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Social Capital, Trust and the Industrial Revolution: 1780�1880

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The first text to examine the concept of trust and the role that it played on the Industrial Revolution, this book is a key resource for students' studying nineteenth century British history as well as historically minded sociologists. Analytical in style and comprehensive in approach, Social Capital, Trust and the Industrial Revolution covers a range of themes, including: the forms of behaviour, institutions and strategies that contributed to the formation of trust; the circumstances that could lead to its rise or fall; the presence of distrust; the relationship and links between trust and power. Although research has shown that high levels of social capital and trust promotes economic growth, low crime rates and improved labour relations, little work has been done on the historical impact of this essential resource. David Sunderland's incisive monograph is resets the balance and demonstrates how social capital played a crucial role in the industrial, social and political changes of the late eighteenth and nineteenth century.

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... -Social capital Halpern, 2005, Sunderland, 2007 -The positive psychological development of the individual in the company or the country, characterized by high self-confidence, optimistic and positive attributes. Ability and potential to recover from problems and good chances of success again. ...
... -Groups and networking: According to (Bourdieu, 1986) relationship is the embodiment of social capital provided by community to its members. Without social networks (formal and informal) access to information can be expensive and difficult (Sunderland, 2007); Halpern, 1999Halpern, , 2005. ...
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Social capital increasingly has received attention over the past decades due to its impact on workers and their relationship with the companies they work at. This research focuses on the impact of the social capital four dimensions (trust, groups and networks, shared values and norms, and collective activities) on the organizational loyalty three types (affective, continuance, and normative). The results of the study revealed that there are effects of the social capital dimensions on organizational loyalty types.
... Expropriation of land resources, as in the Scottish Clearances, also damaged local peasant farmers to the benefit of the meat supply to richer cities, becoming yet another basic mechanism of inequality and discrimination with loss of social and human capital for many -who often emigrated [104][105][106]. Despite higher incomes and more meat per person for a while after the population decline caused by the Black Death, by the 1700s the poor became virtually vegetarian [107][108][109]. ...
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We evolved from herbivores to a meat eating "commons" in hunter-gatherer days and then to a non-egalitarian meat power struggle between classes and countries. Egalitarian-ism, trans-egalitarianism and extremes of inequality and hierarchy revolve around the fair-unfair distribution of meat surpluses and ownership of the means of meat production. Poor people on poor diets with too few micronutrients may explain many inequalities of human capital, height and health and divergent development of individuals and nations. Learning from past successes and collapses from switching trophic levels the lesson is that meat moderation toward the top of Engel's curves, not calorie-centrism, is the best recipe for countries and classes. Improved health with longer lives and higher crystallised intelligence comes with an ample supply of micro-nutrients from animal products namely iron, zinc, vitamin A, vitamin B12 and other methyl-donors (such as choline), and nicotinamide (vitamin B3). We concentrate on nicotinamide whose deficits cause the degenerative condition pellagra that manifests as poor emotional and degenerative cognitive states with stunted lives and complex antisocial and dysbiotic effects caused by and causing poverty.
... A number of historical observations suggest that social trust rose steadily in Europe from the early modern period onwards: religious tolerance increased, witch hunts abated, honor killings and revenge lost their appeal and intellectual freedom became a central value of modern countries 1,2 . Historians have used a range of cues to document this process: etiquette manuals, registries of friendly societies, or legal changes 1,3,4 . However, quantitative evidence is scarce and progress in the history of mentalities has been limited by the paucity of tools to capture people's extinct mental life. ...
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Social trust is linked to a host of positive societal outcomes, including improved economic performance, lower crime rates and more inclusive institutions. Yet, the origins of trust remain elusive, partly because social trust is difficult to document in time. Building on recent advances in social cognition, we design an algorithm to automatically generate trustworthiness evaluations for the facial action units (smile, eye brows, etc.) of European portraits in large historical databases. Our results show that trustworthiness in portraits increased over the period 1500-2000 paralleling the decline of interpersonal violence and the rise of democratic values observed in Western Europe. Further analyses suggest that this rise of trustworthiness displays is associated with increased living standards.
... Hence, this case could be applied to the whole society. Sunderland (2007) further elaborates that many historians "overlooked trust" in comparison with "power" as the most important means in society. However, he puts a strong emphasis on trust, which is the key for any further interactions and relationships among people who seek to produce positive results based on mutual interests. ...
