The study presents the characteristics of “trust economy” based on the findings of interviews conducted among countryside small entrepreneurs. There are three aspects of the issue of trust discussed: The use of written records in entrepreneurial contracts, the interdepedency of networks and trust, and the attitude of small entrepreneurs towards banks. Even the written contract does not provide guarantee for the case when the business partner should violate a contract in an economic situation considered as uncertain. They do not trust the administration of justice and/or regard it as low efficiency organizations. The entrepreneurs who know each other very well and belong to the same network are the members of social relations defined by Coleman as closed social structure. Inside that entrepreneurial circle where members are within social sight, giving on credit and money lending is general practice and the agreement on that is often only verbal. The attitude of this group towards banks is negative. The exploitation of social organizations for different from there original function can turn out to be a success or can be a failure. The example for the success is the business based on the trust relationship within the church. On the other hand the effort to exploitation is a failure when in an organization there are too many members with the primary ambition of exploitation. This will not make possible the spontaneous, “organic” way of production of trust.
This paper summarizes the first results of the analysis of a questionnaire survey on the determinants of social cohesion and interethnic relations in Hungarian local communities. The survey was carried out in villages and small towns in four different regions of the country in 2012. Our results show that the socioeconomic status and geo-cultural background of the local community significantly shape social cohesion and interethnic trust. Migration rate, on the other hand, plays a surprisingly minor role in shaping trust and cohesion. The effect of fractionalization is moderate, and, interestingly, mainly positive if national minorities are present in the local community.
In this study we will attempt to show that trust is a cultural concept that should be ethnographically described, as its meaning varies according to the culture of each society and in every particular situation. Trust is a central component of social solidarity and the cement used to produce cohesion within the social networks composing the structure of society. Social networks based on trust might allow individuals to cope with the imperfections of a given socioeconomic system (state or market dominated), but they might also serve to erode the institutional framework of states by facilitating less desirable transactions (corruption). Hence, social networks may have positive connotations for those who benefit from having social networks or negative consequences both for individuals that lack such networks and for the formal institutions of society. To understand the complex variations in the construction and political impact of these social networks we analyze its role in the informal economy of three different socioeconomic systems. Following our previous studies, (Lomnitz 1971; 1988) we will discuss the importance of social networks based on trust and loyalty for the economic and social survival of the middle class in Chile. We will compare it to the informal economy in the former Soviet Union and, finally, drawing from literature on post-socialist societies, we will discuss the role of social networks in the transition to a market economy. In Latin America social networks have become the means on which informal activities take place allowing the poor to survive physically and the middle and upper classes to maintain their social status and privileges. In communism, the use of personal connections (social networks) has been recognized as a central strategy to satisfy shortages derived from the inefficiencies of the system, and as an important legacy with tremendous consequences for the post-socialist regimes that followed. In this article, we attempt to show the universality and persistence of trust-based networks as well as its socio-cultural embeddedness and the ambivalent consequences they have on state and society.
During the 1990s, the importance of institutions and the correlations between trust, social capital, and well-functioning institutions began to assume prominent places in discussions of countries' comparative economic performances. Studies
The focal research question of this paper is how trust in inter-organisational relationships develops over time. Trust in our conceptualisation is a complex phenomenon that has behavioural and
After the fall of authoritarian communist regimes and emergence of constitutional governments, constitutional review systems were designed in Central and Eastern Europe. Post-communist systems mostly followed the French and German models of abstract and concentrated review, with courts’ powers stemming from the Constitution and determined by the legislator. How can constitutional courts limit governmental power, and to what degree can they resist political attempts to alter their competence—these are the questions to which answer are sought referencing two recent Hungarian and Romanian constitutional court decisions. The two courts had to face different challenges and go down different paths—significantly departing even from their respective “traditional” stances—and they both arrived at controversial findings. This paper argues that it has not been primarily a problem of constitutional design, but rather contextual factors that have amplified the weaknesses of the system and consequently led to growing disenchantment and diminishing trust in the guardians of constitution.