Fukuyama' trust - The role of trust and trust networks in the society

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Presentation about how Fukuyama describes the concept of trust. NOT A PRESENTATION CREATED BY ME, I just placed it on slideshare in order to embed it in my blog.

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Fukuyama' trust - The role of trust and trust networks in the society

  1. 1. Fukuyama’s Trust The role of trust and trust networks in the society
  2. 2. Overview <ul><li>Brief review of the books of Fukuyama </li></ul><ul><li>Key concepts </li></ul><ul><li>Derived ideas </li></ul><ul><li>Conclusions </li></ul>
  3. 3. The End of History and the Last Man <ul><li>the end of communist and fascist dictatorships in many countries (East and South Europe, South America, Far East); </li></ul><ul><li>Hegel’s concept of ‘end of history’; </li></ul><ul><li>original state (Hegel, Hobbes, Locke, Rousseau) and social contract; </li></ul><ul><li>foundation: Jewish-Christian tradition of egalitarianism and original personal freedom; </li></ul><ul><li>forces: </li></ul><ul><ul><ul><li>a. the evolution and accumulation of rational science; </li></ul></ul></ul><ul><ul><ul><li>b. the personal pride (the ‘thumos’); </li></ul></ul></ul>
  4. 4. The End of History and the Last Man <ul><li>the best is the liberal capitalism = free market + individual freedom rights; </li></ul><ul><li>the liberal capitalism: </li></ul><ul><li>a. allows and supports the development and accumulation of rational science; </li></ul><ul><li>b. channels the personal pride into non-destructive forms and the people focus on economic well- being; </li></ul><ul><li>c. allows regular change and refreshment of the social leadership; </li></ul><ul><li>this is the end of history in the sense of Hegel. </li></ul>
  5. 5. Trust: the social virtues and the creation of prosperity <ul><li>the neoclassical economic theory explains up to 80% extent the economic events, the rest depends on the role of the state and of the social organization of the society; language of good and bad; </li></ul><ul><li>family centred societies: </li></ul><ul><li>a. China and the Confucianism: big families; </li></ul><ul><li>b. South-Italy: isolated small families; </li></ul><ul><li>c. North-Italy: family networks; </li></ul><ul><li>d. France: the family as the counter pole of the strong state </li></ul>
  6. 6. Trust: the social virtues and the creation of prosperity <ul><li>common characteristics (family centred societies): a. the trust ends at the border of the family; </li></ul><ul><li>b. family based companies, which are usually small; </li></ul><ul><li>c. strong state, dream carrier: state bureaucrat; </li></ul><ul><li>institution centred societies: Japan, Germany, US </li></ul><ul><li>common characteristics (institution centred societies): </li></ul><ul><li>a. they have customs to extend the trust beyond the limits of the family; </li></ul><ul><li>b. large companies with the involvement of non-family members at high positions; </li></ul><ul><li>c. extensive civil society and strong bounds between group members </li></ul>
  7. 7. Trust: the social virtues and the creation of prosperity <ul><li>advantages of high trust: </li></ul><ul><li>a. lower administration costs, higher institutional reliability; </li></ul><ul><li>b. large and efficient organizations; </li></ul><ul><li>disadvantages of low trust: </li></ul><ul><li>a. corruption and trade with influences; </li></ul><ul><li>b. small and inefficient organizations; </li></ul><ul><li>objective: reproduce the trust system of the society </li></ul>
  8. 8. The Great Disruption: human nature and the reconstitution of social order <ul><li>particularly well documented with statistical tables; </li></ul><ul><li>how to measure the social disruption: </li></ul><ul><li>a. criminality; </li></ul><ul><li>b. family disorganization; </li></ul><ul><li>c. reduction of trust in social/political institutions; </li></ul><ul><li>effects of social disruption: </li></ul><ul><li>a. reduced family socialization; </li></ul><ul><li>b. higher juvenile delinquency; </li></ul><ul><li>c. decreasing trust in social/political institutions; </li></ul>
  9. 9. The Great Disruption: human nature and the reconstitution of social order <ul><li>the disruption is culture-dependent; </li></ul><ul><li>how to stop the disruption and restore the order ? </li></ul><ul><li>the humans evolved to cooperate and to organize themselves; </li></ul><ul><li>homo hierarchicus; </li></ul><ul><li>the limiting factors of spontaneous organization: </li></ul><ul><li>a. trust radii; </li></ul><ul><li>b. transparency; </li></ul><ul><li>c. justice / equitability; </li></ul><ul><li>d. long standing bad choices; </li></ul>
