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The Costly Business of Trust

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  • Mark Cosson
  • Marina Delia Giusta

Abstract

This article provides a framework for analysing trust-based projects which can be used as a diagnostic tool to design more effective policy interventions, particularly addressing the problem of meeting users' needs for which many microfinance schemes have come under criticism. Two microfinance projects in Mexico are used to illustrate how a system of trust is built, the role of trust-brokers, and the policy of subsidising trust-building projects. The aim is to provide a tool capable of identifying crucial actors in trust systems and the nature of the linkages between them, so that trust can be effectively operationalised to improve projects' effectiveness and suitability to local conditions. Copyright 2004 Overseas Development Institute.

Suggested Citation

  • Mark Cosson & Marina Delia Giusta, 2004. "The Costly Business of Trust," Development Policy Review, Overseas Development Institute, vol. 22, pages 321-342, May.
    • Handle: RePEc:bla:devpol:v:22:y:2004:i::p:321-342
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    Cited by:

    1. Marina Della Giusta, 2010. "Social Capital and Economic Development," Economics Discussion Papers em-dp2010-02, Department of Economics, University of Reading.
    2. Stuart, Guy, 2006. "Caste Embeddedness and Microfinance: Savings and Credit Cooperatives in Andhra Pradesh, India," Working Paper Series rwp06-037, Harvard University, John F. Kennedy School of Government.

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