Culture shapes how policies are made and how people react to them. This chapter explores how culture and development policy affect each other. First, we provide evidence that cultural mismatch — specifically a mismatch between project manager background and the location of project implementation — is associated with the reduced success of World Bank projects. Second, drawing on historical and ethnographic work, we show that disregarding local cultural norms can undermine well-intentioned development policies. Third, we review economic research demonstrating that cultural practices systematically shape policy effectiveness, often leading to heterogeneous or unintended effects. Fourth, we discuss evidence that policies themselves can reshape cultural norms, sometimes in unexpected ways. Finally, we discuss research on tailoring interventions to the local context and conclude with lessons for future research.

More on this topic

BFI Working Paper·Nov 4, 2025

Fast Action for Floods: RCT Evidence on Forecastbased Cash Transfers from Bangladesh and Nepal

Paul J. Christian, Felipe A. Dunsch, Jonas Heirman, Erin M. Kelley, Florence Kondylis, Gregory Lane, Jennifer Waidler, Nidhila Adusumalli, Odbayar Batmunkh, and Kriti Malhotra
Topics: Development Economics
BFI Working Paper·Oct 7, 2025

Human Capital Accumulation Across Space

Klaus Desmet, Dávid Krisztián Nagy, and Esteban Rossi-Hansberg
Topics: Development Economics
BFI Working Paper·Aug 26, 2025

Religion in Emerging and Developing Regions

Sara Lowes, Benjamin Marx, and Eduardo Montero
Topics: Development Economics