul is best known for the many traditional shops, manufacturers, and restaurants. The

neighbourhood is very densely filled with a lot of tradespeople. Most of the people in the area only work there, so the population of the neighbourhood mostly consists of working people and very few actual residents. The table below shows some statistics of the neighbourhood.

It shows that most people rent their property, it also shows the unit density of the area and the number of buildings located in Euljiro and the total area of the site is also displayed.

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Figure 1: Statistics of Euljiro(BBP-WorkBook, 2015)

The area has been assigned as a redevelopment zone by the municipality, the small shops and workplaces are supposed to be replaced with high-rise and high density buildings. Many of the shopkeepers are opposed to the redevelopment plans, therefore an alternative is to renovate the area instead of demolishing it. The renovation of the area offers a great

opportunity for collective action, the many shopkeepers and manufacturers could collaborate in the renovation of the area. Therefore a survey will be set up to gain insight on the

willingness of people in Euljiro to collaborate in renovating the area. The survey will serve as the main tool to obtain information on the potential of collective action in this area. Besides questions about collective action, several other questions will be formulated that relate to social cohesion. This is important because social cohesion/capital might influence the willingness of people to collaborate in collective action.

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1.6 Research purpose

Out of the literature, a few interesting questions emerge. In particular, the ideas about

collective action could be interesting for research, there are some ideas about how collective action could work. Especially the concept of self-organization gives a clear approach

towards collective action. However, there is still uncertainty about factors that might influence the effectiveness of collective action and especially the role of collective action problems. There is a lot of literature about the functioning of collective action and how this might be influenced by certain factors. Examples are the role of networks in solving collective action problems (small dense networks based on credibility and cooperative solutions versus large networks based on information exchange and coordinated solutions) (Scholz et al., 2006), the role of planning cultures in the coming about of collective action (van der Krabben, 2019), the role of social capital in the coming about of collective action (Dasgupta and Beard, 2007; Carpenter et al., 2004) or the relations between actors involved in collective action (Newman, 2008). All of the factors mentioned before are in some way concerned with local social context, this might suggest that forms of collective action and collective action problems cannot be separated from their local social context. This could be an interesting angle for research, and therefore the research purpose of this study is as follows: studying the exact role of local social factors on collective action and collective action problems. More information on the role of local social context on collective action could contribute to a better understanding of the functioning of collective action and might also contribute to the solving of collective action problems.

Local social context could be formulated as social capital. Social capital is described by Svendsen and Svendsen (2009) as: “All forms of capital involve the creation of assets by allocating resources that could be used up in immediate consumption to create assets that generate a potential flow of benefits over a future time horizon.” Social capital, therefore, seems a very broad concept, therefore social capital, in this research, will be specified as trustworthiness, networks, and formal and informal rules or institutions. So from here, social capital will be used as the overarching term to describe the local social context.

1.7 Research model

Literature study ---> Conceptual framework ---> Setting up survey ---> Gathering results ---> Processing results ---> Conclusion ---> Recommendations

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1.8 Research questions

Out of these notions, the following research questions can be formulated: The main research question is as follows:

1. “What is the influence of social capital on the extent of collective action, and how does the government influence this process?”

A few sub-questions should be formulated to provide an answer to the main research question. First of all, it is important to have an understanding of how collective action works, this leads to the following subquestion:

2. “How does collective action come into being?”

The focus then shifts to the role of social capital in collective action. Formulated in the following subquestion:

3. “How does social capital influence the functioning of collective action?” There is one more thing to consider regarding this topic, and that is the role of the government in the amount of social capital in a certain area and its effects on collective action. Therefore another subquestion should address the role of the government, this is formulated as follows:

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1.9 Scientific relevance

The link between social capital and collective action has been made in research before (Ostrom & Ahn, 2003; Svendsen & Svendsen, 2009; Adger, 2010; Rydin &

Pennington,2000). However, not many of this research is focused on spatial planning, and they often relate to the principles of Elinor Ostrom, based on small scale communities. So research into the role of social capital in the collective action process in a big metropolitan area like the city of Seoul could contribute to the understanding of collective action and its implications for the field of spatial planning.

Social capital is a concept that is important in every institutional context, this is also the case for spatial planning. It has been an interesting topic for many researchers to analyze how the government could enhance the level of social capital (Putnam, 1993). Although social

change tends to be slow, researchers are convinced that social capital can be built (Evans, 1996; Warner, 2001). However, there has not yet been a lot of research that specifically applies this hypothesis on how social capital can be constructed. Since this research

focuses on a specific neighbourhood and takes into the role of the government interventions on social capital, it could contribute to the understanding of this process.

