INTRODUCTION TO CULTURAL ECONOMICS
Cultural economics is the branch of economics that studies the relation of culture to economic outcomes. Here, 'culture' is defined by shared beliefs and preferences of respective groups. Programmatic issues include whether and how much culture matters as to economic outcomes and what its relation is to institutions. Applications include the study of religion, social norms. social identity, fertility,ideology, hatred,trust, and the culture of economics.A general analytical theme is how ideas and behaviors are spread among individuals through the formation of social capital, social networks and processes such as social learning, as in the theory of social evolution and information cascades. Methods include case studies and theoretical and empirical modeling of cultural transmission within and across social groups.
Why is Cultural Economics Important? Cultural Economists must have a strong sense of the cultural matrix within which economic phenomena occur. However irrational they may appear, values and traditions are non-the-less relevant to economic analysis. Political and religious allegiance influence purchase decisions. Fear and greed are economic motivators. Attitudes about education, individual rights, the accumulation of wealth and the importance of private property drive the adoption of economic systems and political institutions. Collectivist, dictatorial and democratic solutions compete for political power that will determine how labor, capital and material resources are allocated and managed. Culture defines the collective manifestations of who and what we are, including our religious beliefs, political systems, customs, values, intellectual acumen and creative endeavors. It should be obvious. If we want to make long range economic forecasts, we must understand how culture and cultural change will shape future economic choice. What sets Cultural Economics apart from other methodologies of economic analysis? Economic research frequently yields inadequate conclusions based on irrelevant or obsolete data that has been interpreted using algorithms of questionable relevance. In other words - we play with the numbers. It's a great academic exercise. Then we project our conclusions into the future on the basic assumption that future reality will be an extension of past reality. Sometimes it actually works. We can usually make reasonable estimates of near term demand and consumption, Gross Domestic Product (GDP), inflation, employment and so on. We have a reasonable probability of success if we are making a specific forecast for event driven data that will occur within the next three to six months. It helps our accuracy if future events
within the forecast period are well understood and relatively static. In other words – our economic environment will not be altered by any surprises such as weather disasters or unanticipated political events. Unfortunately, the longer the forecast period, the higher the margin of error. Cultural change is a given. Our economic environment is always evolving in reaction to current events. If we only use historical data as the basis of our economic analysis, then forecasts that extend out beyond a year or two will be something of a crap shoot. Why? Because the future is NEVER an exact duplicate of the past. The technology boom of the 1990s was a one time series of specific events that will never be repeated. It is therefore useless to extrapolate the economic data of that period in making forecasts of future events. When the boom went bust, all of our economic data got reshuffled. Sure. We will have other periods of boom - and bust - but they will be propelled by a different set of circumstances. Data from periods like the Great Depression and the 1990s can be used as a point of comparison, an illustration of what might happen, but not a blueprint of future events. For example. Various economists have made estimates of how the price of oil impacts GDP, inflation and employment. These forecasts have usually been based on an analysis of historical data and events. They generally conclude that oil consumption only constitutes about four percent of domestic consumption and therefore even radical changes to the price of oil will only have a marginal impact on the economy. The numbers are correct. But the forecast is not. Why? Three reasons.
1. Past oil demand occurred in a world where there was excess capacity. Although
temporary supply restrictions drove up the price of oil in the early 1970s and 1980s, the supply of oil eventually recovered to a point where there was more than enough oil to satisfy consumer demand. The price of oil then declined. Our cumulative thirst for oil continued to increase. As we look ahead, however, the combined impact of cultural change and declining oil reserves will bring about a continuing decrease in available supply versus a continuing increase in demand. Islamic Jihad, for example, promises to have a negative impact on oil exploration, production and transportation. On the other hand, China andIndia are scrambling to secure as much oil as they can to satisfy the needs of their growing economies. Since actual consumption will be restricted by available supply, the economic disruption will far exceed a mere change in price. At first, supply disruptions will cause intense shifts in the world’s economy. Oil shortages will drive recession and inflation. Subsequent reductions in economic activity will reduce the demand for oil. When demand falls below available production, excess capacity becomes available and oil is no longer a barrier to economic growth. As economic activity recovers, the demand for oil will again increase until consumption equals production. The cycle will then be repeated. Good times beget bad times beget a resumption of good times. However, as described in “The Report on Oil Depletion”, the cumulative impact of declining reserves and escalating cultural conflict will push the world’s economy into a long term decline. 2. Generally speaking, relatively short term oil shortages and price increases do not have much of an impact on long term consumer behavior. Despite what happened in the 1970s and 1980s, we Americans continue to favor energy intensive life styles and emerging industrialized powers such as China need a lot more oil in order to continue their economic growth. These life style and economic choices are structural in nature.
