Question

In 1000 words dicuss the impact of culture/institutions on modern economic outcomes.

Answer 1

Impact of culture/institutions on modern economic outcomes;

Nowadays culture/ institutions play an major significant role for the outcomes in modern economy. Culture is a full-fledged economic sector that as any other generates impacts on the urban environment, ranging from direct and indirect expenditure to employment generation. Cultural industries are typically labour-intensive; their organisation model is rather the network interaction of micro and small producers than the supply-chain hierarchy of Fordist industries. Moreover, cultural production is highly contextual and idiosyncratic. For these reasons, city centres are privileged spaces for cultural production and consumption.

Nation provide ideal workspace for artists and cultural managers; and the local economy comes to thrive of it, establishing a symbiotic relation with culture. Firstly, culture generates substantial “intangible” or non-pecuniary economic effects. It has a soft function of animation and enhancement of the quality of life, which is an increasingly important element of a city’s competitiveness. It stimulates human creativity, and the capacity to innovate. New symbolic meanings and values become inputs to innovative production concepts and processes. A city can market itself as an ideal location for people and firms, and a preferred cultural destination for tourists; its unique, original cultural mix can become a recognisable brand Furthermore, culture may contribute to a more balanced and sustainable urban development. Culture is part and parcel of urban revitalisation projects in degraded urban areas throughout the developed world. It provides a formidable opportunity for personal development and social interaction among weaker groups, and gives to “excluded” individuals a chance to their
own start businesses or to catch up socially.

The relation between a community and its culture extends to concerns of safety and social harmony. In an age in which societies tend to become multi-cultural, identities and ways of life confront one another. In the multi-cultural city, culture can be a lever that stimulates pride, personal development, and self-fulfilment for minorities, and at the same time it can be a common language, a bridge between different groups. For this reason cultural development and planning are regarded as valuable strategies to accelerate processes of urban growth or regeneration. Cities invest in cultural facilities and events, and in the preservation of their historical heritage, to make their transition to a post-industrial economy based on advanced services, sustainable functional mixes, and a high quality of the urban environment. This means that policymakers and elected politicians have to get the whole picture of the relevance of culture as an economic asset for the city, see where the problems are, and in which ways the synergies between cultural development and local economy can be activated and boosted. This is clearly explains that interconnection from the economic field to social and cultural considerations.