(Mis)trust in

institutions
November 24, 2023
House rules

• Respect over ego

• Focus ---Social Media Dopamine
free
• Silent mode for gadgets
• One speaker at a time
• Co-create together
• Fun!

Safe space for each of us

What do you see?
How do you explain it?
Why are some countries more developed and others less?
Geography is a deep structural variable.

• Provides costs and opportunities, but no more.

Such costs can be overcome  Singapore.

• Similar geographies have radically different outcomes:

N. vs S. Korea.
•Institutions!

•They matter because they set

incentives and allow nations to
make the most of their
geography, resources and
opportunities, or not.
What are institutions?

the formal and informal rules that organise social, political

and economic relations (North, 1990)

‘established and prevalent social rules that structure social

interactions’ (Hodgson, 2006)
Institutions ≠ Organisations
Think of it
this way:
Institutions - “rules of
the game”

organisations - how we
structure ourselves to
play
Organisations are shaped by institutions, and in turn shape
institutional change.

 Organisations are the material expressions of institutions

circumscribed by ‘groups of individuals bound by a common
purpose’ (North, 1990, pp. 3, 5; Harper et al., 2012, p. 15).
Institutions are the vehicle for our value/beliefs collectively
 Example:

Family
provides emotional and
practical support to its
members
(where socialization initially
takes place)
Government
forms and enforces laws and
ordinances that govern society.
The government’s primary role
is to maintain order and provide
public services.
 Douglas North on types of institutions

Formal Informal
System of property rights Culture
Statutory law, normative law Values
Public social, financial regulations Behavior patterns
Religion and beliefs
Social trust
Why it matters to know the distinction?
Why?
Our choice of belief

How?
Formally or informally

What?
Institutions
Why trust matters?
• Society is based upon a shared agreement of all
citizens
• Citizens give up certain rights and privileges in
return for the protection and mutual advantage of
the state

This explains:
• Why Governments exist? Collective interest
• Why should we obey laws? Implied contract
• Where does justice come from? Mutual obligations
This contract functions as long as there is…

•TRUST
What happens if
trust doesn’t
exist?
POLARIZATION &
ISOLATION
Drivers of
polarization:
Trust is like cement for a
functional society
How do we build trust?
 Time to play

• Get in your group and share:

- your name
- 1 thing you are
proud of
- 1 thing you are
ashamed of
1. Select a volunteer person from your
group
The coconut

2. Everybody stands up

3. All group stand close, ready to give a

group hug

4. The Coconut person is asked to

take 1 step away from the group
5. The Group must catch the Coconut as it falls,
when the moderator announces Coconut Drop
6. Second round, the Coconut takes 2 steps
away from the group. Coconut Drop
announced
7. Third round – the Coconut steps on a chair
Coconut Drop announced
How do we build trust?

• Through progressive steps

How
institutions are
created
and how
people shape
them?
Let's dive deeper
Let us make it PERSONAL!
What is your
personal
trust in
institutions?
Who likes M&Ms?
M&M voting system

Please vote with:

1 M&M – no trust
2 M&Ms – low trust
3 M&Ms –I trust more or less
4 M&Ms – I trust somehow
5 M&Ms – I trust confidently
Government Media Civil Society The Internet
Are there any regional synergies across the region on
(mis)trust?
Regional historical and context analysis on institutional
development

• Soviet Union – totalitarian state

• Migration
• Clash of local vs. import institutions
• No private property rights
• Hangover from socialist law (political instrumentalization of the law
by political establishment, vague rule of law)
• Propaganda as a means of information
• Economical anxiety
• No civil society
The Golden Circle route

1. What matters to us, as youth, to thrive in society? (the why?)

2. What vehicles are relevant for our needs? (the what?)

3. What is affecting our trust in these institutions ? (the how?)

What we need for
trustful institutions?

Social Engineering
Remember that:

• Geography sets the opportunities and the

costs a country faces, and suggests
solutions. But geography is not destiny,
and costs can be overcome.
• Culture is endogenous.
• Institutions allow nations to make the most
of their geography, resources and
opportunities, or not.
What we need for trustful institutions?

• Clarity on our beliefs

• Association by common beliefs
• Public Dialogue
• Consensus
• Implementation
• Transparent reporting
Is it easy? No
Is it worth it? I trust so
Ana Indoitu