Comment by pjc50

The thing is, building such institutions and maintaining trust is expensive. Exploiting trust is lucrative (fraud, etc.) It's also expensive to not trust - all sorts of opportunities don't happen in that scenario if, say, you can't get a friend or relative in the right place.

There are many equilibrium points possible as a result. Some have more trust than others. The "west" has benefited hugely from being a high trust society. The sort of place where, in the Prisoner's Dilemma matrix, both parties can get the "cooperate" payoff. It's just that right now that is changing as people exploit that trust to win by playing "defect", over and over again without consequence.

https://en.wikipedia.org/wiki/High-trust_and_low-trust_socie...