The relationship between culture and economic development has become an increasingly important focus in contemporary discourse. Culture is not only a backdrop for development but a dynamic force that interacts with economic and social changes to shape communities. Understanding economic development as an enhancement of living standards highlights the necessity of considering cultural factors as integral to this process. Ignoring the cultural context of a community risks overlooking key elements that can significantly impact developmental outcomes. Economic and social transformations often interact with cultural norms and values, influencing behaviour, decision-making, and societal priorities.

This essay explores how cultural conditions influence human behaviour and, consequently, economic and business dynamics within specific frameworks, as well as their broader impact on economic development. It also examines how social and political choices are often shaped by these cultural realities. A critical understanding of these interrelations is essential for effective policymaking and development strategies. In recent years, global institutions such as the World Bank have recognised the pivotal role of culture in development, acknowledging that it is not just a means to an end but an integral component of the developmental process.

The essay begins by outlining theoretical approaches to understanding the interplay between culture and development, including classical and modern perspectives. It then delves into a case study of Damietta City, an economically vibrant region in Egypt known for its entrepreneurial spirit and cultural uniqueness. By examining its industries, social structures, and population dynamics, the analysis provides insights into how culture and economic activity mutually reinforce each other. Through this exploration, the essay aims to demonstrate that recognising and incorporating cultural nuances into development strategies can lead to more sustainable and inclusive growth.

In recent years, the World Bank, as a leading institution in development, has recognised the critical role of culture and begun integrating this understanding into its economic development strategies. The institution has acknowledged that culture and development are interconnected not only in terms of developmental outcomes but also in the methods employed to achieve these outcomes. Significant attention must be directed towards understanding the relationship between culture and development, with efforts made to classify the various linkages between them. This approach ensures that no potential benefits are overlooked and helps to mitigate unforeseen challenges.

Cultural Approaches

A widely adopted approach by many development agencies is the classical rational choice model, which has significantly influenced social and cultural perspectives on development. This approach views individuals as independent actors who, through their actions, can exercise their ‘agency’ and strive for prosperity. The concept of ‘agency’ assumes that individuals possess inherent capabilities which, when activated, become productive inputs within the community. It further posits that poverty often results from a lack of access to opportunities and resources. Consequently, organisations adhering to this model aim to provide individuals with opportunities to exercise their ‘agency’ and thereby influence their surrounding community.

Modern and more moderate perspectives on the interrelation between culture and development have recently emerged, integrating both social and economic dimensions but assigning less importance to individual assets and agency. Some of these perspectives include:

• Ethnic and special groups are fundamental to individuals’ identities, as they provide specific cultural practices and a sense of belonging, which reinforces their connections to the broader community (Mare, 1993).

• In many societies, individuals are influenced by prevailing norms and attitudes, which may prevent them from acting independently. In such contexts, policymakers risk encountering significant challenges if they disregard these cultural realities, potentially forfeiting desirable outcomes or facing obstacles to their developmental initiatives (Rao and Walton, 2004).

Cultural Interpretation

Analysis differentiates between societies aspiring to development and those exhibiting traditional resistance to it through fundamental practices that hinder growth. In this context, culture has gained significant attention, regardless of its specific attributes, provided it aligns with policy objectives (Rao and Walton, 2004). However, narrowly defined interpretations of culture often fail to capture its methodological impact on development. Disagreeing with static conceptions of culture, Rao and Walton (2004) argue that culture should be understood through relationships: the relationships between individuals, between individuals and their groups, and among different groups in a broader intellectual framework.

Certain types of societies, as highlighted by Bourdieu (1990), perpetuate their own underdevelopment through entrenched social and cultural practices. A prominent example is the undervaluation of women in societies where specific beliefs and inherited traditions promote unequal gender rights. For instance, a mother might reinforce these inequalities by prioritising her sons over her daughters. Understanding such basic cultural practices is essential before implementing policies aimed at addressing these issues, which should also be part of long-term strategic planning.

Economic Behaviour Influenced by Culture

‘Cultural influences can make a major difference to aspects of human behaviour, which can be critical to economic success’ (Sen, 2004). Indeed, culture, which varies from one community to another, shapes how resources are managed and determines who has access to them based on the foundational principles each community instils in its members. This underscores the urgent need for policymakers to adopt culturally sensitive approaches in their economic agendas.

