The Role of Public Trust in People’s Subjective Well-Being

Context:  Critically analysing the role of public trust in the subjective well-being of the people.

About IHDS:

• It was an all-India survey. The first round covers 2005 and the second 2012.
• Unique features:
  • Asked questions on changes in subjective economic well-being (SWB). For e.g. Compared to seven years ago (2005), it asked, would you say your household is economically doing the same, better or worse today (2012)?
  • Focus on public institutions.
  • Trust is measured through three grades of confidence: hardly any confidence, only some confidence and a great deal of confidence.

Significance of trust in effective governance:

• Kenneth Arrow viewed trust as a lubricant that fosters cooperative behaviour.
• Beneficial effects on economic performance: It facilitates mutually advantageous economic exchanges in the presence of incomplete contracts and imperfect information.

An account of the trend of trust in public institutions: Data from the India Human Development Survey 2015 (IHDS) showcases a relationship between trust and Subjective economic Well-Being (SWB).

• Lack of trust in governments: Trust in state governments rose between 2005 and 2012. The proportion of those with a great deal of confidence rose, while that of those with hardly any confidence fell.
• Confidence on judiciary: Confidence in the judiciary rose too; the proportion of those with a great deal of confidence rose somewhat sharply, while those with hardly any confidence nearly halved.
• Trust in police: Confidence in the police’s ability to enforce law rose, while the proportion of those with a great deal of confidence rose slightly; those with only some confidence rose markedly; and those with hardly any confidence dropped considerably.

Contradictory issue: Since trust in public institutions rose, SWB is likely to rise. But several recent accounts of erosion of trust in governance are worrying for precisely this reason.

• For E.g. Although the judiciary is autonomous, its role in delivering justice fairly and promptly has become more controversial in recent years.

Way Forward: A renewed focus on trust in government can bring a new perspective to public governance, enhancing the role of citizens. However, the government needs to be more inclusive, transparent, receptive and efficient.