Comment by chii

> lack of access to home loans [in rural india]

i would imagine that high trust but only within the village is not really high trust. Anyone outside the village who would've otherwise had the capital to lend to this village would not trust them to repay the loans, and perhaps would also not trust that the authorities would come in to enforce the collection of collateral (and in any case, if you forcibly evicted the original owners of a property for debts, the other villagers are probably not going to let you live there peacefully).

> but not sure what [good governance] has to do with being a high trust or low trust society.

Good governance allows high trust to exist, which allows many other things to exist as a precondition.