Osigwe Development Philosophy - Volume 3 Chapter-2

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The Mindset Factor in Economic Development J. A. Aigbodioh

Anyiam-Osigwe, the degree of economic development that prevails in a

given society is directly related, as a matter of consequence, to the people’s

mental disposition towards their environment; or, in other words, a people’s

mindset determines what they do and get in their economic environment.2

In Anyiam-Osigwe’s view, the traditionally recognized motivating factors

of economic development are secondary to the mindset factor. Hence, he

says,

… macro or micro economics, the leadership question,

democracy, gender sensitivity, inventions and innovations

in science and technology, while providing indices for

assessing the pace and trend of development, remain

ephemeral and superficial as they do not constitute the

primary factor which determine(s) development3.

Rather, according to him, ‘they constitute attributes to a supra-

determinant which is the fulcrum of all development processes and

initiatives’4. He calls the supra-determinant the ‘mindset’5. How realistic

and pragmatically justifiable is Anyiam-Osigwe’s philosophy of a mindset-

driven economic development?

The purpose of this paper is to examine critically the idea of an

appropriate mindset in Anyiam-Osigwe’s philosophy of development, and

how it can promote and sustain economic development in a community or

nation.

What is Mindset?

Mindset is a way of thinking or a set of beliefs that determines somebody’s

behaviour and outlook. It is associated with such intentional postures as

attitude, mentality, predisposition, behavioural approach, frame of mind,

conviction and belief. It is also a habitual way of thinking or viewing things.

According to Anyiam-Osigwe, it is “a conditioned thought form of the

phenomena(l) mind on which man’s realities is (sic., are) largely premised”6.

Mindset is either individual or shared, that is, it could either pertain to an

individual or a group of individuals with a shared goal or vision. It is an

essential determinant of how an individual or a group views life in general,

and significantly affects the decision-making processes of the individual or

2

J. A. Aigbodioh

The Mindset Factor in Economic Development

Introduction

Economic development generally refers to a condition of intensification and

advancement of economic activities owing to increased education, more

available financing, improved methods and techniques of production and

provision of social services, all of which result in better transportation

facilities, creation of new businesses, improvement of existing ones and the

pacification of human existence. Traditionally, it is associated with such

expressions as industrialization, mass production, business diversification,

capitalization, increased volume of international trade, and technological

advancement. The usual expectation is that when the factors and means

needed for economic development are in place, e.g., adequate transportation

services, electricity, stable and good leadership, business-friendly environment,

natural resources, and enviable educational system, then substantial

advancement would be recorded in the society concerned.

Given this background to the traditional discourse of economic

development, to assert, as implied in the title of this paper, that a people’s

mindset could be a necessary factor in their economic development is, first,

to suggest that there could be a group mind, contrary to the view of a contra

ethnophilosophy school of thought in African philosophy, notably represented

by Paul Hountondji, that such a notion is a myth.1 Secondly, the suggestion

of a mindset–driven economy is reminiscent of the elusive metaphysical

problem of Descartes’ mind-body interactionism, the thesis that the radically

different phenomena of the mind and the body have a causal effect of

action and reaction on each other. These suggestions, because of their

metaphysical undertone, would seem to becloud, and rule out from the onset,

any possible defence of the subject of this paper. Yet, according to Osigwe

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Economic Development in Its Traditional Context

The relevance of economic development to a people, nation or region cannot

be overemphasized. However, it is commonly thought to depend on the

sheer application of professionally accredited economic theories. This is

obvious, for example, in the views expressed by S.K. Koorus and L.M.

Badeaux thus:

Economic development, distinguished from economic

growth, results from an assessment of the economic

development objectives with the available resources, core

competencies, and the infusion of greater productivity,

technology and innovation as well as improvement in human

capital, resources, and access to large market. Economic

development transforms a traditional dual-system society into

a productive framework in which everyone contributes and

from which everyone receives benefits accordingly.

Economic development occurs when all segments of society

benefit from the fruits of economic growth through

economic efficiency and equity.10

What this means is that, irrespective of any geographical condition and

a people’s inner yearnings and aspirations, economic development is a

process by which an economy is transformed from one that is dominantly

traditional and rural to one that is dominantly urban, industrial and service-

providing. If this were true, the contents of development in Europe, for

example, would have to be the same and equally suitable in Asia and Africa.

