Operationalizing Social Capital: A Strategy to Enhance Communities' "Capacity to Concert"

This article addresses a concern increasingly being voiced in the donor establishment: fifty years of development assistance programs have failed to produce conclusive evidence that they can foster sustainable economic and social development in poor countries. The nature of donor programs is such that it emphasizes economic remedies and orients aid to finite projects. Yet recent evidence suggests that sustained development may be more a continued civic process whereby communities form their capacity to come to their own understandings about public ways of behaving and relating, whereby they develop their capacity to concert. This translates into a practical capability to pinpoint underlying problems, assess alternative approaches, and devise solutions most likely to be sustained. This micro capability may also have important macroeconomic implications in terms of institutional predictability and—through it—in terms of scale economies, transaction costs, transparency, incentive to innovate, and climate to implement public policies. The article suggests an alternative approach to development assistance and offers concrete recommendations to donors.