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Historical phenomenon of human capital is being discussed through centuries. This important pillar in socioeconomic development is necessary to be monitored, analyzed, and debated by every country. So is for Bosnia and Herzegovina. The chapter tries to explain human capital from students’ perspective in Bosnia and Herzegovina. The current situation of human capital in Bosnia and Herzegovina is investigated and discussed. Based on the theoretical background, the study explores the main pillars of human capital depicted by an exploratory case study of students population, from the International University of Sarajevo. Several exciting insights were derived from the research, which are elaborated further as the study implications, recommendations, and the future work. Limitations, as well as other study phenomena, are also discussed.
... It seems likely that assessment of the potential business partner may have been much more important in developing a trusting relationship than the project itself, as can indeed still be the case in contemporary banking (Baecker 2008, 114). Mechanisms of fostering trust and building confidence in the nineteenth century have, for instance, been researched by David Sunderland (2007), who investigated the development of social capital in English society with regard to the use of clothing, language and objects and the role played by gifts, reputation and interactions with peers in the context of visits to the theatre, museums or art galleries. 31 The focus here is thus on symbols that demonstrate trustworthiness and generate social capital (Luhmann 2009, 36). ...
... Fukuyama [4] demonstrates the results of studies in various countries which show that strong social capital will stimulate the growth of various economic sectors due to high level of trust and linkage in the widely grown network among fellow economic actors. Sunderland [11] states that the customs of mutual assistance and mutual advise among Advances in Social Science, Education and Humanities Research, volume 404 individuals in a village community reflect the spirit of reciprocity, trust and social networking. The industrial development in society with high social capital will rapidly develop because the social capital will produce collective energy that generates motivations and entrepreneurial spirit in society which will improve the business world. ...
... More generally, eighteenth-century Europe was clearly ahead of non-European societies as well as ancient societies such as Athens and Rome, which tolerated or even celebrated much higher levels of violence (Pinker 2011a). Other indicators, such as the flourishing of societies and associations (Clark 2000;Sunderland 2007), suggest that the English were more prosocial and more trusting than other populations in the eighteenth century. Thus, in the sixteenth and seventeenth centuries, England was the first state to implement a system of poor relief. ...
Article
Baumard's perspective asserts that “opportunity is the mother of innovation,” in contrast to the adage ascribing this role to necessity. Drawing on behavioral ecology and cognition, we propose that both extremes – affluence and scarcity – can drive innovation. We suggest that the types of innovations at these two extremes differ and that both rely on mechanisms operating on different time scales.
... More generally, eighteenth-century Europe was clearly ahead of non-European societies as well as ancient societies such as Athens and Rome, which tolerated or even celebrated much higher levels of violence (Pinker 2011a). Other indicators, such as the flourishing of societies and associations (Clark 2000;Sunderland 2007), suggest that the English were more prosocial and more trusting than other populations in the eighteenth century. Thus, in the sixteenth and seventeenth centuries, England was the first state to implement a system of poor relief. ...
Article
Baumard proposes that life history slowing in populations over time is the principal driver of innovation rates. We show that this is only true of micro-innovation rates, which reflect cognitive and economic specialization as an adaptation to high population density, and not macro-innovation rates, which relate more to a population's level of general intelligence.
... In Germany, the medieval guild system provided some of the organizational and normative infrastructure for the development of capitalism (Greif, Milgrom, and Weingast 1994, 758-62). In the Anglo-American context, other scholars have charted the rise of reputational mechanisms, market governance structures, and organizations that helped to address the risks of nineteenth-century commerce (Gorton 1996, 386;Sunderland 2007, 1; Mokyr 2009, 382;Taylor 2013, 13;Klaus 2014, 4-5;Cook 2017, 140-41;Maggor 2017, 99). The theoretical literature conceptualizes these organizational forms as "agency relationships." ...
Article
The role of fiduciary law in the development of North American capitalism has been overlooked by institutional economists, who interpret fiduciary law as a form of contract and make the judicial enforcement of contract central to the transaction-cost theory of economic development. This article argues that the emergence of distinctive, equity-based fiduciary laws and norms significantly influenced the development and growth of early-nineteenth-century American markets. Our historical research identifies lawyers as important economic actors, who served as catalysts for the emergence of this governance culture. Lawyers adopted fiduciary principles that allowed them to become trusted intermediaries, thereby addressing the agency-cost problems inherent in complex economic exchange that vex the institutionalists’ contractual account of economic development.
... Other indicators, such as the flourishing of societies and associations (P. Clark, 2000;Sunderland, 2007), suggest that the English were more prosocial and more trusting than other populations in the 18 th century. Thus, in the 16 th and 17 th centuries England was the first state to implement a system of poor relief. ...
