Table 2

Table 2. Some suggested principles for each of the capital assets, with examples of criteria for each
of the principles. The example is for illustrative purposes only: the principles should not be seen as definitive.


Capital asset	Principle	Examples of a criterion for each of the principles

Natural capital	Options for future use are maintained.	Processes that maintain biodiversity are conserved.

	Yield and quality of natural resource goods and services are maintained or improved.	Ecosystem function is maintained.

Financial capital	Financial capital is circulated within the system.	Service and commodity outlets expand in the local and district centers.

	Financial capital grows and is equitably distributed.	Residents have reasonable share in economic benefits derived from resource use.

Physical capital	Physical capital is maintained or improved over time.	Housing physical status is maintained or improved.

Human capital	Ability to provide added value is improved over time.	Greater array of value-added products are produced locally.

	Improved and equitable distribution of human capital.	Level of skills with respect to running committees and organizations is improved.

Social capital^a	Maintenance of systems of social reciprocity.	Economic and other shocks are buffered by systems of social reciprocity.

	Maintenance of a set of dynamic rules and norms.	Local rules are effective in controlling access to resources.

^a We include organizational capital within this, although it could be argued that it forms a separate capital
asset (e.g., see Bossel 1998). This covers, for example, by-laws at a district level and cultural norms and local rules at the community level.