ABSTRACT
The impact of social capital in the realms of public policy, such as education, public health and the environment, is well documented. However, the role of social capital in the formation and implementation of public policy is a rather unexplored area. A paradigm shift in public policy-making has created more room for social capital in this arena. Modern government is no longer considered to be effective in formulating and implementing public policies on its own; there is a need for new types of societal involvement in policy-making. Therefore, governance, as opposed to government, is a more crowded policy-making arena, working towards achieving common goals instead of simply regulating and controlling. The boundary between the public and private sector has become blurred and the balance has shifted between two extreme paradigms. Everything is left either to the state or to the market.
