Beyond Paternalism Towards Social Capital: Local Governance Reform in Portugal

An urge to reform local government in Portugal requires a sensitive approach to the role of social capital and, particularly, to the consequences of local governance arrangements in its formation. This research agenda, greatly influenced by the identification of positive externalities of social capital, has generated several claims regarding the need for proactive and objective top-down initiatives. Though assuming that institutions and public policies can have positive effects on social capital building, this article tries to contribute to the debate, focusing on the challenges met by local administration reform, arguing that it requires a four-fold approach: the identification of local government functions and the role of the State; a close look at institutional design and citizen engagement mechanisms; correct tools for allowing civil society reinforcement and social capital building; and recognizing political leadership as a fundamental aspect of a governance arrangement.