The Role of Culture in the Economic Development of Countries

3279 Words Mar 25th, 2005 14 Pages
The role of culture in the economic development of countries is often overlooked by economists, yet it can significantly affect a country's economic development. Culture generates assets, such as skills, products, expression, and insight that contribute to the social and economic well being of the community. I will show the benefit of culture's impact on economic development through tourism, social capital, and corporate governance. In contrast, culture can produce negative outcomes in economic development. Cultural issues, such as gender inequality, lack of social capital, and diminishing cultural heritages, contribute to a downgrading economy.
To understand culture's impact on a country's economic development, it is
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Social capital can improve access to resources, services, and opportunities. It can build trust, confidence, and reciprocity to ultimately promote local involvement, group action, and control. The process of cooperation when citizens are actively engaged in the development of their communities awards intangible rewards, such as joy, happiness, job satisfaction, affection, and social support.
At its simplest, culture is itself a form of social capital. When a community comes together to share cultural life, through celebration and intercultural dialogue, it is enhancing its relationships, partnerships and networks. In other words, it is developing social capital. Positive attitudes in terms of local behavior contribute to their general well-being. The factors that make up social capital play a decisive role in the better economic performance, better quality of government, and greater political stability of a country's economic development.
Organizations are increasing their international and competitive business environments. As a result, the culture of an organization and the culture of the country where it is located have become increasingly important factors affecting organization performance. This in turn affects the economic development outcome of its host country. Governance is concerned with issues as diverse as administration, law
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