Article
Since the Industrial Revolution, human societies have experienced high and sustained rates of economic growth. Recent explanations of this sudden and massive change in economic history have held that modern growth results from an acceleration of innovation. But it is unclear why the rate of innovation drastically accelerated in England in the 18 th century. An important factor might be the alteration of individual preferences with regard to innovation due to the unprecedented living standards of the English during that period, for two reasons. First, recent developments in economic history challenge the standard Malthusian view according to which living standards were stagnant until the Industrial Revolution. Pre-industrial England enjoyed a level of affluence that was unprecedented in history. Second, Life History Theory, a branch of evolutionary biology, has demonstrated that the human brain is designed to respond adaptively to variations in resources in the local environment. In particular, a more favorable environment (high resources, low mortality) triggers the expression of future-oriented preferences. In this paper, I argue that some of these psychological traits – a lower level of time discounting, a higher level of optimism, decreased materialistic orientation, and a higher level of trust in others – are likely to increase the rate of innovation. I review the evidence regarding the impact of affluence on preferences in contemporary as well as past populations, and conclude that the impact of affluence on neuro-cognitive systems may partly explain the modern acceleration of technological innovations and the associated economic growth.
... The 'associational society' described in details by Clark (2000), while not entirely new in the 18th century, expanded enormously after 1750. It was felt, especially in the closing decades of the century, that the state was failing to create order and stability in an increasingly volatile society and that citizens had to create their own public goods through collective action (Clark, 2000: 94-96; see also Sunderland, 2007;50-84). ...
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Professor McCloskey makes many telling and insightful points in her survey and criticism of what she terms the new institutional economics; yet there are a number of shortcomings to her paper. One is that she has bundled together a variety of quite disparate approaches to the role institutions play, and refers to them as ‘neo-institutionalist’. We unbundle these different strands, and show that an undifferentiated critique is unwarranted. A second argument made by her is that an institutional approach cannot explain either the Industrial Revolution or what she calls ‘the Great Enrichment’. We show that this conclusion is unwarranted and results from an overly narrow definition of institutions.
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Is there a connection between the Industrial Revolution and the eighteenth century Enlightenment? The Enlightenment was a very broad cultural movement with many moving parts, but the one most relevant to economic history is what is known as the Industrial Enlightenment, a movement that directly advocated institutions that supported and promoted the accumulation and dissemination of technological progress and economic growth. These institutions included those that directly helped incentivize the accumulation of useful knowledge such as patronage and reputation effects, as well as patents, prizes, and other rewards to successful inventors. The movement also supported dissemination of knowledge through scholarly societies, publications, and various informal networks. The chapter concludes that both culture and the institutions it supported created a fertile ground for the rapid economic growth ignited by the Industrial Revolution.
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Pellagra has largely been forgotten. This is unfortunate as important lessons are to be learnt about the diseases and social and economic consequences of poverty – and for the root cause of poverty (and of affluence) – that involve dietary nicotinamide and nicotinamide adenine dinucleotide (NAD) homeostasis. NAD disruption can occur not only from poor diet but from increased consumption from genotoxic, infectious and metabolic stresses. NAD deficiency is closely linked to poor physical and intellectual development, premature ageing and diseases of ageing. Acute infections, many with NAD-consuming toxins, that may differentially affect the NAD-depleted, now include COVID-19. Some Covid manifestations, such as myoclonic encephalopathy and “Long Covid,” resemble pellagra clinically and biochemically as both have disturbed nicotinic and tryptophan metabolism. Symbionts that supply nicotinic acid, such as TB and some gut micro-organisms, can become dysbiotic if the diet is very deficient in milk and meat, as it is for 1–2 billion or more. High doses of nicotinamide lead to inhibition of NAD-consuming enzymes and excessive induction of nicotinamide-n-methyl transferase (NNMT) with consequent effects on the methylome: this gives a mechanism for an unrecognised hypervitaminosis-B3 with adverse effects of nicotinamide overload for consumers on a high meat diet with “fortified” foods and “high energy” drinks. Methods of measuring NAD metabolism routinely for screening the populations at risk of deficiency and in metabolically ill or infectious disease patients should be developed urgently. Successful intervention should improve human capital and prevent many aspects of poverty, reduce discrimination and even the drive to emigrate.
