Question

list and explain three cultural characteristics that are slowing down the economic development of countries. What cultural characteristics are halting the economic development of some nations? Why ?

Answer 1

The first cultural characteristic is power distance. It shows the level of centralization of power at the top and vertical hierarchy in the organization. Any country scoring high on power distance, have centralized power, less autonomy in decision making process and slow response to the opportunities. It makes nations to have slow economic development if they have high score on power distance.

The second cultural characteristic is high score of uncertainly avoidance index. It is because, a high score on uncertainty avoidance, makes people to stick heavily to their own culture even if it is regressive, old and not modern. Further, it also makes People not to adopt new and good cultural dimensions from other cultures. As a result, learning curve the people and resources slows down and economy grows slowly.

The third cultural characteristic is lack of focus upon individualism. It is because, lack of promotion to individual talents, causes discouragement to the innovation and creativity done by individuals and new innovations and inventions do not take place in the economy. Here, it is to be understood that collectivism is important and it should be pursued, but individualist talent and capabilities should be specifically identified and promoted to reap the reward of new inventions. Since it does not happen when economies do not given attention to individualism or score low on it, then these economies do not grow with faster rate.