After the Rain : how the West lost the East — John Shaqi
After the Rain : how the West lost the EastVaknin, Samuel
History
After the Rain : how the West lost the East
Vaknin, Samuel
Europe, Eastern -- Economic conditions -- 1989-; Europe, Eastern -- Politics and government -- 1989-
d. Trust related to the Economic horizon and context - the market
players assume that the market will continue to exist as an inert
system, unhindered by external factors (governments, geopolitics,
global crises, changes in accounting policies, hyperinflation, new
taxation - anything that could deflect the trajectory of the market).
They, therefore, have an "investment or economic horizon" to look
forward to and upon which they can base their decisions. They also have
cultural, legal, technological and political contexts within which to
operate. The underlying assumptions of stability are very much akin to
the idealized models that scientists study in the accurate sciences
(indeed, in economy as well).
When one or more of these basic building blocks of trust is fractured
that the whole edifice of the market crumbles. Fragmentation ensues,
more social and psychological than economic in nature. This is very
typical of poor countries with great social and economic polarization.
It is also very typical of countries "in transition" (a polite way to
describe a state of total shock and confusion). People adopt several
reaction patterns to the breakdown in trust:
a. Avoidance and isolation - they avoid contact with other people
and adopt reclusive behaviour. The number of voluntary interactions
decreases sharply;
b. Corruption - People prefer shortcuts to economic benefits
because of the collapse of the horizon trust (=they see no long term
future and even doubt the very continued existence of the system);
c. Crime - Criminal activity increases;
d. Fantastic and Grandiose delusions to compensate for a growing
sense of uncertainty and fear and for a complex of inferiority. This
nagging feeling of inferiority is the result of the internalisation of
the image of the people in their own eyes and in the eyes of others.
This is a self-reinforcing mechanism (vicious circle). The results are
under-confidence and a handicapped sense of self-esteem. The latter
undulates and fluctuates from overvaluation of one's self and others to
devaluation of both;
e. Hypermobility - People are not loyal to the economic cells
within which they function. They switch a lot of jobs, for instance, or
ignore contracts that they made. The concepts of exclusivity, the
sanctity of promises, loyalty, future, and a career path - all get
eroded. As a result, there is no investment in the future (in the
acquisition of skills or in long term investments, to give but two
examples);
f. Cognitive Dissonance - The collapse of the social and economic
systems adversely affects the individual. One of the classic defence
mechanisms is the cognitive dissonance. The person involved tells
himself that he really chose and wanted his way of life, his decrepit
environment, his low standard of living, etc. ("We are poor because we
chose not to be like the inhuman West");
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account