The Study On Interaction Between Culture,Institutions And Economy Development

The procedure of economic development is actually broadening, discovering and utilizing of opportunities to enhance the utility of human society. The development of economy depends on the improvement of utility of people. People tend to develop different kinds of culture according to their activities characteristics, the competitiveness of them decides the dominating institutions and culture. But the institutions and culture decides intensiveness of people, further more decides the broadening, discovering and utilizing of opportunities to enhance the utility of human society, and makes difference between poor and rich. So the development of these rules is crucial to the development of economy and the society.The history of human society development is the history of interaction between cultural evolving , institutional evolving and economic development. The proper institutions of human society have to discover through experiment of competitive entities because of limited ration of human and uncertainty. And because of limited human and ignorance of people, we must protect the freedom of actions and leave the ignorance to the experiment of people. The development of institutions is an evolving process characterized by discovery by try and error. This makes it necessary to be open to diverse try and error. Competitive procedure will select the proper system in the evolving process. The democracy and regional autocracy can foster the evolving of general rules and make it feasible to common people. And this makes it rational to trust the general rules supplied by the authorities and involve themselves to the system of market. So the culture tends to change from the traditional system based on lineage collectiveness to the modern system based on trust of general rules and governmental organization.This article emphasis that opens to the diverse mode and expose to outside competitive procedure is the mechanism basis for the long-lasting improvement of the society. The first drive of cultural change is market economy development, and the democracy mechanism promise continuous supply of general rules can foster the change of traditional cultural system to a modern one. So market economy development and the democracy mechanism constitute the basis of modern society.