Institutional foundations of social capital

Social capital is a central concept in the social sciences mostly stimulated by the works of Bourdieu, Coleman and Putnam. Social capital is understood as the value of interpersonal relationships and the norms that arise from them. Thus, next to individual-level explanations, scholars have emphasized the role of political institutions in shaping individuals’ levels of social capital. This chapter distinguishes between different institutional configurations and how these affect varieties of social capital. To create social capital, institutions have to possess three qualities: universalism, fairness, and power-sharing capabilities. Institutions that hold these qualities are capable of enhancing social capital while those that do not possess such qualities are likely to harm social capital development. Furthermore, the chapter examines how the fairness, universalism, and power-sharing capabilities of institutions counteract rising inequalities, thereby guaranteeing social cohesion through the consolidation of social capital.