Trust Builds Economic Growth in Cardiff Capital Region

The Cardiff Capital Region (CCR) has emerged as a model of collaboration, demonstrating how trust among stakeholders can drive economic growth. Over the past two years, leaders from local authorities, chief executives, and members of the Regional Economic Growth Partnership have actively engaged in assessing progress on their ambitious 20-year economic programme. The initiative aims to create 25,000 jobs and leverage £4 billion in investments while increasing the region’s gross value added (GVA) by 5%.

Building Trust Among Diverse Stakeholders

During a recent gathering, stakeholders reflected on the successes and challenges encountered in the first five years of the City Deal. A significant takeaway from these discussions was not just the assessment of initiatives but the importance of trust that has developed among a wide range of participants, including politicians, civil servants, academics, and business leaders. This trust has facilitated the formation of a governance framework and a decision-making process that are both respected and understood.

The collaborative atmosphere has fostered what can be described as a “collective brain,” where diverse perspectives contribute to enriched outcomes. This synergy is vital; as trust deepens, the pace of progress quickens. When trust breaks down, recovery becomes nearly impossible. As noted, trust is a fundamental element of economic growth, yet it is often overlooked in traditional economic models.

In everyday life, the implications of trust are evident. Once fractured, it is seldom restored. Humans possess a unique capacity for large-scale cooperation, similar to social insects like bees and ants. This ability allows for collective action without succumbing to self-interest, provided that integrity is maintained. Without integrity, the potential for collaboration diminishes, leading to misguided efforts.

Addressing the Erosion of Trust

Currently, trust is declining on a national and international scale across various institutions, including governments and media. This erosion is evident in the rising skepticism among citizens, fueled by unfulfilled promises and a lack of transparency. Governments depend on the consent of the governed, which hinges on honesty and consistency. When this trust is compromised, the bond between citizens and their leaders weakens.

To rebuild this trust, a two-way relationship must be established. Governments need to engage citizens as genuine partners in shaping the future. The challenges we face today are increasingly complex, especially with the advent of new technologies such as AI and quantum computing. The CCR experience offers valuable insights into how trust can be cultivated by integrating diverse voices and experiences, resulting in a more credible decision-making ecosystem.

Scaling this approach nationally could transform governance. Instead of policies crafted in isolation, leaders could collaborate with multidisciplinary groups to develop strategies that resonate with the public. This shift would favour outcomes over process, allowing for meaningful engagement between policymakers and the public.

Wales is uniquely positioned to lead this initiative. By dismantling barriers between policymakers and those who drive economic prosperity, the region could serve as a global model for modern governance. The partnership between a forward-thinking government and an empowered community could result in a shared vision for prosperity.

The Cardiff Capital Region has already demonstrated the power of trust. The next step is to extend these principles to the national level, showcasing how trust, grounded in diversity and shared objectives, can lead to a more responsive and effective governance structure. The focus must remain on providing the services and goods that citizens genuinely need and desire.

Frank Holmes, the founder chair of the Cardiff Capital Region Economic Growth Partnership, emphasizes that this model could redefine how governments engage with their communities, promoting a more inclusive and prosperous future. As the CCR continues to progress, it serves as a beacon for what is achievable through trust and collaboration.