1.10 Social relevance

Euljiro is a neighbourhood designed for redevelopment by the government, however, the citizens that operate their businesses in the area are very much opposed to this. This

research explores how collective action could be established in the neighbourhood, ensuring development in the area while preserving the community of small businesses that have been the core of the neighbourhood for a long time. Therefore this research could contribute to an alternative, that would see both parties content with the outcome. Collective action has been present in Seoul in the past, however not always successful, this would be a good

opportunity to investigate the conditions that would make it work, as it appears to be a good way to renovate the neighbourhood.

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Chapter 2, Theoretical framework:

Looking into the different theories about collective action will be important when trying to form an answer to the first sub question, “how does collective action come into being?”. When looking at the literature two different approaches towards collective action can be distinguished: the collective action theory by Mancur Olson and the principle of self organization by Elinor Ostrom.

2.1 Collective action and the “free-rider problem”

First, it is important to define the term collective action and how this term is closely related to “the prisoner’s dilemma” and “the tragedy of the commons”. A deeper look will be taking into these two terms to further explain their relevance.

The prisoner’s dilemma made its first appearance in a short note from Alfred W. Tucker that stated the following:

“Two men, charged with a joint violation of the law, are held separately by the police. Each is told that

1) if one confesses and the other does not, the former will be given a reward of one unit and the latter will be fined two units,

2) if both confess, each will be fined one unit At the same time each has good reason to believe that

3) if neither confesses, both will go clear.” This idea is visualized in this diagram:

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“Confess” is what is called the dominant strategy. Whatever is the choice of the other, it is always better to choose “confess” instead of “not confess” (-1 instead of -2, 1 instead of 0. This means that the equilibrium will be at “confess”, “confess”. This will cost one unit for both men, whereas they would have been better off with the cooperative option “not confess”, “not confess”.

The example put forward by Tucker implicates that each player neglects the intentions of the other and will always pick the option that is “the best whatever the other chooses”. The rationality of an individual thus leads to a result that conflicts with the collective interest (Romagny et al. 1997).

This now commonly known dilemma, first posed by Tucker, forms the basis for “the tragedy of the commons”. The tragedy of the commons is best explained through an example. Let say there is an open pasture, available to everyone. Herders might think about the profit of adding one more animal to their herd, and this is exactly where the prisoner’s dilemma comes into play. If every herder were to increase his herd, the number of animals in the field would go up rapidly and this would ultimately lead to overexploitation and thus exhaustion of the resource. But since one more animal would lead to more individual profit, herders are now facing a prisoner’s dilemma situation. Their individual rationality will lead them into a decision that is in contradiction with the collective interest (Hardin, 1968).

This tragedy can be applied, Hardin argues, to all common pool resources. Common pool resources are those resources that require shared management. Characteristics of such resources are excludability and subtractability. Excludability means that exclusion of users is difficult and subtractability means that the use of the resource by one user reduces the benefits for other users. Examples of common pool resources are forestries, fisheries and pastures (Heikkila & Carter, 2017).

Common-pool resources are also relevant for this research, it might not be interesting to look into forestries and fisheries but common pool resources also exist in urban spaces. Parker and Johansson define common pool resources in an urban setting as “urban commons”. Examples of urban commons are resources such as public spaces for exchange, movement and recreation and infrastructure for water waste and communication. Management of these common pool resources can be achieved through collective action. Collective action is the collaboration of individuals to reach a common goal or pursue a common interest. Collective action is the means to solve the prisoner’s dilemma (in this case also referred to as

“collective action problems”) in the management of common pool resources (Hess, 2006). In the work of Sheila Foster on urban commons she presents examples of this kind of management. Some of these examples are the citizen and non-profit involvement in park maintenance, informally assembled groups of neighbourhood crime patrols and community gardens. All of these examples have in common that they are not directly managed by the government or in the hands of a private party. They are common resources managed through collective action (Foster, 2011). In the scientific realm there are two main

approaches towards collective action, on the one hand there is the collective action theory by Mancur Olson and on the other hand there is the theory of self organization by Elinor Ostrom. in the following two paragraphs there will be a thorough discussion about these two theories and their implications.

