Cultural Diversity

Chapter 3 examines the influence of cultural factors on economic activity, with a particular focus on the concept of postmaterialism. This cultural orientation—characterised by a diminished emphasis on material wealth—is more prevalent among younger generations in peaceful and prosperous societies, where taxation is no longer perceived as an urgent daily concern. However, this cultural shift is not uniform across the globe. While postmaterialist values are notably present in Scandinavia, Western Europe, and North America, countries in Africa, Asia, Central and Eastern Europe (CEE), and Latin America tend to place greater importance on material accumulation and economic security. The chapter further explores key cultural challenges confronting both developed and developing societies, including corporate misconduct (e.g., corruption), and institutional or monetary factors that contribute to economic dysfunction.