Cultural background manifests in institutions, transactions, knowledge transfer, incentives, and social capital, significantly impacting a nation's economic path. Culture influences entrepreneurial spirit, risk tolerance, trust levels, and social mobility, shaping the effectiveness of economic policies.

A non-developmental cultural background, characterized by factors like low trust, limited social mobility, and weak institutions, can stifle economic progress. In such scenarios, conventional economic policies often prove ineffective, highlighting the need to address underlying cultural barriers.

The relationship between culture and growth is not static but dynamic. While culture shapes economic development, economic progress can influence cultural values and norms. Breaking free from a growth trap requires a multifaceted approach considering both economic and cultural transformations.