Theory of Social Capital

The theory of social capital refers to the value derived from the networks, relationships, trust, and norms within a community or society. It emphasizes that strong social connections facilitate cooperation, mutual support, and information sharing, which can improve economic prospects, civic engagement, and overall well-being. Essentially, social capital acts as a form of collective resource, where trusted relationships enable smoother transactions and cooperation, benefiting individuals and the community as a whole. It highlights how social bonds are vital for creating resilient, healthy, and thriving societies.