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D I S C U S S I O N P A P E R S E R I E
ABSTRACT
Who Trusts Others? Community and Individual Determinants of Social Capital in a Low Income Country *This study presents new evidence on individual and community-specific determinants of social trust using data from 96 villages in Bangladesh. We find perceived institutional trust to be positively correlated with stated inter-personal trust. At the same time, there is significant social distance among various faith groups in our data: both Hindus and Muslims trust their coreligionists more than they trust those from other religions. Hindus in districts bordering India trust non-Hindus significantly less, compared to those in interior regions, which suggests that the results do not simply capture the effect of minority/majority status. Trust towards non-Muslims is negatively correlated with Islamic school attendance among Muslim respondents, while religiosity tends not to play any role. Compared to religion, the effects of institutional trust and local economic development are modest. These findings are robust to control for a range of individual-and community-level correlates, and enumerator fixedeffects.
NON-TECHNICAL SUMMARYSocial trust, the confidence people have that strangers on whom they have no specific information about will not take advantage of them, is considered to facilitate long-term growth, democratic stability and subjective well-being. Trust is particularly important in the rural areas of developing countries where formal markets are often under-developed, and the majority of economic transactions take place in the informal sector. Some scholars have argued that the level of trust is determined by schooling and institution quality while others contest that the extent to which one trusts others may depend on factors such as religious affiliation, and/or degree of religiosity. Faith orientation of the school can be also important. Youths may be exposed to schools that limit interaction with other faith groups and operate in segmented communities with limited media access. If so, social capital in Muslim countries such as Malaysia, India, Pakistan, Indonesia and Nigeria can be undermined by religious/ethnic diversity among their populations, faith-specific schooling and poor governance. Faith identity is a contentious topic in South Asia where countries are greatly segmented along religious lines. Media reports on communal riots causing deaths and dama...