Trust: the key to social cohesion and growth in Latin America and the Caribbean
Contributor(s): Philip Keefer, Professor Aldo Madariaga, Dr Erin McFee | Trust is the belief that others will not act opportunistically. It is faith in others—in their honesty, dependability, and goodwill. Trustworthy people make promises they can keep, follow through on those promises, and do not violate social norms. When trust is absent, society and its members suffer: citizens demand and politicians supply public policies that do not advance collective welfare, feeding disenchantment with democracy; citizens and government officials demand increasing regulation and red tape that slow growth and restrict access to social programs; and the performance of firms and public sector organisations declines as mistrust undermines collaboration, recruitment and innovation. The event discusses the sources and consequences of mistrust and reforms that can offset it.