Economic Development and Culture Essay

agree to Easterly (2001), attempted remedies to underdevelopment (like loans, FDI, population control) are generally determined by non- sparing factors such(prenominal) as demographic covariants, cultural characteristics, and political systems. In the avocation paragraph, Easterly demonstrated the devastating implication of a one mode to stinting development in many third base World countries. Now, the assumptions of some(prenominal) classical economists and political economists are under attack. There is one chemical element that both these theories ignored subtlety.Sociologists and cultural anthropologists often argued that there is no single path to scotch development when culture is lockn into consideration. Market institutions and palliate trade instruments have usually low adoption rates in many underdeveloped countries (Easterly, 2001). The reason is not obvious. Traditional methods of drudgery and switch over often obscure economic principles. These traditional m ethods of production and tack conventional a significant part of culture. For example, in the 1950s, the so-called trickle down pat(p) preliminary became popular in the West.The idea is simple. The adoption of technology flows smoothly from the capitalist class to low income countrified families (Easterly, 2001). Translated into income, the rate by which the capitalist class accumulates wealth is correlated with the rate by which low income agricultural families accumulates capital. In short, the approach benefits all individuals who adopt prescribed technologies (since these technologies increase production and improve efficiency). Such approach was enthusiastically received by Third World countries in the 1950s and 1960s (Easterly, 2001).However, after two decades of trial, it was dispatch that it failed to produce the desired results. Farmers did not adopt the prescribed technologies, as what the proponents of the approach expected. Several studies were conducted to determ ine cause of the failure. Culture was seen as the culprit variable in those studies. Third World farmers failed to adopt prescribed technologies because 1) such technologies were different to traditional beliefs and farming practices, and 2) culture did not permit them to use such technologies. These results generally struck down the traditional economic approach to development. scotch principles are not the sole determinants of economic development. Easterly (2001) summarized the role of culture in economic development. His main propositions are as follows 1) Many economic policies failed because it never incorporated elements of cultural life-time. Such can be verbalise of the trickle-down approach utilize by many Third World countries in the 1950s and 1960s 2) Culture decides which and how economic policies should be undertaken. For example, an economic form _or_ system of government that fosters information liberalization in an Islamic country is doomed to failure.An econom ic policy should be socially accepted 3) Culture provides an avenue for feedback for enforced economic policies. Culture is itself a collective entity that dictates which economic policies are sustainable in the long-run. Acceptance is not the issue, rather the long-term utility to the club 4) Culture provides individuals, groups, and institutions the necessary moral information of specific policies. When viewed from the social exchange theory, it is these moral information that enable individuals and groups to rationally weigh the benefits and costs of contingent economic policies.In the book Culture Matters, Pattersons testify successfully showed that economic models failed to explain the persistent social and behavioral chaos that defines national urban life (Culture Matters, 494). Patterson argued that economic models only explained the tangible elements of economic life that is, economic models only touched issues like income, consumption, savings, and enthronization (Cul ture Matters, 495-98). When those economic models were used to explain behavioral differences across individuals, groups, and classes, they ended in self-insufficiency.However, Pattersons essay revealed another striking fact. Cultural differences, behavioral outlook on wealth, and socio-religious beliefs were seen as determinants of income, investment, and savings. Groups that have a positive outlook on wealth and investment have runencies to adopt capitalist principles. Groups which adhere to conservative religious beliefs tend to view capitalist principles as unChristian. In short, cultural differences determine economic development. To restrict economic development to the twin principles of free trade and non-government interpellation is misleading.If a country wanted to experience economic development, it must take into consideration non-economic variables. Political culture, ideology, socio-religious beliefs, and systems of exchange are some of the non-economic variables tha t influence economic decision-making patterns.Works CitedCulture Matters. Ed. By Lawrence Harrison and Samuel Huntington. New York New York Basic Books, 2000. Easterly, William. The baffling Quest for Growth Economists Adventures and Misadventures in the Tropics. MIT The MIT Press, 2001.