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2.2 The collective action theory by Mancur Olson

The collective action theory indicates that any group of individuals that attempt at providing public goods will have trouble to do so. In his book, “The Logic of Collective Action”, Olson uses a comparison with a state; “And just as a state cannot support itself by voluntary contributions, or by selling its basic services on the market, neither can other large organizations support themselves without providing some sanction, or some attraction distinct from the public good itself, that will lead individuals to help bear the burdens of maintaining the organization”. Olson claims that individuals will always choose individual goals over common group objectives, out of this emerged the idea of the ‘free-rider’ problem. This means that people would rather let one person pay the entire cost, instead of sharing the costs equally. This leads Olson to the idea that two options that could solve the free-rider problem and make collective action work. Since he believed that individuals would need some attraction or sanction distinct from the public good itself for collective action to work, the solutions to collective action problems must force people to cooperate in collective action. This means that collective action can only be established either through a strong central government or certain forms of regulation. A strong central government can provide public goods through mandatory taxes that leave no room for potential ‘free-riders’, the same is true for forms of regulation where certain sanctions force people towards collective action (Olson, 1965). Olson also adds that the size of groups is important, he stresses that large groups are far less likely to cooperate then small groups. This is because in large groups the individual benefit of cooperation decreases and also that incentives to freeriding increase. As mentioned before the only way to ensure collaboration is through selective incentives that force actors to cooperate (Czech, 2016). However, Olson‘s theory implicates that small groups are better fit for collective action.

2.2.1 The impact of government interventions on social capital

The government is an important actor involved in collective action. This is especially true for different fields in which collective action might be useful or necessary, for example in

planning. Social capital plays a role here as one can identify different planning cultures. In different planning cultures, the relations between actors might differ and therefore the conditions that influence collective action might differ. A planning culture can be seen as shared values and attitudes among actors, key concepts are risk, trust, and cooperation. Actors in different planning cultures might value these concepts differently. This means that the same specific situation might have different outcomes in different planning cultures as a result of these different values, the different values influence the decision-making of the various actors (Van der Krabben, 2019). This is important for the effectiveness of collective action since similar events might lead to different outcomes because of a difference in planning culture.

Different views towards risk and uncertainty exist because there is often an asymmetric distribution of information among actors. There are costs in getting information, negotiating and sharing responsibilities, this influences the willingness of actors to cooperate. Therefore it might be difficult to get actors to focus on the same objectives, there might be a role for the government to create conditions in which different actors cooperate towards the same goal

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while not sharing the same vision (Newman, 2008). This focuses on an external solution to improve the functioning of collective action, through the government's role in providing incentives to cooperation. But also getting actors to work towards the same goal, as changing positions of actors and inequalities can be solved through collaborative forms of governance. The attitude of actors within the government towards collective action

influences to what degree collaborative forms of governance are established (Newman, 2008). All of the previous support the notion that the government can influence collective action, through mechanisms that could be defined as social capital (e.g. planning culture, trust, institutional environment). Ostrom & Ahn (2003) describe the importance of social capital in the governmental sphere: they state that a rule of law, a democratic atmosphere, and a well-structured government are valuable social capital. These previous factors will positively affect the ability of self-governance to properly function. Putnam states the

following in his work “making democracy work”: “ Social capital enables citizens to cooperate for mutual benefit and hence overcome the dilemmas of collective action”. He explains that people living in areas with high social capital are more likely to trust each other and also highly value solidarity and equality. Putnam used this definition to explain the difference in civic participation between northern and southern Italy. In the north local governments tend to be much more flexible and efficient in implementing citizen initiatives, whereas in the south local governments tend to be corrupt and inefficient (Kawachi & Berkman, 2000). This amplifies the idea that governments can contribute to a higher level of social capital,

especially local governments can play a big role in creating an environment where trust, solidarity, and equality are held in high regard.

As said before, the government could play an important role in enhancing the social capital of their communities. The institutional design influences how collective action can be established. Institutional design means that measures are implemented that shape how actors within a community will interact over the medium to long run. This implicates that the government could play an important role in creating social capital. The role of the

government, in this case, is not one of direct intervention but more a facilitating role in which a supportive framework is provided encouraging individuals and groups to solve collective action problems (Ostrom, 1990; Rydin & Pennington, 2000).

It can be concluded that there are external as well as internal ways for governments to influence social capital. On the one hand, governments can use incentives that could improve the functioning of collective action, on the other hand, governments can also try to improve social capital by creating the right conditions for collaboration. A government's approach towards collective action and social capital and the type of policies they implement will have consequences for the potential of social capital in that specific country.

