Strong institutions empower economies by ensuring a stable operating environment, smoother transmission mechanisms, less costly and less risky economic interactions, a credible set of property rights, and respect for the rule of law. However, there has been a notable erosion of trust in the effectiveness of public institutions. Lack of trust in institutions typically mirrors their failure to function in line with the expected standards leading to a weak state-society relation.
During this session, Dr. Christos Kallandranis shared the results of a study that uses micro-level data from the Eurobarometer to explore the determinants of trust across countries in Europe. Participants learned the importance of social capital, how weak economies accelerate distrust in key institutions; and the effects of financial adjustment programs on trust in institutions.