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Social Capital Initiative Working Papers

A growing body of evidence indicates that the size and density of social networks and institutions, and the nature of interpersonal interactions, significantly affect the efficiency and sustainability of development programs. Yet the exact channels through which social capital impacts developmental outcomes have only begun to be explored, and the lessons to be drawn from these observations for program design and implementation remain to be formulated.

To help advance the theoretical understanding and the practical relevance of this concept, the Government of Denmark provided the World Bank with resources of about US $1.0 million to support operations which promote and strengthen social capital, and to develop indicators and methodologies to learn from this experience. Started in October 1996 and located in the Social Development Department of the World Bank, this Social Capital Initiative (SCI) includes 12 original research projects, a conceptual framework, literature reviews, annotated bibliographies, and associated activities.

The Social Capital Initiative was started in October 1996 with a triple goal:

  1. to assess the impact of social capital on project effectiveness;

  2. to demonstrate that outside assistance can help in the process of social capital formation;

  3. and to contribute to the development of indicators for monitoring social capital and methodologies for measuring its impact on development.

To achieve this multiple goal, the SCI team (located in SDV) solicited project proposals from task managers within the Bank. Forty proposals were received and reviewed by a Steering Committee between December 1996 and April 1997. Twelve proposals were selected for funding on the basis of their perceived ability to test two central hypotheses:

The presence of social capital improves the effectiveness of development projects; and
Through select donor-supported interventions, it is possible to stimulate the accumulation of social capital.

These hypotheses were broadly formulated so as to make possible a wide array of interventions and monitoring methodologies. In addition, since one of the goals of the project is to encourage different approaches to the measurement and monitoring of social capital, innovation in methodology was a prime consideration for project selection, as was the ability to obtain results within a two-year time horizon.

The studies that constitute the empirical center of the Social Capital Initiative have been classified in four categories, among which there is some degree of overlap. They examine, using a wide variety of qualitative and quantitative methods, the role that social capital can play in the provision of goods and services, the reconstruction or revitalization of social capital after conflict or political transition, rural development efforts, and enterprise development.


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