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Trust in Transitions
Author(s) -
Latusek Dominika,
Cook Karen S.
Publication year - 2012
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/kykl.12004
Subject(s) - enforcement , context (archaeology) , interpersonal communication , social trust , transition (genetics) , interpersonal ties , social exchange theory , business , scale (ratio) , law and economics , positive economics , economics , sociology , political science , law , social capital , social science , paleontology , biochemistry , chemistry , physics , quantum mechanics , gene , biology
Summary In this article we examine the link between relational trust and general trust in the context of large‐scale social and economic transformations such as those that have occurred in P oland and R ussia. We argue that trust plays an important role in interpersonal relationships, but in more impersonal dealings, as in economic life, reliable and impartial institutions that create binding rules and ensure their enforcement are more important. These provide a stable framework for exchange and make it safe for people to take risks involving others they do not know directly. Relational trust, however, may be critical in situations in which institutions are weak or corrupt. And, even if economic relationships are constrained by carefully devised contracts, there remains residual uncertainty that can be resolved only by relying on trust.. If networks involving trust relationships are the dominant means for engaging in exchange, however, exchange is limited to those whom one knows personally or is linked to through close ties, and opportunities for broader exchange are constrained, which may retard the transition to a more open economy.