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2.3 The theory of self organization by Elinor Ostrom

The theory of self-organization by Elinor Ostrom is quite different from the collective action theory by Mancur Olson. Contrary to Olson, Ostrom argues that groups of individuals can establish forms of collective action without forms of sanctions or attractions that force them to do so. She called this process self-organization. Self-organization suggests that certain actions do not require external motivators or hierarchal forces for them to happen; they can occur for internal reasons and driven by internal dynamics of systems (Ostrom, 1990). This idea is derived from the philosophical notion that events are caused internally. Kant argued that our behaviors are driven by “inner teleology”, this means that to understand social events researchers have to understand how the inner worlds of humans work (Morçöl, 2014). These abstract notions form the basis for the argument made by Elinor Ostrom; she argues that not all social problems can be solved by governments(external factors) and that people are capable of organizing themselves to solve problems(internal factors). She adds that certain circumstances may influence whether or not people organize themselves. First, resources should be sufficiently large and suitable for improvement, also the resource system should be small so that the boundaries of the system are known to actors. Second, the system must comply with important social or religious values to ensure that actors are motivated to self-organize, besides trust and reciprocation of actions will be important to ensure the longevity of the self-governing system. Ostrom stresses that in addition to trust and reciprocity levels, the self-governing system should be monitored and that these factors will determine the level of compliance with the rules. An important notion is that those systems in which actors choose their monitors are more likely to survive for long periods than systems where monitoring is enforced by external factors, such as governments (Ostrom, 1990). These circumstances cumulate into eight principles that Ostrom claims are necessary for self-governance of commons to be successful (Chow & Weeden, 2012). The following is a quotation of the eight principles as formulated by Ostrom:

“ 1. The common-pool resource has clearly-defined boundaries (effective exclusion of external unentitled parties).

2. There is congruence between the resource environment and its governance structure of rules

3. Decisions are made through collective-choice arrangements that allow most resource appropriators to participate

4. Rules are enforced through effective monitoring by monitors who are part of or accountable to the appropriators

5. Violations are punished with graduated sanctions

6. Conflicts and issues are addressed with low-cost and easy-to-access conflict resolution mechanisms

7. Higher-level authorities recognize the right of the resource appropriators to self-govern 8. In the case of larger common-pool resources: rules are organized and enforced through multiple layers of nested enterprises“ (Chow & Weeden, 2012).

As you can read in the principles of Ostrom the self-governance of commons requires a highly sophisticated organizational structure, it is not something easily established. It is interesting to note that self-organization is also not completely unrelated to the government, governments can play a role in the successfulness of self-organization. This is voiced by Ostrom’s seventh principle, it states that higher-level authorities (i.e. governments) must give

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communities the room to self-govern. This indicates that governments can also influence the coming about of self-organization, whether it be positively or negatively.

Returning to the question put forward at the beginning of this section, two different notions can be established on how collective action might come about. Either through internal factors (self-organization) or external factors (strong central government or market regulations). There is the distinction between internal factors and external factors when looking at social capital, some factors of social capital might influence the effectiveness of collective action either through internal or external factors. This notion might help to identify the exact effects of social capital on collective action.

This section will take a look at the specific factors of social capital that influence the effectiveness of collective action.

The literature suggests several factors that might influence the functioning of collective action. There is the role of networks, the role of social capital on the governmental level and the role of social capital on the community level. A distinction should be made between the governmental and community level because social capital manifests itself in both

governmental arenas as well as in informal community networks. Similar to social capital, in the urban territory collective action can be established through formal (government) and informal (community) ways, both have different possible approaches when trying to establish forms of collective action (Healey, 2007).

2.3.1 Social capital and its effects on collective action

Networks are a form and indicator of social capital, ones network determines the type of relationships a person has with his neighbours. There are different types of networks, that have implications for the level of social capital of an individual and the ability of a community to self organize. Scholz et. al argue that networks have an important role in the functioning of collective action. They make the distinction between small dense networks and large

boundary-spanning networks. Both have their advantages, small networks enhance credible commitments that support cooperative solutions while large networks enhance search and information exchange that support coordinated solutions. All forms of collective action are heavily dependant on credible commitments since one of the cooperating parties might take advantage of the other when facing the temptation of free-riding. So, since credible

commitments are important in collective action to tackle the free-riding problem, this gives an advantage to small networks. Small dense networks reduce enforcement costs and

credibility problems, so actors in dense small networks are more likely to be involved in collective action. However, sometimes credibility might not be the primary obstacle to

collective action. In some cases it is hard for actors to find the right parties to cooperate with, this concerns the search ability of this particular actor. The centrality of an actor within the network is in this case very important, actors with high centrality can gather a lot of

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action. It poses the idea that the type of network is important when looking at the effectiveness of collective action because small and large networks each have different advantages when trying to establish some form of collective action. An interesting take on the role of networks is the idea of small-world networks, these networks provide an effective way of linking actors while also maintaining strong clustering. This might enhance the search capabilities of large networks as well as the credibility capabilities of small networks, and thus might form a good basis for the development of collective action. The small-world phenomenon states that two contradicting properties within a network exist at the same time; high local clustering and a small global length scale. Small-world networks are more likely to appear in a highly globalized world. However, small-world networks are very difficult to observe in the real world, since linkages are often random and unpredictable and they seem to arise in a wide variety of networks (Watts, 1999). Thus, small-world networks are difficult to empirically apply but they do suggest an approach where the strong qualities of both large boundary-spanning and small dense networks are combined. This combination would create a more effective form of collective action.

