Trust: The Social Virtues and the Creation of Prosperity

Trust: The Social Virtues and the Creation of Prosperity

January 1997 | Thomas Maxwell
In "Trust: The Social Virtues and the Creation of Wealth," Francis Fukuyama explores the concept of trust as a social virtue that is essential for economic prosperity. He argues that societies can be categorized into two types: "saddle-shaped" societies, characterized by strong families and weak governments, and "round" societies, which are more self-regulated and independent from absolute government control. Fukuyama contends that saddle-shaped societies, with their limited structures of independent sociability, are at risk of economic stagnation. In contrast, round societies, with their high levels of trust and social capital, are more likely to develop world-class economies marked by scale and economic success. Fukuyama uses this hypothesis to analyze various countries, such as the United States, Japan, Germany, Korea, Taiwan, France, and Italy. He highlights the importance of voluntary socialization and trust in American society, which allows for the creation of sophisticated industries without relying heavily on government planning. He also discusses the transformation of Japanese society post-World War II, emphasizing the role of social trust in fostering a meritocratic and horizontally structured commercial environment. The book suggests that societies must move beyond extended families and controlling governments to achieve maturity and thrive. Fukuyama's minimalist hypothesis, while criticized for its simplicity, emphasizes the importance of trust in maintaining social order and economic growth. However, the reviewer notes that Fukuyama does not fully explore the implications of trust in a globalized world, where individual countries' fates are increasingly intertwined. Despite this, the book remains a thought-provoking contribution to the discourse on social and economic development.In "Trust: The Social Virtues and the Creation of Wealth," Francis Fukuyama explores the concept of trust as a social virtue that is essential for economic prosperity. He argues that societies can be categorized into two types: "saddle-shaped" societies, characterized by strong families and weak governments, and "round" societies, which are more self-regulated and independent from absolute government control. Fukuyama contends that saddle-shaped societies, with their limited structures of independent sociability, are at risk of economic stagnation. In contrast, round societies, with their high levels of trust and social capital, are more likely to develop world-class economies marked by scale and economic success. Fukuyama uses this hypothesis to analyze various countries, such as the United States, Japan, Germany, Korea, Taiwan, France, and Italy. He highlights the importance of voluntary socialization and trust in American society, which allows for the creation of sophisticated industries without relying heavily on government planning. He also discusses the transformation of Japanese society post-World War II, emphasizing the role of social trust in fostering a meritocratic and horizontally structured commercial environment. The book suggests that societies must move beyond extended families and controlling governments to achieve maturity and thrive. Fukuyama's minimalist hypothesis, while criticized for its simplicity, emphasizes the importance of trust in maintaining social order and economic growth. However, the reviewer notes that Fukuyama does not fully explore the implications of trust in a globalized world, where individual countries' fates are increasingly intertwined. Despite this, the book remains a thought-provoking contribution to the discourse on social and economic development.
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