Trust in institutions can erode when it is needed most, whether to shepherd an economy out of a recession or take advantage of a window of opportunity to enhance resilience to shocks. After catastrophic events, such as a natural disaster, we may get a vicious feedback loop: society suffers more if systems break down, which erodes trust and then further deteriorates resilience. Fragile societies with greater exposure to such events may fall into a “distrust trap”: building trust and resilience becomes more difficult with each shock weakening the system.
Watch the seminar below as industry leaders explore actions business can take to address these challenges.
For more information on the IMF Seminars Event, visit: https://edl.mn/2HGZVN6