Trust as a Decision The Problems and Functions of Trust in Luhmannian Systems Theory Janne Jalava University of Helsinki, Faculty of Social Sciences, Department of Social Policy Research Reports 1/2006 Pre-Examiners Dr. Seppo Raiski Department of Social Studies University of Lapland Dr. Risto Kangas Department of Sociology University of Helsinki Copyright Janne Jalava 2006 Cover Design: Julius Westerberg Layout: Janne Jalava Published by the Department of Social Policy, University of Helsinki ISSN 1795-4703 ISBN 952-10-2854-8 (nid.) ISBN 952-10-2855-6 (pdf, http://ethesis.helsinki.fi) Printed by Yliopistopaino Helsinki 2006 Abstract This work examines Niklas Luhmann’s (1927-1998) concepts of trust, confidence and familiarity, and their functions in Luhmannian systems theory. Janne Jalava is especially interested in the way these concepts would function in the context of Luhmann’s advanced systems theory. This is because Luhmann wrote his principal work on trust, Vertrauen, as early as in 1968. Although Luhmann can be thought of as a system theorist already during that time, his magnum opus, Soziale Systeme, on advanced systems theory was not published until 1984. This work concentrates especially on five research problems. Firstly, it concerns Luhmann’s own theory of trust, confidence and familiarity. Secondly, Jalava studies the theoretical precursors (Talcott Parsons and Georg Simmel), who influenced Luhmann’s writings on the topics as well as analyse how Luhmann’s theory of trust, in turn, has affected the current theories on the topic (Anthony Giddens and Piotr Sztompka). Thirdly, Luhmann’s theory of trust is then examined in the context of advanced systems theory. Special emphasis is laid on the way the growing importance of risks has affected the validity of trust, confidence and familiarity. Fourthly, the connections between the advanced Luhmannian concepts of trust, confidence and familiarity and the concept of strangers are analysed. Fifthly, the analysis will move from personal level to systemic and organisational levels. The work concentrates on the problematic of trust and confidence in the context of the system of the welfare state, system of care and caring organisations. The most important result of this work, then, is to specify the history, position, and meaning of trust in Luhmann’s systems-theoretical thinking. Jalava will also show how it can be fruitful to examine the problems of ‘strangers’, the system of the welfare state, and the system of care and caring organisations in the context of Luhmannian trust and confidence. Tiivistelmä Työn tarkastelun kohteena on Niklas Luhmannin (1927-1998) luottamuksen käsite. Erityisesti Janne Jalava on kiinnostunut siitä, miten Luhmannin luottamuksen käsite toimii kehittyneen systeemiteorian kontekstissa. Tämä johtuu siitä, että Luhmann kirjoitti luottamusta käsittelevän pääteoksensa, Vertrauen, jo vuonna 1968 ja hänen systeemiteoriaa tarkasteleva pääteos, Soziale Systeme, ilmestyi vasta vuonna 1984. Jalava lähestyy luhmannilaista luottamuksen problematiikkaa viidestä eri näkökulmasta. Ensin hän tarkastelee Luhmannin omaa luottamusteoriaa. Vaikka työn pääongelmana on tarkastella luottamuksen käsitettä, jakaa Luhmann omissa kirjoituksissaan luottamusproblematiikan kolmeen käsitteeseen: luottamukseen (trust), luottavaisuuteen (confidence) ja tuttuutteen (familiarity). Jalava pohtii myös Luhmannin luottamusproblematiikan kannalta olennaisia teoreettisia vaikuttajia (Talcott Parsons ja Georg Simmel) sekä Luhmannin luottamusteorian nykyistä sosiologista merkitystä (erityisesti Anthony Giddensin ja Piotr Sztompkan tutkimusten teoreettisena innoittajana). Tämän jälkeen Jalava analysoi sitä, miten Luhmannin varhainen luottamusteoria toimii kehittyneen systeemiteorian kontekstissa. Erityisesti Jalava pohtii riskien ja kommunikaation vaikutusta luhmannilaisten luottamuskäsitteiden sosiologiseen käyttökelpoisuuteen. Neljänneksi keskitytään muukalaisuuden ja luottamuksen välisiin suhteisiin. Jälkimodernissa maailmassa olemme kaikki toisillemme enemmän tai vähemmän muukalaisia. Enää siis Georg Simmelin klassinen muukalaisuusteoria, jossa muukalaiset nähtiin yhteiskunnan toimivuuden kannalta positiivisina ja luotettavina henkilöinä, ei ole yhteiskunnan toimivuuden kannalta kovinkaan relevantti. Miten siis yleistynyt muukalaisuus ja terrorismi vaikuttavat luottamusproblematiikkaan? Seuraavaksi työssä tarkastellaan luottamusta systeemien ja organisaatioiden tasolla ja pohditaan luottamuksen ja luottavaisuuden problematiikkaa hyvinvointivaltion kontekstissa. Jalava näkee hyvinvointivaltion syklisenä kokonaisuutena, joka koostuu kansasta, politiikasta ja hallinnosta. Erityisesti hän pohtii sitä, miten luottavaisuus kansan ja politiikan välillä rakentuu. Työssä tutkitaan