BUILDING PROSPERITY: IMPLICATION FOR BELIEVES, ATTITUDES AND BEHAVIOR

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BUILDING PROSPERITY IMPLICATION FOR BELIEVES,
ATTITUDES AND BEHAVIOR
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This discussion of the microeconomic foundations
of competitiveness reveals some of the believes,
attitudes and values that support and promote
prosperity.
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Most basic belief is prosperity depends on
productivity Secondly potential for wealth is
limitless because it is based on ideas and
insights, not fixed because of scare resources.
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This zero-sum worldvew is central to the theory
of a univercial peasant culture.
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The productivity paradigm gives rise to a whole
series of supportive attitudes and values

• Innovation
• Competition
• Accountability
• High regulatory standarts
• Investment in capablities and technology
• Employees
• Membership in a cluster
• Collababoration with supliers and customers
• Connectivitiy and networks
• Education and skills
• Wages should not rise

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These can be contrasted with unproductive
attitudes and values

• Monopoly
• Power determines rewards
• Rigid hierarchy is needed to maintain control,
• And self-contained family relationships should
  determine partnership.

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• Differences among groups and individuals
• Heavy weight is attached to government leaders
  and business elites.
• A strong government may impose a productve
  economic culture
• Sustained development will required
• A big part of the task in economic development is
  educational

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WHY DO NATIONS HAVE UNPRODUCTIVE CULTURES?Why
do these persist in certain societies? Do
individuals and companies knowingly act in ways
that are counter to their economic self
interest? 
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• First economic culture in a nation is strongly
  influenced by the prevailing ideas or paradigm
  abouth the economy.
• Military regimes often like import substitution
  and self-suffcency policies
• Economic culture appears to be heavly deriver
  from the past and present microeconomic contex

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• Nations work ethic can not be understood
  independently of the overal system of
  incentivenes in the economy
• History places a strong imprint on economic
  culture, both from experiences during good
  times and those during bad times.
• Social policy choises can have a strong influence
  on economic culture because they influence the
  economic contex

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• Beliefs, attitudes and values that are
  unproductive can be changed if they are no longer
  reinforced by prevailing beliefs or by the
  contextual reality faced by citizens and
  companies.

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GLOBAL CONVERGE AROUND THE CULTURE OF
PRODUCTIVITY 
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• Historically, world political and economic
  circumtances offered scope for wide variations in
  the economic culture.
• Different economic models reflected the
  prevailing circumtances.
• Protectionist policies in many countries
  created more self-contained world.

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• Today knowledge abouth the elements of
  productive economic culture is spread.
• In the global world foreign investment
  dries up if nations dont provide a prductive
  business environmen.
• Globalization provides a powerful dicipline
  on unproductive behaviors.

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Forces in the new economy are so strong that it
is no over statement to suggest that economic
culture is no longer a matter of choice.
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A SET OF BELIEFS, ATTITUDESAND VALUES WILL BE
COMMON, AND THE CLEARLY UNPRODUCTIVE ASPECTS OF
CULTURE WILL FALL AWAY UNDER THE PRESSURE, AND
OPPRTUNITY OF THE GLOBAL ECONOMY