A crucial capacity to nurture within a society is what is termed ‘aspiration’, particularly among less developed communities. When individuals are encouraged to aspire, they are more likely to harness their abilities and utilise their assets. Even in the absence of resources, this drive compels them to seek out opportunities and work towards their goals, ultimately combating poverty. This concept is especially relevant in cultures where poverty is accepted as an inevitable reality. Tailored long-term cultural programmes are essential to addressing such deeply rooted beliefs and fostering a shift in societal attitudes.

Moreover, development plans that fail to consider cultural sensitivities can have detrimental effects (Sen, 2004). Policymakers must incorporate a range of factors alongside culture, including identity, location, gender, occupation, and class. To effectively promote change, fluidity and heterogeneity must be embraced, ensuring that all historical sources of identity are taken into account.

The Case of Damietta

Examining the case of Damietta City, which is renowned for having the highest income rate in Egypt and was officially declared illiteracy-free as of January 2005, raises important questions. The remarkable influx of European investment and foreign direct inflows over the past five years prompts one to ask: what makes the people of Damietta different from other Egyptians, and how do they address essential developmental issues? To answer these questions, it is essential to first understand the city’s broader context and then assess the reactions of its residents.

Location: Damietta Governorate lies in the northern Delta, divided by the Damietta Branch of the Nile. It is bordered by the Mediterranean Sea to the north, Al-Manzala Lake to the east, and Al-Daqahlya Governorate to the south and west. The Mediterranean Sea surrounds it to the north, Al-Manzala Lake to the east, while farms and Delta plains extend to the south and west.

Climate: Damietta falls within the Mediterranean climate zone, characterised by dry, hot summers and temperate, rainy winters. The average annual temperature is 22 degrees Celsius, reflecting the general climatic conditions of Egypt.

Society and Population: The concentration of population within the Valley and Delta regions is a defining feature of Egypt’s demographics. However, Damietta’s location on the northern edge of the Delta has historically isolated it from the densely populated areas. Approximately 46% of the governorate’s population resides in the city of Damietta, while the surrounding towns and villages account for the remaining populace.

Damietta’s workforce is heavily engaged in handicrafts, particularly furniture manufacturing, attracting a significant number of migrants. This migration is not predominantly male; entire families relocate to Damietta due to its employment opportunities and services. Two-thirds of the total migrants to the governorate settle in the city, reflecting its appeal as a centre of economic activity.

Influence of Environment on Population Activity: Damietta’s unique location—on the coasts of a sea, a river, and a lake—endows it with diverse landscapes and abundant resources. The city’s people have historically engaged in navigation, commerce, and local industries such as fishing, rice milling, textiles, dairy production, salt extraction, and shipbuilding. Regular interactions with Syrian and Balkan ports have influenced its cultural and genetic diversity.

The moderate climate encourages productivity, contributing to the industriousness and affability of its residents. This dynamic environment supports a robust work ethic, which is reflected in the high-quality products and the city’s international reputation for excellence.

Industries:

Furniture: Damietta’s furniture industry employs 84% of its workforce and produces over two-thirds of Egypt’s furniture. Its workshops, numbering 7,792 carpentry workshops and 7,974 complementary workshops, are renowned for their craftsmanship and innovation.

Shoes: The city produces approximately 1.5 million pairs of shoes annually, with 800 production units employing over 2,400 workers. Local and national distribution networks support this industry.

Textiles: Damietta’s proximity to prime flax and cotton-growing regions has long supported its textiles industry, which includes more than 40 production units and generates over 240 tons of textiles annually.

Dairy: Known for its distinctive cottage cheese, Damietta’s dairy sector includes 240 private producers and one public sector company, exporting its products to regional and international markets.

Pastries: Damietta’s confectionery sector specialises in traditional pastries such as mishabik and harisa. With 126 producers, the industry has a production capacity of approximately 20,000 tons annually.

Fishing and Boatbuilding: Surrounded by water, Damietta has a long-standing tradition of fishing and shipbuilding. This heritage continues to thrive, with skills passed down through generations and enriched by international experiences.

Salt Extraction: Along the coasts of the Mediterranean Sea and Al-Manzala Lake, salt is extracted through traditional methods. The refined product is distributed to factories in Damietta and Port Said.