myös vanhusten hoivasysteemiä, joka on Jalavan analyysin mukaan vähitellen kehittynyt hyvinvointivaltiollisen inkluusion myötä. Tässä yhteydessä Jalava tutkii hoivasysteemin systeemiteoreettisia ongelmia ja sitä, onko kuitenkin mielekkäämpää tarkastella hoivaa erilaisten organisaatioiden avulla ja täten kyseenalaistaa hoivan systeemiluonne. Työn lopussa analysoidaan myös hoivaajan ja hoivattavan välistä luottamusproblematiikkaa. Acknowledgements A journey, rewarding but sometimes tough, is about to finish. This journey can be divided into four periods. Because of the death of my loving father, the first period from 2000 to 2001 was the most painful time in my life and it was often more than difficult to concentrate on doing research. After this tragedy, in September 2001, I decided to leave to the University of Bielefeld to get the best Luhmann knowledge in the world. Looking back, this period was definitely the richest time of my university life. Without spending a half-year period in this scientifically inspirational environment under brilliant supervising, my understanding about Luhmann and his systems theory would still be in its infancy. After returning to Finland I continued writing the research. This third period, from 2002 to 2004, was also physically very painful because of a herniated disk in my back. Due to persistent training my back started to heal and also my research work started to look better. It was in October 2004 when I started to write the final version of this book. Now this last period of the journey is about to finish, and I am grateful to many for sharing this path with me. Numerous people have contributed to this fascinating journey. I will probably never be able to describe the amount of encouragement and insight I have received from one person. His support has been continuous. Risto Eräsaari deserves the most heartfelt thanks for his support that helped me to grow into an independent researcher. Thank you Risto for being my closest mentor during this journey. We certainly trust one another! Beside Risto, this journey has been blessed with guidance and inspiration of two other central figures whom I very highly respect. Keijo Rahkonen and Arto Noro have offered me time, consideration and crucial advice. Without your contribution this project might never have been finished. You both are inspiring and encouraging mentors! Special thanks go also to my pre- examiners, Seppo Raiski and Risto Kangas, who read the entire manuscript and provided valuable comments. Thank you for guiding me to the complex world of Luhmann’s systems theory. It is an honour to follow your Luhmannian footsteps! The journey would have been much more difficult without Tuomas Ylä-Anttila who has helped and inspired me on numerous occasions. I have shared countless interesting discussions with you and received much good advice. Without friends like you the world would be an empty place! The department of Social Policy, University of Helsinki, has been a warm-hearted and friendly place to work at. I have been lucky to have as my university room-mate not just a colleague but a very good and patient friend, Sampo Ruoppila. Thank you Sampo for sharing with me this journey! I would like to thank also Rudolf Stichweh and Raf Vanderstraeten who warmly welcomed me as a visiting researcher to the University of Bielefeld. Last but not least, my deepest thanks go to my four closest persons. Needless to say, without Jaakko Saari’s special contribution in the middle of 1990s, I would have never started to study social policy and Luhmann’s systems theory. Without you, this research would not exist. My big brother, Juha Jalava, has all along this journey reminded me that there is life also outside of University. Thank you for keeping my feet on the ground! I have been blessed with wonderful parents, Ritva and Touko Jalava. There are no words through which I could describe the amount of love and support I have gotten from you. Therefore, this book is dedicated to my dear mother Ritva and the memory of my loving father Touko. I have been entitled to work in SOVAKO (the Finnish Post-Graduate School of Social Sciences) during this research process, and I am very grateful for this position. Beside SOVAKO, this research has been funded by the Science Foundation of University of Helsinki, the Foundation of Emil Aaltonen, Deutscher Akademischer Austauschdienst and the Finnish Cultural Foundation. Sammatti, November 2005. Janne Jalava Contents 1. Introduction…1 The Research Problem…3 The Architecture of the Study…7 2. Luhmann’s Conception of Trust…13 From Familiarity to Trust…16 Trust and Take a Risk…19 The Four Conditions of Interpersonal Trust…22 ‘In Functions We Have System Trust’…24 Differences and Connections between Familiarity, Trust and