ABSTRACT
As societies develop and modernize, the basis for societal wellbeing requires a qualitative shift from exclusive loyalty to primary groups to networks of secondary associations (Narayan 2002). This transition is not assured. Although social capital exists to some degree in all communities, its strength and quality can vary. The problem for social capital development is in how to combine the strength of social solidarities at the village level to reach across multiple villages and integrate the community into the evolving socio-economic context. Given that social capital is tied to specific organizational forms (Warren et al. 2001; Evans 1996), it seems that decentralization, bringing government closer to the community, would provide a fertile context for local populations to strengthen these social solidarities. This chapter investigates how and why decentralization of administrative structures has shaped social capital formation in one community.
