THE social contract is the unwritten agreement between citizens and governments. It defines what people expect from public institutions and the obligations they owe in return. Citizens work, obey the law and pay taxes in exchange for security, justice, public services, economic opportunity and democratic representation. Yet this contract is increasingly failing to meet expectations. Even in economically advanced countries, trust in public institutions has declined sharply. Around two-thirds of Europeans express little or no trust in public institutions, while one in three believes their country is not sufficiently democratic.

Many economists, political analysts and social thinkers argue that the modern social contract is weakening. The traditional understanding—that individuals surrender certain freedoms and contribute to society in return for stability, fairness and protection—is no longer delivering the outcomes people expect. While opinions differ on whether the contract has collapsed or merely weakened, there is broad agreement that it requires urgent renewal. Several factors explain this erosion. Economic inequality continues to widen as wages fail to keep pace with rising living costs, housing prices and productivity. Many workers feel they are no longer receiving a fair share of economic progress. At the same time, confidence in healthcare, education and governance has declined because these institutions increasingly struggle to meet public expectations.

Political polarization has further weakened social cohesion. Deep ideological........

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