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Sociology

Trust as the Invisible Currency of Informal Economies

Quick fact

In many informal economies, trust functions as an informal contract, with reputation serving as a crucial enforcement mechanism that can be more effective than legal penalties in tight-knit communities.

Why this is interesting

You've likely bought something from a street vendor or borrowed a tool from a neighbor, but what if there were no receipts, contracts, or courts to back you up? How does anything get done?