Ireland suffers from profound trust crisis

The findings of the Edelman Trust Barometer show that out of 22 countries surveyed Irish people have the lowest level of trust in politics and business. 

Trust in government and business in Ireland is the lowest in Europe, with business falling from 38pc in 2009 to just 31pc in this year’s survey. This is against a global average of 50pc.

Government (the political process) fares little better with trust levels plummeting to an all-time low of 28pc from 31pc against a global average of 49pc.

Trust in the media and NGO’s has also fallen, but to a lesser extent.

Trust in traditional news sources such as TV news (-24 points), Radio News (-18 points) and Newspapers (-24 points) has dropped sharply in Ireland in just two years, with academics or experts (55pc) and non-profit or NGO representatives (52pc) seen as the most credible spokespeople  in Ireland.

The survey also showed that 70pc of Irish people are more likely to trust a company that partners with an NGO.

Banks are now the least-trusted industry sector in Ireland  at 23pc compared to 72pc  in the Netherlands.

Meanwhile, technology is the most-trusted industry sector in Ireland at 56pc, albeit low against a global confidence level of 80pc.

Deep institutional scepticism
Ireland was the only country surveyed that experienced declines in trust across all four institutions, business, government, media and NGOs.

Conversely, countries such as the US, Sweden and France experienced an increase in levels of trust, further underlining a deep institutional scepticism in Ireland. 

“Ireland is experiencing a trust crisis which is different to the experience in other countries. Our scepticism is deep rooted and pervasive.  While other countries are beginning to see increasing levels of institutional trust as their economies creep out of recession, we in Ireland have lost confidence in more institutions than ever before,” said Mark Cahalane, Managing Director, Edelman.

Global trust in banks slumps
The study also shows that that since 2007 trust in banks has declined dramatically in most western countries.  It declined from 68pc in the US to 29pc and dropped 16pc in Ireland from a trust ranking of 39pc in 2007 to 23pc this year.  Trust in banks was only lower in two other markets, the UK at 21pc and Germany at 17pc.

Interestingly, the importance of banks repaying bailout or loan money to the government is less valued in Ireland than in all other surveyed countries, with just over half (57pc) believing it would help restore trust.  

Confidence in business
Survey respondents were also asked about what short-term actions could potentially restore confidence in business. Some 60 of Irish respondents suggested firing non-performing management, 66pc said that pay discrepancies between senior executives and average employees should be reduced, while 57pc said that bailout money from Government should be repaid. 

While the majority of EU citizens expect a return to a ‘business as usual’ institutional mindset post-recession, just over half of those surveyed in Ireland (53pc) believe this will happen, with some 72pc expecting greater governmental influence over financial institutions. 

This demonstrates that Irish people afford politicians the second-highest European mandate for continued intervention in the economy behind Russia at 77pc.