Bryan Graham's article "Baha'i Approaches to Economics" surveys some of the
secondary Baha'i literature on the Baha'i Faith and economics. It seems
strange in this context, that the author ignored those articles which dealt
with Marxism and the Baha'i Faith until we realize that the Graham's concern
here appears to be primarily to defend capitalism and classical theories of
economics against what he feels are the somewhat unfair and uninformed
criticisms made in this body of literature. Graham describes some of he
standard elements to Baha'i economic theory. These include the principle
that work should be done in a spirit of service as an act of worship, that
the Baha'i concept of distributive justice requires that the elimination of
the extremes of wealth as well as rewarding the worker for the value of his
contribution, and that a spirit of cooperation should govern industrial
relations and commerce.
The writers Graham reviewed all agreed that the Baha'i teachings regarding
work as worship implies honesty, hard work and service. Graham points out
that such ideas are not unique to Baha'is. Adam Smith, who was first and
foremost a moral philosopher and only secondarily an economist, recognized
the connection between honesty and good business while more recent
economists have noted the extent to which corruption serves as a barrier to
development in many parts of the world. Graham also mentions the emphasis
placed on voluntary giving but gives only cursory attention to 'Abdu'l-Baha'
s call for a graduated income tax.

In noting the treatment given by Baha'i authors to the subject of
distributive justice, Graham notes that Baha'is accept the inequality of
wages as rooted in the Baha'i principle of justice which in turn rests on
rewards and retribution. However when wages are not reflective of
productivity the economic system must be considered exploitive, and
therefore tyrannical. In addition society has a responsibility to provide a
safety net to ensure that basic needs are met. Graham suggests that Baha'i t
heories in this regard might be profitably informed by 19th century
utilitarian and libertarian theories. The teachings on Baha'i concepts of
justice as they relate to economics might also be correlated with more
recent literature demonstrating the relationship between equity and growth.
Yet Baha'i scholars have largely ignored or been dismissive of research in
this field even though it would provide significant empirical support to
many Baha'i ideals such as giving priority to the education of women.

All Baha'i authors discuss 'Abdu'l-Baha's emphasis on cooperative industrial
relations with it's elements of consultation and profit sharing. Yet most of
the Baha'i authors take a negative view of the profit motive which they link
with greed. While the service motive is certainly important, ignoring the
profit motive often leads to decreased efficiency. A similar problem arises
from an over-emphasis on cooperation over competition, a theme which runs
through virtually all the Baha'i articles. Graham, on other hand argues that
competition insures that prices reflect the actual costs of production.
Furthermore, cooperation is not always a good thing for it sometimes leads
to collusion to raise prices as is the case of cartels. Rather than
simplistically promote cooperation over competition, Baha'is should consider
in what contexts each would be considered constructive or destructive.

Graham finds a regrettable and pervasive attitude of antagonism both towards
capitalism and towards the academic field of economics in the Baha'i
literature he reviews. This is largely a result of the fact they know so
little about it. Most Baha'is tend to blame the capitalistic market system
for our present day consumer society whereas Graham argues that the origins
of capitalism are to be found in what Max Weber termed the "Protestant Work
Ethic" which decried conspicuous consumption.# Graham also insists that it
is capitalism which is responsible for the most massive reduction of poverty
in history. Graham concludes by decrying the triumphalistic attitude
displayed by so many Baha'i towards the knowledge gained by academic
research which allows us to take too facile an approach to complex questions
like economics. In so doing Baha'is not only fail to learn a great deal that
might shed light on their own teachings, but they also can find no common
ground with which to dialogue with the leaders of thought outside our
community.

While I very much resonate with Graham's criticism of the
anti-intellectualism found so often among Baha'is who insist that
'everything is in the Writings' an antagonism all too often exhibited
towards academic studies in general, I am less enthusiastic about his
whole-hearted embrace of Classical Economics. It is quite true that Adam
Smith's economic theories were as much informed by ethical considerations as
those Baha'i writers are, their application had very different results.
Whereas Adam's theories were designed to critique mercantilism, they were
often applied to limit social welfare legislation. While competition between
capitalists where it is not subverted may well help keep prices down, when
such 'free competition' is applied to labor the net result is that wages
tend to drop below subsistence as the workers with the least need such as
children and youth are favored at the expense of adults responsible for
supporting a family. Furthermore while capitalists themselves may have
embraced a philosophy of life which encouraged frugality and investment, the
increase of factory production entailed persuading others to consume.
Whereas Adam Smith's theories constituted an argument against imperialism,
today those same theories are used by multi-nationalism throughout the world
to avoid regulation. One can't help but wonder if alternative economic
theories like communitarianism would not have closer affinities to the Baha'
i Teachings than does Classical Economics. However in either case, Graham is
correct that Baha'is must familiarize themselves with these various theories
and stop pretending they have everything to give and nothing to learn.

The final article in this collection, "Women, Education and Development" by
Geeta Gahdhi Kingdom proceeds to do just what Graham in the previous article
recommended, she discusses the current research findings regarding the
impact of female education on development. Kingdom asserts that besides the
intrinsic value of educating women there is also an instrumental value
inasmuch as female education on the secondary level leads to a significant
decrease in both infant mortality and population growth, one much greater
than other strategies aimed directly at these problems. While Baha'is tend
to emphasize the importance of an educated woman's ability to educate and
raise her children more effectively, a result the research bears out, more
significant outcomes seems to be the increased value of a woman's economic
activities and the fact that further education tends to increase the typical
marriage age, thus reducing population growth. Some countries resist
providing increased education to women arguing that it leads to a breakdown
of the family and increased incidents of divorce. Kingdom goes on to make
the rather odd statement that this is a valid argument concluding  that the
content of education must be regarded as important as its accessibility. If
education of women leads to an increase in divorce might not this be because
educated women are less likely to accept subservient roles in patriarchal
families, most especially joint family systems? How then would Kingdom
change the content of a woman's education? One wonders if  she would design
it to make women more accepting of this subservience! Another factor which
stands in the way of increased education for women is that in countries
without adequate state support for its elderly,  parents rely on the
assistance of male children in their old age. Therefore investing in a boy's
education is likely to reap more economic benefits to the parents than
educating a girl which will instead benefit someone else's family. Kingdom
feels that the only way to offset this problem is for governments to offer
financial incentives for parents to educate their daughters.

The essays in Reason and Revelation prove quite stimulating and are written
on a significantly higher intellectual level than much of secondary Baha'i
literature. However, most of them don't really achieve what they set out to
accomplish, namely demonstrate the ways in which academic method can enrich
our study of the Baha'i Faith. Most were largely lacking in any vigorous
application of academic methods while others violated the some of the most
basic rules of the  disciplines they claimed to represent. The most valuable
essays were those which described the methods applied in history, literature
and the social sciences and provided some limited examples of how they might
be used within the Baha'i context. Still one can't help but wish we would
stop defending the value of academic methods and spend more energy on the
production of  intensive studies which utilize them. In this respect the
book was a bit of a disappointment.



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