ABSTRACT
Social capital is best studied in the context of the contribution it makes to sustainable development. Defining sustainability as opportunity requires looking beyond traditional measures of sustainability to existing stocks of wealth, genuine saving rates, and human and social capital. The three views on social capital progressively broaden the concept and the first includes informal and local horizontal associations, while the second adds hierarchical associations. The third interpretation builds on the first two, adding formalized national structures such as government and the rule of law. There is growing evidence that social capital can have an impact on development outcomes, including growth, equity, and poverty alleviation. Associations and institutions provide an informal framework for sharing information, coordinating activities, and making collective decisions. The chapter argues that an integrated view of social capital is an important step toward measuring and operationalizing the concept. Sometimes micro- and macrolevel institutions fail to develop shared norms or overcome distrust.
