Political Cultural Variations in State Economic Development Policy

Abstract

The impact ofpolitical culture on state politics has been investigated widely, but little is known about the relationship between political culture and economic development policy, even though such policies play aprominent role in contemporary state politics. Drawing on DanielJ. Elazar's analysis ofAmerican political subcultures, I suggest that moralistic, individualistic, and traditionalistic values imply quite different strategies for promoting economic growth. Empirical evidence shows that moralistic states pursue strategies that emphasize solidarity, while individualistic states employ policies that confer particularistic benefits on investors. For their part, policymakers in traditionalistic states prefer exclusionary incentives that tend to reinforce existing patterns of domination. Whether any of these strategies succeed in realizing their cultural objectives remains to be seen; however, actions that positively affect economic performance may lead to the erosion of cultural values by triggering migrations that bring new values into play.