RUSSIA’S PARALYZING CYCLE OF DISTRUST: CAN THE BANKING INDUSTRY BE AN AGENT OF CHANGE?
Many theorists believe that in the process of generalizing the notion of confidence, it is necessary to take into account the factor of faith in the institutions of society as an essential condition foreconomic development because it reduces transaction costs and promotes the formation of effective relationships between all participants of business. Social capital contributes to the creation of institutional infrastructure that forms the credibility of the system. Socio-economic system that has no social capital cannot be effective. Consequently, the social capital element of which is trust, affects the process efficient and productive use of the resources of the organization.