Denmark, Sweden, Norway ambassadors write: Trust - The Nordic Gold
When the Nordic countries claim to be long-standing trusted partners of Bangladesh, we mean more than just reliability and here is why: The Nordic region is known to have the highest levels of trust in the world
Values are the basic foundations in any society. But what are our values? In many countries across the globe precious metals such as gold, silver or platinum are ultimate expressions of value. But how about trust as a value; or as a resource? For us, the Nordics, trust is fundamental, it is as good as gold. In many ways it is our gold.
Trust is a unique characteristic that forms the bedrock of the structure of Nordic societies, contributing to success in economic prosperity, social welfare and well-being. At the heart of our trust-based societies lies a mutual willingness to rely on the words and actions of others.
It is also a social structure where individuals and institutions place a high level of confidence and reliance on one another. A simple manifestation of this could be unmanned shops in the countryside or leaving our babies sleeping in their strollers unwatched outside restaurants, without apprehension.
But how did we get here? Trust, or more specifically social trust, has been built over a long period of time and through inclusive processes of dialogue and cooperation. The origin of our trust-based societies can be traced back to the 19th century, which saw a rise in popular movements such as labour movements and a proliferation of locally-led associations with democratic decision-making processes, often critical of the state.
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Today, freedom of expression and association are under threat in many countries. But the Nordic states have throughout opted for transparent dialogue, welcoming the participation of non-state actors and navigating conflicting interests through negotiations. This openness and flair for dialogue have helped build mutual trust and created a form of democratic culture and checks and balances.
At the core of the trust between the people and the system are strong, transparent public institutions. Key elements are press and media freedom, public access to information, the integrity of public officials, and a truly independent judicial system. We trust our elected representatives to work in the public interest. Our countries have also fought relentlessly to keep corruption out.
And today, the Nordic institutions remain a case in point for economists´ analysis on how strong institutions make nations flourish, as explained in the renowned book "Why Nations Fail". Here, the authors argue that the quality of institutions is the most important determinant of a nation's prosperity or poverty, freedom or oppression.
Economic and human prosperity in the Nordic countries is of course also a result of other factors such as income and gender equality, flexible and inclusive labour markets including high levels of employment and continuous investments in robust social welfare systems, to name a few. This functional system based on democratic values is often termed as the Nordic model.
So when the Nordic countries claim to be long-standing trusted partners of Bangladesh, we mean more than just reliability and here is why: The Nordic region is known to have the highest levels of trust in the world. This is termed as "Nordic exceptionalism" as no other region reaches the same level of social trust. Also, in our interactions with others, we assign a high value to trust.
The Nordic approach to international relations is, as a consequence, very much based on trust. For instance, as we strive for sustainable and green growth together with Bangladesh, a relationship of reciprocity based on trust becomes highly important. Trust does not only improve the quality of relations, but also leads to favourable conditions for economic and inclusive growth.
High levels of social trust means less need for formalities, conflicts and legal processes, and eventually lower costs associated with these. Conversely, corruption undermines the institutional foundation on which economic growth depends, creates distrust in the system and discourages investment and growth.
Following our longstanding Nordic-Bangladesh trade relations, more than 100 Nordic companies are doing business in Bangladesh. They are regarded as highly trusted partners with ethical business practices, particularly known for their integrity, transparency, innovation and standards of excellence.
However, more than anything, Nordic businesses and investors seek predictability and stability in their business relations with others. Because trusted and transparent public and private institutions foster an environment where innovation, industrialisation, collaboration, and competitiveness can thrive.
It is evident that the trust-based Nordic model has proven to be profitable for both our societies and the economy. Today, however, it is also facing its own challenges. Nordic countries are not fully immune to income disparity and as such social stratification is more evident than before.
Francis Fukuyama talked about a trust radius, i.e. the more like others you are, the more you are inclined to trust them. When that radius wanes and socioeconomic disparities emerge, trust is threatened. But we are cognizant of these challenges, and we understand trust cannot be taken for granted.
We firmly believe that a robust democratic system, with respect for fundamental human rights, strong and transparent institutions, an independent justice system, inclusive policies and a political will, is the best way forward to protect the high levels of trust in the Nordic countries and the region. It requires continued investment and dedication. But in our minds, it is the best way to secure long-term and inclusive prosperity and the well-being of our populations.
H E Alexandra Berg von Linde is the Ambassador of Sweden to Bangladesh, H E Christian Brix Møller is the Ambassador of Denmark to Bangladesh, H E Espen Rikter-Svendsen is the Ambassador of Norway to Bangladesh.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.
