ABSTRACT
Local economic development practitioners recognize that social relationships and networks shape local economies. Yet academic research is only starting to incorporate social resources into economic development practice. The emerging concept of social capital promises to be useful towards this end. Its integration into local economic development theory has potential to illuminate existing development strategies, suggest new approaches, and bridge the divide between community and economic development. Section I describes the concept of social capital and considers why there has been resistance to it among some scholars. Next, the resonance of social capital in many local economic development strategies is reviewed. Understanding social capital can illuminate how these approaches operate and improve implementation. Section III describes how social capital operates in the social economy. Finally, local management of a community’s social capital is discussed.
