The State and Social Capital: An Institutional Theory of Generalized Trust

Abstract

The purpose of this article is to present an alternative theory on the generation of social capital. In the discussion about the sources of social capital it has been stressed that generalized trust is built up by the citizens themselves through a culture that permeates the networks and organizations of civil society. Since this approach has run into conceptual problems and has produced only mixed empirical evidence, we like to highlight instead how social capital is embedded in and linked to formal political and legal institutions. Not all political institutions matter equally, however. In fact, we argue that trust thrives most in societies with effective, impartial and fair street-level bureaucracies. The article presents the causal mechanism between these institutional characteristics and generalized trust, and illustrates its validity in a crossnational context.