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FILSAFAT KORUPSI - Direktori File UPI

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I explore how trust and trustworthiness affect each other and what societal factors<br />

influence trust and trustworthiness. I emphasize the importance of the fairness of legal<br />

and political institutions, and argue that corruption and inequality, in particular<br />

skewness, generate a sense of unfairness and erode social trust (generalized interpersonal<br />

trust). Specifically, my ―fairness explanation‖ for cross-societal variation in social trust<br />

is contrasted with the ―similarity explanation‖ that posits homogeneity of society —such<br />

as ethnic and income homogeneity— critically determines the level of social trust<br />

(Alesina and La Ferrara 2002). I propose that the negative effect of inequality on social<br />

trust is due to sense of unfairness rather than sense of dissimilarity.<br />

My study of adverse impact of inequality and corruption on social trust has very<br />

important research and policy implications. According to recent research, social trust<br />

reduces transaction costs and thus contributes to economic growth, helps to solve<br />

collective action problems, facilitates civic engagement, and leads to better functioning<br />

government (Putnam 1993, 2000; Fukuyama 1995; Knack and Keefer 1997; La Porta et<br />

al. 1997). Hence, if my hypothesis of the negative effect of corruption and inequality on<br />

social trust proves to be true, it will provide a potentially powerful explanation as to why<br />

inequality and corruption are harmful to economic growth and social development.<br />

Although many studies found a negative effect of corruption and inequality on<br />

economic development, theoretical accounts for why inequality and corruption inhibit<br />

development are weak. For example, some studies proposed that inequality inhibits<br />

economic growth by increasing inefficient redistribution (Alesina and Rodrik 1994;<br />

Persson and Tabellini 1994), but recent empirical findings show that higher inequality is<br />

associated with lower redistribution (Iversen and Soskice 2002). My study suggests that<br />

inequality and corruption hinder economic and social development by eroding social<br />

trust.<br />

Figure I. 1. Hypothesized Causal Relationships between Inequality, Corruption, Social<br />

Trust, and Human Development<br />

Inequality Corruption<br />

Distrust<br />

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