I thought it intriguing that the article Keith posted made the point that
colonization occurred not just in geography that was familiar but also where
disease was a known and presumably tolerable factor.

Today, the AIDS epidemic in Africa certainly plays a role in the further
capital investments global corporations consider, as does the high incidence
of malaria in the southern hemisphere for northern hemisphere nations.  No
wonder the delegates were mad as heck at the US for not showing appropriate
concern for issues that are life and death, present and future for them, but
perceived as a liability on the books to the Bush administration.

But as to the cultural institutions that may or may not migrate well, think
about the spread of Catholicism as it became the first global enterprise
with branch offices and management policies in place well before commerce
perfected its own transplantable applications.  Philip Jenkins' essay about
The Next Christianity in The Atlantic Monthly makes that point that the
evangelization of the global South will affect policy and demographic
balance in this century, creating a Second Reformation as it dominoes from
institution to institution.

- Karen Watters Cole
Arthur wrote:  Which comes first: The culture or the institutions?  One
culture's institutions may not be capable of being migrated to another
culture.  Or a transplant may only take place if there is a positive
receptor.

Keith wrote:  Since my posting of the article from the current Economist
about the relative importance of inputs of  policy, institutions or
geography in successful economic development, a FWer wrote for me and one or
two more a most readable account of the influence of geography on
personality.

As a consequence, I would slightly modify the findings of the research I
posted. OK, institutions may be more important than policy and geography,
but I think that institutions are set within culture like raisins in a
pudding, and geography must have some effect in the nature of the culture
that ensues. However, it's really the pudding as a whole -- the culture, the
total complex of prejudices -- that's difficult to change.

For example, Russian economists, legislators, businessmen, and jurists,
mostly superbly educated, have known for the last ten years exactly what
institutions they need -- but they simply haven't been able to pull them off
because of cultural inertia (mainly in the Duma but also elsewhere in the
bureaucracy). The Japanese also know exactly what they need to do to reform
their banking institutions, but can't quite persuade their (Ministry of
Finance) minds to do it. Economists in the Latin countries know exactly what
to do to get their institutions on track but their politicians haven't the
courage to try and change the mass culture of dependency that has developed
in the streets (I'm thinking of Brazil and Argentina especially) -- as it
will need to, sooner or later.

As for Africa -- what can I possibly say? Of the 34 countries in Africa, 19
countries are fighting civil wars -- some have been doing so with more or
less savage intensity for many years -- and several more suffer politically
inspired terror by their governments. I don't think that the politicians of
most African countries either know or care what institutions they need, nor
have they any culture that could bring these about in the near future. Even
in South Africa, President Mbeki comes out with strange ideas but, because
he's a near-dictator, its corruption-rife ANC don't even bother to debate.
It won't be long before that country, too, becomes a full-blown
dictatorship.

The Arab/Muslim countries of the Middle East? Like Russia, many of their
well-educated individuals know exactly what institutions they need but their
religious culture is set implacably against their development anytime soon.

So what do we do? To be honest, I don't think we can do much at all. We
could, of course, keep on feeding them with more and more aid, but this
wouldn't make any difference to their basic economies until the recipients
want to change in a voluntary way -- until they seriously set about forming
the sorts of institutions which England and America (in particular)
developed between about 1820 (Company Acts, Joint Stock Banking Act, etc)
and now (with more reforms and institutions still to come!). Japan partially
did it in 1880 and is probably on the verge of success this time (that is,
if it sorts out its bankrupt banks and multiple hidden cross-holdings soon).
China is having a serious attempt, as are some other Asian countries. India
is probably too corrupt, caste ridden and religiously polarised to succeed
for at least another two generations.



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