Evidence from studies across Latin America show that rural households in the region are increasingly employing a diverse set of activities to maintain and improve livelihoods suggesting that households use multiple paths to get out of poverty. Of particular importance in household livelihood strategies are the assets households own and the context in which they operate. Recent development literature has highlighted the important role of social capital in development and particular emphasis is place on the role of this asset in this paper. The objective of this paper is to examine these trends in order to inform project design and implementation in the region. Based on the conceptual framework and evidence from Latin America, the paper offers a number of suggestions for improving project design and implementation in Latin America.