Cultural codes of the economy at macro and micro levels

Abstract

Numerous empirical studies have demonstrated the influence of cultural factors on economic growth, innovation, human capital, and more. A synthesis of the results from these empirical studies allows for the identification of five cultural codes that have economic significance (the laws of economic efficiency, competitive specialization, diversity, transformation, and the impact of trust). The operation of the last of these laws is associated with alternative opportunities for economic growth, as research by Algan and Cahuc (Algan, Cahuc, 2010) indicated the potential for a 69% increase in GDP per capita in Russia, provided that the level of generalized trust is increased by 2.5 times. According to the author, the reason for persistently low trust is the presence of two cultural cores in Russian economic culture, characterized by individualism in megacities, the Urals, Siberia, and the Far East, and collectivism in other regions of the country. This, on one hand, provides alternative opportunities for different types of modernization (Western and East Asian types). On the other hand, it creates a problem of insufficient trust. The solution to the problem of insufficient trust, according to the field studies presented in the report, is related to the formation of institutions that are hindered by such a sociocultural characteristic of Russia as extremely high uncertainty avoidance. The consequence of this is short planning horizons in Russia, which do not allow for the creation of institutions, especially inclusive-type institutions aimed at attracting investment and human capital. The solution to this problem, in the author’s opinion, is related to the transition to a «3D culture,» meaning first achieving a long-term perspective through the development of a «culture of failure», then achieving a higher level of trust among the majority of people, which should yield significant economic effects, and finally addressing the issue of willingness to negotiate, transforming compromise from a negative connotation to a positive one, which represents the most complex task due to the presence of different cultural cores. The article further illustrates the implementation of the principles of 3D culture at the macro level in the strategy for developing financial culture until 2030 and at the micro level in the analysis of corporate culture in various companies