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Bruce W. Finnie , Linda K. Gibson and David E. McNabb "Economic development: corruption, complexity, wealth, and a triad of strains", Humanomics , Vol. Emerald Group Publishing Limited. Please share your general feedback. You can start or join in a discussion here. I believe one reason for this is ignorance on the part of most Americans about the size and bloat to which we have allowed the federal Leviathan to grow. To help convey this size in terms other than spending, deficit and debt I've created a web page thefrogpot [dot] com that shows the bureaucratic structure of each of the cabinet-level agencies and the EPA.

If American taxpayers see the boated beast they are supporting it may help open their minds to the libertarian message of a smaller government that lives within its means and obeys the Constitution. Socialist, Communist, Progressive, even Fascist, there are all names for varieties of the same species, Power Junkie! When we the people spot them we should do the right thing for everyone and make them go cold turkey!

The species has these very common characteristics; support for Gun Control, support for the Global Warming political agenda, and anything else that puts government in the middle of any commercial relationship other than the role of referee.


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There is a large herd of these foul vermin running loose in Washington right now. They are all calling themselves Democrats.

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In reality they are kleptocrats. Toss them out on the street, or in jail as needed. I don't disagree with the essence of this post, but it perpetuates errors in terminology that give cover to the real enemy - socialism To be "evil" it would have to exist and it has never and will never exist. Marx, like most socialists, viewed humanity and concluded that they were unable to manage their own lives and societies due to ignorance and stupidity.

False Premises and The Root Failing of Collectivism | FreedomWorks

Education and training of the masses would be necessary for corporate power to continue and increase. Like Stalin, 70 years later, he would deny those who could not produce the products of the "proletariat's" labors, making him a Progressive as well. As that happened the response would be increasing local control departmentalization.

Departmental managers would find themselves managing departments composed of educationally enhanced proletarians producers without the hierarchical support of the irrelevant corporations. Dialectic theories posit that every "identity" identifiable material factor identifies that which is not it as something else.

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Corporate competition drives improvements in corporations, including education of the proletarians. Meanwhile the conflicting interests of the organized the proletariat are dormant pending their achievement of the capacity for self-rule provided to support their corporation in competition with other corporations. Each occupation would have its occupational commune and also be a part of geographic commune. This formed the basis for the Soviet system of democratic-republicanism. The rise of Bismarck's Germany was certainly also a factor. The importance of this is that he was exposed to the social-corporation systems of Europe, late-monarchical and proto-socialist and reports on the decentralized systems of the United States.

The hard thing for most to understand is that Marx was predicting the rise and fall of the social-corporations which provided the model for European-style or modern socialism. Marx hypothesized how democratic-socialism would decline into capitalist dominated, authoritarian social corporations.

That would create the means for their own destruction, resulting in the rise of democratic-republican social-corporations with society run by the workers for the workers. Regional authority is to some extent ceded to "peers" or aristocrats. Operational authority is ceded to departments or bureaus. Generally the faction in leadership changes but the bureaus go on, changing only gradually over time. There is usually some charter like the French 'Declaration of the Rights of Man' which prescribes some separation of powers divide on the American model into legislative, executive and judicial branches.

In the place of aristocratic holdings, regional departments subject to national control are instituted with varying degrees of autonomy. Differences in the factions usually vary from more management to less management of the resources of the nation and of its people. All claim to manage to the benefit of the corporation, including its people. Expectations included; the defense of the kingdom later of the nation , good management of resources and dispensing of justice.

In the 19th Century social-corporations tended to diminish or dispense with the religious justification, taking this from "the will of the people" as expressed through elections. Thomas Malthus lent urgency to the issue by postulating that overpopulation would out-pace society's abilities to provide for the population. This combined with existing nationalistic as in racial-cultural ideas of "we are inherently better than those other people". This was given "scientific" credibility by the early "comparative" physiologists precursors to Darwin's evolutionary theory.

These racialist nationalist ideas provided guidance to how to encourage progress in a society though they led to much inter-factional conflict over how to identify those that were holding back social progress. With democratization of the social-corporations identifying those who impaired progress shifted from having just to convince the leadership that 'group X' was "holding us back", it became necessary to convince a majority of the people that 'group X' was "holding us back".

Out of this mix grew the modern "Progressive Movement" the movement to establish government as the dynamic manager of the corporation of society and encourage its progress through promoting advancements and removing impediments. That trend or movement has dominated most societies for the last to years though it did not 'crystalize' as a movement until the latter 19th Century. It's goal is effective management to produce the best possible society. It uses democracy and other justifications to sell its measures to achieve progress.

But democracy is itself an impediment to dynamic management so it is also constantly experimenting with ways to remove that impediment while preserving its sweet appeal. Progressivism is a specifically anti-intellectual movement. They believe they have already answered the important questions and continuing to consider them is just another impediment to action.

Study that agrees with this premise is encouraged because it is contributing to progress in the only valid direction. Study or even just questioning that contradicts the Progressive premise is counter-productive and another impediment to progress and there fore invalid or even the equivalent of "evil". As an anti-intellectual movement, Progressives found their arguments inadequate. To learn more, view our Privacy Policy. Log In Sign Up. Relationship between individualist—collectivist culture and entrepreneurial activity: evidence from Global Entrepreneurship Monitor data Small Business Economics, Luisa Reyes.

