Social capital formation: The role of NGO rural development programs in Bangladesh

Social capital can be generated by the expectations of the rural poor who are victimized by government and market failures. The demands of the rural poor of Bangladesh for economic and social goods and services, for example, have been instrumental to their economic and social well-being. Cooperation based on mutual trust and norms of reciprocity contributes to the creation of other kinds of capital, especially economic and human capital, that are mutually reinforcing. Both governments and the NGOs make use of social capital as a tool for implementing poverty policies.