Social capital and poverty of the wage‐labour class: problems with the social capital theory

Social capital, understood as norms of reciprocity and associational life, is supposed to provide a bottom‐up approach to poverty alleviation world‐wide. The World Bank says that social capital is a necessary condition for long‐term development and that social capital is the capital of the poor. This paper will argue that much of the literature is too sanguine of the benefits of social capital for the poor. It is, of course, important to look at the extent to which social capital can help the poor. But how the conditions of the poor people can also affect their social capital is equally important to examine, and this has often been neglected by many scholars who have been busy to prove that social capital is a new paradigm of development. Based on qualitative interviews in two rural areas in Orissa, eastern India, this paper seeks to examine whether and to what extent poor people of the daily wage labour class benefit from their social capital. It then goes on to unpack the mechanisms in which the economic‐political conditions under which poor people live and the spatiality of these conditions affect the production of social capital. By seeking to unpack the dialectical relation between social capital and poverty, the paper aims at problematizing the overly optimistic claims about social capital. It shows that it is untenable to posit social capital as an independent variable and poverty as a dependent variable because the economic‐political conditions of poor people have an enormous constraining effect on social capital itself and its supposed material benefits for the poor.