Community capacity and micro-economic development: a study from Peru

A secondary analysis of survey data collected in 1999 was conducted to explore the associations between community capacity and micro-economic development in 20 communities of Peru's mountain region. Elements of community capacity are human capital, social capital and organisational resources. Indicators of micro-economic development are annual household income in soles (Peruvian currency) and perceptions of changes in income and property. Findings revealed that human capital was the most significant predictor of income. Social capital was a significant predictor of the belief that amount of property had increased but not a significant predictor of the belief that incomes had increased. Participation in a development programme for a year or more was the only significant predictor of all three indicators of micro-economic development.