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Role of National Leaders in Building High-Trust Society


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Dan Lee

Senior Research Fellow
Samsung Economic Research Institute

A Danish couple traveling in New York was arrested by police in 1997 for leaving their infant unattended outside a restaurant. According to the New York Times` report, the couple was charged with endangering the welfare of their 14-month-old baby daughter by leaving her outside in a stroller while they had a drink inside an East Village restaurant. The child also was temporarily placed in foster care by the municipal authorities. The couple was soon released after some cultural differences between Denmark and the United States were confirmed. The case, which sparked a trans-Atlantic debate about child-rearing practices, made international headlines because of differences in trust between U.S. and Northern European societies. The practice of leaving children unattended outside restaurants and shops is common in the Danish capital of Copenhagen. It means that even strangers can be trusted in Denmark. At that time, many people jokingly said that a dog, let alone a child, cannot be left alone on New York streets.
 
A simple comparison may be inadequate, but it is true that the United States surpasses Denmark in terms of economic, military and diplomatic power. But few would agree that New York is a better place to live, and has a higher quality of life, than Copenhagen. Social capital is one of the reasons. Social capital refers to the levels of trust, sets of reciprocal norms and social networks that promote cooperation among individuals or groups. Social capital is said to make greater contributions to economic growth and national advancement than any other form of capital.
 
American philosopher and political economist Francis Fukuyama argues that the most pervasive cultural characteristic influencing a nation`s prosperity is the level of trust based upon shared norms. He wrote that lack of trust increases social costs, thereby impeding efforts to attain sustainable, long-term economic growth. Even if two societies have the same amount of material and human capital, they can exhibit different economic and social achievements, depending on the relationships among their members. For example, social divisions are commonly found in countries that have experienced low economic growth since the oil shocks of the 1970s. For that reason, a study by the World Bank has concluded that intangible assets account for more than half of the gross domestic product. Moreover, countries rich in social capital tend to score high marks in terms of security, equal opportunity and life satisfaction.
 
The importance of social capital cannot be overemphasized. In this regard, critics have persistently warned that insufficient social capital would hinder Korea from joining the ranks of advanced countries. The critics argue that distrust in government deters important reform tasks in Korea, while regional and academic favoritism and other instances of deep-rooted factionalism aggravate social conflict in the country. Indeed, according to the World Values Survey, only three of 10 Koreans trust others. The figure is lower than that of the United States, a multiracial society, and Vietnam, a developing country. The level of trust in Korean society declined throughout the 1980s and 1990s. In the 1980s, the rapid democratization and liquidation of authoritarianism reduced trust in the government`s leadership. The 1997-98 financial crisis further weakened public trust in government`s role in economic performances.
 
The Korean government plans to launch a full-scale campaign in 2010 to build social capital and thereby elevate national status. How can we accumulate social capital? Above all, the government and leaders of society should strive to restore public trust. Social capital researchers say that public trust in leaders affects the overall level of trust in a society. In fact, many people regard the degree of integrity among government employees and leaders of society as a barometer of a society`s overall level of trust. Thus, countries notorious for corruption and irregularities tend to have low level of trust. The leadership`s “leading by example” is particularly necessary in building social capital.
 

Today, the status of an advanced nation is not determined simply by its level of national income. People should be able to trust each other and enjoy equal opportunities regardless of blood or alumni relations. We will be able to reduce the expense of economic development, accelerate social integration and speed up the advancement of our society, if we can build sufficient social capital amid a culture of trust.

[ Dong-a Ilbo, December 23, 2009 ]

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