  10. 10. The Great Disruption: human nature and the reconstitution of social order <ul><li>what to do: </li></ul><ul><li>a. decentralized religion; </li></ul><ul><li>b. civil society networks; </li></ul><ul><li>c. self-regulation and self-organization to reduce crime; </li></ul><ul><li>effects of capitalism on the social capital: </li></ul><ul><li>a. destruction: new technologies, freedom of dissidence; </li></ul><ul><li>c. construction: freedom of self-organization, free market competition; </li></ul><ul><li>past experience: moral revolutions, well-founded modernization, integration of immigrants; </li></ul>
  11. 11. Key concepts <ul><li>Trust in individuals and institutions: </li></ul><ul><li>expresses the beliefs about the predictability of actions; </li></ul><ul><li>Economic, social and leadership efficiency: </li></ul><ul><li>how efficient are in handling problems, specially problems of growth; </li></ul><ul><li>3. The role of the state: </li></ul><ul><li>to what extent should the state intervene in the development of spontaneous economic and social order </li></ul>
  12. 12. Key concepts 4. The role of culture and religion: the language of good and bad 5. Family socialization: cultural value transmission if exists 6. Delinquency and crime: decreases the trust, special attn: juvenile delinquency 7. Homo hierarchicus: evolutionary determination of humans to cooperate and organize;
  13. 13. Key concepts 8. The evolution of science: the rational science accumulates and fuels the social evolution; 9. Networks of interaction: the personal and institutional networks are means of trust generation; 10. Integration of immigrants: essential to solve growth problems
  14. 14. Derived ideas <ul><li>Information transmission: </li></ul><ul><li>the behavior of individuals and organizations transmits implicit information by the rules to which they conform; </li></ul><ul><li>2. Predictive stability: </li></ul><ul><li>if a society is able to process the information originating from its environment and itself and predict the problems and their solutions it can stay on its desired path of development; </li></ul><ul><li>dynamic and static stability; </li></ul>
  15. 15. Derived ideas 3. Levels and circles of trust: the belief about the predictability of actions varies in steps and each step has its associated trust radius; 4. Optimal level of trust and efficient organizations: the organization is efficient if the overall trust level within itself and within its connectional context is high enough; having high trust sub-networks with low inter-network trust level can be very disturbing;
  16. 16. Derived ideas 5. Integration of scientific advances: those societies have higher predictive stability, which are able to integrate fast the scientific and specially technological advances in their organizations; 6. Simple, transparent, coherent rules applied with consequence: the cultural and legal rules are better if they have these qualities, otherwise their support to the predictive stability of individuals and organizations is reduced;
  17. 17. Derived ideas 7. Networks of individuals and organizations are sources of trust: their trust producing ability depends on their rules; 8. The legal system: extends the trust by the belief that the rules of it will be respected and applied as announced;
  18. 18. Derived ideas 9. Value selection of cultures: critical to have expandable trust systems and to create trust generating organisms and mechanisms; 10. Integration of dissidents and immigrants: provides the intra- and inter-social mobility necessary for the growth and channels the sources of delinquency into non-disturbing outcomes;
  19. 19. Conclusions <ul><li>Those societies can build efficient economy and social organization, which have wide and efficient trust networks, sustain and integrate scientific development, and manage their internal and external dissidents. </li></ul><ul><li>The humans evolved to form hierarchical organizations in order to increase their individual and group predictive stability. This does not guarantee that they necessarily build efficient societies. </li></ul><ul><li>The choice of cultural values and procedures has a strong influence on the ability of a society to become efficient in the sense of predictive stability. The societies may survive for long time without being efficient. </li></ul><ul><li>The regeneration of trust resources is a key issue for the current western societies </li></ul>

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