Society is a three-legged stool made up of the market sector, government sector and civil sector. The first leg creates market capital, the second leg creates public capital and the third leg creates social capital. Of the three legs, the oldest and most important, but least acknowledged, is the third sector. It is also the most environmentally benign form of capital; the primary resource that makes up social capital is human energy extended to others to create a social good.
In the old scheme of things, finding the proper balance between the market and government dominated political discussion. In the new scheme, finding a balance between the market, government and civil sector becomes paramount.
Focusing on the creation of social capital rather than the continued expenditure of public capital puts the challenge and responsibility for community development directly in the hands of the groups affected. The creation and expenditure of social capital builds self-determination and sustainability and offers an alternative to the continued reliance on government-run welfare programmes which create a syndrome of dependency.