Trust Without Contracts

In Rural China (乡土中国), the sociologist Fei Xiaotong describes rural society as a society of people who know one another. There, he writes, “trust does not rest on respect for contracts.” It comes from “the reliability of knowing the rules of conduct so well that one acts without thinking.”

Acquaintances, he notes, say: “We are all acquaintances. A greeting is enough, why say more?” In modern society people fear that “the spoken word is no proof,” so “they make a mark and sign their names. Only then does law begin.”

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