Thesis
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Doktori értekezés. (PhD dissertation in Hungarian.) Short summary in English: https://www.researchgate.net/publication/350654228_The_Leap_of_Courage_Death_Anxiety_and_Social_Trust_Short_summary
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Trust and Discourse: Organizational perspectives offers a timely collection of new articles on the relationship between discursive practices in organizational or institutional contexts and the psychological/moral category of trust. As globalization, the drive for efficiency and accountability, and increased time pressure lead groups and individuals to rethink the way they communicate, it is becoming more and more important to investigate how these streamlined and impersonal forms of communication affect issues of responsibility, authenticity and – ultimately – trust. The book deals with a variety of organizational settings ranging from in-hospital bedside teaching encounters and government communication following a nuclear accident to job interviews and foreign news reporting. This comprehensive study of an emerging new field will provide essential reading for linguists, discourse analysts, communication scholars, and other social scientists interested in a range of perspectives on oral, written and digital language use in society, including interactional sociolinguistics, Critical Discourse Analysis, ethnography, multimodality and organizational studies.
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Having discussed the theoretical framework and how to construct Plan-like Architectures, this chapter follows on from the previous principles laid out in Plan Theory.
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The overall purpose of this thesis is to understand how and why networks played a significant role for the merchants and company traders of the Danish Asiatic Company (DAC) in their trade in China. To explore this, the following research questions will be answered: 1 - From the perspective of network analysis and prosopography, what characterised the merchants and traders as a group and how was experience transmitted among the company traders? 2 - From the perspective of microhistory, what role did networks play for selected individual company traders? To examine these questions, an analysis on several levels is performed, starting from a broad perspective of the company, its function, and purpose from a network perspective. The rise and fall of the DAC serves as an important backdrop for the research questions. Then the focus narrows down to the societal group of merchants who were responsible for managing the company as directors and others that handled the trade with China. After examining the group as a whole using the prosopographical approach, the focus becomes narrower, turning to microhistory to get as close as possible to a small set of actors, distributed over the 100-year history of the DAC. The chapters reflect this division. In chapter II, the Danish Asiatic Company is analysed, sketching its history and examining the various purposes the company served for various actors of both individual and organisational nature. In chapter III, the focus narrows to the merchants of the company, seen as a group, approached with the help of prosopography. Here, first the merchants serving as directors will be analysed and then the company traders – both viewed as a group and with the assistance of network analysis. Finally, in chapter IV the focus becomes even narrower as four actors are provided with microhistorical narratives, followed by an analysis in view of the previous chapters.
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In nineteenth-century Britain, friendly societies (working-class mutual benefit clubs) and ruling elites contested definitions of respectability and independence in a struggle to delineate relations between societies and the state. This process was an important part of an ongoing set of negotiations by which working-class organizations influenced middle-class attitudes toward collective action. Pressure from friendly societies forced members of Parliament and bureaucrats to accept their claim to respectability and, with it, to independence from state control, changing the discourse of respectability in three stages. During the first quarter of the century, clergymen and landowners equated respectability with middle-class patronage and independence from the Poor Law. Around midcentury, the societies appropriated the discourse of respectability and, with qualified elite approval, used it to redefine independence as freedom from middle-class supervision. By the 1870s, however, friendly society leaders requested government assistance to limit the independence of rank-and-file members, whose autonomy they claimed was a threat to the societies' respectability. Friendly societies wanted, as one member wrote, “to do what is ‘respectable.’” This meant redefining respectability in a collective, working-class context. While middle-class definitions rested on the premise that individualism and self-help were the twin foundations of respectability, friendly societies gained access to the social power of respectability by offering an alternative definition based on collective self-help and independence from external control. Friendly societies were democratically managed insurance clubs offering sickness and burial coverage and sociable activities in return for regular payments. They often met in public houses, which they identified as respectable, contradicting middle-class attitudes.