Hence, according to Koorus and Badeaux, economic development is all

about higher standard of living and welfare to a nation and a win-win strategy

without negative externalities.11 Economic development is thus perceived

as contingent on some objective and empirical indicators so that if the obvious

indicators are present then there is economic development.

Again, according to the California Association for Local Economic

Development, economic development is a concerted effort on the part of

the responsible governing body in a city or country to influence the direction

of private sector investment towards opportunities that can lead to sustained

economic growth. From the public perspective, it involves the allocation of

group. Hence, it could be seen as a philosophy of life that has a powerful

influence on the general development of those who share it.

Carol Dweck, in her Mindset: The New Psychology of Sucess7,

distinguishes between a Fixed and a Growth mindset. According to her,

persons who believe that their basic qualities, such as intelligence, outlook,

or talent, are simply fixed traits and that they alone determine success are

said to have a fixed mindset that cannot further be developed. On the other

hand, persons who believe that their most basic abilities, outlook and

predisposition can be developed through dedication and handwork have a

growth mindset. Such persons believe that brains and talents constitute just

the starting point which is needed to be developed and are essential for

greater accomplishments.8 In this later context, mindset occurs as the simple

idea of mood, inclination or disposition which creates motivation and

potentiality in the world of business, economics, education, etc. It, therefore,

plays an essential role in contributing to personal and group growth and

success. Such a mental attitude or inclination is better developed, rather

than fixed or inherent, to meet with current demands and challenges of

social living. This is perhaps why Anyiam-Osigwe refers to the mindset as

a supra-determinant of growth and development in all ramifications.

According to him, the mindset determines the basis on which man nurtures

and advances his ideas and inventions. The mindset of the individual is

reflected in his/her pattern of speech, mode of dressing, eating habits, choice

of subject on which thought and attention are devoted, ranking of priorities,

responses to given situations, perception and interpretation of the

environment. It is man’s tool for engaging his existence, to use Heideggerian

expressions, as a being-in-the-world and a being-with-others9.

The above analysis of the concept of mindset embodies the idea that

the mindset is an essential factor in the development of individual persons

and groups, and that if it is not given its proper place, or if one has the wrong

mindset, the result could be hazardous. In the section that follows, we shall

examine how economic development without an appropriate mindset is a

mere technocratic exercise without focus because it relies on makeshift

economic planning and blueprints.

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development. This is because different economies have different market

strategies for attaining economic development. Still, economic strategies

are often open to adjustments in content and focus, betraying them as ad

hoc decisions, and as founded on shifting grounds. For these reasons it is

our view that the ultimate considerations for decisions in the pursuit of

economic development cannot be explained solely in sheer professional and

empirical terms. To explain them accurately, we must resort to some

underlying principle which embraces the yearnings, aspirations and disposition

of the people concerned. Hence, there is always the need to formulate the

nation’s priorities, and the manner by which its objective can be met.

What the argument above amounts to is that besides the dynamic forces

of market strategies, good governance, comprehensive education,

enhancement of science and technology, industrialization, etc. something

more fundamental seems needed to provide the driving force for the

actualization, of a real economic development. It is what Anyiam-Osigwe

has referred to as the shared and appropriate mindset. We shall argue below,

as he does, that it is what seems to have fast-tracked the Chinese economy

to its enviable heights and successes even in these days of global economic

recession.14

Anyiam-Osigwe’s Philosophical Addition

By ‘addition’ we mean what Anyiam-Osigwe adds to the context of the

traditional discourse of economic development. As earlier mentioned, he

holds that as essential as the traditionally accredited factors of economic

development are, they remain ephemeral or superficial because they do not

constitute the primary determinants of real development. The supra-

determinant or primary factor, he says, is the mindset, albeit the appropriate

mindset. For this purpose, he distinguishes an inappropriate mindset from

that which is appropriate. We shall presently outline what he takes to be the

essential features of an inappropriate mindset and thereafter discuss

argumentatively how the philosopher justifies the pivotal role of the

appropriate mindset in economic development.

limited resources, — land, labour, capital, and entrepreneurship — in a way

that impacts positively on the level of business activity, income distribution

pattern, and fiscal solvency. It implies the progressive changes in the socio-

economic structures of a country, and an increase in industrialization, trade,

banking, construction, social services and the like. It is measured in terms

of social well-being, and GDP as well as in terms of education, access to

health, social justice, good governance, and so on12.