Damietta Port: Established in 1986, the port is one of the most modern and efficient in the Mediterranean, facilitating transit commerce and container shipping. Its strategic location has historically made it a centre of economic and cultural prosperity.

Ras Al-Bar: This suburb of Damietta is uniquely positioned where the Nile meets the Mediterranean. Its moderate climate and picturesque location make it a popular tourist destination.

New Damietta: Situated 4.5 km from the port, this area is designed to be a green, sustainable urban centre. Its coastal and agricultural features make it a promising site for tourism and development.

Damietta’s industrious population and diverse industries underscore its unique role as a model of cultural and economic development in Egypt, illustrating the interplay between cultural values and economic progress.

The Questionnaire

To examine the relationship between cultural background and development in Damietta City, a non-representative, randomly selected sample of 25 individuals from diverse occupational groups was surveyed. The aim was to explore their decision-making processes regarding significant developmental issues such as employment preferences, work volume, participation in family planning programmes, the social importance of education, and marriage-related decisions. The survey questionnaire was translated into Arabic and presented individually to each participant.

Results

Do you or your spouse use family planning methods?

 ☑ Yes 68% ☑ No 32%

“Education is important to your business.” How do you agree with this statement? 

☑ Strongly Agree 68% ☑ Agree 24% ☑ Disagree 8% ☑ Strongly Disagree 0%

Which is more important to you? 

☑ Male Education 20% ☑ Female Education 80%

What would you like your son to do? 

☑ Have a university degree and work with me 16% ☑ Have a university degree and work for the public sector 20% ☑ Have a university degree and work for the private sector 44% ☑ Have a technical high school degree and work with me 0% ☑ Have a technical high school degree and start his own business 20% ☑ As long as he can read and write, he should work with me 0%

If you only have a daughter and a son and very little money, enough to send ONLY ONE of them to school, which one would you choose? 

☑ Daughter 88% ☑ Son 12%

If your daughter gets enough grades to join university, where would you send her? 

☑ Only a University in Damietta 32% ☑ Any University in Egypt 48% ☑ No University 20%

If you have a daughter and someone proposes to her, would you prefer him to be: 

☑ Self-employed 32% ☑ Private Sector Employee 36% ☑ Public Sector Employee 32%

If someone rich, well-reputed, and respectable but with no education proposes to your daughter, what would your decision be? 

☑ Strongly Agree 0% ☑ Agree 12% ☑ Disagree 8% ☑ Strongly Disagree 80%

Analysis

The questionnaire results, derived from 25 participants, present a nuanced understanding of the interplay between culture and economic development in Damietta. A notable outcome is the broad acceptance of family planning methods by 68% of respondents, suggesting a progressive attitude towards managing family size as a strategy for economic stability. The high valuation of education, with 92% either strongly agreeing or agreeing that it is essential for business, underlines the community’s awareness of the critical role of knowledge in driving economic growth.

Another striking finding is the prioritisation of female education, with 80% of respondents considering it more important than male education. This progressive stance reflects a shift in cultural norms and acknowledges the transformative potential of women’s empowerment for economic and social development. However, this is juxtaposed against the more conservative tendency to limit women’s educational opportunities to local universities, with 32% preferring their daughters to remain in Damietta and 20% opposing university education entirely.

The preference for private-sector employment for sons, at 44%, signals an entrepreneurial mindset, further evidenced by 20% advocating for their sons to start their own businesses. This aligns with Damietta’s long-standing reputation as a hub of industriousness and innovation. Nonetheless, the rural areas’ inclination towards public-sector roles indicates a persistence of traditional aspirations tied to government employment.

Marriage preferences highlight an emphasis on education and employment stability, with 36% favouring private-sector employees for their daughters and a significant 80% strongly opposing matches with uneducated suitors. This reflects the community’s alignment of marital decisions with broader socioeconomic goals, reinforcing education and stable income as central to familial and societal progress.

Overall, the analysis reveals a community balancing traditional values with emerging progressive tendencies, highlighting the importance of cultural understanding in shaping economic development policies tailored to local contexts.

Conclusion

The questionnaire results suggest that culture plays an essential role in the economic development of Damietta City, while the city’s recent economic growth has also shaped its cultural norms. This reciprocal relationship is evident in the community’s progressive attitude toward family planning and the prioritisation of female education, with 80% of respondents valuing it more than male education. However, conservative tendencies remain, as seen in the preference to limit women’s education to local universities and societal expectations for them to become housewives after graduation.

