Trust in Public Institutions: Trends and Implications for Economic Security

Abstract

WHY SHOULD WE CARE ABOUT TRUST? Trust is integral to the functioning of any society. Trust in each other, in our public institutions and in our leaders are all essential ingredients for social and economic progress, allowing people to cooperate with and express solidarity for one another.1 It allows public bodies to plan and execute policies and deliver services. Greater public trust has been found to improve compliance in regulations and tax collections, even respect for property rights.2 It also gives confidence to consumers and investors, crucial to creating jobs and the functioning of economies more broadly. Success in achieving each of the Sustainable Development Goals (SDGs)— from eliminating poverty (SDG1), to combatting climate change (SDG13), to building peaceful and inclusive societies (SDG16)— will depend on citizens’ and businesses’ trust in public institutions and in each other. Governments have also drawn on public trust to effectively address every stage of the COVID-19 pandemic response—from containment, to mitigation, to vaccinations. Early evidence has found that higher levels of confidence in national public institutions is associated with lower national COVID-19 mortality rates.3 This is consistent with evidence from previous health crises—including SARS, H1N1 and Ebola—where high public trust was found to be a crucial determinant for successful responses.4 Governments will need to count on, or in cases where government responses were largely found to be ineffective, to regain public trust as they plan and implement an inclusive recovery. However, there is growing concern about a crisis in public trust that is contributing to, among other things, support for extreme political views, increasing public discontent, protests and in some cases violent conflict.5 The UN Secretary-General recently warned of a “trust deficit” that threatens to undermine progress towards the SDGs.6