SOCIAL CAPITAL EFFECTS ON RURAL HOUSEHOLD POVERTY IN MSINGA, KWAZULU-NATAL, SOUTH AFRICA

This study examined the relationship between rural households' social capital and poverty. Primary data were collected using a structured questionnaire from a representative sample of 300 rural households in Msinga, KwaZulu-Natal. The study used a logistic regression model to examine the effect of social capital on household poverty, testing the hypothesis that the possession of social capital reduces household poverty. The result of the logistic regression model indicated that, in addition to the demographic and socio-economic characteristics of some households, social capital endowments have a statistically significant negative effect on the probability of a household being poor. The study concluded that, among other factors, social capital is very important to reduce household poverty. Policy implications were discussed.