For many years, people thought that culture was only a social policy and had no effect whatsoever on economics. It is until the mid-90s that the approach begun to change. There has been an observable growing impact of culture on the economy over the recent years. It can be viewed in three different trends known as culturizing of the economy, the commodification of culture, and economization of culture. Many programs and academic papers have been done in relation to the subject, which has helped to shed some light on it.
The investments that have been made in the field of culture usually have some economic dimension in addition to the intangible social benefits. Culture industries have multiplied the amount of subsidy for cultural undertakings, which contributes a lot to more increased employment. This, in turn, generates a gross national product value. The investments made in cultural infrastructure, similar to the other public expenditures, also fulfill the functions of development multipliers.
The effects of cultural investments
There are two main effects of the cultural investments, which can be clearly distinguished. The first one is the expansion of the economic base of the region, which comes with a spark for further development. The development comes about as a result of market improvement and the marketing situation of the commercial entities that already exist. An improvement in the living standards of the residents in the region will also be evident. More jobs are created through the process of investment realization as well as with the new assets that come about in the region.
The second effect of investments in the field of culture comes from the stimulating impact of increased expenditures from the incomes created. With increased incomes of households and commercial entities, an additional demand for products and services comes about, which also has a huge impact on the local markets.
Cultural value orientation
The cultural aspects of both ethnic and religion background come with a variety of beliefs and values that contribute to economic development. Examples of the values that are linked to the performance of the economy include generalized morality, trust, ethics, and thrift among many others. These values help to guide the society related to the particular culture in a positive direction. It also provides a general image of the community, which may influence some major decisions on investments, tourism, and other such benefits.