The quantity, quality and persistence of social interactions among neighbors, friends and members of groups and associations, generate social capital and the ability to work together for a common good. This is especially important for the poor. Social capital increases with use, making it a particularly worthwhile investment. Communities do not exist in a vacuum. A country's political environment, cultural factors and, increasingly, the global economic environment can make it easier for social capital to flourish or fade at the community level.
Historical context plays a role.
Social Capital Benefits Communities Social capital offers many benefits to communities. Relationships with kin, neighbors and friends are an important safety net, and are crucial to survival when formal safety nets are absent or inadequate. It can open new opportunities for poor people and help their communities grow economically. The same social ties which enable community members to work together can exclude outsiders. Groups which engender social capital can also act as exclusive cliques.