ABSTRACT
For many years, economists referred to three forms of capital: financial capital, physical capital (that is fixed and moveable resources) and human capital (which comprises knowledge and technical skills). To these has been added another form of resource, termed social capital. This has been defined as ‘the glue that holds society together’. More specifically, Putnam describes it as the ‘features of social life – networks, norms and trust – that facilitate co-operation and coordination for mutual benefit’. Like other forms of capital, it produces great economic and social returns. Researchers have linked high levels of social capital with improved economic performance, better educational outcomes, low crime rates, increased judicial efficiency, more effective government, social peace and a healthier population.1
