Trust in Transitions

14 Pages Posted: 20 Oct 2012

See all articles by Dominika Latusek

Dominika Latusek

affiliation not provided to SSRN

Karen S. Cook

Stanford University - Department of Sociology

Date Written: November 2012

Abstract

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 Poland and Russia. 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.

Suggested Citation

Latusek, Dominika and Cook, Karen S., Trust in Transitions (November 2012). Kyklos, Vol. 65, Issue 4, pp. 512-525, 2012, Available at SSRN: https://ssrn.com/abstract=2164568 or http://dx.doi.org/10.1111/kykl.12004

Dominika Latusek (Contact Author)

affiliation not provided to SSRN

No Address Available

Karen S. Cook

Stanford University - Department of Sociology ( email )

Stanford, CA 94305
United States

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