In the Search of Trust - A Study on the Origin of Social Capital in Cambodia from an Institutional Perspective

Abstract: This thesis examines the origin of social capital from an institution-centered approach, in order to find whether the Public Administration and Decentralization Reform can increase social capital in Cambodia. Apart from this empirical aim, the theoretical ambition of the thesis is to test a Western-based theory on an untried setting and to develop the theory if it proves not applicable. The thesis is conducted as a case study divided into two parts. The first part examines traditional forms of trust and social interaction in Cambodia by a literature review and through in-depth interviews with experts on Cambodian civic and political cultures. The second part of the case study examines the origin of social capital from an institutional theory of trust with a survey conducted in three rural villages. The results show a tendency that formal institutions have an impact on the creation of social capital in Cambodia, when the institutions can assure the individual's rights in relation to the other citizens. By assuring civic rights, the institutions create a safety-zone where the people dare to trust each other. The theory does however not fully apply to the traditional structures of trust and social interaction in the country. The conclusion is thus drawn, that for the theory to be applicable outside the welfare-state setting, the theory needs to be developed. A recommendation is made that apart from the effectiveness and fairness of administrative institutions, connection between the citizens and the formal institutions also needs to be added as a requirement for the institutions to generate trust.