That means they are embedded in the economic outlook of our respective cultures. The net result? Even though higher prices and widespread oil shortages will unquestionably force a transformation of national cultures, cultural change usually takes a long time to evolve. During the interim, oil depletion will have a long term inflationary impact on the price of oil and a recessionary impact on the world’s economy. 3. The third reason has to do with the uneven impact of price on individual consumers. In 2002, the national average price per gallon for refined oil consumed was just over $1.50 per gallon. By 2008, it appears the average price for the refined oil we consume may exceed $3.00 per gallon. Since fuel shortages can be expected to increase the cost of transportation, warehousing and distribution, net discretionary income will decrease from 2002 to 2008. The greater percentage of this decrease will fall upon lower income groups. Given the patterns of oil product consumption by income group, and factoring in a three percent per annum increase in wages, if you made $25,000 in 2002, refined oil products absorbed over 8 percent of your income. By the end of 2008, refined oil products will cost you over 13 percent of your income. For someone making $100,000 a year, however, the direct and indirect cost of oil increases from a more affordable 2.35% of income in 2002 to 3.94% of annual income in 2008. There will be substantial shifts in the economy as consumers, particularly in lower income groups, scramble to reduce the cost of transportation. Consumers will demand vehicles that can deliver greater fuel efficiency, there will be political pressure to improve the public transportation infrastructure, and we will be forced to adopt less energy intensive life styles. Economic stress will drive a cultural transformation which – in turn – will drive additional economic change. We must conclude that if we hope to forecast future reality with any accuracy, we must find a way to factor cultural change into our economic analysis. To meet the demands of this challenge, we need the disciplines of Cultural Economics. What are the Disciplines of Cultural Economics? Cultural Economics is not some dreary cross between tedious accounting and data necrophilia. It is a science that quantifies the past, present and future of human behavior. If human existence is dynamic, then economics – as a field of study – must be able to characterize the interaction of culture and economics in contemporaneous terms. • We start with an understanding of human nature and its expression through the institutions and corporations that characterize our existence on this planet. Every organization has a unique personality. The contemporary economic environment influences organizational behaviour. Political and social constraints impact business decisions. And finally, we need to understand research, development, production, marketing, distribution and finance as a series of interrelated business processes. • To this we add the sociology and psychology of consumer behaviour and the projected evolution of established religious and political institutions. Both will respond to economic, demographic and social trends. • We then add information resources that quantify and describe our economic environment - population, employment, inflation, GDP, production, consumption, finance, commodities, trade, property, geography, and so on.
