The theory of social capital cannot be universally applied unless it is contextualised according to the local conditions of a given society. Based on extensive field research in Dhaka and Chittagong the author shows that collective action works well when the public has confidence in the prevailing law and order situation. The ZEF Development Studies are edited by the Department of Political and Cultural Change, ZEF-Zentrum für Entwicklungsforschung/Center for Development Research, University of Bonn.