The Role of Culture, Ideas, and Leadership
In this chapter I highlight the critical role of culture in the functioning of political and economic institutions in transition economies. People’s beliefs, stereotypes, mindsets, and unwritten ways of doing things ultimately decide whether institutions are efficient or not. I then focus on the interaction of culture, institutions, and growth in Poland and try to explain why the country’s seemingly conservative culture, which in many respects seems to be at odds with Western European culture, especially as regards religion, has not prevented it from becoming Europe’s growth champion. I argue that it was because of strong elites that internalized Western values, an implicit quid pro quo between the new elites and the more conservative parts of the society to install European institutions and promote Western values in exchange for the promise of economic prosperity, and the generally non-fundamentalist nature of religion in Poland. I also discuss the key roles of individuals, ideas, and luck in Poland’s post-transition performance.