The rich, the powerful and the famous last week descended once again on the Swiss village of Davos for the annual meeting of the World Economic Forum (WEF). This year, the assembled luminaries pondered the loss of "trust" that has sapped institutions worldwide. The question is a vital one. Of the many obstacles that impede steps toward a better future, the lack of faith in the instruments of progress may be the most important.
Trust is internalized in most business, political and social processes. There are mechanisms to reinforce trustworthy behavior -- no one is immune to temptation -- but there is a working presumption of trustworthiness. Sadly, that presumption is eroding.
Scandal is one culprit. Barely a day goes by without some new revelation, be it in politics or business. The collapse of businesses, some venerable institutions, has rocked public confidence. The scale of recent failures has convinced many that the problems are systemic, rather than individual cases. The taint has spread beyond the executive suite to infect other institutions -- the legal and accounting professions, bureaucrats and politicians -- that were thought to serve as checks on malfeasance.