Cultural diversity and economic solidarity

The paper discusses and integrates two different perspectives on the relation between cultural diversity and economic relations. The first considers cultural diversity as exogenous, and studies how this can be an obstacle to economic development and redistribution, and how it can explain the characteristics and the evolution of economic and political institutions. The second emphasizes that economic relations require some preconditions - among them cultural homogeneity - that are themselves the outcome of a political process. Although the latter perspective is less frequently considered, it can be traced back to an authoritative tradition. Moreover, when considered together with the former, it allows a better understanding of the recent evolution in the relation between international integration and welfare policies. In particular, the creation of a common culture and common European institutions must be recognized as a precondition to mobility and exchange; it cannot be taken for granted, as it happens when a purely competitive view of the relation among states is adopted.