The article attempts to assess the use and usefulness of the concept of ‘social capital’. First, it assesses its differing conceptual uses in the works of four key writers, Pierre Bourdieu, Gary S. Becker, James S. Coleman and Robert D. Putnam, identifying broadly a problematic ‘social capital as social fact’ perspective associated with Putnam, and a more promising ‘contacts with influential people’ approach that can be derived from Bourdieu. It then considers the practical uses already made of the former approach in the development studies literature, before addressing some of the analytical problems associated with applying the latter in a policy environment. Finally, it takes three short examples from research in rural Central and Eastern Europe to illustrate how the concept can be used to both analyse social relations and suggest policy priorities. The article's conclusion is that ‘social capital’ of any variety is by no means the ‘missing link’ in development economics, yet ‘social capital’ of the Bourdieu-derived kind can be a useful, work-a-day concept in social analysis.