In recent decades, the concept of social capital has had an enormous impact on the social scientific debate, primarily through the works of Robert Putnam (1993, 2000). My view is that, despite its vagueness and the difficulties involved in operationalizing it, the concept expresses a distinction that is of significance for the maintenance and depth of democracy in different societies. At the same time, I am not convinced by the overarching thesis which Putnam puts forward concerning the fundamental role of associations and social networks in the creation of social capital. In this article I apply and develop further the views and the critique of Putnam put forward by, among others, Bo Rothstein (2005), relating to the role of what are termed universal institutions, and primarily of one such institution, the general school system, in creating social capital. My discussion gradually homes in on Swedish society and the changes it has undergone in recent decades. I also examine Rothstein’s term “universal institution” with reference to the Swedish compulsory school system.