Free exchange | In bot we trust

How to get poor countries out of low-trust ruts

Cooperation is mostly about coordination

By R.A. | WASHINGTON, DC

THE headline on this piece overpromises. I don't know how exactly to flip a low-trust society to a high-trust state. No one does, sadly. The question is one of the most important in economics, however. Poor societies are mostly poor because of a lack of trust. The laws and institutions that facilitate market transactions and long-run investment survive and work because of broad public buy-in: the common belief that rules should generally be followed because others will generally follow rules.

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