Transcript building prosperity: implication for believes, attitudes and behavior

BUILDING PROSPERITY:
IMPLICATION FOR
BELIEVES, ATTITUDES AND
BEHAVIOR
This discussion of the microeconomic
foundatıons of competıtıveness reveals
some of the belıeves, attıtudes and values
that support and promote
prosperıty.
Most basıc belıef ıs prosperıty depends on
productivity
Secondly potential for wealth is limitless
because it is based on ideas and insights, not
fixed because of scare resources.
This zero-sum worldvew is
central to the theory of a
univercial peasant culture.
The productivity paradigm gives rise to a whole series of
supportive attitudes and values:
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Innovatıon
Competıtıon
Accountability
High regulatory standarts
Investment in capablities and technology
Employees
Membershıp ın a cluster
Collababoration with supliers and customers
Connectivitiy and networks
Educatıon and skills
Wages should not rise
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.
• 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
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?
•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
•Nation’s 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 economıc culture because they influence the
economic contex
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eliefs, 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.
GLOBAL CONVERGE
AROUND THE CULTURE OF
PRODUCTIVITY
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.
Today knowledge abouth the elements
of productive economic culture is spread.
In the global world foreign investment
dries up if nations don’t provide a prductive
business environmen.
Globalizatıon provides a powerful
dicipline on unproductive behaviors.
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.
A SET OF BELIEFS, ATTITUDES
AND VALUES WILL BE
COMMON, AND THE CLEARLY
UNPRODUCTIVE ASPECTS OF
CULTURE WILL FALL AWAY
UNDER THE PRESSURE, AND
OPPRTUNITY OF THE GLOBAL
ECONOMY