The role of social capital is especially important when trying to establish effective forms of collective action, since it determines for a large part the capacity of a community to self organize. Trust, just as is the case on the governmental level, is a crucial link between social capital and collective action. An important aspect here is that trust involves an opportunity for both parties to enhance their welfare (Svendsen & Svendsen, 2009). Svendsen and

Svendsen make a relevant remark on what they call “the average level of trust”. This

concept argues that among multiple communities of more or less the same size, the average level of trustworthiness of people may differ and this has an effect on the way that collective action problems are tackled across communities. The function of social capital on the community level lies in the gathering of resources and materials to improve the community. Therefore communities that cultivate enough social capital can effectively establish forms of collective action (Carpenter et al., 2004). Communities with a high level of trust and

reciprocity of actions will be more inclined to engage in co-operation and forms of collective action. Reciprocity is also an important factor in establishing collective action. Since there are incentives for individuals to pursue the maximization of short-term self-interest while leaving everybody worse off. The building of enough social capital, especially through reciprocity, will lead individuals to consider the long term effects of their actions. This consideration of long term benefits will lead to more successful collective action within communities (Rudd, 2000). The repeated interaction between individuals will lead them to learn whom to trust and to learn what effects their actions will have on collective goals and to discover how to organize themselves to gain benefits (Rydin & Pennington, 2000). Ostrom also points out that communities who have succeeded in creating social capital can

successfully build on this to achieve solutions to collective action problems with a more long-term basis (Ostrom, 1990). It can concluded that social capital is an important concept when analyzing forms of collective action, different levels of social capital exist in different

communities and might explain why some communities are more able to deal with collective action problems than others.

The previously explained theories provide an understanding of collective action and social capital and the relation between these two concepts. Government interventions have an influence on social capital, and social capital then influences the potential collective action in

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a community. These theories can be used to analyze the role of social capital in the case of Seoul. It is necessary to identify how the government contributes to or detracts from the structuring of social capital and how communities in Seoul succeed/fail to gather social capital, all to overcome collective action problems. It is important to identify the level of social capital present in communities in Seoul and if the collective action problems can be tackled through the building of social capital, as well as measure the potential in the area for collective action.

2.4 Conceptual framework:

The conceptual framework shows that the government influences social capital. Social capital, in turn, influences collective action. This means that in this conceptual framework two dependent variables can be identified: social capital and collective action. The

government is an independent variable that influence social capital, social capital, in turn, is also an independent variable that influences the dependable variable collective action. Now, operationalization of the different variables that exist in the conceptual framework is needed. With regard to the government it is important to take a look at certain ways in which the government tries to establish social capital in a community or how the existence of social capital is affected by their institutional environment. Important questions will be: With what method is the government trying to contribute to the enhancement of social capital, or does the government consider the concept of social capital in the first place?

Also measurement of the effect of social capital on the functioning of collective action is needed. First, it is important to look at how the theory of Elinor Ostrom can be applied to the particular community, especially through the principles that Ostrom created. Through the measurement of an individual's social capital it is possible to investigate whether people or communities with a high level of social capital are more inclined to participate in collective action.

And finally data will be collected on the past participation of people in collective action and their willingness to cooperate in collective action in the future.

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Chapter 3, Methodology:

The methodology chapter explains why certain research choices are made. The chapter will consist of the research strategy and the research material and it will also touch on the reliability, validity and the survey set-up.

3.1 Research Strategy

In this research, the focus is more on width than depth. Social capital is very broadly defined, this to make sure that all the local social contextual factors that might influence the coming about of collective action are taking into account. On the basis of this definition of social capital, the research tries to explain why collective action works in some cases and might not work in others. The line of argument is that this is due to factors that are inherent to a certain country or area. Therefore an approach with width in order to analyze the role of social capital in collective action will be taken.

