GUEST COLUMN BY
Dr Anshuman,Professor and Head,Economics
Trust has been the foundation of every society in all civilizations in all times. Whenever there has been deficit in trust, it has led to catastrophic effects on the people, societies and countries. All wars, riots, civil wars, etc. are the manifestations of the trust- deficit.In a simple society, the daily activities were run on the basis of trust without any modern institution. People used to keep their money with other respected members of the community on the basis of trust without ay legal agreement. Many business activities were held without any written contract.
With the economic development , many institutions have sprung up to enforce the contracts , which earlier were performed by trust. However, if one attempts to analyze the cases of breach of contracts in modern time and earlier time , one would find that cases of breach of contract are more in modern society than earlier time in absolute term as well as proportion of total contracts. Its testimony is modern judiciary flooding with cases of breach of contract by one of the parties in the agreement. It proves that the trust has eroded in the society in general.