Trust and social inclusion: The foundations of jobs and development

Jobs are a visible sign of progress in development. They provide income, dignity, and a stake in society. But what enables jobs to flourish in the first place? Just as reliable roads and electricity power markets, trust is the “human infrastructure” of job creation.

Trust takes different forms. Horizontal trust is the confidence people place in one another—the belief that neighbors, colleagues, or suppliers will keep their word. Vertical trust is the faith citizens have in public authorities and institutions to act fairly and deliver on their promises. A third form is trust in systems, which is confidence in markets, money, and contracts that make economic exchange possible. Each form reinforces the others, and together they underpin the ability of economies to generate and sustain jobs.

When people trust institutions to be fair, feel included in shaping decisions, and see tangible benefits reaching their communities, they are more likely to support reforms, pay taxes, and comply with regulations. This kind of legitimacy matters now more than ever, as polarization, inequality, and conflict test the social fabric in many countries. Without trust, entrepreneurs hesitate to invest, banks fail to lend—or only do so at prohibitively high rates—and governments lack the credibility to carry out development goals.

For the private sector, trust makes it easier for firms to collaborate along value chains, attract financing, scale innovations, and create jobs. At the community level, it fuels the informal networks that help jobseekers find opportunities and allow small enterprises to share knowledge and resources, fostering growth and prosperity. Trust can also play a key role in mitigating risks that lead to conflict, crime, and violence, while helping individuals and families find support during times of crises. 

How trust contributes to jobs and growth

So, what makes trust an essential ingredient for job creation?

There are three ways that trust is linked to jobs:

1. Risk-taking and stability: Trust reduces both social and economic risks, creating a stable environment where it’s more likely that businesses will invest, entrepreneurs will innovate, and jobs will be created. Lack of trust, by contrast, fosters fragility, conflict, and economic stagnation. 
2. Networks and collective action: Jobs often emerge via networks, whether it’s through supply chains, labor referrals, training programs, or community-owned cooperatives. These networks function best when participants trust one another.
3. Institutional legitimacy: When institutions are seen as fair and effective, people are more likely to follow the rules and support reforms. This lowers the risk of conflict or crime and enables governments to invest in education, skills development, and the infrastructure needed to generate jobs.

The cost of neglecting trust

An absence of trust can have significant economic consequences. Decades of cross-country evidence show that higher levels of trust are associated with stronger economic growth and that even small declines in trust can have a large impact. For example, one study estimates that waning confidence in Morocco’s institutions cut billions off the country’s gross domestic product (GDP) between 2005 and 2014.  

The same can be said for conflicts. Globally, violent conflicts inflicted nearly $20 trillion in losses in 2024 alone, about 11.6 percent of global GDP. Research from the International Monetary Fund shows that conflict-affected countries in Sub-Saharan Africa grew about 2.5 percentage points slower than their peaceful peers. Meanwhile, high-intensity conflicts—those that kill more than 150 out of every 1 million people—are typically followed by a cumulative drop of about 20 percent in GDP per capita after five years. 

The development “backlash” often observed when communities feel excluded is not merely political—it is an economic tax that erodes opportunities, and in practical terms, this means more people trapped in poverty.

Investing in trust

Recognizing that trust is central to development, we prioritize building it in our work at the World Bank Group. This is where social development comes in. While many development projects focus on the physical inputs of growth, social development—delivered through infrastructure, livelihoods, health, or water projects, for example—works to strengthen the social fabric that enables those inputs to produce real results. By design, social development programs emphasize fairness and inclusion, using participatory planning, community-driven development, and local governance platforms to ensure that development meaningfully involves and benefits all people, including the most vulnerable.  

Research shows that trust is strongest when decision-making is transparent, participatory, and aligned with local values, and this, in turn, reinforces the legitimacy of public institutions. In practice, this might mean bringing  citizens and local officials together to set priorities, monitor public services, or jointly contribute to community projects. For example, World Bank engagement in the Philippines brought together formerly warring ethnic communities to allocate resources, boosting intergroup trust and stability in an area long affected by conflict. 

Social development also promotes inclusion as a pathway to preventing conflict. When services like health, education, or finance are accessible regardless of income, gender, or ethnicity, it reduces people’s grievances. Empowering people to shape their own futures, for example, through local budgeting or citizen oversight, fosters a sense of ownership and fairness. Over time, these efforts strengthen social cohesion—that is, trust, shared purpose, and the willingness to cooperate both among citizens and between citizens and the state. 

Job growth and resilient economies are built not only on capital and infrastructure, but also on the invisible threads of trust, solidarity, and shared purpose. By weaving trust into the fabric of development strategies—through inclusive institutions, equitable access to jobs, and responsive systems informed by community needs—countries can safeguard livelihoods today while laying the groundwork for more stable, adaptive, and prosperous societies tomorrow.