Social Capital and its “Downside”: The Impact on Sustainability of Induced Community-Based Organizations in Nepal

SummaryThis paper examines the role of social capital in the sustainability of induced community-based organizations (CBOs). Quantitative and qualitative data were collected from 14 villages and 129 CBOs in Southern Nepal. This paper argues that social capital can be both positive and negative, affecting collective action and the sustainability of CBOs. Major problems include rule breaking with impunity and elite capture of resources, especially during the transition phase from external to internal management. While external agencies play an important role in inducing and sustaining CBOs, they should also address the complex issue of social capital and its downside.