Individualistic cultures think that the rich deserve their wealth

[Maciamo]

I just saw the Economist's daily chart Rich and infamous. It is based on a GlobeScan survey that calculated the percentage of adults who think that the rich in their country deserve their fortune. The results are telling. In Western countries the ranking matches surprisingly well the Individualism Index made by work psychologist Geert Hofstede in the 1980's and 90's.

At the top, the USA and Australia, the world's most individualistic countries (scores of 91 and 90), are also the ones where the biggest percentage of the population (about 60%) who think the rich deserve their money. In the individualist's mindset, each person must work hard to achieve success, and success in business is measured essentially by wealth. In other words, the most talented and hard-working people make the most money. Hard to see how the rich wouldn't deserve their wealth with such a vision of society. This attitude is prevalent in English-speaking countries, which are all quite individualistic on Hofstede's scale (UK=89, Canada=80, New Zealand=79).

At the other end, the most collectivist countries are Portugal (27), Greece (35), Turkey (37), Russia (39) and Spain (51). These happen to be just the countries where the population is not comfortable with the rich and most concerned about inequalities. Portugal wasn't surveyed, but only 9% of Greeks, 16% of Russians and 20% of Turks and Spaniards thought that the rich deserved their wealth.

These are also countries where the perception of corruption is higher. Obviously, if you think that the rich got rich because they cheated, stole, embezzled or got bribes, you are not going to accept easily their fortune, and will more probably label them as bad people. It's understandable since, in a strongly collectivist society, relationships matter more than ambition and hard-work to rise to the top and make a lot of money. And in every society where interpersonal relationships have a lot of importance at work, bribes and corruption are endemic. The same is true in countries like Japan, China or India. The case of Japan showed that a high level of economic development did not erase corruption from the culture. Corruption goes hand in hand with collectivist cultures, just like a higher rate of divorce is inevitable in more individualistic ones. Every type of culture and mindset has its drawbacks.


The correspondence between Individualism and the GlobeScan survey on wealth inequalities doesn't work so well with non-Western countries though, probably because many of them changed their work culture radically in the Westernisation process. For example, China, which is a traditionally collectivist country, is increasingly adopting an strongly individualistic work ethics, which is reflected in the spectacular rise of billionaire entrepreneurs.

Globescan did the same survey 5 years ago, and the biggest changes in attitude are indeed to be found in fast developing countries. The trend is always towards more acceptance of the rich, so more individualism in the perception of work. Compared to 2007, 13% more Kenyans, 11% more Indonesians and 11% more Mexicans were comfortable about the rich being rich.

The only countries where more people are concerned about wealth inequalities are the UK (-2%) and Canada (-3%), two mature economies, and two societies with an already long history of individualism. The drop is so minor though that it may simply be a sample bias.

 

[JFWR]

Interesting post, Maciamo. Three things:

1. I find it actually odd that Australia should be just behind the US in terms of respecting the rich. I have heard said that Australia has an attitude of "cutting the tallest poppy", that is, a particular disdain of achievement. Perhaps this is far over estimated by some writers who might have taken the "taking a piss" culture too seriously.

2. Billionaire entrepeneurs in China remain exceedingly corrupt and collectivist by means of the Chinese Communist party's massive "play favourites and demand favours" practice. Those who are wealthy in China are those who can play the Party's favour his way and, in turn, is expected to support the party. This is seen even in foreign investment where China requires partial ownership and other such things.

3. What's the reference to Japanese corruption? I haven't read about a lot of corruption in Japan outside of the seedy yakuza related stuff. From what I recall, the yakuza are mostly involved in gambling, red light districts, pro-wrestling and other combat sports, and rackeetering.

 

[elghund]

Rich people get rich for a variety of reasons. Many earned it through aptitude and achievement, but of late outright thievery has moved mounds of money from the lower classes to the top. Most folks I know recognize that. The collectivists are the small elite working in collusion to collect our meager individualized earnings into their pockets.

 

[JFWR]

Rich people get rich for a variety of reasons. Many earned it through aptitude and achievement, but of late outright thievery has moved mounds of money from the lower classes to the top. Most folks I know recognize that. The collectivists are the small elite working in collusion to collect our meager individualized earnings into their pockets.

That's true only in the sense of debt in Western countries. Not so much in business.