In the research, Seoul serves as a specific case to analyze the role of social capital in collective action. Since the focus will be on a community and how they build social capital in this specific context a quantifying approach seems to be the best fit. With this approach, it is possible to take into account the different opinions, values, and characteristics of the

community that helps identify the amount of social capital. Also, this approach of gathering information will help identify the constraints or opportunities for the potential of collective action to be established in this specific community. It will also be useful in trying to identify the type of networks present in this area, the connections between the individuals within the community or connections between different communities or individuals from different communities.

The role of the government might also be identified through quantitative research in the community, as it will be possible to identify the influence of the government when trying to push individuals towards collective action. However, some additional literature study might be necessary since individuals might not be fully aware of the policies that the government uses to influence the building of social capital. The same is true for policies that try to create conditions in which collective action is more likely to be established.

The gathering of empirical results will take place through a written survey. This is the most appropriate means for gathering quantitative data, as this serves as a great tool to get information from a lot of individuals in the community. The survey will be a select sample, this is done because the research will be conducted in a very small neighbourhood, with unclear population numbers and a lot of informal activity, therefore an a-select sample would be very difficult to realize. In addition, because of the small size of the neighbourhood, it is very likely that there won’t be enough respondents to conduct an a-select sample.

3.2 Research Material

The research started with literature regarding the concept of collective action and its applicability in the field of spatial planning. All the relevant information regarding collective

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action is gathered through the intensive study of literature into this subject. Also social capital was identified as an interesting concept in relation to the coming about of collective action. These concepts were further elaborated in the theoretical framework, underpinned with theories from different scholars. In order to test and apply the theoretical propositions, a survey will be conducted in the neighbourhood of Euljiro in Seoul.

Our research objects will consist of people within a certain community in Seoul, Euljiro. The goal is to collect data that will give us more insight into the role of social capital in the coming about of collective action. The research objects can provide knowledge about the social capital that exists within the community and about the potential of collective action in this community. Additional literature studies can be used to answer questions that cannot be answered through the survey. Survey-respondents can be of any age or educational level, furthermore, every profession present in the neighbourhood will be included in the interview. Because this research makes use of literary study as well as survey research, it manages two different methods of data collection. This is approach is known as triangulation of methods. The combination of different methods of data collection improves the methodical quality of the research (Verschuren en Doorewaard, 2007).

The following section gives an overview of the methods used to provide an answer to the research questions:

subquestion: how does collective action come into being?

Qualitative research on the theories that explain the functioning of collective action. subquestion: what is the influence of governments interventions on social capital? Qualitative research on how governments are able to influence social capital. subquestion: how does social capital influence the functioning of collective action?

Qualitative research on the different factors of social capital and identifying their role in the coming about of collective action.

Main question: what is the influence of social capital on the extent of collective action, and how does the government influence this process?

Qualitative research that provided an answer to the sub questions combined with

quantitative research is used to identify how the different theories and concepts of social capital and collective action relate to the neighbourhood of Euljiro. The goal of this is to try to explain how social capital influences the coming about of collective action and what the role of the government is in this process.

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The reliability of a research depends on the amount of respondents that are involved in the research. Usually, more respondents means a higher level of reliability. In order to get as many respondents involved as possible the survey will be conducted in cooperation with 6 other Dutch students and about 10 Korean students. The data will be gathered in the time frame of a few days. The students will be divided into 3 to 4 groups, and will survey different parts of the neighbourhood. This strategy is used to make sure that every area of the

neighbourhood will be covered.

3.4 Validity

The validity of research results, is a very important aspect of the research process (Korzilius, 2000). Validity means that the research measures exactly what the researcher was aiming for, so that the explanations and descriptions represent reality. Besides looking at systematic mistakes, validity also concerns other qualities (Korzilius, 2000). Here, a distinction is made between four types: content validity, concept validity and internal and external validity. Content validity describes that the empirical data matches what should be measured according to the theoretical framework. This means that the questions in the survey exactly measure the concepts as described in the research (Korzilius, 2000).

Concept validity is mostly concerned with systematic mistake. It takes into account that research results match the results of previous research. This type of validity can only be measured after the analysis of the research results.

Internal validity describes the quality of the conclusions derived from the entire research. The main point here is that conclusions derived from the research, are not caused by factors that were not taken into account. Therefore, it is mainly about a clear line of argument to substantiate the steps taken in the research, in order to avoid misinterpretation of the data. An important aspect of internal validity is a thorough literature study. This is the part of the research where all factors that could have an influence on the dependent variable are identified.

