[RC] Buddhist economics

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Buddhist economics
 
>From Wikipedia


 
 
Buddhist economics is a spiritual approach to _economics_ 
(https://en.wikipedia.org/wiki/Economics) ._[1]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-1)
  It examines the psychology  
of the human mind and the anxiety, aspirations, and emotions that direct  
economic activity. A Buddhist understanding of economics aims to clear the  
confusion about what is harmful and beneficial in the range of human activities 
 involving production and consumption, and ultimately tries to make human 
beings  ethically mature._[2]_ (https://en.wikiped
ia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-KSL-2)  It 
tries to find a _middle 
way_ (https://en.wikipedia.org/wiki/Middle_way)  between a purely  mundane 
society and an immobile conventional society._[3]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-EFS-3)
  
It says that truly rational decisions can only be made when we understand  
what creates irrationality. When people understand what constitutes desire, 
they  realize that all the wealth in the world cannot satisfy it. When 
people  understand the universality of fear, they become more compassionate to 
all  beings. Thus, this spiritual approach to Economics doesn't rely on 
theories and  models but on the essential forces of acumen, empathy, and 
restraint._[2]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-KSL-2)
  
The Buddhist point of view ascribes to work a trinal function: to give man 
a  chance to utilize and develop his aptitude; to enable him to overcome his 
 self-aggrandizement by engaging with other people in common tasks; and to 
bring  forward the goods and services needed for a better existence._[4]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#ci
te_note-4)  
>From the perspective of a Buddhist, Economics and other streams of 
knowledge  cannot be separated. Economics is a single component of a combined 
effort 
to fix  the problems of humanity and Buddhist Economics works with it to 
reach a common  goal of societal, individual, and environmental 
sufficiency._[2]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-KSL-2)
 
 
History
The term was coined by _E. F. Schumacher_ 
(https://en.wikipedia.org/wiki/E._F._Schumacher)  in  1955, when he traveled to 
_Burma_ 
(https://en.wikipedia.org/wiki/Burma)  as an _economic consultant_ 
(https://en.wikipedia.org/wiki/Economist)  for Prime  Minister _U Nu_ 
(https://en.wikipedia.org/wiki/U_Nu) 
,_[5]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-5)
  and is used by followers  of Schumacher and by 
_Theravada Buddhist_ (https://en.wikipedia.org/wiki/Theravada_Buddhist)   
writers 
such as _Prayudh Payutto_ (https://en.wikipedia.org/wiki/Prayudh_Payutto)  
and _Phrabhavanaviriyakhun_ 
(https://en.wikipedia.org/wiki/Phrabhavanaviriyakhun) . 
Schumacher's essay "Buddhist Economics" was first published in 1966 in  
Asia: A Handbook, and republished in his influential collection _Small Is  
Beautiful_ (https://en.wikipedia.org/wiki/Small_Is_Beautiful)  (1973). 
The 1st Conference of the Buddhist Economics Research Platform, August 23–
24,  2007 was held in Budapest, Hungary _[6]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-6)
  and the 2nd in 
Ubon  Ratchathani University, Warin Chamrab, Ubon Ratchathani Thailand from 
April  9–11, 2009._[7]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-7)
  The third conference was  supposed to 
be held in Brisbane, Australia on January 18–19, 2011 but was  postponed 
until further notice._[8]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-8)
  
A Buddhist  economist's perspective
Suppose we consider the demand for a commodity, say cigarettes and consider 
 that it has been showing an increasing trend. This trend will be supported 
by an  increase in production of cigarettes. These cigarettes are then put 
into the  market and purchased and consumed by people. When it is consumed, 
the demand is  satisfied and normally, nobody bothers about the stage after 
consumption. But  Buddhist Economists go beyond that and investigate how 
these trends affect the  three intertwined aspects of human existence: The 
individual, society and the  environment. Specific to an increase in the 
consumption of cigarettes, Buddhist  Economists try to decipher how this 
increase 
affects the pollution levels in the  environment, its impact on passive 
smokers and active smokers and the various  health hazards that come along with 
smoking, thus taking into consideration the  ethical side of economics. The 
ethical aspect of it is partly judged by the  outcomes it brings and partly 
by the qualities which lead to it._[2]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-KSL-2)
  
