Department of Family and Community Services or the

Communities,SocialCapitalandPublicPolicy:LiteratureReviewDavidJohnson,BruceHeadeyandBenJensenMelbourneInstituteofAppliedEconomicandSocialResearchTheUniversityofMelbourneMelbourneInstituteWorkingPaperNo.26/03ISSN1328-4991(Print)ISSN1447-5863(Online)ISBN0734031394November2003*WewouldliketothanktheDepartmentofFamilyandCommunityServicesforfundingthisresearch.TheviewsexpressedinthispaperarethoseoftheauthorsanddonotrepresenttheviewsoftheMinisterforFamilyandCommunityServices,theDepartmentofFamilyandCommunityServicesortheCommonwealthGovernment.MelbourneInstituteofAppliedEconomicandSocialResearchTheUniversityofMelbourneVictoria3010AustraliaTelephone(03)83443701Fax(03)[e-mail]:competingdefinitions.............................................................333.2Whatproducessocialcapital?........................................................................363.3Theclaimedbenefitsofsocialcapital............................................................393.4Australiansocialcapital.................................................................................474.Strengtheningcommunities............................................................534.1Localareainitiatives......................................................................................534.2Regionalsocialandeconomicplanswithcommunitybuildingaspects........594.3Nationallevelpolicy......................................................................................605.Concludingcomments.....................................................................625.1Principles........................................................................................................625.2Governanceissues..........................................................................................715.3Conclusions,nextsteps,furtherresearch.......................................................74References............................................................................................7541.Introduction1.1AimsofthisreviewThepurposeofthisliteraturereviewistoclarifyissuesandassessevidenceinrelationto:-•Conceptsandcompetingdefinitionsofcommunityandsocialcapital;•Measurement-howbesttomeasurecommunityintegration,socialnetworksandsocialcapital;and•Empiricalclaimsaboutthesources,andthepotentialbenefitsandcostsofstrongercommunitiesandsocialcapital.Itisnottheaimofthereviewtoconductadetailedevaluationofpolicyprogramsandotherinterventionsintendedtoenhancecommunityandsocialcapital.Weincludeasectiononpolicyprogramsatthelocal,regionalandnationallevels,bu