Trust is broadly understood as holding a positive perception about the actions of an individual or an organisation. While trust may be based on actual experience, it is for the most part a subjective phenomenon, reflected in the eyes of the beholder. Trust in government represents the confidence of citizens and businesses in the actions of governments to do what is right and perceived as fair. Most importantly the legitimacy of governments is built on being trusted by their citizens, as trust is mainly an enabler of fluent and effective interactions between governments and citizens.

Among the main tasks of governments are guaranteeing that citizens have equality of opportunity and even access to basic public services. Governments should also assist those experiencing poverty by ensuring the attainment of a minimum standard of living. Based on the societal agreement, governments could play a more or a less important role in income redistribution through taxes and transfers. For many OECD member countries, the gap between the richest and the poorest is at its highest in 30 years (OECD, 2014c). Additionally, recent evidence suggests that inequality has a negative effect on economic growth (OECD, 2014a). By having fewer resources available people from disadvantaged social backgrounds underinvest in education, lowering social mobility and hampering skills development that are crucial for economic growth (OECD, 2014c).

The principle of the rule of law refers to the authority and influence of law within a society. According to this principle, the law should govern and no one, including the government is above it. The rule of law is implemented through the existence of codified or standardised procedures and a series of mechanisms guaranteeing access, equality, predictability, reliability and accountability. It constitutes a key measure of good governance and it is crucial for maintaining peace and order, as well as fostering investment and development.

The recent economic crisis has increased pressures on governments to achieve efficiency gains in delivering public services. Based on conventional economic theory, efficiency is defined as the relationship between one or more inputs (or factors of production) and one or more outputs.

Public sector cost effectiveness can be measured by looking at the relationship between inputs and broader outcomes in each sector. Generally speaking, outcomes refer to the effects of public programmes and services on citizens, in terms of welfare gains, health gains, educational/learning gains, and so on. While these outcomes can certainly be affected by the quality of programmes and services provided, they can also be affected by other factors, such as the socioeconomic background of the population and individual behavioural factors.