Denmark’s Social Trust in Action

IMF News, February 2, 2022

Source details

Article examines the role of social trust in Denmark’s societal outcomes, with emphasis on the COVID-19 pandemic response and broader determinants of happiness and economic resilience.
Authored by Adam Behsudi; published February 2, 2022. Editor’s note: first appeared in the most recent issue of Finance & Development.

Core finding: High levels of interpersonal and institutional trust are central to Denmark’s top rankings on measures of happiness and contentment.
Components reinforcing trust:
- Robust social welfare system: generous unemployment support, free health care and higher education, and heavily subsidized childcare.
- Low corruption and efficient government services.
- Long tradition of consensus-building in politics (no single party majority since the early 1900s).
Scholarly perspective:
- Christian Bjørnskov: Trust, tolerance, strong institutions, a long history of economic development, and a resilient democracy together explain Danish contentment; extensive social welfare alone is not the sole driver.
- Mogens Lykketoft: Confidence in the political system allows public acceptance of high tax rates because public services contribute to business and labor market efficiency.

Behavioral dynamics:
- Citizens often framed COVID-related actions (testing, vaccination, compliance) as contributions to a collective effort rather than mere compliance with mandates.
- Personal example: Cordelia Chesnutt took at least 32 COVID tests to play badminton safely once lockdowns lifted.
Public-health metrics and coverage:
- More than 75 percent of eligible citizens as of late October were fully vaccinated.
- At the height of the pandemic, more than 60 percent of the adult population was being tested each week.
- Survey finding: over 90 percent of Danes trust national health authorities.
Research evidence:
- Michael Bang Petersen’s project surveyed more than 400,000 people in Denmark and seven other countries; results highlight high and stable trust in health authorities as a key factor in Denmark’s pandemic success.
- Trust reduced politicization of public-health measures and increased voluntary compliance with testing and vaccination.

Case: Dragør (2014)
- Local survey identified community priorities and led to investments: a new indoor swimming center, improved sports facilities, more programming for senior citizens, and enhancements to public space in the historic center and harbor.
- Emphasis on work-life balance and provision of leisure infrastructure as part of municipal agenda-setting.

Integration and social-welfare pressures:
- Difficulty integrating immigrants and refugees into the labor market has strained perceptions of the social welfare system.
- Debate over immigration has eroded trust in some corners of society despite government initiatives to address integration.
Policy implications drawn from the article:
- Preserve and strengthen institutional competence and transparency to maintain high levels of social trust.
- Continue data-driven public communication from health authorities to reinforce voluntary compliance during public-health crises.
- Address integration challenges through targeted labor-market initiatives to prevent erosion of trust and pressure on social benefits.
- Maintain participatory and consensus-driven policy processes to reduce politicization of public-health measures.

"at least 32 COVID tests"
"36-year-old"
"2014"
"more than 75 percent of eligible citizens as of late October were fully vaccinated"
"more than 60 percent of the adult population was being tested each week"
"over 90 percent of Danes trust national health authorities"
Project surveyed "more than 400,000 people in Denmark and seven other countries"
Local council acted in "2014"
Article publication date: "February 2, 2022"
Winter issue reference: "Read the entire Winter 2021 health issue of Finance & Development."

Source: "Denmark’s Social Trust in Action," Adam Behsudi, February 2, 2022.