Differences between western and Buddhist economics
While Western Economics concentrates on self-interest, the Buddhist view  
challenges it by changing the concept of self to _Anatta_ 
(https://en.wikipedia.org/wiki/Anatta)  or no-self. It posits  that all things 
perceived by 
one's senses are not actually "I" or "mine" and  therefore, humans must detach 
themselves from this feeling. They believe that  the self-interest based, 
opportunistic approach to ethics will always fail.  According to them, 
generosity will work because human beings are _homines reciprocantes_ 
(https://en.wikipedia.org/wiki/Homo_reciprocans)   who tend to reciprocate to 
feelings 
(either positively or negatively) by giving  back more than what is given to 
them._[9]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-LZN-9)
  
The second significant difference is that Western Economists give  
importance to maximizing profits and individual gains while the underlying  
principle of Buddhist Economists is to minimize suffering (losses) for all  
living 
or non living things. Studies conducted by them have shown that human  beings 
show greater sensitivity to loss than to gains and therefore people  should 
concentrate more on reducing the former._[9]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-LZN-9)
  
The third difference is with respect to the concept of desire. Western  
Economics encourages material wealth and _desire_ 
(https://en.wikipedia.org/wiki/Taṇhā)  because of  which people try to 
accumulate more and more wealth 
-- sometimes at the cost of  others -- to satisfy those cravings. In 
contrast, in Buddhist Economics,  importance is given to simplify one's 
desires. 
According to them, apart from the  basic necessities like food, shelter, 
clothing and medicines, other  materialistic needs should be minimized. They 
say 
that overall well-being  decreases if people pursue meaningless desires. 
Wanting less will benefit the  person, the community they live in and 
nature._[9]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-LZN-9)
  
The fourth point of difference is related to their views on the  market. 
While Western Economists advocate maximizing markets to a point of  
saturation, Buddhist Economists aim at minimizing violence. According to them,  
Western Economists do not take into consideration primordial stakeholders  like 
the future generations and the natural world because their vote is not  
considered important in terms of purchasing power. They feel that other  
stakeholders such as poor and marginalized people are under-represented because 
 of 
their inadequate purchasing power and preference is given to the strongest  
stakeholder. Therefore, they believe that the _market_ 
(https://en.wikipedia.org/wiki/Market_(economics))  is not an  unbiased place, 
truly 
representative of the economy. Thus, Buddhist Economists  advocate _ahimsa_ 
(https://en.wikipedia.org/wiki/Ahimsa)   or non-violence. According to them, 
ahimsa 
prevents doing anything that  directly causes suffering to oneself or others 
and 
urges to find solutions in a  participatory way. _Community  supported 
agriculture_ (https://en.wikipedia.org/wiki/Community_supported_agriculture)  
is 
one such example of community based economic  activities. They believe that 
it fosters trust, helps build value based  communities and brings people 
closer to the land and the farm. Achieving this  sustainability and 
non-violence requires restructuring of dominating  configurations of modern 
business, 
which they advocate. This leads to  deemphasizing profit maximization as the 
ultimate motive and renewed emphasis on  introducing small-scale, locally 
adaptable, substantive economic activities._[9]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-LZN-9)
  
The fifth point of difference is that Western Economists try to  maximize 
instrumental use where the value of any entity is determined by its  marginal 
contribution to the production output. Buddhist Economists feel that  the 
real value of an entity is neither realized nor given importance to. They  
try to reduce instrumental use and form caring organizations which will be  
rewarded in terms of trust among the management, co-workers and 
employees._[9]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-LZN-9)
  
The sixth point of difference lies in the fact that Western Economists  
believe that bigger is better and more is more whereas Buddhist Economists  
believe that small is beautiful and less is more._[9]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-LZN-9)
  
