Economic development is positively related to the presence of
favourable cultural attitudes (‘progressive values’):
the radius of trust, the ethical
system, the nature of the exercise of authority, and attitudes to work,
savings, and
innovation. This article explores the possibility of a virtuous circle
linking
economic policies and Latin American cultural attitudes, mostly using examples
from Chile since the mid 1980s. The link from culture to development emerges
from education, economic awareness and professional economics, and the
traditional culture and spontaneous cultural change. The link from economic
policy to culture is represented by developments in macroeconomics and
the
financial sector, industrial protection and free trade, and female participation
in
the labour market. The role of poverty and inequality, and the effectiveness
of
exhortation versus incentives, and of concentrating the effort on several
specific
groups, are also examined.
The Role of Beliefs and Cultural Attitudes in Economic Development
