The most important currency for a strong nation is trust. A trustworthy government, a trust-filled marketplace, and trust among citizens create a foundation for economic and social progress. It is essential to develop trust by nurturing cultures of integrity within these three spheres of society. The Trust Waterfall is the framework that guides the Chandler Foundation’s work with national leaders to build trust across the government, marketplace, and community domains.
The responsibility for initiating and sustaining the trust waterfall lies primarily with the government. The first responsibility of political leaders and their colleagues in government is to demonstrate ethical values, establishing honest conduct as an admirable virtue that all seek to follow and making clear that corruption and wrongdoing will not be tolerated.
A moral marketplace is essential to the development of a nation’s economy. A vibrant business environment rests on trust which facilitates transactions and provides a firm basis for beneficial commercial relationships. Setting regulations and policies to build a responsible culture of business therefore promotes economic development.
Nations are communities of individuals and families – and the values that develop in the home and community ultimately come to shape those of the country as a whole. Government policy to build cultures of integrity thus must also speak into the nation’s community life. The government has a crucial role in shaping society’s values through its policies and the example its leaders set.
In high-trust nations, individuals’ faith in institutions and their fellow citizens fosters a cooperative network of collaboration, innovation, and mutual support. This virtuous cycle of shared prosperity resonates through communities, strengthening social cohesion, enhancing civic engagement, and nurturing a sense of belonging. The result is a thriving economy energized by entrepreneurial aspiration and an environment conducive to innovation. Such nations go on to benefit from an improved global reputation, emerging as bastions of stability, reliability, and investment appeal. Foreign investors are drawn to these transparent and accountable nations, confident in the security and protection of their investments. This influx, in turn, further propels economic growth, setting in motion a self-sustaining cycle of prosperity.
Low-trust nations struggle under the weight of pervasive distrust and fragmentation. When people have no faith in the institutions of government or each other, disillusionment sets in, transactions become risky, partnerships crumble, investment capital flees, and economic development is stunted. Mutual suspicion manifests itself in political polarization, crime, and weak social integration. Such nations must also grapple with a damaged global image, struggling to attract investment and foster international cooperation. Foreign investors are deterred by perceived instability and unreliability, further limiting the country’s economic potential and growth opportunities.
Trust does not arise by chance — it is intentionally built through good governance. Ethical leadership, transparent institutions, and policies that promote a culture of integrity are the foundations upon which trust is formed. When governments model honesty and accountability, they set powerful examples that cascade into the marketplace and community, reinforcing a national culture of trust. Good governance is the critical starting point for any nation seeking enduring prosperity and well-being.