The OECD released a report on trust in government and public institutions sharing the main findings from a survey to over 50,000 responses across 22 OECD countries. The “Trust survey” measures government performance across five drivers of trust – reliability, responsiveness, integrity, openness, and fairness. According to the OECD to measure and better understand what drives people’s trust in public institutions is a crucial part of reinforcing democracy.
Key takeaways:
1. OECD countries are performing reasonably well on average on many measures of governance, such as citizens’ perceptions of government reliability, service provision, and data openness. For example, most people, in most countries, are satisfied with the provision of healthcare and education and only a third are concerned that their government would not be prepared for a future pandemic.
2. Political polarization: Trust levels decreased in 2021 (though they remain slightly higher than in the aftermath of the 2008 economic crisis) as countries fight to emerge from the largest health, economic and social crisis in decades. Now, those who did not vote for the incumbent government are much less likely to trust it. Across countries, there is a sense that democratic government is working well for some, but not well enough for all.
3. Governments could do better in responding to citizens’ concerns in some areas that are key to improve trust in government and public institutions reinforcing democracy:
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According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.
IMF states that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainty.