The Complementary Roles of Human and Social Capital

Introduction This paper discusses the relationship between human and social capital, first raised by James Coleman (1988). The paper begins with a brief account of three different forms of capital: human, social and cultural. It considers why at the conceptual level social capital is relevant to policy formation. It provides a sample of approaches to the analysis of social capital, a framework for considering its relationship to human capital and the complementarities and tensions within this relationship. It concludes with some policy implications. The tone throughout is heuristic rather than definitive; that is to say, it encourages questions and reflection rather than providing answers. In my view it is this heuristic quality which is the primary, and very powerful, advantage of the concept of social capital. The paper derives from a number of potential paradoxes: a. Individual choice has rarely been so dominant, as household consumption levels rise, product customisation spreads, and public services become more consumeroriented in their ethos. The growth of human capital is part of this, as individuals develop the skills and knowledge needed to participate in a modern economy. Yet at the margins of this dominance is a recognition that individual autonomy loses its effectiveness if it is divorced from social relationships, and is threatened by lack of social cohesion.