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Technology and Culture 46.1 (2005) 31-50 Popular opinion in Britain regarding paper currency underwent a dramatic transformation in the first half of the nineteenth century. In 1800, paper money was commonly disliked and mistrusted; by the Great Exhibition of 1851, it had become generally accepted. Now, of course, paper currency is so well-established a notion that readers of this article must struggle somewhat to grasp its strangeness, even perversity. But in the early nineteenth century, paper stood more plainly in contrast to gold and silver. These "noble metals" were inert, heavy, and imperishable, and made the vaguely pejorative slang for banknote paper, "flimsy," seem entirely apt. Fear of forgery, unfavorable political events, and the development of print technology during this period all threatened to undermine belief in the authenticity and value of printed paper currency. Nevertheless, by midcentury a level of trust "without doubt and without reasoning" had been established. I will argue in this article that the flimsy banknote itself, by virtue of its appearance as a product of mechanical reproduction, helped to build that trust. In the late eighteenth century such a development seemed unlikely. Although promissory notes were already an established medium of exchange, banknotes, described by David Hume in 1752 as "this new invention of paper," were an innovation. Paper currency has been described as the visible embodiment of the credit operations and relationships driving the "capitalist engine" of the time. But events in Britain, France, and the newly independent United States of America highlighted the question of paper currency's trustworthiness. Adding to the general social and economic disturbances, subversive connotations attached themselves to the banknote. The American War of Independence and the French Revolution both depended on paper currency. In 1830 the Edinburgh Encyclopaedia, after scorning both revolutionary-era currencies as being driven by "favourite anticipations," seemed to condone paper's practical effect: Though used in the most lavish manner, their credit, in either case, lasted long enough to enable the respective governments to baffle all the efforts of their opponents. Britain had avoided political revolution, but had nevertheless been forced during the Napoleonic Wars to suspend cash payments and depend solely upon paper currency between 1797 and 1821. The French paper assignats had initially been floated on the security of expropriated church lands in 1789, but increasing lack of faith in the currency's value led to disastrous hyperinflation by 1795. Moreover, Britain had attempted to destabilize the situation even further by producing counterfeit assignats. Paper money thus seemed potentially doubly dangerous: a potentially "fallacious emission" of government that almost by definition invited forgery. These events focused attention on paper currency in early-nineteenth-century Britain, and the seemingly obtuse question "what is the value of a one-pound note?" became a matter for serious, often alarmed, consideration in books, articles, pamphlets, and the reports of government committees. These commentaries ranged from the serious, such as the Society of Arts Committee Report on Banknote Forgery of 1819, to the cranky, such as the 1816 pamphlet by a Mr. Balbirnie of Glasgow, Reflections on the Bank Paper Currency, in which he announced his "secret plan" for forgery-proof banknotes based on "mysterious paper" and indelible inks. Balbirnie's idea was that fake notes would instantly disintegrate when subjected to his secret reagent; the author had been prompted to conduct his experiments after accepting a forged note and losing money. In all these publications the overriding issues were gold versus paper money and the dangers of forgery. Two problems suggested themselves to the public. First, was the currency sufficiently supported by government or bank reserves? The mere hint that it might not be was potentially so destabilizing that the second problem, forgery, might seem a preferable focus for anxiety to those governments...
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'Respectability' had great ideological power in Victorian society. But current analyses of middle-class leisure are seriously flawed in over-marginalising less respectable behavior. The paper begins by examining 'respectability' and the non-work contexts where pressures for compliance were strongest, such as the home and the church. It then explores a range of leisure contexts where pressures were far weaker, and where more sinful pleasures such as the drinking of alcohol, gambling, betting and sex outside marriage were more likely to be found. First there were life cycle contexts. Middle-class teenagers, younger unmarried men and men whose families had grown up were far more likely to fall for such temptations. Second, certain middle-class occupational groupings, such as artists, travelling salesmen or those in the drink trade were also more likely to pursue a less respectable lifestyle. Third, the hold of respectability was less strong in locational contexts away from the tyranny of neighbours. The more liminal nature of locations such as the racecourse and the seaside, or the anonymity of large urban areas, and the range of pleasures on offer, could open up multiple leisure identities.
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Through a study of middle-class power in Norwich in the first third of the twentieth century, this paper tests a number of hypotheses concerning the behaviour of British urban elites. Analysis of networks (freemasons, business organizations and family) assesses the level of social unification among the middle class; elite involvement in chapel, charities and voluntary organizations addresses the question of social leadership; whilst elite politics is considered through three questions: did they become unified behind a single anti-socialist stance? Did the more important members of the elite leave urban politics? And did they abandon faith in grand civic projects? Its conclusions suggest that the power and involvement of the elite continued into the 1930s, maintaining a positive approach to the scope and function of municipal authority.
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In his latest work on the relations—or on the non-relations—between businessmen and landowners, Professor W. D. Rubinstein has challenged his critics to prove him wrong. Accordingly, this article analyses the statistical arguments in Rubinstein’s work, and shows that they do not prove what they are claimed to prove. In the course of its analysis the article undertakes to explore the problem inherent in using the probate accounts to discuss the purchase of land, suggesting that that problem cannot be dismissed as Rubinstein has dismissed it, but showing that its seriousness alters with the level of wealth-holders considered.
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