What is social capital?

Social capital refers to the networks, relationships, and social connections that exist within a community or society, which can facilitate cooperation and collective action for mutual benefit. It embodies the idea that relationships among individuals can be a valuable asset, promoting trust, shared values, and norms that enhance the functioning of a society.

Having strong social capital can lead to improved communication, collaboration, and access to resources, as people leverage their social networks to achieve outcomes that may not be possible when acting independently. This interconnectedness can significantly impact various societal outcomes, including economic performance, community development, and even individual well-being.

The other options focus on different aspects of capital: financial resources pertain to monetary assets, skills through education are more aligned with human capital, and total family wealth speaks directly to economic capital. Social capital stands apart as it emphasizes the importance of social networks and relations rather than purely economic or educational measures.