 

[sparkey]

I bet that we would also find a correlation to the cultural concepts of "liberty," "freedom," and "rights" (or the equivalent of these terms in the local cultures). More individualistic cultures will probably tend to think of liberty as freedom from restraint, or the freedom to pursue things without restraint. Hence, the individualist idea that once the rich have earned money, they should be free to keep it. More collectivist cultures will probably tend to think of liberty as the freedom to something, with the understanding that society should be structured in a way to increase these positive liberties, even if it means placing additional restrictions. Hence, the collectivist idea that the rich should be restricted from doing with they please with their money, since distributing it would increase the freedom of others to do what they want.

 

[Maciamo]

Interesting post, Maciamo. Three things:

1. I find it actually odd that Australia should be just behind the US in terms of respecting the rich. I have heard said that Australia has an attitude of "cutting the tallest poppy", that is, a particular disdain of achievement. Perhaps this is far over estimated by some writers who might have taken the "taking a piss" culture too seriously.

From my experience in Australia (I lived there for a while), Australians judt don't like people who brag or behave like snobs. They don't have anything against making money and being rich, as long as one keeps a easy-going and 'humble' attitude about it.

2. Billionaire entrepeneurs in China remain exceedingly corrupt and collectivist by means of the Chinese Communist party's massive "play favourites and demand favours" practice. Those who are wealthy in China are those who can play the Party's favour his way and, in turn, is expected to support the party. This is seen even in foreign investment where China requires partial ownership and other such things.

Anybody who wants to make money in China needs to play by the local rules and go with the system. But it's also true elsewhere. There are plenty of corrupt officials who get dirtily rich in China, but there is increasingly more of a new kind of people: individualistic entrepreneurs who follow the American model.

3. What's the reference to Japanese corruption? I haven't read about a lot of corruption in Japan outside of the seedy yakuza related stuff. From what I recall, the yakuza are mostly involved in gambling, red light districts, pro-wrestling and other combat sports, and rackeetering.

Corruption is endemic within the Japanese government and its relation to big businesses. For example, it is quite common for high-ranking civil servants to be 'parachuted' to the top of big construction companies so that they can get government contracts for buildings roads and public buildings from their former colleagues at the MLIT (Ministry of Land, Infrastructure, Transport and Tourism). If you are interested in the subject, I strongly recommend this book: Dogs & Demons: the Fall of Modern Japan.

There is very little corruption at the street level in Japan, though (apart from the yakuza, but it's actually more extortion than corruption). As a private individual, you will never have to pay rotten cops or give bribes to civil servants in order to get a permit or speed up an application. It's mostly at higher levels than corruption is rampant.

 

[JFWR]

From my experience in Australia (I lived there for a while), Australians judt don't like people who brag or behave like snobs. They don't have anything against making money and being rich, as long as one keeps a easy-going and 'humble' attitude about it.

Ah, okay. So it is a sort of thing about having an egalitarian ethos, while having a strong sense of individual achievement warrants the fruits of its labours. Gotcha.

Anybody who wants to make money in China needs to play by the local rules and go with the system. But it's also true elsewhere. There are plenty of corrupt officials who get dirtily rich in China, but there is increasingly more of a new kind of people: individualistic entrepreneurs who follow the American model.

I haven't heard much about the latter myself from those associated with China. I know, for instance, that China's policy of massive city building is getting them in trouble when they have ghost cities that are sitting uninhabitted. Likewise, there is always talks of the intense relationships with business and Party interests.

Maybe the more individualists are associated with Hong Kong and Macau?

Corruption is endemic within the Japanese government and its relation to big businesses. For example, it is quite common for high-ranking civil servants to be 'parachuted' to the top of big construction companies so that they can get government contracts for buildings roads and public buildings from their former colleagues at the MLIT (Ministry of Land, Infrastructure, Transport and Tourism). If you are interested in the subject, I strongly recommend this book: Dogs & Demons: the Fall of Modern Japan.

Thank you. That is very interesting and I might check out that book if I come into some spending money.

Though is this really much different from what happens with politicians in US and Europe? They tend to get luxurious offers for lobbying shortly after public service. Likewise, until very recently (last month) congressional members in the US were allowed to invest with insider knowledge taken from congressional proceedings and studies.

There is very little corruption at the street level in Japan, though (apart from the yakuza, but it's actually more extortion than corruption). As a private individual, you will never have to pay rotten cops or give bribes to civil servants in order to get a permit or speed up an application. It's mostly at higher levels than corruption is rampant.

I get you. It's the higher, higher ups that are the issue.

Do you think that has made Japan such a depressed (economically) condition? 20 years with virtually no recovery.