The preceding views clearly spell out the importance of economic

development to governments and the governed alike, as well as indicate

that what constitute economic development could vary, as it actually often

does, from person to person and group to group. At the same time, the

views point to the common practice of measuring economic development in

terms which are impersonal, and independent of individual or group

disposition. The assumption here is that what is good for some persons or

nations is good for all; and that there are absolute standards for measuring

a condition of economic development. The problem that arises from these

traditional perceptions of economic development is that they suggest the

incompatible views that the perception of the content of economic

development varies from group to group, on the one hand, and that its

measurement is independent of any group perception of it, on the other.

For example, it is common knowledge that most nations usually lay out

elaborate economic blueprint or plan so as to meet international standards

for the pursuit of economic development- a practice which presumes that

there could be an objective route to economic development. At the same

time, those nations would admit that there is usually a local content in every

development plan. For example, many developing economics often resort

to converting their foreign debt into foreign debt investment by the

privatization of economic activities, trade regionalization, conversion of import

substitute investments into export expansion investment, technology transfer,

co-production strategies and other clearly peculiar economic decisions and

practices, rather than adopt standard theories of economic development.13

Such practices imply that apart from the traditional perception that there

are perhaps only absolute and impersonal standards for adjudging economic

development, there are also local indigenous or cultural inputs to economic

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unproductive.16 The major problem with a fixed mindset as well as with the

self-centred mindset, is that it is difficult, if not impossible, to re-orientate it

even in the face of increasing challenges. It, therefore, hinders development,

economic or otherwise.

Finally, a mindset could be inappropriate simply because it is misplaced,

or inclined towards wrong objectives. For example, an economic

development plan is expected to take into considerations the yearnings and

aspirations of the people who would be affected by its implementation and

is supposed to foster the general well-being of society. It follows that any

disposition which promotes goals that hinder, in the short or long run, such

well-being is inappropriate. That some set objectives tally with some popular

or established models of, say, economic planning and development does not

make the objectives right insofar as they are not truly born of an appropriate

mindset.

(ii)An Appropriate Mindset for Economic Development: What does an

appropriate mindset consist in? According to Anyiam-Osigwe, with the

appropriate mindset … man does not seek to better his personal life but

embeds his well-being within the development and well-being of his

community.17 He adds,

… when a number of individuals within the context of their

personal lives attain the appropriate mindset, the communality

of values arising from their status as embodiments of the

appropriate mindset engenders a synthesis from which

evolves an apposite mindset complex – a natural meeting of

minds.18

Anyiam-Osigwe thus urges the metaphysical view that an appropriate

social mindset is developed when the individuals in a community (or nation)

are mentally attuned to one another in such a way that each recognizes his/

her own values in relation to those of others. When this happens, a

coalescence of individual mindsets is attained, forming a complex social

mindset. He further contends that the individual’s inner energies and inherent

abilities, which manifest in their respective skills and talents, are better and

(i) An Inappropriate Mindset:- An inappropriate mindset is one that hinders

development even when all other factors needed for economic development

are present. Its characteristics are identifiable as follows.

First, a mindset could be inappropriate because it is radically

individualistic or self–centred. It occurs as a defect of character or a false

orientation. It is often exhibited by some persons in businesses and

governments when they manifest traits of selfish disposition, or individualistic

mindset, rather than an inclination towards the common good of all

stakeholders. Hence, he says,

the lack of honesty and probity in the managing of public

affairs and assets, the disposition to unlawful acquisition,

falsehood, hatred, envy, jealously and lust are all

manifestations of spiritual impairment which adversely

affects the appropriate configuration of the mindset.15

In such a situation, according to Anyiam-Osigwe, real development is

impossible even when all other traditionally acclaimed indices of development

are in place. This is the case, for example, in most African nations today

where, in spite of the presence of abundant natural resources, clement

weather for agriculture and democratic systems of governance, the nations

are bedevilled by myriads of socio-political and economic problems, such as

corruption, political and religious violence, wars, unemployment, lack of

qualitative education, dearth of social infrastructural facilities and lack of

good governance. These evils, Anyiam-Osigwe would say, are the inevitable

consequences of the absence of an appropriate mindset in a nation.

