Cultural Diversity And Economic Growth

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Interrelation between Cultural Diversity and Economic Growth.
Introduction
Cultural diversity means the existence of vast cultures, ethnicities, beliefs and ideologies in a society which arise due to reasons such as, migration and colonization. For eons, nations, with unique qualities that sets them apart, have shared their differences, building up the society that we have today. In not only speaking and clothing, but also in other aspects, such as trading and sharing of mental and physical labor skills that has helped countries in East Asia or the Five Dragons; where their sustainable growth percentage is greater than the Western Europe countries, to achieve economic growth. Conversely, Economic Growth being the increase in the real gross
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As per an important study conducted by economists Quamrul Ashrafof Williams College and Oded Galor of Brown University, ‘Cultural Diversity, Geographical Isolation and the Origins of the Wealth of Nations’, during the pre-industrial time, the societies that was geographically isolated and culturally homogeneous, strayed from adapting to new technologies and hence delayed their step toward de-industrialization and consequently, the state of sustained economic growth. Hence, we can mount to the statement that how diverse a society is, plays a huge role in economic growth as they are one of the pillars in improvement and adapting to the on growing development in technology and also as they bring in skilled and non-skilled human capital into the society. In place of areas such as, agricultural and industrial primarily; which are the essentials for developing countries to maximize their productivity to shift the productive efficiency curve to the left, or in other words achieve economic growth. Furthermore, multi-ethnic countries like Norway, Sweden and Canada has the highest rate of Human Development index; which is accumulated by taking into account life expectancy, education and per capital income indicators. Some economists justified the reason for the improvement in the…show more content…
Even though the United Nations has commenced actions to diminish the borders between countries and to open up the countries to diversity through means such as conducting Human Development Reports, there are countries who are strengthening the borders between them and other nations such as Japan. The homogenous country is being faced with wildfire from other countries due to their strict anti-immigration policies. This can however be justified as the country wanting to hold on to their roots of ethnicity and culture that made them different from others, and avoid clashing of culture that has been an issue since the time of horse and carriage. Moreover, diversity raises many social issues such as social tensions and terror attacks and strikes caused when group of people with differences in views and beliefs fail to co-operate. It’s common to hear about terror strikes or other acts of mayhem caused in the world every day, leading to a fallback in the stability of the country which in regard deplete the chances of prognosis increase in sustainable economic
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