Robert Putnam (2000) distinguished bonding social capital (dense ties within groups) from bridging capital (links across groups). Fukuyama and others tied trust to economic coordination. In FPE terms, social capital is stored coordination capacity — a component of \(\Phi\) at the collective layer and a precondition for cheap \(\Psi\) between nodes.
| Concept | What it names |
|---|---|
| Bonding capital | Strong in-group ties — family, ethnic network, tight team |
| Bridging capital | Weak ties across difference — cross-class, cross-firm, civic associations |
| Generalised trust | Default expectation that strangers will cooperate under norms |
| Social trust collapse | When coordination requires constant verification |
High social capital does not mean “everyone likes each other.” It means lower cost to run operations 1 and 2 — honesty and repair are cheap because defection is visible and punished by the graph.
| Term | Social-capital reading |
|---|---|
| \(\Phi\) (collective) | Trust stock, reciprocity history, shared language, reputation |
| \(\eta(I)\) | Transactions completed without lawyers; projects shipped without politics |
| \(\mathcal{D}_{KL}\) | “We are a trusting culture” vs observed backstabbing |
| \(\Gamma\) | Unpaid favours, broken promises, feud lines between subgroups |
| \(\Psi\) | Civic institutions, rule of law, professional norms that extend trust beyond kin |
| Low bridging | \(\mathcal{E}_\Sigma\) spikes at group boundaries — every outsider interaction expensive |
Pathology: bonding without bridging → high in-group \(\mathcal{R}\), predatory out-group treatment, corruption rings. Bridging without bonding → atomised individuals, no \(\Phi\) to voice with.
When generalised trust is high, agents spend less \(P_{in}\) on verification (contracts, surveillance, reputation checks). That freed numerator is available for actual work — a measurable \(\eta\) boost. Trust collapse is denominator inflation by other means: every interaction requires costly proof.
Putnam documented falling association membership and bowling alone. In FPE: bridging \(\Phi\) depleted → households and firms face higher \(\mathcal{E}_\Sigma\) from isolation; politics becomes bonding-only (tribal) because cross-cutting ties atrophied.
Trust stocks deplete when:
Each is measurable harm, not vague “polarisation.”
Trust at \(L+2\) (firm) and \(L+3\) (state) uses the same variables. A nation with low social trust pays \(\omega\) everywhere — more police, lawyers, compliance. Geopolitics essays track \(\Phi\) including “social trust” at state scale (comparison.md).