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Trust and Public Policy How Better Governance Can Help Rebuild Public Trust

Highlights

OECD Directorate for Public Governance and Territorial Development

Trust plays a very tangible role in the effectiveness of government. Few perceptions are more palpable than that of trust or its absence. Governments ignore this at their peril.

The erosion of public trust has been a

recurring issue for many years, but came

firmly to the forefront of public debate in

many OECD countries with the onset of

the 2008 global financial crisis and ensuing

recession. Those events profoundly shook

the public’s confidence in institutions, and

people’s trust in public institutions has fared

especially poorly. Against a background

of perceived inequalities in income and

opportunities, high unemployment and

job insecurity, resistance to globalisation

and concern over global pressures such

as migration and climate change,

restoring this trust is essential.

Restoring Trust In Government

DEU

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Percentage points change since 2007 Level of trust in 2015

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Fig. 1 Trust in government has been declining, often from a low starting point

OECD Trust Database, Gallup World Poll 2015

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Public institutions across all areas of public

policy have a strong incentive to inspire

public trust: high trust is associated with

cooperative behaviour, while low trust is

associated with resistance, even to things

that seem to be in the person’s overall best

interest. But what can governments actually

do to rebuild trust?

Extensive research suggests that attention

to two fundamental principles can help.

First, competent execution of public

mandates and, second, a values-driven

approach to decision-making are keys to

strengthening trust between government

and citizens across a wide range of the

most hotly debated areas of public policy

today, such as taxation, migration, pensions,

infrastructure, energy, financial market

regulation and environmental policy.

Two keys to public trust: competence and values

1. Competence - Ability of governments to deliver to citizens the services they need,

at the quality level they expect

Government mandate involved Key elements

Overall public policy objective

Provide public services Access to public services regardless of income, place of residence.

Quality and timeliness of public services.

Responsiveness

Anticipate change, protect citizens

Effective management of social, economic and political uncertainty

Consistent and predicable behaviour

Reliability

2. Values - The principles that inform and guide government action

Government mandate involved Key elements

Overall public policy objective

Use power and public resources ethically

High standards of behaviour and clear accountability.

Commitment to fight corruption.

Integrity

Inform, consult and listen to citizens

Giving citizens useful information on what government is doing.

Engagement opportunities that genuinely influence policy choices.

Openness

Improve socio-economic conditions for all

Pursuit of socio-economic progress for society as a whole.

Consistent treatment of citizens and businesses.

Fairness

Competent execution of public mandates and a values-driven approach to decision-making are

keys to strengthening trust between government and citizens across a wide range of the most hotly

debated areas of public policy today, such as taxation, migration, pensions, infrastructure, energy,

financial market regulation and environmental policy.

Source: Adapted from review of the literature

Fig. 2 Citizens’ trust is derived from an assessment of the competence and values of their public institutions

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Strengthening and joining up tools to fight corruption

There is widespread anger over persistent

problems of corruption, tax evasion,

regulatory capture and other signs of weak

respect for rule of law among political elites.

This has led to calls for stronger measures to

manage political financing, lobbying, post-

public employment and conflicts of interest.

Four policy levers are particularly powerful

in influencing trust: 1) clear and transparent

definition of and adherence to integrity

principles, including equal treatment and

enforcement; 2) capitalising on critical

opportunities to demonstrate integrity in

practice, such as large public infrastructure

projects and major events; 3) political

leaders leading by example (with regard to

asset disclosure, transparency, etc.); and 4)

development and application of common

standards and behaviours at all levels of

government, given that state and local

authorities often interact more closely

with citizens than do central government

civil servants.

OECD Recommendation on Public IntegrityThis new OECD instrument is designed to

strengthen the effectiveness of a public

integrity system, identifying new risks and

closing gaps. Thirteen principles are organised

in three pillars:

A. Building a coherent and comprehensive

public integrity system involves:

1) demonstrating political and management

commitment; 2) establishing institutional

responsibilities for the public integrity system;

3) developing a strategic risk-based approach;

and 4) setting high standards of conduct.

B. Cultivating a culture of public integrity by:

5) promoting a whole-of-society approach;

6) investing in integrity leadership of public

managers; 7) promoting a merit-based

professional public service; 8) providing

information, training, guidance and advice

for public officials; and 9) supporting an open

organisational culture responsive to public

integrity concerns.

