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Social Capital and Local Development

UNIVERSITY OF FLORENCE, ITALY

The concept of social capital has become more important in understanding contemporary economic development in the era of globalization. This concept, however, requires a theoretical framework that could help to distinguish between forms of social capital with positive effects on local development and other forms that may have negative consequences. This article argues that in order to understand this difference, two conditions are crucial. First, social capital has to be considered in terms of social relations and social networks, rather than in terms of culture and civicness. The second condition is that the interaction between social capital and other institutions, especially political institutions, has to be carefully analysed. Therefore, this article points to the crucial role of political factors - of the `embedded autonomy' of political action - in favouring a positive role of social capital in local economic development.

Key Words: development policies • globalization • local development • social capital

European Journal of Social Theory, Vol. 4, No. 4, 427-442 (2001)
DOI: 10.1177/13684310122225244


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