The problem is that the loss of trust and solidarity is fragmenting politics and undermining democratic institutions’ capacity to muster an effective response. That, in turn, is weakening countries’ ability to cooperate to secure global growth, avert crises, and ensure a sustainable world.
SINGAPORE (Dec 27): Although the mass protests in several cities around the world in 2019 erupted spontaneously, they were not bolts from the blue. Trust in either governments or markets to give people a fair chance in life has faded in many countries. Compounding this, a sense of togetherness among people has given way to one of “us versus them.”
These tensions manifest themselves differently depending on where one looks. But they reflect underlying realities. Social mobility is stubbornly low in many countries, economic growth has slowed, younger people see fewer prospects of getting good jobs and owning a home, and income and wealth gaps have widened. Globalisation and new technologies have contributed to these trends, but they are not at the core of the issue. The few countries that have avoided wage stagnation and the hollowing out of the middle class – Sweden and Singapore, for example – have actually been more exposed to these forces than most. What matters is the policy response, and whether governments, businesses, and unions take responsibility for addressing the difficulties.
