The nexus between social capital and development: a literature review

Abstract

The nexus between social capital (SC) and development is subtly and mildly displayed. Few implicit attempts promoting this connection sometimes pass unnoticed. This paper connects the muscles and ligaments between the two. It is revealed that SC forms the conditions and sets indicators for socio-cultural and economic development. SC is an integrative resource capability in institutional set-up, it plays an integrative and facilitative role, and without it other capital mobilization, formation, acquisition and maintenance can be difficult and problematic. There are arguments that entrepreneurial actions, the creation and combination of resources that create new heterogeneous resources and finally economic development, can only be possible with reasonable availability of SC. This paper attempts to confirm that though it is recognized that the principal capital needed for any development and entrepreneurial endeavour is finance, critical resources are typical non-financial, particularly SC. Thus, SC can be recognized as a tool for development processes.

Keywords: social capital, development policy, participatory approach