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Fukuyama’s Trust. The role of trust and trust networks in the society. Overview. Brief review of the books of Fukuyama Key concepts Derived ideas Conclusions . The End of History and the Last Man.

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Fukuyama s trust l.jpg

Fukuyama’s Trust

The role of trust and trust networks in the society


Overview l.jpg
Overview

  • Brief review of the books of Fukuyama

  • Key concepts

  • Derived ideas

  • Conclusions


The end of history and the last man l.jpg
The End of History and the Last Man

  • the end of communist and fascist dictatorships in many countries (East and South Europe, South America, Far East);

  • Hegel’s concept of ‘end of history’;

  • original state (Hegel, Hobbes, Locke, Rousseau) and social contract;

  • foundation: Jewish-Christian tradition of egalitarianism and original personal freedom;

  • forces:

    • a. the evolution and accumulation of rational science;

    • b. the personal pride (the ‘thumos’);


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The End of History and the Last Man

  • the best is the liberal capitalism = free market + individual freedom rights;

  • the liberal capitalism:

  • a. allows and supports the development and accumulation of rational science;

  • b. channels the personal pride into non-destructive forms and the people focus on economic well- being;

  • c. allows regular change and refreshment of the social leadership;

  • this is the end of history in the sense of Hegel.


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Trust: the social virtues and the creation of prosperity

  • 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;

  • family centred societies:

  • a. China and the Confucianism: big families;

  • b. South-Italy: isolated small families;

  • c. North-Italy: family networks;

  • d. France: the family as the counter pole of the strong state


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Trust: the social virtues and the creation of prosperity

  • common characteristics (family centred societies): a. the trust ends at the border of the family;

  • b. family based companies, which are usually small;

  • c. strong state, dream carrier: state bureaucrat;

  • institution centred societies: Japan, Germany, US

  • common characteristics (institution centred societies):

  • a. they have customs to extend the trust beyond the limits of the family;

  • b. large companies with the involvement of non-family members at high positions;

  • c. extensive civil society and strong bounds between group members


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Trust: the social virtues and the creation of prosperity

  • advantages of high trust:

  • a. lower administration costs, higher institutional reliability;

  • b. large and efficient organizations;

  • disadvantages of low trust:

  • a. corruption and trade with influences;

  • b. small and inefficient organizations;

  • objective: reproduce the trust system of the society


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The Great Disruption: human nature and the reconstitution of social order

  • particularly well documented with statistical tables;

  • how to measure the social disruption:

  • a. criminality;

  • b. family disorganization;

  • c. reduction of trust in social/political institutions;

  • effects of social disruption:

  • a. reduced family socialization;

  • b. higher juvenile delinquency;

  • c. decreasing trust in social/political institutions;


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The Great Disruption: human nature and the reconstitution of social order

  • the disruption is culture-dependent;

  • how to stop the disruption and restore the order ?

  • the humans evolved to cooperate and to organize themselves;

  • homo hierarchicus;

  • the limiting factors of spontaneous organization:

  • a. trust radii;

  • b. transparency;

  • c. justice / equitability;

  • d. long standing bad choices;


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The Great Disruption: human nature and the reconstitution of social order

  • what to do:

  • a. decentralized religion;

  • b. civil society networks;

  • c. self-regulation and self-organization to reduce crime;

  • effects of capitalism on the social capital:

  • a. destruction: new technologies, freedom of dissidence;

  • c. construction: freedom of self-organization, free market competition;

  • past experience: moral revolutions, well-founded modernization, integration of immigrants;


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Key concepts social order

  • Trust in individuals and institutions:

  • expresses the beliefs about the predictability of actions;

  • Economic, social and leadership efficiency:

  • how efficient are in handling problems, specially problems of growth;

  • 3. The role of the state:

  • to what extent should the state intervene in the development of spontaneous economic and social order


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Key concepts social order

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;


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Key concepts social order

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


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Derived ideas social order

  • Information transmission:

  • the behavior of individuals and organizations transmits implicit information by the rules to which they conform;

  • 2. Predictive stability:

  • 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;

  • dynamic and static stability;


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Derived ideas social order

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;


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Derived ideas social order

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;


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Derived ideas social order

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;


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Derived ideas social order

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;


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Conclusions social order

  • 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.

  • 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.

  • 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.

  • The regeneration of trust resources is a key issue for the current western societies


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