Economic development: corruption, complexity, wealth, and a triad of strains

Relationship between individualist—collectivist culture and entrepreneurial activity: evidence from Global Entrepreneurship Monitor data. Using data from the Global Entre- these differences remain stable over time Uhlaner preneurship Monitor on 52 countries, the results show and Thurik ; Van Stel et al. Thus, individualism conditions in different countries Blau ; Blanch- is not related to entrepreneurship in the same way in flower and Oswald ; Blanchflower ; Evans countries with differing levels of development. Using data from the Global Entrepreneurship M.

Pinillos, L. Reyes entrepreneurship and the level of income per capita. Later, he adds a fifth dimension Hofstede The implication of such a U-shape is that, as : long- versus short-term orientation. His cul- economies develop, the rate of new business start- tural dimensions are useful for identifying key ups or that of nascent entrepreneurship declines, but aspects of culture related to the potential for entre- picks up again in highly developed economies. Out of the five dimensions entrepreneurial activity is related to that of economic describing culture, the I—C contrast constitutes the development, as described above, Van Stel et al.

I—C expresses the cultural tendency to Japan, Switzerland, Australia, Canada, and the US all place more value on the individual or the group. The have the same level of development, but that the first present study focuses on the cultural dimension I—C four have a low level of entrepreneurial activity, and looks at its relationship with entrepreneurial while the last three have a high level, according to activity, as well as the level of development. GEM Executive Reports, a difference that is shown to Different theories exist as to why a particular be persistent.

One of these explanations Davidsson explain why countries have similar levels of income ; Davidson and Wiklund implies that in but a different ratio of entrepreneurial activity, and countries where a greater proportion of the population these other reasons may be rooted in cultural has entrepreneurial values, there will also be a greater differences according to Hofstede et al. It can there- Empirical evidence exists Noorderhaven et al.


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Individualism is one of the factors related to the variables, plays a fundamental role in explaining the profile of the entrepreneur. Individualism is associated differences in entrepreneurial activity in different with the motivation to achieve and the pursuit of countries, especially in terms of persistence, as personal goals.

Some researchers find empirical evi- cultural aspects are possibly of an even more per- dence supporting the idea that individualism favours manent nature than economic conditions Hofstede new firm creation McGrath et al. Culture, as the underlying value system peculiar to , although other authors have also offered a specific group or society, shapes the development of empirical evidence to suggest that it is, in fact, a lesser certain personality traits and motivates individuals in degree of individualism in other words, collectivism a society to engage in behaviour that may not be that is positively related to entrepreneurial activity evident in other societies.

Hunt and Levie ; Baum et al. The development of research based on culture These varying results have led us to believe that began by empirically identifying different types of the I—C relationship and entrepreneurial activity culture. In the more general field of research of depend on the different levels of development of culture and management Sondergaard , and the countries under scrutiny and that the individualist specifically in culture and entrepreneurship Hayton culture will have a greater relationship with entre- et al.

Conversely, it is the collectivist widely used. This belief across countries in values, beliefs, and work roles. In has been backed up via the empirical evidence his influential first study, Hofstede finds obtained in this study, whose rationale is linked to cultural differences across countries along four different motivations that drive entrepreneurs accord- dimensions: power distance, uncertainty avoidance, ing to their respective cultures, as we will go on to individualism—collectivism I—C , and masculinity— demonstrate.

However, in order to drive entrepre- TEA during the period — for a sample of 52 neurial activity forward, it is important to know countries, and the level of economic development is which factors are related to entrepreneurial activity, measured by GDP per capita GDPPC. We also what is the strength of the relationship and which of analysed the I—C for two groups of countries: these factors can be influenced by policy measures.

Prior research finds that the individualist—collec- The rest of this paper is organised as follows. Section 4 describes the research meth- also stressed the importance of the relationship odology, while Sect. The study between the level of economic development and ends with the conclusions and some research entrepreneurial activity. Recently, authors have tried limitations. However, the studies that and entrepreneurship analyse this threefold relationship are not explicitly concerned with the questions of 1 whether individ- Culture has been defined in many ways.

The current study aims to examine these questions. Such mental program- Focusing the analysis on individualism—collectiv- ming consists of patterns of ideas and especially their ism, which is the most representative cultural attached values, which are conserved and passed dimension Triandis ; Franke et al. Culture is dello and Cohen ; Schimmack et al. TEA rate. TEA measures the relative amount of Thus, culture as the underlying system of values nascent entrepreneurs and business owners of peculiar to a specific group or society shapes the young firms in a country.

Mueller and Thomas Reyes 2. Individualist societies, in contrast, generally consider family relationships to be unde- Hofstede puts individualism and collectivism sirable in the workplace since they could lead to at opposite ends of a continuum, which the majority nepotism or generate conflicts of interest. The Tiessen summarises the key characteristics position of each country on that continuum reflects of individualism and collectivism, and stresses that its individualist or collectivist orientation.

