Abstract
This study explores how social capital and socioeconomic variations in slum areas influence the fostering of social trust and confidence in the institutions. Through a multivariate analysis using 497 households in slum areas of Addis Ababa, the paper investigates how social capital dimensions and human and economic characteristics of the households are related to social trust and confidence in the institutions. It is shown that social trust and confidence in institutions are highly associated with increased participation in local associations and pattern of reciprocity among inhabitants. These findings provide qualified support for the systemic model of local social organization but challenge theories of social disorganization that predict lower levels of social capital in impoverished communities.
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