Damietta’s long-standing entrepreneurial mindset reflects its unique economic history, with a significant preference for private-sector employment and business ownership among respondents. This entrepreneurial spirit contrasts with rural areas in the south, where traditional aspirations for government employment persist. These findings highlight the diversity within Damietta, underscoring how localised cultural and economic factors influence development strategies.

Marriage preferences further illustrate the community’s alignment of cultural values with economic objectives. The emphasis on education and stable employment in marital decisions reinforces the importance of these factors in shaping societal progress. The strong opposition to uneducated suitors, even if wealthy, underscores the value placed on education as a cornerstone of economic and social advancement.

This paper does not claim that Damietta represents a utopia but seeks to illuminate the complex interplay between culture and economic development in the city. Addressing issues such as the limited active participation of women and balancing traditional values with emerging progress requires culturally informed and context-specific strategies. By understanding and leveraging these dynamics, Damietta’s experience offers valuable lessons for other Egyptian communities seeking sustainable development.

Damietta’s long economic history fosters an entrepreneurial mindset that values private enterprise over dependence on the government or public sector employment. However, responses from rural areas in the south of Damietta indicate some preference for public sector roles, reflecting aspirations for high-status government positions, a common trend in rural Egypt.

This paper does not claim that Damietta is a utopia. Instead, it seeks to illustrate the interplay between culture and the emerging developmental wave in the city. Certain societal characteristics warrant further attention, such as the limited active participation of women in society, often driven by cultural norms or personal choices. This ideology needs to be addressed through culturally informed development strategies. By understanding and incorporating local cultures into policy-making, Damietta’s experience could serve as a model for other Egyptian communities to achieve similar progress.

Bibliography

Brault, Simon. “The Arts and Culture as New Engines of Economic and Social Development.” Policy Options 26, no. 3 (March-April 2005): 53–56. Accessed June 1, 2007. https://policyoptions.irpp.org/magazines/policy-optionsat-25/the-arts-and-culture-as-new-engines-of-economic-and-social-development/.

Bornstein, Marc H., and Michael E. Lamb, eds. Developmental Science: An Advanced Textbook. 5th ed. Mahwah, NJ: Lawrence Erlbaum Associates, 2005.

Elyachar, Julia. “Empowerment Money: The World Bank, Non-Governmental Organizations, and the Value of Culture in Egypt.” Public Culture 14, no. 3 (2002): 493–513.

Goldman, Michael, and Rachel A. Schurman. “Closing the ‘Great Divide’: New Social Theory on Society and Nature.” Annual Review of Sociology 26 (2000): 563–584.

Göncü, Artin, ed. Children’s Engagement in the World: Sociocultural Perspectives. Cambridge: Cambridge University Press, 1999.

Hovland, Ingie. “Knowledge Management and Organisational Learning: An International Development Perspective.” Knowledge Management for Development Journal 2, no. 1 (2006): 87–98.

Information and Decision-Taking Center, Damietta Governorate. Statistics Center Publications. Damietta, Egypt: Information and Decision-Taking Center, 2003.

Moncrieffe, Joy M. The Role of Culture in Development. Overseas Development Institute, 2004. Prepared for the Commission for Africa. Accessed June 1, 2007. https://jcmcp.org/wp-content/uploads/2020/01/the_role_of_culture_in_development.pdf.

Oronje, Rose. “Challenges Faced by African Organizations in Knowledge Sharing: The Case of the African Population and Health Research Centre.” Knowledge Management for Development Journal 2, no. 1 (2006): 78–87.

Sen, Amartya. “Culture and Development.” In Developmental Science: An Advanced Textbook, edited by Marc H. Bornstein and Michael E. Lamb, 45–70. Mahwah, NJ: Lawrence Erlbaum Associates, 2005.

The Crisis. “The Role of Culture in Development.” October 1993. Accessed June 1, 2007. http://findarticles.com/p/articles/mi_m1310/is_1993_Oct/ai_14591246.

UNESCO. “The Role of Culture in Development.” Accessed June 1, 2007. http://portal.unesco.org/culture/en/ev.phpurl_id=24565&url_do=do_topic&url_section=201.html.