The report delves into the positive and negative effects of social capital for broader processes of democratisation and social cohesion. The research examines membership of clubs, societies, organisations and associations in BiH, or ‘associational life.’ On the positive side, civil society is observed as providing the basis for more bridging and diverse social ties and, as such, is more inclusive. Strengthening associational life in BiH would help to overcome some of the more significant social cleavages. In contrast, the report also looks at the downside of a society so strongly based on family networks and the potential for those networks to produce and reproduce inequalities through nepotism, clientelism and cronyism.