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The concept of social capital has acquired some currency amongst policy analysts to refer to the social norms, networks and trust that facilitate co-operation and provision of mutual support within or between groups. As yet there is no agreed definition of the concept; however influential Australian policy bodies are developing measures to track changes in social capital and relate these to policy changes. Most research is concerned with exploration of the concept in locality-based communities and its application to developing societies. This paper reviews research undertaken in Australia and overseas to determine the elements of social capital that may have importance in relation to policy development in response to an ageing population. It concludes that the concept could be of considerable value in understanding the determinants of policy success or failure, but that further research is required to understand the nature of social capital as it relates to older people. [ABSTRACT FROM AUTHOR]