Social capital construction and the role of the local state

AS globalization weakens the role of the nation state, increased theoretica l and practical attention is being focused on community level action, espec ially on the role of social capital. Proponents of social capital have plac ed primary emphasis on voluntary associations. This paper looks at the role the state can play in building social capital. The historical nature of so cial capital in the community, the organizational structure of governmental intermediaries, and the design of specific program interventions condition social capital building. Hierarchical governmental intermediaries are cont rasted with participatory community based initiatives. Three key factors: a utonomy, linkage and returns on investment for both intermediaries and part icipating residents, are shown to affect social capital construction.