Secondly, an inappropriate mindset could be identified in a situation

where persons in leadership positions suffer from fixation of ideas, or hold

certain beliefs and principles dogmatically even when such ideas, beliefs

and principles have proven to be anachronistic and impracticable. For

example, according to C.J. Brown and D. Proudlove, it is a common

characteristic of some senior or top government functionaries and business

managers/employees to continue to entertain outmoded mindsets on issues

like administrative procedures, marketing strategies, and business and

customer values even when it has become obvious that the old ways are

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responsibilities and he/she is therefore propelled to strive to maintain peace

and order in the community. Each member of the community is made

conscious that his action, inaction or attitude contributes either to growth in

the life of the entire community or to a loss or reduction of its life depending

on whether his/her motives are good or evil.21 This group consciousness

ensures that things are done for the common good. This, however, does not

imply that there are no individual goals or projections. For even in the context

of community and friendship, one’s individuality or personal identity is still

maintained and preserved, although not to the detriment of the entire

community.22 The basic idea is that one does not destroy the community in

the pursuit of individual goals essentially because one is nothing without the

community. Thus, an individual’s mindset should be attuned towards personal

fulfilment, while being alert to the responsibility of promoting the common

good. This attitude is no doubt vital in our current capitalist economic system.

The need for a mindset–driven cooperation for development is re-echoed

and emphasized by David W. Wang in his work on the forces which underlie

China’s rapid development.23 According to him, although macro-economic

factors and foreign investments are apparently a key to China’s development

they do not really explain her overall success. Rather, he argues, the basic

and primary factor which underlies her development is the Chinese cultural

mindset: the rich thoughts and ways of life of the five thousand year-old

Eastern civilization that are now being effectively adapted to the demands

of the twenty –first century modern conditions.24 The heritage of the past

and the vision for the future, he says, are creating unique dynamics that are

inevitably moving China forward today. This cultural mindset, Wang calls

“The Dragon Hexagon”, meaning a complex and cross-cultural system made

of philosophy, communalism, military strategy, history, folklore and literature

and the Dar and Zen tips.25 The Hexagon represents an integrated model

of the finest Chinese ideas, values, and wisdom that have helped to bring

the country to the status of a superpower in the modern world, having

sustained China’s survival in the early modern time.

Wang’s idea of China’s “Dragon Hexagon” brings to mind the importance

of a context –based or cultural mindset that works within the context of

pragmatic need and use rather than simply borrowing alien ideas for

optimally utilized when they achieve mental peace, harmony and happiness

in relation to their selves, with each other and their environment. To this

extent, an appropriate mindset consists in the attunement of the individual’s

disposition towards the common good even while pursuing his/her own

personal goals and aspirations.

Group consciousness and common good are, therefore, vital ingredients

of an appropriate mindset. Group consciousness, according to Anyiam-

Osigwe,

….refers to an expansive resource, a well-spring of ideas

and thought processes that is created when people of a

particular group or society intermingle their ideas, questions,

perspectives, aspiration, knowledge and experience in relation

to specific goals or issues. As the sum total of everyone’s

positions and concerns, the Group Mind is a synthesis in

which the defining elements of the fundamental interest of

the respective participant are preserved in the resultant

Commonweal whose legitimacy are mutuality and

subscribed to by all.19

Common good, on the other hand, is the sum total of social conditions

which allow people, either as groups or as individuals, to reach their fulfilment

more easily and more fully. Economic development is one of such conditions

needed for the fulfilment of individuals or groups in a society. Thus, an

appropriate mindset is an inclination towards teamwork where all hands are

on deck and all minds are at work such that every individual irrespective of

gender, race, physical or psychological circumstances, is positioned to explore,

appraise and apply his/her ability and energy in building opportunities as

well as advancing the well-being of society towards living a wholesome and

fulfilled life.20

There is much to learn from African traditional cultures in this regard.

