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Culture Matters: A Cultural Typology of Economic Development

Author: Mariano Grondona

Anette Hansen

on 8 May 2013

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Transcript of Culture Matters: A Cultural Typology of Economic Development

Twenty Contrasting Cultural Factors 1. Religion "Favorable" and "Resistant": Concluding Thoughts Publican:
Pharisaic: 18. Two Utopias The slow progress
towards a distant utopia 3. The Moral Imperative Three levels of morality: Two Visions of Democracy Resistant Culture: 9. To Educate
Is Not
To Brainwash Education should help the individual discovering his/her own truth 16. Life View Life as something 7. The Value of Work 15. Worldview The World as: 2. Trust in the Individual Neither submission
nor rebellion
generates development 17. Salvation from
or in
the World Catholicism: 10. The Importance of Utility Belief in unverifiable theories
What is practically verifiable and useful 13. Rationality Satisfaction from achievement,
Progress the result of many small achievements 12. Time Focus Past 11. The Lesser Virtues Advanced societies value the Lesser Virtues: 5. Two Views of Competition Development Favorable Cultures 19. The Nature of Optimism Resistant Culture: 4. Two Concepts of Wealth Development Favorable Cultures 8. The Role of Heresy The questioning mind
creates innovation 14. Authority Rational Societies: 6. Two Notions of Justice Development Favorable Cultures Culture Matters:
A Cultural Typology of Economic Development Professor: K. J. Hong
Presenter: Anette Hansen The nation's progression in
creates a crisis Max Weber
Preference for rich Preference for poor Justifies poverty
Makes economic development difficult Their success perceived as evidence of God's blessing
The poor see their condition as God's condemnation
Both rich and poor strive to improve their condition through hard work Pharisaic religions promote favorable values for development Discourage Innovation Diverts energy from constructive action Liberty gives people control of their own destiny Trust -> Development If individuals feels that others are responsible for them, their efforts will ebb.

If others tell them what to think and believe, the result is either
A lack of motivation
Their choice between submission and rebellion 1. Altruistic
2. Reasonable Egoism
3. Criminal -Saints and martyrs -Disregard for rights of others and the law -The reasonable pursuit of own well-being Development Favorable Cultures Development-Resistant Cultures Laws and norms that are not to rigid, makes development possible
Moral law and social reality coincide Moral law and social reality are out of touch with each other Development Resistant Cultures Wealth is what already exists Wealth is what do not yet exist Result: Innovation Development-Resistant Cultures Competition = Aggression Competition = Way to achieve wealth & excellence Solidarity, loyalty and cooperation is supposed to substitute competition
Corporativism instead of competition between enterprises
Intellectual life has to adjust itself to societal dogmas Competition only allowed in sports But: Competition can be seen as a form of cooperation which can benefit both competitors through their aim to do their best Distributive Justice is that which involves the interests of future generations Development-Resistant Cultures Emphasize those who are alive now -Propensity to consume -Propensity to save Distributive Justice The Intellectual
The Artist
The Politician
The Religious Leader
The Military Leader From the Greeks: Work is not highly valued in development-resistant societies A job well done, tidiness, courtesy and punctuality Such societies are characterized by the respect for others needs. Present Near
Future Distant Future (Afterlife) -Within reach The only time frame which can be controlled and planned for The rational: The pre-modern culture: Emphasize grandiose projects such as the Pyramids, but tend to end up with unfinished projects Traditional Societies: Power resides in the law Power to the Prince, or a Godly State A setting for action or: A vast entity of irresistible
forces ...God, The Devil, a powerful International Conspiracy, Capitalism, Imperialism, Marxism, Zionism... Preoccupation: To save themselves ....that I will make happen Or as something ..that happens to me The World is a "vale of tears" Goal: To save themselves from the World Protestants: Salvation through the pursuit of a better world Monk Entrepreneur VS The pursuit of an early utopia out of reach Both pursuit Utopia But in different ways The optimist expect that luck, gods or the powerful will favor him/her Development Favorable Culture: The optimist is resolved to go the extra mile for the sake of own achievements Progressive Culture: Absolute power to the King The vision of Democracy Just ideal types ..However, societies close to the favorable ideal are more likely to achieve sustained economic development... Resistant Favorable more
development less
development Real societies can be found on an imaginary line between Resistant and Favorable values ...But their location is not permanent, as values can change! Development: The result of new values and cultural change How the developing countries respond to this change determines their developmental futures. “Family planning could bring more benefit to more people at less cost than any other single technology now available to the human race.”
UNICEF Report 1992 Thanks for your time! When people feel richer, they may be inclined to work less. Increased consumption reduce surplus, so that development turns into enrichment Even with increased surplus nations might not return it to productive investment Nations might also try to sustain their current development level through policies that discourage entrepreneurship and investment Encourage Growth Discourage Growth Policies taken in response can lead to growth, or hinder it Economic development:
An unending sequence of decisions favorable to investment, competition, and innovation that are made whenever the temptation to diverge arise Talcott Parson - Value An element within a conventional symbolic system that serves as a criterion for selecting among alternatives Only value systems that favors temptation-resisting decisions lead to sustained & rapid development Intrinsic Instrumental Values upheld regardless of the benefits and costs Values upheld for the direct benefit it gives With a one-sided focus on Instrumental Values.. The country's efforts will decline as soon as a certain degree of wealth is attained Instrumental values are temporary,
Intrinsic values are inexhaustible. Intrinsic values are thus preferable for development Economic Values are Instrumental A means to a non-monetary end such as
Philanthropy To make development unending, the accumulation process must not be suffocated by its own
success Should be both non-economic and pro-economic:
Not to be exhausted by success, but
unceasingly push forward the process of accumulation The Paradox of Economic Development: Having economic values is not enough to ensure economic development -Economic development is too important
to be left to economic values The values of a society is reflected by its culture. Economic development is thus a cultural process Value is a part of cultural ethics Value is a bridge between short- and long term expectations VALUE SYSTEMS Real value systems are mixed
Pure value systems exist as ideal types in the mind Only values that favor development
Only values that resist development modern nation traditional nation Claim:
Development or underdevelopment is an endogenous choice
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