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Resources: Quick guide to... Social capital

2 mins read

But what is social capital? If you are not sure, join the club. But read the quick guide first.

1 Ordinary capital is wealth and possessions that are not needed for everyday spending. Human capital is the knowledge that people can store up in themselves. Knowing how to write a computer program, chair a meeting or fix a boiler are assets, both for individuals and for society. Human capital is why education matters so much to politicians.

2 Social capital is different from both of the above. It refers to the networks of relationships that exist within a community, and the "favour bank" of mutual help and trust between people. That's friends, acquaintances, mates of mates, as well as people who belong to the same faith group, society or project. There is no specific cash value to social capital.

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