Aliki Mouriki
Bell concludes from his analysis that what ultimately affects a society’s degree of collectivism or
individualism and their interaction with economic development will depend on the following condi-
tions:
a) The degree of development of formal institutions: the weaker they are, the greater the influ-
ence of cultural factors on economic development. When effective formal institutions are
present, the need for social capital and trust to solve ‘social dilemmas’ will be smaller; 72 when
they are poorly developed, the potential for some aspects of collectivism to place a drag on
economic development will also be greater, e.g. by encouraging favouritism in the allocation
of public resources. However, it is worth noting here another possibility, whereby institu-
tional arrangements are in place but not enforced, thus encouraging anti-social behaviour on
the part of both individual and collective actors, and undermining trust and consensus.
b) The initial conditions prevailing in a society, regarding its level of material prosperity and
the robustness of its institutions. Individualism is more pronounced in countries where the
economy does not perform so well and where there is low trust in the ability of the state
authorities to pursue fair and effective economic and social policies.
c) Which aspects of collectivism prevail: a collectivism that extends beyond personal relation-
ships and facilitates collective action, or a narrow collectivism restricted to a small group of
people, unwilling to trust and cooperate with the outsiders, considered as hostile?
d) The strength and scope of collectivism in a society, i.e. the degree to which the members of
a wider group are willing to relinquish some of their personal interests in favour of collec-
tive interests; and the size and composition of the group in which the feeling of collectivism
has force. The widening of networks of interaction and exchange presents opportunities for
social and economic progress.
e) The establishment of generalized norms that widen the scope of collectivism and transcend
personal relationships: this may entail the dissolution of traditional ties based on a strong
sense of narrow collectivism and replacing them by a new generalized collectivism. This, ac-
cording to Bell, is one of the major cultural challenges faced by society.
72 Letki & Evans make a similar point: in countries where high levels of institutional accountability and predictability
have been achieved, social trust is high. But in the absence of formal rules and accountability, interpersonal trust
becomes a substitute for institutional trust (2005:525).
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