Social Capital

There is much debate about what exactly is meant by the term ‘social capital’. In the context of the sustainable livelihoods framework it is taken to mean the social resources upon which people draw in pursuit of their livelihood objectives. These are developed through:

• Networks and connectedness, either vertical (patron/client) or horizontal (between individuals with shared interests) that increase people’s trust and ability to work together and expand their access to wider institutions, such as political or civic bodies;

• Membership of more formalised groups which often entails adherence to mutually-agreed or commonly accepted rules, norms and sanctions; and

• Relationships of trust, reciprocity and exchanges that facilitate co-operation, reduce transaction costs and may provide the basis for informal safety nets amongst the poor.

The above are all inter-related. For example, membership of groups and associations can extend people’s access to and influence over other institutions. Likewise trust is likely to develop between people who are connected through kinship relations or otherwise.

Of all the five livelihood building blocks, social capital is the most intimately connected to Transforming Structures and Processes. In fact, it can be useful to think of social capital as a product of these structures and processes, though this over-simplifies the relationship. Structures and processes might themselves be products of social capital; the relationship goes two ways and can be selfreinforcing.

For example:

• When people are already linked through common norms and sanctions they may be more likely to form new organisations to pursue their interests; and

• Strong civil society groups help people to shape policies and ensure that their interests are reflected in legislation.

Some people choose to distinguish between social capital and ‘political capital’, derived from access to wider institutions of society. Though we do not make this distinction here, this should not be taken to suggest a ‘downgrading’ of the importance of political factors and issues of access beyond the community.

As well as having its own intrinsic value, social capital may be particularly important as a ‘resource of last resort’ for the poor and vulnerable.

It can:

• provide a buffer that helps them cope with shocks, such as death in the family;

• Act as an informal safety net to ensure survival during periods of intense insecurity; and

• compensate for a lack of other types of capital (e.g. shared labour groups compensating for limited human capital within the household).