Traditional cognitive theories tend to view competencies as acontextual strategies in problem- solving within particular situations. Competencies, in those approaches, are usually regarded as disconnected from settings and environments, and enquiries focus on mental processes of the individual and/ or the expression of mental processes observed by the individual's behaviour. This kind of research often does not bear in mind that the individual's contexts, in terms of culture and social surroundings, may play a significant role in the development of cognition. The purpose of this paper is to present some findings from a doctoral thesis in which the author focuses on the cultural and social contexts and their connection towards the competencies of German fourth grade children. Data are based upon a student assessment study called 'Competencies and Attitudes of Students - 4th grade' (KESS 4) which has been carried out in the metropolis of Hamburg, Germany, in the summer of 2003. The study involved collecting survey-data of about 14.000 pupils and parents as well as the data of about 1500 teachers and 250 Headmistresses and Headmasters. Embedded in the larger context of cultural theories in sociology, psychology and education sciences the doctoral thesis is based upon the theoretical framework of learning in social situations like the three dimensional learning theory of Illeries (2002), the socio-ecological approach towards development of Bronfenbrenner (1993) and the ecocultural perspective of Berry (2004). The main question of the dissertation is: 'What does it mean for a student to be competent in his or her own micro-culture?'. Further leading questions are: 'Which social structural components are constituting the social surroundings of fourth grade children?' and 'Which micro-cultural influences are specific in children's social contexts?'. Social surroundings are explored by analysing the children's social capital operationalised via the structure and frequency of peer- and family contacts, parental supervising and supporting strategies and extracurricular learning networks in peer groups. Cultural components are ascertained via cultural practices in family and peer group as well as internalised and transmuted cultural capital of the pupils. Methods used for testing hypotheses are statistical practices like multilevel-analysis, structural equation modelling and latent-class analysis. Berry, J. W. (2004). An ecocultural perspective on the development of competence. In E. L. Grigorenko & R. J. Sternberg (Eds.). Culture and Competence: Contexts of Life Success (pp. 3 - 22) . Washington, D.C.: American Psychological Association. Bronfenbrenner, U. (1993). The ecology of cognitive development: Research models and fugitive findings. In R. H. Wozniak & K. W. Fischer (Eds.), Development in context: Acting and thinking in specific environments (pp. 3 - 44). Hillsdale: Lawrence Erlbaum Associates. Illeries, K. (2002). The Three Dimensions of Learning. Kopenhagen: Roskilde University Press.