Can social capital save places?

When we think of what makes a place, the things that occupy physical space come to mind: museums and monuments; shops and streets; parks and playgrounds. These physical structures dominate debates around place-based transformation because of our tangible connection with our physical environments.   

Improving such “hard civic infrastructure” is important, and can be a source of huge pride in place as well as a catalyst for investment and economic opportunities. But we neglect “soft civic infrastructure” – or social capital – at our peril.  

Social capital then… and now

In 1993, political scientist Robert Putnam  highlighted the link between effective governments and civic engagement in his book Making Democracy Work: Civic Traditions in Modern Italy.  His later works, like Bowling Alone, warned of its decline in the United States and ignited widespread research into this invisible yet essential force that underpins collaboration within communities—trust, networks, and civic participation. 

Yet progress on social capital has stalled. In April 2023, U.S. Surgeon General Vivek Murthy called loneliness an “epidemic” with serious consequences for public health. And OECD data shows that since 2010, key indicators of social capital have shown little or no progress.  

Trust in public institutions has risen by just three percentage points across OECD countries, after a dramatic drop during the 2007-08 financial crisis. This stagnation is worrying, especially as trust is critical for collective action in addressing today’s challenges — from climate change to political polarisation. 

Trends in Social Capital Across OECD Countries (2010 – 23)

The evolution of social capital’s key measures

Meanwhile the need for social capital has grown. At a recent OECD seminar “The Role of Social Capital in Place Transformation”, Asimina Christoforou, an Assistant Professor in the Department of Economic and Regional Development at Panteion University in Athens highlighted the importance of social capital in an era of multiple crises. She spoke about financial, health, environmental crises with life-threatening consequences due to pollution, illness, social segregation, political polarisation, and military conflict. In her view, it is only through broader social co-operation and participation that we can stand up against the calamities of our times. 

Building community capital

The urgency to rebuild civic health has never been clearer. Yet amid this bleak situation, there are many innovative efforts shining a light on the way forward. At the seminar, Matt Leach, Chief Executive of Local Trust highlighted how social capital drives outcomes in health, education, and economic opportunity. Local Trust’s Big Local programme exemplifies this, investing £1 million each in 150 “left-behind” communities across England to foster local partnerships and empower residents to shape their futures.  

The Jefferson Education Society (JES), a non-partisan think tank, shares a similar ethos. By promoting civic engagement and spurring and partnering in local planning initiatives, like the “Infinite Erie” project—which maintains a community and economic development strategy that outlines some-35 transformational investment opportunities requiring more than $1 billion in funding with nearly $45 million already secured — JES demonstrates the transformative power of locally driven approaches. 

Another standout example is Community Heart & Soul, a grassroots development model uniting residents and officials to co-create policies centred on community well-being. This approach has spread to towns across 25 U.S. states, proving that social capital can be nurtured with intentional, inclusive planning. 

Meanwhile, academics are shining a light into “what works.” U.S. scholars Daniel Aldrich and Timothy Fraser presented their work mapping social infrastructure and social capital across 25 U.S. cities. They found that the more places – libraries, places of worship, coffeeshops, other “third places” – people have to gather, the stronger a community’s ties within it are. Their research may just be the kind of inspiration we need now to get social capital back on track. 

A future built on social bonds

To revitalise places, policy makers must go beyond physical infrastructure and prioritise rebuilding social capital. This means creating inclusive spaces, empowering local voices, and cultivating trust. By strengthening the social fabric, we can bridge divides and face the future as united communities. And the results might just surprise us.