VoxDev Development Economics S6 Ep36: Culture and economic development
Sep 10, 2025
In this enlightening discussion, Natalie Bau, a UCLA professor specializing in the economics of education, and Sara Lowes, a UC San Diego professor focused on political economy, explore the critical relationship between culture and economic development. They reveal how cultural norms can significantly shape policy effectiveness and outcomes. By analyzing case studies from countries like Indonesia and Ghana, they highlight the potential pitfalls of ignoring local beliefs. They also stress the importance of interdisciplinary collaboration to bridge cultural insights with economic strategies.
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Broad Definition Of Culture
- Culture means socially transmitted values and beliefs that shape incentives and choices.
- Economists can treat culture as norms, heuristics, or beliefs that alter payoffs and interactions.
Weigh Local Knowledge Against Capture
- Assign local project leads when context-specific knowledge improves outcomes, but weigh corruption risks.
- Balance local knowledge against risks like nepotism and rotate staff strategically.
Pensions Changed Family Education Choices
- Pension rollouts in Indonesia and Ghana reduced children's caregiving and cut incentives to educate those expected to provide old-age support.
- The policy increased old-age support but unintentionally lowered educational investment along kinship lines.