Lessons from the global financial crisis: bringing neoclassical and Buddhist economics theories together to progress global business decision making in the 21st century

Abstract

The aim of this paper is examine how moral failure shaped the global financial crisis with particular attention to the role of neoclassical economics theory. The paper compares the premises and characteristics of Schumacher’s (1973) Buddhist economics with the prevailing neoclassical economics, illustrating the narrowness of the current perspective and highlighting the critical issues. Expanding on the Buddhist economics (BE), the paper explicates how such a theory can be integrated with neoclassical economics to facilitate moral and ethical values in society. The paper considers the lessons to be learnt from the global financial crisis and calls for greater consideration of Buddhist economics in business decision making in the 21st century. A synthesis of the two-neoclassical economics perspective and BE may create a holistic view of management and economics which recognises that people matter. This may go in some length to avoid a further financial crisis of the kind we experienced recently.