Culture or Development: The Tradeoff

George Mtonga | June 18, 2008 - 5:27 pm

Tags: Africa, culture, economics, progress, tradeoff

 Culture or Development: The Tradeoff

 

 In Africa the essence of capitalism is that “Africa” does not become Africa in the sense of culture because money changes most of the cultural dynamics that previously where conspicuous.    The never ending battle between city and country, expressed in Marxist forms is a giant presence and often times people marvel at the disparities. However, since I always think in zero-sum frameworks; what exactly is the tradeoff between development in Africa and the maintaining of the cultures found on the continent. Or is there a tradeoff, because as an Economist there is a tendency for us to polarize realties that would otherwise co-exist.

 

             On this one I do not think that it is mere skepticism and distrust economist have that is working. In Africa, cultural practices that  objectively hinder development are in  opposition to any form of stcutural development. In one case,  the institution of marriage in Africa is so primitive that  seeing it as an economic union is not something that many people would rightly attribute. There is no sense of realism in so far as a woman or a husband can divorce the husband. How does this lead to development? Well, if dirvorce is given as an option then the parties involved in the marriage would know that they are not economically tied to each other; this forces both parties to be economically independent.

 

            In addition, business practices of “trusting your neighbor” though morally admirable are inefficient and create a stain in the market. In most cases, merchants buy cloths and lend them out hoping to get money as time goes by; usually at the end of the month when most people, in a country like Zambia, get paid. However, these people don’t always pay and the merchant is culturally obligated to wait for next month, under the assumption that they are  very much aware of economic hardships. As a cultural practice of doing business, this is admirable for the trust it has between seller and buyer but overall it is an inefficient way of doing business; which obviously does not help  when it some s to development.

  

            In Africa, like most continents, there is also an absurdly high concentration of ‘scratch my back and I will scratch yours.” What this in turn does is that it prevents innovations as defined as being sacred that you will loose the competition because you are fully aware of what other people are capable of doing. Like on wall street, often called the all ‘gentlemen’s club” the fact that most  of these “closed” clubs remain closed does not in shape or form allow room for development or innovation. The immediate parties might benefit but in the long-run their short run benefit is at the peril of the overall growth of that particular industry.  

 

These are some of the cultural practices if let go would facilitate development---obviously there many more but the purpose here was to show that there is a tradeoff between development as seen through accommodating practices that objectively develop a country and practices that make economic life inefficient. So, parts of African culture as a whole will either yield to development or they will not; and for my more optimistic friends ‘ it might be in between.”

Development?

But development on whose terms? Decided by which group of people? In what manner, and with what priorities?

If it's austere free-market capitalism, imposed by World Bank & IMF economists and enforced by armed thugs on the ground, then yes, I think there will be a conflict between that and the social tendencies that prioritize the creation of humane, social people.

But that's certainly not the only option, thank goodness, and those who favor efficiency over all else are thankfully for the most part not in a position to impose that on the "third world" these days.

 

Yes

Development on whose terms is certainly a good objection. I would personally want to see improvement; either through health care, education access, as well as a business innovation. Whether the IMF or World Bank is involved for me the main objective is to see things change; because world bank or IMF policies will always be there. However, when we see that people maintain their culture but become extinct because they can't adapt to the changing environment; something has to go! Doing anything in the global economy requires innovation and big time players; African countries are structurally in a position to actually spear-head that. I do believe in free-market capitalism; because it allows access to those who would otherwise be denied. If markets are "free' then anybody willing to do business can actually go ahead and do business. Government comes in to provide the equitable legal framework in which most of this can be done! Other wise, I'm all for "hands off."

Even though I saw some changes when i visited Zambia, business there is still sluggish and they guys playing the Lusaka Stock Exchange were slow and highly doubt they can compete that well in other areas of the world. It takes a lot of time to register a business in the country, people always want hand-outs to do what is legally a regulatory thing. However, this has morphed into a culture; one where you have to pay money to have somebody help you with what is in Zambia something government provides!!!

Upholding efficiency, you get rid of all those things and things function fast and productivity of individuals increases. Imagine scheduling a business trip to South Africa and you can't get your passport on time until somebody gets paid; It will cost you the perceived profits of going to South Africa and it will cost the people of that particular government a chance for an efficient government.

It is like the DMV in New York. Legally people should get their IDs; IT IS NOT UP TO THE PERSON GIVING THE IDs to be suggestive of what you can get and can't get! This is a culture of DMV; and obviously it is wrong---magnify this 10000000 times and you get the government agencies in Zambia (in my own experience).

Indeed, we need to be humane, but we should also understand the business is business and a society that facilitates that an nurtures that can certainly be a better society--- it even structurally encourages innovation and ingenuity!

In any case, I'm coming from a business stand-point of view but from a policy stand point view; it is a balancing act.

GNM