We then build a profile of current and projected consumer demand by examining petroleum market trends. and how political agendas. Starting with validated data structures. organize. Raw information is accumulated and assembled into a series of related data structures that describe economic events. intensity. Our Cultural Economics Forecast starts with an examination of industry trends. Assuming we have done a good job of identifying the key issues and developing a relevant set of questions. Along the way. extraction. After we collect. trends and environments. use of technology and business practices. In order to make sense of our economic environment and to forecast future reality. Every piece of data that we chose to save must relate to the essential issues and questions of our inquiry. transport. verify and synthesize a mountain of data that will (hopefully) permit us to accurately describe the contemporary economic environment and to lay down a credible forecast of future trends. the role of cultural conflict as a barrier to exploration and production. Our oil production and consumption forecast. and purchase criteria. we will undoubtedly develop additional questions that scream for an answer because they are critical to our analysis and forecast. consumer wants and needs. the application of technology to enhance the discovery. In doing the research for “The Report on Oil Depletion”. produce. Research provides information. That leads to questions like: Who actually owns the oil that is left? Under what conditions will they be willing to let us find. it was unnecessary (however interesting the topic) to become an expert on Islam. Analysis is a process of creation. how standards and bureaucratic duplicity impact the veracity of industry data. We are not looking for random pieces of information.How much oil can we (humans) produce? That shifts the burden of research from geology to questions that describe how we find. This profile of consumer demand is matched by a corresponding synopsis of suppliers that includes a characterization of their exploration and production capability. we assemble a hypothesis of future reality. Analysis yields understanding. calibrate. strategy. Our hypothesis can then test for logical consistency and intellectual credibility. historical and projected demand data. refining and distribution of petroleum resources. the key issue in our study of oil production and consumption was not . Along the way we need to consider where the remaining oil is located. we can now plunge into a period of intensive primary and secondary research. We methodically collect the data and collateral information needed to answer our questions. We must understand existing and projected oil exploration and production by geographic region. and environmental challenges impact world oil supplies. refine and distribute the products derived from oil. For example. we can proceed with our analysis and interpretation. consumer demographics.Research is a process of discovery. All of our questions should be relevant to the key issues we have identified. It was enough to establish if Islamic Jihad has the resources. we need to know how to focus our attention on a specific issue. The next step was to establish a probable timetable and a realistic disruption scenario. qualify. market presence. extract and transport the remaining oil? Can we find oil elsewhere? What are the production constraints of alternative energy resources? And so on. financial strength.How much oil is left? Or when will we run out of oil? It soon became apparent that the real issue was . and endurance to disrupt oil production. government regulation. and the data upon which it is
. competition and accommodation among the national governments that actually own most of the oil on this planet.
The essay attacked John Stuart Mill for supporting the emancipation of slaves. If our hypothesis survives this rigorous examination. Our final step is to document our conclusions and forecasts in a comprehensive report that not only profiles the impact of resource depletion on oil production and consumption. but there is very little in the way of organized resources for those interested in learning more. One of the primary reasons for including an entry for culturally-based economic development in the handbook was to have a space where artists. The market or industry research used in Cultural Economics is a process that involves a number of interrelated steps. and indeed quite abject and distressing one. we have a credible forecast of future reality.based." There are those who believe that Carlyle's label was also. And their interrelationship. So there you have it. But I quickly learned that neither number crunching nor theory can predict real world events with consistent accuracy. WHAT IS CULTURAL ECONOMIC DEVELOPMENT? Cultural economic development is a relatively new branch of economic development. That undeniable truth makes Cultural Economics a challenging. by way of eminence. it must have intellectual consistency and the individual data elements should be verifiable through further research. and provocative field of study. In order for the hypothesis to be true." I should say. That phrase was coined in 1849 by Thomas Carlyle in an essay "An Occasional discourse on the Negro Question.". motivated by Mill's support of T. what we might call. desolate. Because it is people – in their infinite diversity . If my work had been confined to the mind numbing analysis of extinct events described by copious quantities of dubious numerical data. Events." and reduces the duty of human governors to that of letting men alone. my philanthropic friends. It’s about people. the dismal science. can then be substantiated by treating it as a hypothesis. then my interest would have withered long ago. Research reports are based on facts and opinions which have been compiled. and the Social Science—not a "gay science. Malthus's gloomy prediction that population would always grow faster than food. organized. Many communities are involved in some aspect of arts and cultural economic development.who interact with economic events and conditions. analyzed and interpreted by someone who understands the research process. community members and economic
. Exeter Hall Philanthropy are wonderful. Change. a dreary. assumed that people were basically all the same and thus all entitled to liberty. it can also be used as a basis for projecting the effect of depletion on our economy. R. interesting. along with many other Economists of that era. dooming mankind to unending poverty and hardship. in part. The paragraph reads: " Truly. Questions. if economics were merely an exercise in abstract analysis based entirely on theory.
Why Economics is called "The Dismal Science"? Economics has been called "The Dismal Science". is also wonderful. Issues." but a rueful—which finds the secret of this universe in "supply-and-demand. Mill. Not a "gay science. Products. like some we have heard of. Cultural Economics is not about static absolutes. no.
