Trust Is the Invisible Infrastructure of Prosperous Societies

Economic growth, innovation, and institutional stability are often explained through capital, skills, or regulation. Far less attention is paid to a factor that quietly shapes all three: trust. When individuals trust one another and the institutions that govern them, cooperation becomes easier, transactions less costly, and collective action more effective. 

The research agenda report Bridging Social Capital and Trust: A Research Agenda, by Marieke Huysentruyt, María de los Ángeles Gutiérrez M., and Yann Algan, published by the HEC Paris Sustainability & Organizations Institute, brings together a growing body of evidence showing that trust functions as a form of social infrastructure. The report demonstrates that variations in trust help explain differences in productivity, inequality, and democratic resilience across societies. It also warns that when trust is overlooked, economic and political systems become more fragile and less inclusive.

The report reframes trust not as a cultural trait or moral value, but as a structural condition that enables societies to function. Trust lowers the costs of cooperation by reducing uncertainty, facilitating coordination, and supporting compliance with shared rules. In this sense, it plays a role comparable to physical or institutional infrastructure, even though it remains largely invisible in economic indicators.

This infrastructure dimension helps explain why societies with similar levels of income or education can display very different outcomes. Where trust is widespread, individuals and organizations are better able to cooperate beyond narrow social circles. Where trust is weak, economic and social interactions become more fragmented, increasing inefficiencies and reducing collective capacity.

The report highlights strong links between trust and economic performance. High-trust environments support productivity by encouraging cooperation, information sharing, and long-term investment. Workers are more likely to engage, innovate, and contribute when they expect fair treatment and reciprocal behavior. 

Conversely, low trust environments raise transaction costs and discourage risk-taking. Firms and institutions must rely more heavily on monitoring and enforcement, diverting resources away from productive activity. Over time, these dynamics weaken innovation capacity and reduce economic resilience, particularly in the face of shocks.

Trust also plays a central role in shaping inequality. The report emphasizes the importance of connections that span social and economic divides, often described as bridging social capital. These connections provide access to information, opportunities, and support networks that are essential for upward mobility. 

When trust is unevenly distributed, its benefits accrue disproportionately to those already well connected. Individuals and communities with limited access to diverse networks face structural barriers that reinforce inequality, even when formal institutions such as education or labor markets are in place. In this way, declining trust contributes to persistent gaps in opportunity across societies.

Beyond economic outcomes, the report shows that trust is critical to the functioning of democratic systems. Interpersonal trust supports civic engagement, while trust in institutions underpins compliance with laws and collective decisions. When trust erodes, participation declines, polarization intensifies, and governing becomes more costly. 

Low-trust societies often experience a feedback loop in which institutional failure further undermines trust, weakening democratic legitimacy over time. The research suggests that democratic resilience depends not only on formal rules, but also on the quality of social relationships that sustain cooperation and mutual confidence.

A central challenge identified in the report is measurement. Trust and social connection are rarely captured by traditional economic indicators, despite their importance. The authors highlight advances in surveys, experimental methods, and network-based data that make it possible to assess trust more systematically across societies. 

The report also shows that trust is not fixed. Evidence from schools, workplaces, and communities demonstrates that carefully designed interventions can strengthen trust by encouraging repeated, meaningful interaction across difference. These efforts require long-term commitment and should be understood as investments in social infrastructure rather than short-term policy fixes.

Trust is a foundational resource for prosperous, inclusive, and resilient societies. Treating it as invisible or secondary leaves economies vulnerable to inefficiency, inequality, and institutional fragility. 

Recognizing trust as infrastructure invites a shift in how success is measured and how policy priorities are set. Alongside physical capital and human skills, sustained investment in trust and social connection emerges as a necessary condition for long-term prosperity.