An individual in an African community is from the very beginning in a

network of relationships that constitute his inalienable dignity. The fact that

he is a being who is intrinsically intertwined with his clan or his community

and with others makes him/her conscious of his/her social status and

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complex of the community.31 When people are marginalized in a society,

the sum total of the production and contribution to (economic) development

process will be greatly reduced.

Also, for an appropriate mindset that fosters economic development in

any community or society, there must be adequate remuneration and

incentives by the state for individual efforts. This would inspire the individual’s

total commitment to the community through constructive and valuable

contribution and production. With the appropriate mindset, the individual is

enthusiastic about the community, and contributes his/her optimum

capabilities in providing for, and advancing the interest of the community

with the hope and faith that his/her essence and being are acknowledged

and preserved in the context of the overall interest of the community.32

Concluding Remarks

In examining the seemingly impossible, metaphysical concept of a mindset

–driven economic development in this paper, we have argued, with

justification and in accordance with Anyiam-Osigwe’s philosophy of

development, that real economic development does not depend so much on

how theoretically valid or internationally accredited the models and strategies

used are, but on the development and application of an appropriate mindset,

as evidenced in the case of China. An appropriate mindset or a Group Mind

can be developed at the communal, national and cosmopolitan levels.

According to Anyiam-Osigwe, when it is developed at the cosmopolitan,

communal or national level, the group mind operates in accordance with a

principle of nature. In his words,

this principle states that the resulting force generated from

the combining of like minds, is geometrically greater than

the sum of its parts. In other words, minds that are focused

together upon a common theme create a mutual force, which

is not merely additive, but vastly more powerful than that of

any individual or group of individuals. To that effect, man’s

creative propensity is enlarged when there is a synergy of

the diverse attributes of various individuals who agree to

come together and function as a group that is inspired by a

common objective and guided by a common vision33

development. By “cultural mindset”, Wang means that “every society, culture,

or nation carries its own set of attitudes, values, spirit and role model, thinking

and action habits, determining how people think, perform, communicate,

interpret information and react to given situations, and so on”.26 A cultural

mindset, thus, embodies the outlook, values and judgement of a people.

Closely related to the above features of an appropriate mindset –viz.,

cooperation and context–based outlook, values and judgement-is the idea

of a shared mindset. This involves, especially in large business organisations,

having common goals and visions the lack of which is a perennial reason for

business failure or disintegration. A shared mindset or vision enhances

productivity and development.27 At the national level, it is simply patriotism

which is the unconditional commitment to the well-being of one’s country.28

Developing an appropriate mindset also involves averting a fixed or

dogmatic outlook to things. According to Prof. Muhammad Yunus, in his

keynote address at the conference on “Bangladesh and Singapore:

Developing a Development Mindset”, “the importance of a mindset is in

making changes happen”.29 For example, business enterprises and national

economies are confronted with ever-changing, ever increasing challenges,

regarding market-place uncertainties. They face competitive pressures from

local and international sources as their competitors are constantly modifying

products and services to push ahead of them. Customers and citizens expect

from them responsiveness and innovativeness. The success and survival of

such enterprises and economics depend on their ability to change and modify

their outlook and strategies to meet those challenges, which cannot be gotten

from dogmatic adherence to a fixed mindset30.

One essential factor, which Anyiam-Osigwe identifies as very essential

in creating an appropriate mindset, is the avoidance of discriminative

tendencies against the so-called weaker sex (women) and the physically

and mentally challenged in the pursuit of holistic development in society.

Besides the inclusion of women in the development process, he also

advocates an all-inclusive approach that would ensure the integration of all

members of the society as effective participants in the development process,

irrespective of their circumstances or stations in life. This, he says, helps to

ensure that each and every individual imbibes the appropriate mindset

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10. S.K. Koorus L.M. Badeaux, “Economic Development Models: A Comparative

Assessment”, International Research Journal of Finance and Economics 7

(2007) p.120.

11. Ibid

12. See “What is Economic Development?”, California Association for Local

Economic Development, http://www.caled.org/resources/what-economic-

development .Accessed December 3, 2009.