The Urban Institute. has defined culturally based economic development as activities intended to promote increased market participation among traditional artists and arts organizations. theaters. we should care about culturally based economic development because there is some evidence to suggest that strengthening cultural communities creates economic assets that can be harnessed for community growth. As described by Neeta Delaney in Cultural Economic Development: A practical Guide for Communities .culturally based economic development is the effect of converging two areas of interest together in an economic development effort which includes the following:
• • •
Arts and cultural talents or events as the driving initiatives
Emphasizes economic development and cultural partners in planning and implementation Has a clear intent of cultural and economic effects for the community
Others define this kind of activity a little more broadly. as well as other arts and cultural organizations. art. anything that uses arts or culture to affect change in a given location and also creates new employment opportunities and broadens the tax base. In other words. There is no conventional or standard definition for cultural economic development.development practitioners can become more informed about the link between economic development.S. such as historical sites. but most often it is considered to be economic development activity that emphasizes arts and cultural partners in the planning and implementation of the effort. and cultural attractions
Serve as a centrepiece for downtown redevelopment and urban renewal
• Create vibrant public spaces resulting in an improved quality of life and a positive regional and community image • Make communities more attractive to knowledge based employees through contributing to a region's innovative habitat'
The more important point is that the one thing we have seen with the emergence of the creative class is that fostering relationship between the arts and economic development is not only possible but necessary. Neeta Delaney. Changes in U. for example. Many people view culturally based economic development as a convergence of community development and economic development. community development and the cultural arts. Cities. and art galleries. WHY SHOULD WE CARE ABOUT CULTURAL ECONOMIC DEVELOPMENT? In short. for example. tells us that cultural programs play a part in many aspects of economic development because they: Generate economic vitality in under-performing regions through tourism. communities and economic
. museums. economic have put arts and culture at the forefront of the characteristics that distinguish place.
South Carolina . Charleston .development agencies need to take account of these advantages as they revise regional economic strategies and design and implement development programs. New Jersey have used the creation of arts districts as centerpieces in efforts to combat crime and suburban flight by restoring vitality to downtown areas. Pennsylvania . and Newark . Some cities such as Philadelphia . But there are still many cities and communities that have not yet recognized the potential for culturally based economic development.
Every New Year’s eve.
It is a belief that devotees who visit this temple feel that they have visited the famous Tirumala Tirupati temple. Bhumi Devi. The deity Lord Venketeshwara looks very similar to the one in Tirupathi. you find the following gods Lord Venkateswara and Alamelu Manga in the main worship place. Before reaching the main god. Every Saturday in this temple they sell the famous Tirumala Tirupati Laddu.
As you enter the temple.VENKATNARAYANA ROAD SRI BALAJI TEMPLE
Venkatnarayana Road Sri Balaji Temple is a famous Hindu temple located inside the premises of TTD Information Center. the volunteers at the temple decorate the entire premises with flowers and lights. Andhra Pradesh. Chennai. Lord Venketeshwara has a beautiful crown adorning his head embedded with precious stones and he has a smiling face. The beneficial factor for devotees is here we can stand really close to the deity and pray for a few minutes. and Lord Brahma.
. Devotees can stand close to the lord and see the omnipresent lord looking divine and powerful. As you exit after the main darshan. This temple is famous for its main deities Lord Venkateswara and Alamelu Manga – both the gods worshipped at one place. Venkatanarayana Road. There will be a long queue stretching across the main road for darshan during midnight. TTD is a conglomeration of temples. just like the Prasad offered in Tirupati. T. India. The Board of Trustees is constituted by members appointed by the government. you see Lord Ranganatha (Lord Vishnu in his resting posture) along with Goddess Lakshmi.
This temple is also famous for New Year darshan during midnight.Nagar. Devotees can get a close glimpse of the goddess and pray for prosperity and wealth. you can see Hayagriva lord engraved in gold and silver. Goddess Lakshmi is also adorned with jewels and a beautiful silk saree. brought under the First Schedule 2 of the Act 30 of 1987. Tamil Nadu.
and Chief Engineer. junior colleges and high schools for boys and girls. It provides facilities to make their pilgrimage a unique and rewarding spiritual experience.
