Abstract

The prevailing opposition to various dimensions of globalization, including global economic integration, is based partly on the view that the consequent cultural changes are inordinately costly. Yet, loudly publicized grievances about globalization may overstate the genuine demand for preserving traditional lifestyles. Insofar as grievances are contrived, and the observed cultural parochialism serves mainly to mask inefficiencies, the case for limiting economic development on cultural grounds is weakened. Only where the demand for preserving old cultural traits is genuinely widespread and the traits in question undermine economic efficiency or growth do policy makers face veritable dilemmas. Where such dilemmas are resolved in favor of economic development, the social costs of the ensuing cultural modifications, while possibly substantial, are likely to be transitory. This is because beliefs and preferences that foster cultural grievances are malleable and tend to adapt to the new lifestyles induced by economic change.