Within Bourdieu’s (1986) essay on forms of capital, economic capital refers to material assets that are ‘immediately and directly convertible into money and may be institutionalised in the form of property rights’ (Bourdieu 1986, p 242). Economic capital includes all kinds of material resources such as financial resources or resources with exchange value including land and property. However, key to Bourdieu’s analysis was his observation that other forms of capital (social and cultural) can be convertible to economic capital through enabling processes, such as education or social obligations or connections. Moreover, economic capital afforded opportunities for developing or acquiring further stocks of social and cultural capital, providing a positive feedback loop, suggesting that the complex interplay of economic, social and cultural capital could be mutually reinforcing.
Understanding and exploiting this complex interplay between economic capital and other forms of capital has been hugely influential as both an explanation of the differential economic performance of rural places and also for rethinking rural development policy and practice. This implies moving beyond traditional economics to focus on the economic potential of tangible and intangible resources or assets. The variable economic performance of rural regions and localities has been the focus of much debate over the last two decades or more. As recorded by Bryden and Munro (2001), differences in economic development success between rural localities may be explained by the interplay of global and local factors. The external environment of rural regions, for example, is affected by current globalisation processes and by macro-economic conditions.
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