OBJECTIVES TTD has dedicated itself to serving pilgrims who visit Tirumala and Tirupati. Tirupati SPW College. especially the needy. Tirupati SV Oriental College. in and around Tirupati. TTD is ever-conscious of the social.000 persons. It started with the establishment of Hindu High School in Vellore by Hathiramjee Mutt. TTD maintains 12 temples and their sub-shrines.The Executive Officer is the chief executive of TTD. Tirupati
. Tirupati SPW Polytechnic. Conservator of Forests. He is assisted by two Joint Executive Officers. Tirupati SVVVS College. It undertakes several activities and has initiated different schemes in these areas. Besides. Financial Advisor & Chief Accounts Officer. religious and environmental needs of the people. and employs about 14.
SV Ayurvedic College. New Delhi SV Arts college. Chief Vigilance and Security Officer. TTD also runs a prestigious college in India's capital. Important Note TTD does not manage any temples outside India. economic. Tirupati Sri Govindaraja Swami Arts College. TTD runs separate degree colleges. Tirupati SV Yoga Institute. Tirupati SV College of Music and Dance. It also works towards preserving the serenity and sanctity of the sacred Tirumala-Tirupati area. there are officials to look after the different branches of administration. Secunderabad Sri Venkateswara College.
Tirupati SGS High School. Tirupati SV High School. Tirumala SV Elementary School. Tirupati SKRS (EM) High School. Tirumala
. Vellore SV High School. Thatithopu SV Elementary School. Tirupati SV Higher Secondary School. Tirupati SKS Elementary School.
SV Junior College. Tirumala SV Elementary School. Tirupati SP Girls High School. Tirupati SPW Junior College. Tirupati SV Oriental High School.
. 5. 3. crafts persons. and best practices regarding cultural sector activity in Michigan. 6. small design and media businesses. and promote and market key cultural industries. define local or regional cultural heritage. and offer Michigan’s current and future leaders needed resources for spearheading long-term cultural economic growth and community creative development.OBJECTIVE
1. Develop Research-Based Practice and Measurement Provide continuous scientific research on the market and non-market values. • Growth of cultural tourism. and other for-profit and non-profit cultural-based creative enterprises. Grow Entrepreneurship and Jobs Support and nurture emerging artists.
OBJECTIVE OF THE PROJECT
Our goal is to find out cultural economic potential in and aroud temple. and catalyze economic growth. Support Cultural Magnets Strengthen those places and institutions in Michigan with the power to attract and hold people and businesses. Foster Community Cultural Economic Development Increase awareness and understanding in communities of how culture can be leveraged to cause local and regional business growth. How does this play an important role in • National income and per-capital income. 4. 2. draw tourists. Build Human Capital Provide educational and leadership development opportunities that encourage personal creativity and initiative. strengthen community cultural economic development incentives. Grow Partnerships and Collaborations Encourage existing partners and grow new partnership and collaborative relationships to strengthen and leverage implementation of this strategy.
The Interview 2. The project involves individual interactions with the vendors which was a bit time-consuming. Temple autority 2. Focus group 4. Unreliabilty of information obtained from vendors due to their personal reasons. Vendors Data analysis: The data analysis results were subsequently presented by means of a descriptive analysis.Observation form 3.LIMITATIONS OF THE PROJECT
1. The lack of information regarding the exact revenue generated by the temple due to their laws of confidentiality being a private trust.
. Population and sample: 1. Discussion 5. Not so accurate input from the road side vendors due to their lack of adequate literacy or knowledge.
MATERIALS AND METHODS
The instruments in collecting data consisted of: 1.
2. Agenda of workshop.
1) What do you sell? PARTICULAR Flower garlands Tulsi Fruits Coconut diyas pooja saman NUMBER and 7 5 2 3 2 1
2) For how long are you here? PARTICULARS ( In years) 5-10 10-15 15-20 20-25 25-30 30-35 35-40 4 3 1 3 6 2 1 NUMBER
3) What are your daily sales (approx average)?
a) DAILY 300 500 700 1000 NUMBER 2 6 8 4
b) MONTHLY 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 NUMBER 2 0 6 8 4
4) Are your sales regular/irregular?
PARTICULAR Regular Irregular
NUMBER 6 14
5) Are there any special days in a week and in the month when you have more sales?
Monday-Tuesday Thursday-Friday Saturday-Sunday
4 7 9
6) Special festivals when you record high sales?