The seventh point of difference is that Western economics gives  importance 
to _gross national  product_ 
(https://en.wikipedia.org/wiki/Gross_national_product)  whereas Buddhist 
economics gives importance to _gross national  
happiness_ (https://en.wikipedia.org/wiki/Gross_national_happiness) ._[10]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#ci
te_note-10)  
Other beliefs
Buddhist Economists believe that as long as work is considered a disutility 
 for labourers and labourers a necessary evil for employers, true potential 
of  the labourers and employers cannot be achieved. In such a situation, 
employees  will always prefer income without employment and employers will 
always prefer  output without employees. They feel that if the nature of work 
is truly  appreciated and applied, it will be as important to the brain as 
food is to the  body. It will nourish man and motivate him to do his best. 
According to them,  goods should not be considered more important than people 
and consumption more  important than creative activity. They feel that as a 
result of this, the focus  shifts from the worker to the product of the work, 
the human to the _subhuman_ (https://en.wiktionary.org/wiki/subhuman) , 
which is wrong._[3]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-EFS-3)
  
According to them, people are unable to feel liberated not because of 
wealth  but because of their attachment to wealth. In the same way, they say 
that 
it is  the craving for pleasurable baubles and not the enjoyment from them 
that holds  humans back._[3]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-EFS-3)
  
Buddhist Economists do not believe in measuring the _standard of living_ 
(https://en.wikipedia.org/wiki/Standard_of_living)   by the amount of 
consumption because according to them, obtaining maximum well  being as a 
result of 
minimum consumption is more important than obtaining  maximum well being 
from maximum consumption. Thus, they feel that the concept of  being 'better 
off' because of greater levels of consumption is not a true  measure of 
happiness._[3]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-EFS-3)
  
>From the point of view of a Buddhist economist, the most rational way of  
economic life is being self-sufficient and producing local resources for 
local  needs and depending on imports and exports is uneconomic and justifiable 
only in  a few cases and on a small scale. Thus, they believe in economic 
development,  independent of foreign aid._[3]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-EFS-3)
  
Buddhist Economics also gives importance to natural, renewable and 
_non-renewable  resources_ 
(https://en.wikipedia.org/wiki/Non-renewable_resources) . 
They feel that non renewable resources should only be used when  most 
needed and then also with utmost care, meticulously planning out its use.  They 
believe that using them extravagantly is violent and not in keeping with  the 
Buddhist belief of non violence. According to them, if the entire 
population  relies on non renewable resources for their existence, they are 
behaving  
parasitically, preying on capital goods instead of income. Adding to this, 
they  feel that this uneven distribution and ever increasing exploitation of 
natural  resources will lead to violence between man._[3]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-EFS-3)
  
They also believe that satisfaction need not necessarily be felt only when  
something tangible is got back in return for giving something or something  
material is gained, as stated in modern economics. They say that the 
feeling of  satisfaction can be achieved even when we part with something 
without 
getting  anything tangible in return. An example is when we give presents to 
our loved  one's just because we want them to be happy._[2]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-KSL-
2)  
Buddhist Economists believe that production is a very misleading term.  
According to them, to produce something new, the old form has to be destroyed.  
Therefore, production and consumption become complementary to each other. 
Taking  this into consideration, they advocate non-production in certain 
cases because  when you produce lesser of materialistic things, you reduce 
exploitation of the  world's resources and lead the life of a responsible and 
aware citizen._[2]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-KSL-2)
  
The middle way of  living
The concept of the "Middle Way" says that time should be divided between  
working towards consumption and meditation and the optimal allocation between 
 these two activities will be when some meditation is utilized to lower the 
 desire for consumption and to be satisfied with lesser consumption and the 
work  that it involves._[9]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-LZN-9)
  
In economic terms this means “the marginal productivity of labour utilized 
in  producing consumption goods is equal to the marginal effectiveness of 
the  meditation involved in economizing on consumption without bringing about 
any  change in satisfaction”._[9]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-LZN-9)
  
In the scriptures
The Kañcanakkhanda-Jātaka tells the tale of a past Bodhisattva who was 
living  as a farmer, and plowing a field one day chanced upon a massive block 
of 
gold.  Pondering what to do with it, and seeing it was more than he could 
ever use, he  decided to divide it in four equal parts. One for his living 
expenses, one for  saving, one for trading, and one for donating to charity 
and good works. _[11]_ 
(https://en.wikipedia.org/w/index.php?title=Buddhist_economics&printable=yes#cite_note-11)
 

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