There are several definitions of social capital/community capacity but they all tend to focus on the idea of ‘networks’ of individuals and the ‘shared values’ that arise from living together. The Organisation for Economic Co-operation and Development (OECD) defines social capital as "networks together with shared norms, values and understandings that facilitate co-operation within or among groups".
Networks arise from the common interests of groups of people. Groups can be defined by reference to geography (e.g. a neighbourhood, a village), membership of organisations (e.g. professional associations, hobby groups, religious and voluntary bodies), social connections (e.g. family, a group of friends, an informal club) and even virtual (online) groups. The second phase of the RERC research programme is concerned with the wider context in which rural social networks arise and includes detailed case studies of social capital generated in particular places.
Social capital is of interest to policy makers because it is suggested that higher levels of social capital more groups and more interaction between members of groups can lead to better social and economic outcomes and, generally, a more fulfilling life (ONS 2001). Defra’s Rural Social and Community Programme is designed to develop the capacity of the rural voluntary and parish council sectors to address important rural social issues and tackle the causes of rural social exclusion.