External validity is concerned with the scope and the generalizability of the conclusions. With this is meant that the results of the research are also applicable to other populations and other circumstances. The survey in this research is a select sample, this has negative consequences for the external validity. Because of this it is not certain that the results represent the entire population. This means that the conclusions can only be related to the people that took the survey, statements about the entire population of Euljiro are not possible in this case.

3.5 Survey

As mentioned before, to gather enough data for the research a survey will be conducted. The survey will be conducted by walking through the small streets and alleys of the Euljiro area. Respondents will be randomly approached and asked to complete the survey. The survey will clearly state that it is completely anonymous and that the data will solely be used for research purposes. It is important to clearly explain to the respondents that the students

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are not part of any governmental body. People in Euljiro are known to be a bit resentful towards the government, and this could affect the amount of people willing to participate or they could give biased opinions. Therefore it will also be stressed that the survey questions are purely designed to get their opinions on the development of the neighbourhood.

Furthermore, because of the language differences, Korean students will assist in conducting the survey. Their role is to explain what the research is about and introduce us to the

respondents and explain the intent of the research.

The first part of the research consists of a couple of general questions. General information of the respondents will be collected for example, age, gender and employment status. All the general questions have a nominal scale with the exception of age, which is listed on a ratio scale. After that questions related to the subject-matter of the research are asked. First information will be gathered with questions concerning the participation in collective action. This section is pretty straightforward and focuses on the current level of collective action and the collaborative activities that people have contributed to in the past. The subsequent section is a bit more complicated and gathers information on the factors that indicate the extent of collective action. This part is divided into three subsections: government, neighbours and personal.

The government part goes into detail about institutional regulations. The neighbours part mostly concerns questions that are closely related to the measurement of social capital present in the area. Finally the personal part deals with questions that indicate an individual's willingness to participate in collaborative activities.

An ordinal measurement scale is used for the questions related to the subject-matter, a numerical scale ranging from one to ten, in which ten represents fully agree with the statement and one represents fully disagree with the statement.

The survey ends with a few personal questions that could be received as sensitive to some respondents, this concerns questions like annual net income and educational title. It is a tactical consideration to put these questions at the end of the survey, to hopefully avoid people from quitting before completing the survey. Finally the survey will be translated in Korean, since it is likely that very few respondents in Euljiro are capable of speaking English. In order to effectively conduct the survey and get as many responses as possible the

decision was made to put the questions into an online program called qualtrics. The surveys will be conducted using mobile phones and tablets. After completion the results will be automatically stored into qualtrics and can be exported easily to SPSS and other programs.

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3.6 Operationalization

The questions formulated in the survey are derived from concepts posed in the theoretical and conceptual frameworks. They should be able to measure these abstract ideas by operationalizing them into indicators.

There are three variables that need to be measured: the impact of government on social capital, the amount of social capital and the amount of collective action.

3.6.1 Government

On the governmental level it is important to figure out how much the government does to support the coming about/enhancement of social capital. The level of social capital that exists within government may also be derived from the questions.

- “The government enables me to improve the neighbourhood (for example: subsidies, legal help, laws).”

- “I know which institution to contact if I want to improve the neighbourhood.” - “I think my opinion is taken seriously by governmental institutions.”

- “Regulations and/or laws restrict me to improve the neighbourhood.”

- “The government informs me on developments in this neighbourhood (for example public hearings, social media, news, etc.).”

These questions are an indicator for the governmental structure, and contributes to an understanding of the forms of collaborative governance that exist within the government. It also gives insight on the social capital of the governmental structure, and indicates if/how they are trying to enhance social capital in the area

3.6.2 Social capital

- “I often talk with people in the neighbourhood.” - “I have a lot friends in the neighbourhood.”

- “I feel a sense of community in the neighbourhood.”

- “I trust my network to make right decisions regarding the developments in the neighbourhood.”

- “I told my neighbours about my plans for developments.” - “I worry about the development of the area”

The statements above relate to the level of social capital in the neighbourhood. It aims to measure mutual trust and reciprocity of social interactions that indicate how much social capital the community is able to cultivate. It also helps to identify the current level of social capital present in the area.

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In the operationalization a distinction is made between two forms of collective action. It is important to determine the level of participation in collective action in the past and the level of participation in collective action in the future. This is important because it shows if there is a difference between the current level of collective action and the potential for collective action in the future. It might show that people are willing to participate in collective action but haven’t been able to do so up to this point or it might show that people already have been participating in collective action.

3.6.3 Collective action

There are a also questions that aim to identify the current participation and willingness to participate in collective action or forms of collaboration. The specific questions regarding this topic are listed below.

- “I have participated recently (the past 5 years) in activities to help improve the neighbourhood.”

