Economic Benefits of Ethnolinguistic Diversity: Implications for ...

This is a result with implications that extend into sociology and management science.

Political-Cultural (Ethno-linguistic) Diversity and the ‘Right Policy Context’

Let us look more closely at the argument and findings. Political-cultural diversity facilitates creativity, openness to change, and entrepreneurship, but this positive impact on society only occurs in the presence of the ‘right policy context’. The right policy context is an intervening variable itself composed of democratic pluralism, a growth and innovation focused strategy, and a mixing of diverse individuals inside a society that enjoys a common language. In short, according to Agnieszka Aleksy, only when the correct combination of societal variables and policies is present will the benefits of political-cultural diversity be forthcoming. In the right policy context, political-cultural diversity is a marvelous attribute contributing to economic and social betterment.

Extensive statistical analysis underlies the empirical test of these complex relationships. Even without this test the theoretical argument would be inspiring and welcome. But when the variables are carefully indexed, aggregated into principal components through factor analysis, and then tested via least squares analysis (multiple regression), the conclusions are more reliably asserted.

The book explores in theoretical terms the underpinnings of each variable. For example, the origin of individual creativity is linked to the proposition that the more diverse the group, the more likely ideas among individuals will differ in an original way. Openness stems from a willingness to try new ideas and to break with old habits of thought that otherwise lead to failure in the market-place and in political administration. Entrepreneurship is far more likely among immigrants and minorities than among the older and more general population especially under the influence of education. Each of these variables is intensively researched in terms of the existing social scientific literature.