The social networks of local economy; a case study on Sierra Gaucha

Abstract

The paper analyzes social networks of reciprocity and labor at Veranópolis municipality and its region, Rio Grande do Sul state (Brazil). The aim is examine the emergence of the labor networks and how these networks are based in reciprocity, closeness relations and kinship. The study focuses on three types of networks, engaged to: 1) fruit traders, 2) micro fusion industries, 3) shoes and sporting goods industries. The study concluded that reciprocity, closeness and kinship were constructed as social mechanisms for the emergence of labor and social networks. The networks contribute, in an important way, giving dynamism to the rural and urban economy of the territory, and diversifying the labor market. Hence, the labor and reciprocity networks structure interactions between social actors, constituting a mode of regulate the markets and the economic competition.

Key words: social networks; reciprocity; local development.