Mexico, China, and the Politics of Trust

Abstract

Described by political scientists as a necessary condition for efficiency, productivity, and prosperity, trust has become a precept of good governance with global reach. The concept is often marshaled to support a conservative political agenda of state retrenchment and market deregulation. Proponents of this agenda argue that the natural inclination of private actors to trust and cooperate with each other is undermined by government monitoring and compliance regulations. The evidence from Mexico points to an alternative conclusion: when carefully targeted, state support to private actors has strengthened rather than impeded trusting relationships between suppliers, customers, and investors. ..