Brazil's Hidden Crisis: The Trust Gap

What's truly holding Brazil back? What's the one thing that aggravates other problems like corruption, red tape, crime, and low productivity?

As a business strategist in Brazil for over 20 years, I've frequently noticed a fundamental, yet often overlooked, hidden obstacle: our social trust deficit.

Only 6% of Brazilians feel that most people can be trusted

That's 98th out of 108 countries, according to the World Values Survey. While developed countries and fast-growing economies like China and Saudi Arabia have social trust levels way above 50%, ours is lower than Tanzania and Uganda.

This isn't just about numbers. It shapes our daily lives and the way we do business.

Research shows it's a vicious cycle

When you don't trust others, you become less trustworthy yourself - that's what research tells us. If you're always on guard, expecting the worst from others, why would you make an effort to be trustworthy? Why be a sucker?

It's a harmful, wicked cycle of mistrust.

Brazilians only trust in small circles

On the other hand, Brazilians are known for our close-knit families and friendships. We trust our people, but the problem is this trust doesn't extend beyond our inner circles. That's what causes the "jeitinho brasileiro," bending the rules to get things done without considering how it might impact others.

We must realize that when we disregard others, they're likely to disregard us too.

The Trust Deficit stunts economic growth

Studies show that societies with higher trust levels are more entrepreneurial and economically vibrant. But our self-first mentality discourages long-term investment and encourages short-term thinking. A lack of trust decreases people's ability to delay gratification - they don't plan for the future but live partying in the moment.

Growth needs trust and future-oriented planning to be sustainable.

It starts with you and me

We can't overlook the role we each play in shaping social trust. Every little thing we do, from our work to our interactions, impacts the overall trust within our society.

Do we act in ways that fuel distrust or help build a society where trust is the norm?

Conclusion

Economist Kenneth Arrow once said, "Trust is an invisible institution." It's also a necessary currency for a thriving society. We need to invest in trust.

Trust isn't just a concept; it is what will move us toward a more prosperous society.