The paper evaluates social capital, particularly, trust, civic participation and communication in informal social networks as factors that may contribute to the modernization in Ukraine. Studies on the relationship between social capital and socio- economic development were reviewed.
Using structural equation modeling, a model of the social capital as a resource of institutional effectiveness was developed based on the European Social Survey for Ukraine.
It is proved that in Ukrainian society the problem is not the absence or deficiency of social capital, but the weakness of its civic impact.
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