This essay considers the link between social capital and economic growth, making the case for a greater focus on social capital in policy and practice. Despite solid evidence of the effect social capital has on growth, inequality and opportunity, it remains curiously neglected by most economic ministries. Though hard to measure and define, the evidence is clear – social capital is of profound value to individuals, communities and nations. 

The essay summarises why social capital matters, how it has changed and what policymakers can do to strengthen it. It examines social capital and the contribution that strengthening it makes to improving economic and social outcomes, including for children, improving health and wellbeing, and reducing crime and antisocial behaviour. 

The paper concludes social capital appears to be one of the most important, but neglected, factors in explaining the growth of economies and the health of our societies. Differences in social capital appear to explain far more about patterns of social mobility and wellbeing than was previously thought.

It builds on ideas presented in the paper, The preventative state: rebuilding our local, social and civic foundations.