- “I have invested a lot of time in neighbourhood improving activities.” - “I have invested a lot of money in neighbourhood improving activities.” - “I think I can help improve the neighbourhood”

- “I am willing to participate in neighbourhood improving activities”

The operationalization set up in this chapter aims to cover all of the concepts and ideas put forward in the conceptual and theoretical framework that are relevant for answering the research questions.

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Chapter 4, Research analysis

The research analysis chapter will show the results of the research. This will be done by analyzing the data gathered through the surveys conducted in the neighbourhood of Euljiro, Seoul. The first paragraphs will contain descriptive analyses, this will provide an overview of the personal characteristics of the respondents. Furthermore, descriptive statistics will be used to show the division in variables concerning collective action and social capital. After that inferential statistics are used to test the different hypotheses constructed in the conceptual framework.

4.1 Data file

The total amount of surveys conducted turned out to be 285. There were not a lot of missings, since this was incorporated in the system used to conduct the survey.

Respondents could not continue the survey before filling in every question, this limited the amount of missings in the data file.

4.2 Personal characteristics

The following graphs show some insight on the personal characteristics of the people that took the survey. The included characteristics are: age, gender, educational title, type of entrepreneur, exploitation, current living situation, net income, what is your relation to this neighbourhood, for how long have you been located in this neighbourhood, employment status and location.

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4.2.1 Age

Figure 4: Age

The following graph shows the distribution of age in the population. As you can see, a lot of the people who took the survey were of a fairly old age. The average age in Seoul lies at 41,8 years, so it seems that in this neighbourhood most of the people are older than the average age in the city (World Population Review, 2019). The median of age is in the group 46-60.

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4.2.2 Gender

As you can see in the figure above a lot of the respondents were male. In total 227 men were interviewed and 56 women. Displayed in percentages, the amount of men equals 80,2% and the amount of women equals 19,8%. This is a very unfair distribution compared to the average female/male distribution in South Korea, the male to female ratio was at a level of 100,22 males per 100 females in 2015 (Knoema, 2015). There are two missings in this question, these will not be included in the analysis.

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4.2.3 Educational title

Figure 6: educational title

The graph above shows the highest achieved educational title of the respondents. The graph is left-skewed.

In total there were 80 respondents with a university title, this equals 28,1 percent of the respondents. 18,9 percent completed junior college, 23,5 percent completed general high school, 16,5 percent completed vocational high school, 4,9 percent only completed middle school, 1,4 percent only completed primary school and 1,1% didn’t go to school at all. There were also a fifteen people who didn’t want to answer this question, this equals 5,3 percent of the total amount of respondents. There is one missing in this question, it will not be included in the analysis

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4.2.4 Type of entrepeneur

Figure 7: type of entrepeneur

As seen in the graph displayed above the respondents consist mostly of retailers and manufacturers. In percentages this means that 3,9 percent of the respondents identify as creative. Another 3,9 percent of the respondents are owners of restaurants. 54,5 percent work in retail and 37,6 percent identify as manufacturers. There are 6 missings in this question, these will not be included in the analysis.

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4.2.5 Exploitation

The following figure shows the percentages of people that own or rent their property. Most of the people in Euljiro rent their property, this might have implications for their willingness to cooperate in neighbourhood improving activities since one might expect that renters have less interest in improving the area than owners. This is derived from the assumption that owners are more connected with their local area than renters (Kremer, 2010). There are four missings in this question, these will not be included in the analysis.

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4.2.6 Current living situation

Figure 9: current living situation

There are five possible answers to this question, solitary, with partner, with family, with roommate and other. As you can see in the graph most respondents live with their family, this equals to an amount of 63,7 percent of the total. There is one missing in this question, it will not be included in the analysis

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4.2.7 Annual net income

The annual income was divided into different categories. 0-15 million won, 15-30 million won, 30-45 million won, 45-60 million won, 60+ million won and also the option “i do not want to answer this question”. Actually quite a few respondents did not want to answer this

question, 64 people which equals an amount of 22,5 percent of the total pool of respondents. In the graph below you can see the exact distribution of the income levels. The average income in Seoul equals about 38 million won, this is somewhat similar to the median in our dataset (National tax statistics, 2016). There are two missings in this question, these will not be included in the analysis.

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4.2.8 Relation to the neighbourhood

There are four possible answers to this question: resident, entrepreneur, employee and both resident and work. As you can see in figure 11 most people in the neighbourhood are

entrepreneurs, a total of 73,3 percent of the data file. There are two missings in this question, these will not be included in the analysis

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