Persistence of informal social networks in East Asia: Evidence from South Korea

This study investigates the nature and influence of informal social networks in South Korea (yongo) by analyzing trust levels and network cohesion. Predominantly based on studies on Chinese guanxi, it is widely believed that the further a nation develops stable formal institutions the more the influence of informal relations decreases. Given South Korea’s position as a strong economic powerhouse with established rule of law and democratic institutions, the influence of yongo should play an insignificant role today. We find significant evidence that network cohesion of yongo is still strong in South Korea, despite its economic rise. Contrary to expectation, we observe a higher-than-expected degree of general trust and a continuous commitment to yongo ties at the same time. These findings document recent changes in South Korea such as the beginning of its multicultural opening, whereas informal yongo ties, characterized by emotional interpersonal bonds, still remain pronounced. Foremost, we recommend current beliefs about the correlation of institutional development and decreasing informal transactions to be reconsidered. We propose further studies to better understand how informal social networks evolve over time.     

Decentralized payments for environmental services: The cases of Pimampiro and PROFAFOR in Ecuador

Few payment for environmental services (PES) schemes in developing countries operate outside of the central state's umbrella, and are at the same time old enough to allow for a meaningful evaluation. Ecuador has two such decentralised, consolidated experiences: the five-year old Pimampiro municipal watershed-protection scheme and the twelve-year old PROFAFOR carbon-sequestration programme. We describe and compare the two cases, using a common PES definition and methodology, drawing on both primary interview-based information and secondary data. We find that both schemes have been relatively effective in reaching their environmental objectives, in terms of having probably high additionality levels and low leakage effects. A strong focus on the targeted environmental service and a strong degree of conditionality seem to be two key factors explaining these achievements. Although neither scheme has targeted poverty alleviation or other side objectives, both are likely to have improved PES recipients' welfare, mostly through higher incomes. We highlight several observations with more generalised relevance and lessons for the design of PES schemes.