trust and public policy: how better governance can help rebuild public trust - oecd
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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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-20%
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40%
60%
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GBR CZE
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%
20%
40%
80%
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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55%
50%
60%
65%
70%
75%
80%
85%
90%
95%
Confidence in national government (2015)
Free
dom
of m
edia
(201
5)
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
59
41
38
37
18
42
26
35
20
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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.
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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/
Ho
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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
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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
Fin
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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
vernance of R
egulato
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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: [email protected]
Public sector integrity: [email protected]
Open government: [email protected]
Access to justice: [email protected]
www.oecd.org/gov