C. Enabling effective accountability by:

10) applying a control and risk management

framework; 11) ensuring effective enforcement

responses to integrity violations; 12) reinforcing

external oversight and control; and 13)

encouraging transparency and stakeholders’

engagement at all stages of the political process

and policy cycle.

Improving public services, in terms of access, quality and responsiveness,

plays an important role in strengthening trust in government as service

performance, citizen satisfaction and public trust are closely connected.

Better understanding citizens’ needs, experience and preferences can

result in better targeted services, including for underserved populations,

often through relatively minor and low-cost refinements.

High-quality public services contribute to broader sentiments of trust

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Trust and public service delivery: the case of access to justice

Justice is an area of public policy that

exemplifies the need for a strong trust

relationship between public institutions

and citizens. Trustworthiness is grounded in

understanding users’ legal needs and justice

pathways, and the ways to respond to these

needs through a continuum of legal assistance

and justice services. Integrating legal and

justice services with other social services (e.g.

health, employment), establishing simple

gateways (“one-stop shops”) and providing

targeted and timely legal assistance services

to those facing the most severe problems

will maximise social return on investment.

Expanding ICT-enabled justice services and

processes further helps meet specific needs

(e.g. remote communities) and address new

policy challenges (e.g. self-representation).

Finally, developing transparency and outreach

measures (e.g. legal empowerment) will support

the development of legal capabilities and

address the calls for greater openness in

the justice sector overall.

When trust breaks down: an example from education

Trust is an important ingredient in education

reform, involving a complex interaction among

parents, teachers and the education ministry.

Whether it is designing a new curricula

and selecting teaching materials, adjusting

school hours, upgrading school inspection or

introducing rankings, trust is a prerequisite for

effective reform. According to OECD, Education

Governance in Action, avoiding a breakdown in

trust depends on promoting open dialogue,

clear accountability and providing capacity

building support.

0%

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100%

60%Public transportation

62.6%

Nationalgovernment

Minimum

43.4%

Judicialsystem

53.5%

Local police74.9%

Education68.5%

Health care70.5%

OECD average

Maximum

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Fig. 3 Citizens appreciate the public services they receive from government more than government itself

Fair process is as important for citizens as outcomeCitizens’ perception of fairness, in process as

much as in outcome, is a critical dimension

of trust. People must feel they have a real

voice, be treated with respect, and receive

necessary explanations. Positive perceptions

of fairness lead to greater acceptance of

agency decisions, better compliance with

regulations, and more co-operative behaviour

in dealing with agents of the government.

The reverse also holds: some citizens will

even prefer negative consequences for

themselves, such as financial penalties over

compliance, if they perceive that they have

been treated unfairly. In general terms, low

trust generates extra transaction costs for

citizens, businesses and government.

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Citizens expect their money to be well managedSound use of public money is another

important domain in which trust can be

easily lost. Governments need to ensure

that the budget decision-making process

itself is open and provides for an inclusive,

participative and realistic debate on

budgetary choices, not simply provide

access to information once spending

decisions have been made. Current tools

to promote fiscal transparency include the

Citizen’s Budget, which presents key public

finance information in a way accessible to a

general audience, and independent bodies

responsible for oversight of fiscal policy

(Independent Fiscal Institutions or IFIs).

Restoring trust through openness

From law-making to budgeting and service

delivery, efforts to embed greater openness

send a clear signal of a government’s

commitment to invest in trust while also

having a positive impact on the quality of

the policy decisions made. The current move

towards concepts of ‘Open Government’ and

the even more ambitious ‘Open State’ are

positive signs that governments are trying

to strengthen the dialogue with citizens,

even if in some cases this openness can

illuminate facts that can generate

distrust. Guaranteeing freedom of

the media is another sign of an

approach to openness that

helps to build trust.

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60%

65%

70%

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80%

85%

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95%

Confidence in national government (2015)

Free

dom

of m

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(201

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Importantly, countries are increasingly supporting some of the key elements that provide

the foundation for transparency. For example, the figure below illustrates how access to

information (ATI) laws have grown within OECD countries over the past half-century.

2001-20161991-20001981-19901971-19801961-1970

Before-1960

0 5 10 15 20 25 30 35

Fig. 4 Freedom of media and confidence in national government are closely related

Fig. 5 The number of OECD countries with law on access to information continues to grow

Source: Gallup World Poll, 2015.