People in individualist and satisfaction of the group. Thus, Hofstede Hofstede Indeed, empirical evidence suggests a positive The differences between individualism and col- relationship between individualism and entrepreneur- lectivism are obvious at many levels: the family, ial activity. Thomas and Mueller see the logic personality and behaviour, language and group iden- behind this relationship as being related to the fact the tity, and in school education Hofstede For majority of research into entrepreneurship has been example, Hofstede , p.

The and Mueller , p. Loyalty to the group is an manifestation of selfishness, so anti-individualism is strongly rooted in the culture. But collectivism does not mean denying essential element in collectivist cultures, where the well-being or interests of the individual. Instead, safe- resources are shared. Hofstede also notes that guarding the welfare of the group is seen as the best guarantee in collectivist cultures, entrepreneurs preferentially for the individual Hofstede ; Hui and Triandis Erez and Earley fact that a number of countries with a clear collec- underline the impact of culture in motivation when tivist orientation currently heads the TEA ranking is they indicate that culture provides a cognitive outline unsurprising Bosma and Harding , in stark that endows meaning and values to motivational contrast to the idea that individualism is more closely variables to adopted decisions and behavioural stan- associated with entrepreneurial activity.

Specifically, dards. Cultural value orientations establish criteria for out of the 42 countries in GEM , Peru and determining which objectives are desirable and which Colombia have the strongest collectivist orientation, ones are not. Their results provide empirical and Firstly, evidence sug- individualist and collectivist cultures.

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They point out gests that levels of entrepreneurship in GEM coun- that national cultural differences may generate dif- tries are reasonably stable year after year; secondly, ferent motivations among individuals and find that the relative positions of countries in the TEA ranking entrepreneurs are motivated by the need for auton- also remain stable. In other words, differences across omy and achievement in both individualist cultures countries or regions tend to persist over time Minniti e.

Israelis Maslow In contrast, the US is a less intimate society, needs, a greater level of prosperity will lead to the more dependent on formal social structures. In sum, in collectivist countries, family and , with values close to meaning individualist cultures. The country with the highest score—i. Reyes the prevalence of informal investment as opposed to industrialisation and a knowledge-based society individualist countries where such royalties diminish, Wennekers et al. The author asks why society.

African entrepreneurs seem to behave irrationally to In agricultural societies, the level of development Western observers. In industrial societies, the level of devel- labour force but at the same time needlessly employ a opment increases and the form of production requires large number of relatives.

Consequently, entrepreneurs spend a consid- the countryside population moves into the industrial erable part of their time, energy and financial centres and the individualist spirit grows. However, resources attempting to balance business and family this does not normally become apparent via the obligations. The profit motive is subjected to many creation of new firms, but by satisfying the entrepre- other priorities here, which explains why the per neurial spirit within the large firm through innovation capita income level of these countries is lower.

In the most advanced stage of economic collectivist, one of the results is that people identify development, where services and a knowledge econ- themselves with the group they belong to, and their omy prevail, the possibility of the appearance of the assessment differs on who should be hired, how entrepreneurial spirit in the form of new firm creation decisions should be made or how work should be arises once more, as the demands on capital and the assigned, though in a way that does not diminish the need for economies of scale are no longer as essential tendency to act entrepreneurially.

That sequence or succession has been described by and their environment Stewart and Roth Bond and Smith through ecological factors, In relatively poor countries a high level of ence of tradition. In relatively rich countries, in the level of development. Wennekers et al. Later on, Wennekers et al. In brief, taking into account all these previous Hypothesis 3: The Total Entrepreneurial Activity points, we believe that the relationship between I—C TEA rate is positively associated with individualism and entrepreneurial activity is moderated by the level I—C in relatively rich countries.

In other words, the level of development and I—C interact on the level of entrepreneurial activity. This is favoured by the 4. Of the 56 countries that have level. We measure the entrepreneurial index takes values between 0 and Higher values activity by the mean TEA of each of the 52 countries. According to the World Bank 89 , and the lowest values for Guatemala 6 , classification, 25 of these countries have a medium or Ecuador 8 and Panama The TEA is calculated in a survey of the adult population 4.

There The TEA rate is measured in three different ways. First, the variable TEA measures the mean TEA of The first approach is to include a term of interaction each of the 52 countries that have participated in at between I—C and per capita income. People start their own business for Thus, the hypothesis is that the value of d is positive.

This variable entrepreneurs.


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This study begins with the assumption that there are differences in the form of the relationship, in 6 other words, in the slope. Table 2 reports the results of the regression. Models 4 and 5 include the correct, then b must be less than 0, so Eq. The impact can be written as Table 1 reports the correlationships between the 8 variables used. This resulted in a fall 7 It should be pointed out that the model can be specified in in the correlation to only 0.

One way multicollinearity. Venkatraman , pp. For interval-level measurements, and the other with the INDCOL of the relatively poor a simple transformation of the scale of origin reduces the level of countries. We transformed the variables as follows different slopes. Reyes Table 2 Estimation results of Eqs. This expression equals 0 for a per-capita of individualism, the higher the TEA.