Trust: The Social Virtues and the Creation of Prosperity

Francis Fukuyama reveals the unique importance social capital, and trust in particular, plays in economic relations.

Francis Fukayama, Trust: The Social Virtues and the Creation of Prosperity, New York: Free Press Paperbacks, 1996

by Francis Fukuyama reveals the unique importance social capital, and trust in particular, plays in economic relations.

As Fukuyama shows empirically, trust reduces societal transaction costs. As a result, its absence hinders firms and organizations from expanding beyond familial ties.

In high-trust societies like the United States, Germany, and Japan, large and complex multi-national corporations can develop because trust acts as a lubricant for transactions between unrelated actors.

To purchase this book, click here.


The Reut bookstore offers insights into the canon of books most relevant to the policy challenges facing the Government of Israel. Your purchase from the Reut bookstore helps to support the Reut Institute.

MP33 E3