Understanding Cultural Differences and Global Economic Disparities

Understanding Cultural Differences

Culture shock is a psychological disorientation caused by misunderstanding or disagreement arising from cultural differences. This occurs due to a lack of knowledge, limited prior experience, and/or personal rigidity.

The Curve of Acculturation

  1. Acculturation
  2. Stable state

The U-Curve

  1. Adjustment
  2. Mastery

Definition of Culture

“The complex unity which includes knowledge, beliefs, moral values, laws, customs, and all other capacities and habits acquired by the human being in the process of being a member of a society.”

Cultural Spheres

  • National and Regional: Geography, history, political and economic forces, climate, religion, and language
  • Industry: Resources, technology, product market, regulation, competitive advantage
  • Professional: Education, training, selection, socialization
  • Functional: External environment, nature or task, time horizon
  • Company: Founder, leader, administrative heritage, nature of product/industry, stage of development

Components of a Culture

  • Symbols: Shared specific meaning (not understanding leads to cultural shock)
  • Language: Set of symbols for communication and for configuration of the world
  • Values: Models for what is acceptable and unacceptable
  • Beliefs: Facts or statements considered to be true (fundamental mechanism of cultural reproduction)
  • Norms: Prescriptive/proscriptive rules
  • Mores: Moral conduct
  • Customs: Tradition
  • Material culture and technology: Artifacts

Material Objects

  • Reflect the relationship with the remaining components of a culture
  • Reflect the degree of technological development of a society

Monocultural Mindset

  • Devaluation: Misses differences
  • Polarization: Judges differences
  • Minimization: Deemphasizes differences
  • Acceptance: Deeply comprehends differences
  • Adaptation: Bridges across differences

Causes of Economic Stagnation in the Global South

Low Agricultural Productivity

  • Factor aggravated by climate change: Arid lands
  • Factor aggravated by the exploitation of the best lands during colonization

Explosive Demography

Figure 1: The Demographic Transition Model

  1. Pre-industrial stage
  2. Transitional stage
  3. Industrial stage
  4. Post-industrial stage

Demographic Transitions

  • Long: Slow demographic increase, good adaptability
  • Short: Sudden demographic increase, demographic bomb

Wars and Corruption

  • Dictatorial regimes
  • Political corruption
  • Civil wars
  • Socioeconomic impact of conflicts

Frustrated Industrialization

  • Destruction of local handicrafts
  • Unfavorable mercantile relations
  • Low education and little skilled labor
  • Machinery too complex to copy, produce, and/or fix
  • Communication and transport infrastructures designed for export
  • Low wages and minimum consumption
  • Lack of reinvestment of benefits

Imposed Primary Specialization and Unequal Exchange

  • Latin America: Gold, silver, cacao, sugar cane, oil
  • Asia: Tea, cotton, cashmere, spices
  • Africa: Gold, slaves, diamonds, peanuts, oil
  • Middle East: Oil

The Trap of Primary Specialization

  • Unequal exchange: Dependence on basic products produced in the North
  • Demand ceiling of raw materials
  • Uncontrolled increase in the offer: Falling prices
  • Emergence of artificial substitute materials: Drop in demand

Aggravating Factors to the Situation of the Global South

Increase in External Debt

  • Non-payment of debt due to economic suffocation
  • Growing interests, greater economic suffocation

Neoliberal Hegemony

  • Neoliberal governments in the West
  • Cuts of aid to countries of the South

End of the Cold War

  • Loss of strategic interest
  • End of the guardianship of the great powers

Other Current Challenges

  • Population in a situation of poverty
  • Child labor
  • Teenage mothers
  • Child mortality (1 to 4 years)
  • Practicing doctors
  • Prevalence of HIV
  • Deaths caused by natural disasters