Chaturthi and new 4 year Ayudha year Tamil year New pongal Diwali year pooja. 6 4 and 3 3
chaturthi and new
7) How long you keep your shop open?
WORKING HOURS 5-10 10-15
NUMBER 4 7
15000 More than Rs. 25000 4
9) How do you finance your business ?
FINANCE Mortgage Savings Selling property of
NUMBER 3 3 own 6
QUESTIONS TO THE TEMPLE ADMINISTRATIONS
. 15000 and less than Rs.15-20
8) What is the approximate income you take for your family per month ?
More than Rs. 14 25000 More than Rs. 5000 2 and less than Rs.
What are the free services provided? • • • • Medical camps in rural areas Library & research centres Schools for deaf Training centres for handicaps.Not applicable
How many persons does the temple directly employ?
Ans:.5 – Rs. What are the charges for several services provided to devotees? Ans :. How old is this temple? Ans:. staff. Ans:. If under HRCE. are the employees paid salaries as applicable to the govt.Private trust ( TTD Trust)
What are the average monthly collections from various services?
How is the temple administrated?
Ans:.5000 Kalyana madappam given on rent for major functions
6.1.Confidential ( Legal restrictions on certain information)
8. 100 – Rs 10000 Archana – Rs.
What are the average monthly offerings by the devotees in hundis?
.Arghitha seva – Rs.
Saturday and Sunday
11.Friday.Confidential ( Legal restrictions on certain information)
9.Cash and silver / gold ornaments
Are the offerings only in cash or cash and silver/gold ornaments?
Ans:. What are the festivals associated with the temple? • • • • Vaikunda Ekadesi Marghazi Masam Garudhoutsavam Telugu New year
. What are the special days every month when there are many devotees? Ans:.Ans:.
It is found that most of the vendors sell flowers and garlands and pooja saman have the least selling vendors. 700 and the least is Rs. 500 to Rs. 300. Appropriate management model in developing the temple and community regarding to economic.
. impact and occurred problems. the average
sales is in the range of Rs. would be information for the temple and related work unit or organizations.FINDINGS
Management of the temple based on belief and ritual. social and cultural aspects would be a model for being applied in others temples with similar nature.
The highest daily sale of vendors in and around the temple is Rs. 1000.
25000 and the lowest is between Rs. The highest monthly income of vendors in and around the temple is between the range
of Rs. 15000 to Rs. 30000.
The most used way to finance the business (by the vendors) is selling of own property and the least used way is mortgage and savings. 25000 and the lowest family income is between the range of more than Rs. the average is Rs.
. 15000 and less than Rs.
Tamil New Year is the festival where the vendors record high sales and Ayudha
Pooja and Diwali are festivals where the sales are comparatively not that high. 5000.
Most of the vendors have irregular sales. 15000.
The highest family income of the vendor is between the range of more than Rs.
The vendors around the temple are there for a period more than five years and less rhan forty year.
The vendors keep their shop open for minimum five hours and the maxinmum time is twenty hours.
The special days in the week for more sales are Saturday and Sunday and the not very special days for the same are Monday and Tuesday. 5000 and less than Rs.
values and traditions are non-the-less relevant to economic analysis. Political and religious allegiance influence purchase decisions.
Cultural Economists must have a strong sense of the cultural matrix within which economic phenomena occur. However irrational they may appear.
Collectivist. Political and social constraints impact business decisions. In short. Attitudes about education. We start with an understanding of human nature and its expression through the institutions and corporations that characterize our existence on this planet. distribution and finance as a series of interrelated business processes. individual rights. Every organization has a unique personality. dictatorial and democratic solutions compete for political power that will determine how labour.Fear and greed are economic motivators. marketing. development. The contemporary economic environment influences organizational behaviour. Culture defines the collective manifestations of who and what we are. the accumulation of wealth and the importance of private property drive the adoption of economic systems and political institutions. And finally. we should care about culturally based economic development because there is some evidence to suggest that strengthening cultural communities creates economic assets that can be harnessed for community growth. production. capital and material resources are allocated and managed. It should be obvious. intellectual acumen and creative endeavours. we must understand how culture and cultural change will shape future economic choice. political systems. we need to understand research. including our religious beliefs. customs.
. If we want to make long range economic forecasts. values.