Source: OECD (2009), Government at a Glance 2009, OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/9789264075061-en, updated by the author.

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The private sector works to build trust every dayThe private sector has shown that with

the right groundwork and preparation, the

behaviour of individuals can be strongly

influenced by perceived trustworthiness.

Companies understand that there are two

separate dimensions at play: cognitive

(rational or experience-based) trust and

affective (emotional) trust. They therefore

tend to use an integrated approach in

establishing trust with their different

stakeholders. While the emotional

dimension can be linked to (e.g.) brand

loyalty, the rational will place the premium

on such attributes as reliability and

quality. For a public institution, developing

a reputation for reliability and quality

(perhaps not an emotional attachment)

will bring tangible benefits (such as easier

acceptance of new services, procedures or

regulations).

48 68

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Behaviours for Distrusted Companies

Percent who engage in each behaviour based on their level of trust in a company

Behaviours for Trusted Companies

#1

Refused to buy products/services

Criticized companies

Shared negative opinions

Disagreed with others

Paid more than wanted

Sold shares

Chose to buy products/services

Recommended them to a friend/colleague

Shared positive opinions

Defended company

Paid more

Bought shares

most trusted content creators:

Friends and Family

#1 most trusted media source:

Online Search Engines

Fig. 6 Building and retaining trust is a commercial imperative for the private sector

Edelman (2016), Edelman Trust Barometer – Financial Services Results

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A recurring theme of the report is the close

parallel between what public institutions

are starting to do today to build trust, and

the ways that private companies routinely

use trust to attract and retain customers,

through deliberate and well-thought out

“trust strategies”.

Perhaps the most important lesson is that

trust is not only an indicator of success, it is,

more significantly, one of the ingredients

that makes success – for a business or

for a government – possible.

Building trust through direct experience: the case of driverless cars

By many accounts, we are on the cusp of a

new era. Boston Consulting Group expects the

autonomous vehicle (AV) market to reach a value

of USD 42 billion by 2025. Yet, trusting our lives to

a device that must make life and death decisions

with near-perfect accuracy in an unpredictable

world and at high speeds represents a quantum

leap in the trust we must lend to technology.

Property owners, bicycle riders, pedestrians, and

all other users of public roads will need trust to

coexist with this new technology.

Gaining the trust of society is recognised as

one of the main hurdles to wider adoption of

this new technology. Carmakers are working

intensively with users to earn trust through

direct experience. While most are initially

apprehensive about the car’s ability to

manoeuvre correctly, test subjects generally

see that the car makes the correct decision

time and again. Users quickly learn to

trust the technology and the carmaker on

the basis of direct, but limited, experience.

Trust is essentially about inferring future

behaviour or events despite incomplete

information. Most people have already taken

this step with e-commerce and, according to

many experts, will soon take this step with

autonomous cars.

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Consult this publication on line at http://dx.doi.org/10.1787/9789264217416-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.Visit www.oecd-ilibrary.org for more information.

How’s Life in Your Region?MEASURING REGIONAL AND LOCAL WELL-BEING FOR POLICY MAKING

How’s Life in Your Region?MEASURING REGIONAL AND LOCAL WELL-BEING FOR POLICY MAKING

How’s life? The answer can depend on what region you live in. Many factors that infl uence people’s well-being come into play on the local level, such as employment, access to health services, pollution and public safety. Policies that take into account the economic and social realities where people live and work can have a greater impact on improving well-being for the country as a whole.

This report paints a comprehensive picture of well-being in the 362 OECD regions, by looking at some of the most important aspects that shape people’s lives: jobs, income, housing, education, health, access to services, environment, safety and civic engagement. The report fi nds that the disparities in material conditions and quality of life are often greater among regions within the same country than they are across different countries. While on average people are richer, they live longer and they enjoy a better air quality than fi fteen years ago, the intra-country gaps between the best- and worst-performing regions in terms of many well-being dimensions have been widening in many OECD countries.

The report provides a common framework for measuring well-being at the regional level and guidance for all levels of government in using well-being measures to better target policies at the specifi c needs of different communities. The report draws from a variety of practical experiences from OECD regions and cities.

An interactive web-based tool (www.oecdregionalwellbeing.org) allows to compare performance across regions in OECD countries and monitoring improvements over time.

