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INVESTING AND REINVESTING IN SOCIAL CAPITAL: THE SPILL-OVER EFFECTS OF SOCIAL CAPITAL IN SELF-HELP GROUPS

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Correspondence to: Belinda Luke, Queensland University of Technology, GPO Box 2434, Brisbane, QLD 4000, Australia

E-mail: b.luke@qut.edu.au

Abstract

Social capital is considered fundamental to microfinance programmes adopting a self-help group (SHG) model and in facilitating community development. This report examines the collective benefits of social capital facilitated through SHGs within the broader (local) community. Findings highlight that social capital initially developed within SHGs resulted in a number of collaborative community projects. Although these projects developed tangible community assets, they also created social value through the underlying processes of joint activity and collaboration. This ‘spill-over’ of social capital reflects a re-investment of social capital generated from microfinance programmes, with important implications for collective poverty alleviation initiatives. Copyright © 2013 John Wiley & Sons, Ltd.

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