13. S.K. Koruus, et. al., op. cit., p.121.

14. See, The Cosmopolitan Expression of the Group Mind Principle, op. cit., pp.

16ff

15. The Mindset Factor in Creative Transformation, op. cit, p.20.

16. C.J. Brown & D. Proudlove, “Business Entrepreneurs” Mindset on Their

Enterprises’ Business Model”, in P. Daly & D. Gijbels (eds) Real Learning

Opportunities at Business School and Beyond (New York: Springer Publishing,

2009) P.109.

17. The Mindset Factor in Creative Transformation, op. cit, p7.

18. Ibid, p.8

19. The Cosmopolitan Expression of the Group Mind Principle, op. cit.,

20. Ibid. pp.13ff.

21. See Benezet Bujo, Foundations of an African Ethic: Beyond the Universal

Claims of Western Morality, Trans. By Brian McNeil (Nairobi: Paulines

Publications Africa, 2003) pp. 116 – 127.

22. Ibid., pp. 118 – 119.

23. David W. Wang, Decoding the Dragon’s Mindset: Inside China’s Destiny

and Its Hint to the World (New York: Seaburn Publishing Group, 2009).

24. Ibid., pp. 6 -7

25. Ibid., p.7

26. Ibid.

27. See, for example, Tara Rangarajan, Jeremy Prepscius, Ayesha Khan, Cody

Sisco and Joyce Wong, “Shared Mindset and Supplier Ownership: A Beyond

Monitoring Trends Report”, Business for Social Responsibility (Oct. 2008)

pp. 1 – 17.

28. See, The Cosmopolitan Expression of the Group Mind Principle, op. cit

29. Prof. Muhammad Yunus, “Bangladesh and Singapore: Developing a

Development Mindset”, The Daily Star Dec. 3, 2007.

Although the preceding principle of the Group Mind force raises the

intractable problem of holism and individualism in the social sciences, its

validity in the context of our discussion is obvious. It merely reinforces the

commonplace saying that “united we stand, divided we fall”. The appropriate

mindset is not individualistic or selfish. Rather, it is poised for the common

good of society, and when it is all-inclusive of all segments of society, the

sum total of economic production is maximized. Hence, according to Anyiam-

Osigwe, “the journey to economic and socio-political transformation of any

society begins with the attainment of appropriate mindset by the citizenry”.34

Given the parlous state of African economic conditions today — conditions

which are due mainly to the syndrome of groping searches for appropriate

theoretical models and strategies for development — Anyiam-Osigwe’s

proposal is obviously apposite. The problem is how to develop an appropriate

mindset in multi-cultural settings like Africa and African nations.

References

1. See. P. Hountondji, African Philosophy: Myth and Reality (Bloomington:

Indiana University Press, 1983).

2. This, in my view, is the overall thrust of Osigwe Anyiam-Osigwe’s metaphysical

theory of economic and socio-political development. See, for example, Osigwe

Anyiam-Osigwe Foundation, The Mindset Factor in Creative Transformation:

A Philosophical Understanding for Human Development (Lagos: Osigwe

Anyiam-Osigwe Foundation, 2005) and The Cosmopolitan Expression of the

Group Mind Principle: Patriotism & Group Mind; Spirit of the Team, Spur

of the Nation (Lagos: Osigwe Anyiam-Osigwe Foundation, 2002).

3. The Mindset Factor in Creative Transformation, Ibid, p.2.

4. Ibid., p.3.

5. Ibid.

6. Ibid.

7. Carol Dweck, Mindset: The New Psychology of Success (New York: Random

House, 2006).

8. Ibid., Ch.2.

9. See The Mindset Factor in Creative Transformation, op cit, pp. 3-4

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The Mindset Factor in Economic Development

30. C.J. Brown, et al., op. cit, p.109.

31. The Mindset Factor in Creative Transformation, op. cit, p.14

32. Ibid., p.9

33. The Cosmopolitan Expression of the Group Mind Principle, op. cit, p.8

34. The Mindset Factor in Creative Transformation, op. cit, p.8.

Osigwe Development Philosophy - Volume 3 Chapter-2

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