10 minutes with Geert Hofstede on Long versus Short Term Orientation 01032015

Summary

The video discusses the concept of long-term versus short-term orientation, introduced as the fifth dimension of societal differences by the speaker in 1991. Initially based on data from 23 countries, this expanded to 93 with Dr. Michael Minkov's discovery of a correlating dimension in the World Value Survey. Long-term oriented societies emphasize future rewards like perseverance and thrift, while short-term societies value traditions and social obligations. The Long-Term Orientation Index (LTO) measures this on a scale from 0 to 100. Examples of societal factors correlating with LTO include educational performance, savings rates, investment preferences, and economic growth, particularly in poorer countries.

Takeaways

• 📊 Long-term vs. Short-term orientation is a cultural dimension introduced by the speaker in 1991, initially based on data from 23 countries.
• 🌐 This dimension was later expanded to 93 countries with the help of Dr. Michael Minkov, who found a significantly correlated dimension in the World Value Survey data.
• 🌱 Long-term orientation is characterized by fostering pragmatic virtues such as perseverance, thrift, saving, and adapting to change for future rewards.
• 🌪️ Short-term orientation emphasizes virtues related to the past and present, including national pride, respect for tradition, preservation of faith, and fulfilling social obligations.
• 🔄 Long-term oriented societies view good and evil as relative and changeable, while short-term societies see them as absolute and constant.
• 🧘‍♂️ In long-term cultures, a superior person is one who adapts to circumstances, whereas in short-term cultures, they are consistent and unchanging.
• 🏦 Long-term oriented societies tend to have higher savings rates and are more focused on long-term profits and market share, unlike short-term societies that prioritize short-term results.
• 📈 The Long-term Orientation Index (LTO) measures societal values on a scale from 0 (short-term) to 100 (long-term), with notable differences among countries.
• 🏫 In long-term oriented societies, secondary school students perform better in mathematics but tend to underestimate their abilities, contrasting with short-term societies.
• 💹 Economic growth in poor countries is faster if they have a long-term orientation, whereas short-term oriented poor countries often experience slower growth.
• 🌟 Long-term orientation scores are relatively stable over time and are influenced by values passed down from parents to children, showing little change even with technological advancements.

Q & A

Who introduced the concept of long-term versus short-term orientation?

The concept of long-term versus short-term orientation was introduced by the speaker in 1991.

What was the initial number of countries for which data was available when the long-term versus short-term orientation dimension was first introduced?

Initially, there was data available for 23 countries.

How did the number of countries with available data increase for the long-term versus short-term orientation?

The number of countries with data increased to 93 when Dr. Michael Minkov discovered a significantly correlated dimension in the World Value Survey data from 1995 to 2004.

What does long-term orientation represent in a society?

Long-term orientation represents the fostering of pragmatic virtues oriented towards future rewards, such as perseverance, thrift, saving, and adapting to changing circumstances.

What are the characteristics of short-term orientation in a society?

Short-term orientation is characterized by fostering virtues related to the past and present, such as national pride, respect for tradition, preservation of faith, and fulfilling social obligations.

How does the perception of good and evil differ between long-term and short-term oriented societies?

In long-term oriented societies, good and evil are seen as relative and can change over time, whereas in short-term oriented societies, they are viewed as absolute and always the same.

What is the difference in how superior individuals are perceived in long-term versus short-term oriented societies?

In long-term oriented societies, a superior person is someone who knows how to adapt to circumstances, while in short-term oriented societies, a superior person is someone who is always the same.

How does long-term orientation influence economic growth in poor countries?

Long-term oriented poor countries tend to have faster economic growth compared to short-term oriented poor countries, which often stagnate.

What is the Long-Term Orientation Index (LTO) and how is it measured?

The Long-Term Orientation Index (LTO) is a scale from 0 to 100 where 0 stands for short-term orientation and 100 stands for long-term orientation, used to measure the differences between societies.

How does the educational performance in mathematics of secondary school students differ between long-term and short-term oriented societies?

In long-term oriented societies, secondary school students tend to score higher in mathematics but rate their own results lower, while in short-term oriented societies, they perform relatively poorly but tend to overrate their own math results.

Do the LTO scores change over time, and if so, how?

LTO scores reflect values transferred from parents to children and tend to remain consistent over time. Research shows that values acquired in childhood rarely change in later life, and there are no significant worldwide shifts or changes in the relative positions of countries over time.