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Long- versus Short-Term Orientation in 10 minutes

Long/Short Term Orientation as a societal culture dimension

Long-Term Orientation stands for the fostering in a society of


pragmatic virtues oriented to future rewards, in particular
perseverance, thrift, and adapting to changing circumstances
Its opposite pole, Short-Term Orientation, stands for the
fostering in a society of virtues related to the past and the
present, such as national pride, respect for tradition,
preservation of face, and fulfilling social obligations

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Long-Term Oriented societies Short-Term Oriented societies
Good and evil are relative Good and evil are absolute
Which norms apply depends Fixed norms apply always,
on the situation whatever the circumstances
The superior person adapts to The superior person is always
the circumstances the same
We should be humble about We seek positive information
ourselves about ourselves
We want to learn from other We are proud of our own
countries country
Traditions can be changed Traditions are sacrosanct
Opposing truths can be Truth A always excludes its
integrated opposite B
Common sense and choosing Religious and ideological
the middle way fundamentalisms
How are long- and short term orientation measured?

There is no absolute standard for L/S orientation


What we can measure is differences between societies
The position of societies relative to each other is
expressed in a Long-Term Orientation Index score (LTO)
LTO values have been plotted on a scale from 0 to 100;
scores close to 0 stand for a shorter, scores close to 100
for a longer term orientation
Some Long Term Orientation (LTO) scores, out of 93
High Low
88 Japan 51 Britain
87 China 51 India
83 Germany 38 Israel
81 Russia 26 U.S.A.
67 Netherlands 24 Mexico
63 France 21 Australia
61 Italy 13 Nigeria
53 Sweden 07 Egypt
Some examples of what these LTO scores correlate with
Long Term Oriented societies Short Term Oriented societies
Secondary school students Secondary school students
perform well at mathematics perform poorly at mathematics
Secondary school students Secondary school students
underrate own math results overrate own math results
Large savings quote, funds Small savings quote, little
available for investment money for investment
Companies seek market share, Companies report quarterly
long-term profits results, stress bottom line
Investors prefer family Investors prefer shares and
business and real estate mutual funds
In poor countries, faster In poor countries, slower
economic growth economic growth

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