Research Insights: How Much Do We Trust Others in Latin America and the Caribbean?: The Role of Inequality and Perceptions
Inclusive growth requires high levels of trust, both among individuals and in institutions, and trust is shaped by a variety of factors, including the distribution of income and wealth. This is problematic when that distribution is not perceived as legitimate. Latin America and the Caribbean has traditionally been a highly unequal region. Inequality might be associated with lower trust because it reflects an unequal distribution of power, as those at the top can use the states coercive power to benefit themselves at the expense of others. Inequality nonetheless tends to be wrongly estimated, as most people do not accurately estimate their countrys income and wealth distribution, or their position within.