ContentsExecutive summaryChapter 1. A framework for measuring regional and local well-beingChapter 2. How to measure regional and local well-beingChapter 3. Using well-being measures to improve policy results in regions and citiesUsing well-being indicators for policy making: Regional initiatives (content available on line)Chapter 4. Regional well-being in OECD countries

Further reading• OECD Regional Outlook 2014 • OECD Regions at a Glance 2013• How’s Life? 2013

www.oecd.org/regional/how-is-life-in-your-region.htmwww.oecdregionalwellbeing.org/

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ISBN 978-92-64-21121-604 2014 03 1 P 9HSTCQE*cbbcbg+

Open GovernmentThe GlObal COnTexT and The Way FOrWard

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RECOMMENDATION OF THE COUNCIL ON BUDGETARY GOVERNANCE

Public Governance and Territorial Development Directorate

Consult this publication on line at http://dx.doi.org/10.1787/9789264249455-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.Visit www.oecd-ilibrary.org for more information.

OECD Public Governance Reviews

Financing DemocracyFunDinG OF POlitiCal PaRtiEs anD ElECtiOn CamPaiGns anD thE Risk OF POliCy CaPtuRE

OECD Public Governance Reviews

Financing DemocracyFunDinG OF POlitiCal PaRtiEs anD ElECtiOn CamPaiGns anD thE Risk OF POliCy CaPtuRE

ContentsPart I. Funding of political parties and election campaigns, risks of policy capture and policy optionsChapter 1. Addressing the risks of policy capture

Chapter 2. Promoting a level playing field through balanced funding

Chapter 3. Increasing transparency and accountability through disclosure of political party and election-campaign funding

Chapter 4. Fostering a culture of integrity among political parties, public officials and donors

Chapter 5. Ensuring compliance with political finance regulations

Part II. Country case studiesChapter 6. Canada

Chapter 7. Chile

Chapter 8. Estonia

Chapter 9. France

Chapter 10. Korea

Chapter 11. Mexico

Chapter 12. United Kingdom

Chapter 13. Brazil

Chapter 14. India

isbn 978-92-64-24944-8 42 2015 26 1 P

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Consult this publication on line at http://dx.doi.org/10.1787/9789264255388-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-25537-142 2016 12 1 P

The Governance of Regulators

Governance of Regulators’ PracticesACCOUNTABILITY, TRANSPARENCY AND CO-ORDINATION

Good regulatory outcomes depend on more than well-designed rules and regulations. They also require bodies to administer these rules to ensure that the right policy outcomes are realised. Regulators are at the delivery end of the policy cycle, where they oversee sectors and markets that provide essential services to citizens. The governance of regulators helps ensure that regulatory decisions are made on an objective, impartial and consistent basis, without con� ict of interest, bias or improper in� uence. This series brings together research and recommendations on what makes “world class regulators”, drawing on the experiences of more than 70 regulators from network sectors, including energy, communications, transport and water. http://www.oecd.org/gov/regulatory-policy/ner.htm

Contents

Chapter 1. The governance of regulators: overview and trends

Chapter 2. Regulators’ practices

Chapter 3. Australian Energy Regulator and Australian Competition & Consumer Commission’s Telecommunications Regulation

Chapter 4. Portugal’s Water and Waste Services Regulation Authority

Chapter 5. The UK Of� ce of Rail and Road

Chapter 6. Mexico’s key sector and regulatory reforms

Go

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The Governance of Regulators

Governance of Regulators’ PracticesACCOUNTABILITY, TRANSPARENCY AND CO-ORDINATION

Further reading

OECD Guidelines on the Measurement of Trust

OECD is preparing a set of OECD Guidelines on the Measurement of Trust. These Guidelines are

modelled on the OECD Guidelines on Measuring Subjective Well-Being released in March 2013,

and aim both to fill gaps in the available statistical data for measuring well-being in OECD

countries and to support and to complement the analysis of what drives trust. In addition, the

Guidelines will provide advice for data users on methodological issues associated with the use of

trust data. In particular, it is envisaged that work would include the development of a series of

prototype question-modules that could be included in various types of household surveys.

For more information, contact:

Trust and public policy: Andrew.Davies@oecd.org

Public sector integrity: Janos.Bertok@oecd.org

Open government: Alessandro.Bellantoni@oecd.org

Access to justice: Tatyana.Teplova@oecd.org

www.oecd.org/gov