Hinduism and Economic Development in South Asia

Abstract

The people of South Asia are deeply religious and all facets of their lives including their endeavours to achieve material advancement are affected greatly by religious beliefs and values. In what ways, and to what extent, non‐economic factors, specifically religious beliefs, affect economic behaviour in any society, is a matter of considerable controversy among economists. The theorists question the advisability of applying non‐economic factors to economic phenomena which presuppose “specialisation”, division of labour and have narrow scope of study. They contend that non‐economic factors lack objectivity for want of rigorous analysis and quantification. Also, cultural factors change but slowly, and thus, in the analysis of the short‐run process of change, these non‐economic factors do not have much relevance. Karl Marx contended that the social and cultural phases of human evolution are the consequence rather than the causes of economic factors. This atomistic conception of social process, is, however, criticised by some social scientists like Schumpeter. They maintain that “economic man” is a myth and that the unity of social life and its inseparable connection with various elements preclude any dissection of concrete reality into political, social, cultural, ethical and economic parts. The indian Planning Commission is cognisant of the inter‐relation between non‐economic factors and economic development. The Planning Commission suggests that: