Introduction

Awareness of the significant role played by culture and religion in improving the economic development is increasing by development organizations from mid 1990s. In various reports of World Bank and the happenings of the World Faiths Development Dialogue, this awareness is noticeable. There are many ways of defining the economical phenomena like as behavioral economics, new institutional economics, evolutionary economics, and economics and culture are grabbing the attention which are much significant. Culture is the combined encoding of the mind that differentiates the followers of one group from another, as defined in the reference literature. A shared set of principles, events and organizations previously stated on trust in supernatural powers is said to be the religion which afterwards considered as the part of culture. Society can be influenced by the religion and religious happenings in two methods, where first is the religious happenings which can also be called social activities such as church attendance which are comparable with the gatherings of tennis clubs, football clubs, political parties, scouts etc. These gatherings can be an instrument helps in the establishmnet of the networks which can be used for the economic activities. It may also be helpful in maintaining the trading relations with partner of same religious groups belonging to the other countries. The second channel is the values taught by the leaders or adherents concerned with that religion. Through these values, the actual behavior changes with the functioning of society as per the assumption (Jong, 2008). This review pertains to the financial and culture view on economics which researches the connection between financial organizations, values, and financial enactment.

Three Stages of Economic Development

All the three stages of financial growth can be illustrated (Marini, 2004) and every single stage is classified by a specific standard of economic development of income per capita and the set of leading standards. The initial stage is categorized by the short levels of progress and low income per capita and is branded as the antique or the pre-industrial stage. There are majority of the population especially are farmers which are dependent on agricultural production. Economic privations which are initiated by the absence of methodological abilities for handling climatic complications and by destruction resultant from wars between local warlords are protected by the extended families and communities.

The second stage comprises of extraordinary progress amounts and a sharp escalation in income per capita and also stated as the industrialization, modernization, or take-off stage. Relatively high saving rated and technical progress may stimulate the economic growth. Large number of groups can be escape from the poverty by high levels of economic growth (Jong, 2008).

The final stage can be described by comparatively diffident standards of growth and high income per capita and also stated as the post modern or post industrial phase. The majority of the inhabitants grows up with the feeling that existence can be taken for granted (Inglehart, 32).

During the industrialization period, the rate of financial progress is comparatively great as illustrated by the three stages of economic development. Lower rates of economic growth characterizes both the post industrialization era and the post modern era, the standard of income per capita is less during the initial stage and high during the second stage as it differs considerably.

It will be the constructive outcome on the standard of financial progress and a destructive outcome on the comparative progress rates in cross country examination of a specimen of prosperous nations when a particular religion explains the evolution from pre industrialized to industrialized phase as an important factor.