How does trust in institutions help the economy? 

Citizens’ lack of trust in public institutions is increasing, especially in developed economies, including Cyprus. 

The quality of institutions is a key determinant of prosperity, as highlighted, among others, by the winners of the 2024 Nobel Prize in Economics, Daron Acemoglu, Simon Johnson and James Robinson. The relevant literature, notably Why Nations Fail, highlights that institutions are a key factor for the long-term resilience of economies. 

The main factors that improve...