Social Capital: How is it Relevant to Development?

Abstract

Contemporary development approaches have significantly departed from government-led top-down approaches to empower community members and improve their living conditions. This article reviews the theoretical and empirical literature on social capital to illustrate how the major components of social capital, particularly social networks, trust, informal institutions, and collective action, enhance development. Since notions of social capital are relatively new in Nepal, the article informs policymakers, development practitioners, and social organizations in creating and harnessing social capital to enhance development outcomes.