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Summary:
Competitiveness debates have contrasted countries that have industrial policies, like Japan, with more laissez-faire countries like the United States. But the pivotal difference is the level of a people's trust. High-trust societies are interlaced with voluntary organizations--Rotary clubs, Bible study groups, private schools--and thus have "social capital," which makes for the growth of large corporations in highly technical fields. Low-trust societies--France, Italy, China--tend toward small, family-owned businesses in basic goods. Social capital is not necessary for growth, but its absence tempts governments to intervene in the economy and imperil competitiveness.
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