About the Paper
“It’s not what you know, it’s who you know.” The authors begin by discussing this conventional wisdom around the importance of social capital. We know intuitively that our family, friends and coworkers are important assets. We also know that social ties sometimes have the potential to be liabilities instead of assets. The paper goes on to introduce a more formal definition of social capital: the norms and networks that enable people to act collectively.
The remainder of the paper discusses the meaning of social capital as it relates to economic development, and traces the evolution of research around the concept. The authors organize insights into four categories: communitarian, networks, institutional and synergy. They conclude by offering six broad recommendations for incorporating the concept of social capital into development policy.
Woolcock, Michael; Narayan, Deepa. 2000. “Social capital: implications for development theory, research, and policy (English)”. The World Bank research observer. — Vol. 15, no. 2 (August 2000), pp. 25-249.