Buddhist Economics Research Articles

Moderation, contentment, work, and alms—A Buddhist household theory

The paper deals with household theory from the angle of Buddhist thought. We build on the Buddhist terms of tanha versus chanda to express Buddhist preferences and Buddhist household theory in terms of textbook microeconomic terms. We find that preferences of Buddhist (enlightened) people may differ from those of non-Buddhist people in a systematic manner. Among other hypotheses, we deduce that Buddhists work harder than non-Buddhists if we control for meditation time. We argue that any full-grown Buddhist economics (if it is to exist) needs to build on Buddhist preference and household theory, either as presented here or in a different form.

The Consumerism-Development-Security Nexus

Critics of global governance have been influenced by Foucault’s analysis of modern total institutions disciplining both the mind and the body. However, Foucauldian biopolitics may present global governance too smoothly. This article takes critiques arguing that consumer capitalism’s divorce from industrial production encourages romantic understandings of global problems and applies them to development aspects of the development—security nexus. It discusses three influential economists each of whose work is emblematic of consumer capitalism’s international development vision at particular historical junctures. The article outlines how Rostow’s The Stages of Economic Growth, arising during the postwar economic growth boom, envisages developing countries becoming consumer societies at the highest stage of development, but also anticipates consumer society’s romantic critiques of modernity. It next examines Schumacher’s Small Is Beautiful and his Buddhist economics, arising in the post-Bretton Woods crisis period, as symptomatic of re-emerging romantic critiques of society. Finally, it discusses Sen’s human development approach as a market romance illustrating consumer capitalism’s individual-orientated development strategies. The article concludes that the contemporary development romance addresses neither people’s basic needs nor their aspirations, and it problematizes global governance’s ability to secure and govern populations.

A Buddhist Economic Approach to Employee Volunteer Programmes

This study was undertaken to observe factors affecting the process and impact of employee volunteer activities in three business enterprises in Thailand, using a Buddhist economic framework. Buddhist economics differs significantly from mainstream (neoclassical) economics in its ontological underpinning. This means that assumptions about human nature are different: the core values of mainstream economics are self-interest and competition in the pursuit of maximum welfare or utility, while in Buddhist economics, ‘self’ includes oneself, society and nature, which are all simultaneously interconnected. The core values are compassion and cooperation through which well-being is achieved leading to higher wisdom (panna). Employee volunteer programmes (EVPs) are regarded as one example of corporate citizenship activities. This paper explores the consequences of introducing EVPs using a Buddhist economic framework in three different companies in Thailand. When a Buddhist economic approach is adopted by EVPs, the programme can be embedded into business practices including human resource development and the organisational development process, which may lead to the cultivation of panna. This may be of value to organisations in the West.

The Principle of Greatest Happiness in Western Economic Thought and its Relation to Buddhist Economics

Western economic thinkers in the 19th century rediscovered the principle of greatest happiness (PGH). However, as Eastern philosophical and religious thinking shows it was part of common knowledge in Buddhism and Hinduism over the past millennia. PGH did not have the same agenda as later on utilitarism of John Stanley Jevons, with the utility maximization principle (UMP) of individuals disconnected from the rest of the society. The UMP was more an outcome of a fusion between moral ethical thinking as a social phenomenon with the Newtonian principles of mechanics based on differential calculus. The huge success of natural sciences in the 19th century during the industrial revolution was too tempting not to imitate its methodologies and concepts in the social sciences as social physics (SP). This kind of approach still has many followers unsurprisingly in the natural science community nowadays. The paper studies these interconnections between these different strands of Western thinking which lead after a century to the neoclassical paradigm in economics which took the UMP as its foundation for economic analysis. Richard Layard, an English labour economist, pointed out among others by empirical research that wellbeing or happiness is not significantly correlated with an ever increasing material wealth. Here might emerge a bridge between Buddhist economics and the recent rediscovery of the PGH in modern Western economics. The paper will close with the suggestion of some first possible corrections necessary for UMP to obtain a PGH consistent with the current challenges to the global society.

Expanding Economic Perspectives for Sustainability in Urban Water and Sanitation

The economic principles and tools that are commonly applied to recover costs for urban water and sanitation arise from the dominant perspective of neo-classical economics, with its emphasis on ‘full cost pricing’ based on the ‘user pays’ principle. Kumudini Abeysuriya, Cynthia Mitchell and Juliet Willetts examine two other qualitatively different economic perspectives to demonstrate how they lead to different approaches: ecological economics takes a more holistic approach explicitly committed to sustainability, while Buddhist economics brings ethics to the fore and opens the possibility for cooperation between the various actors in creating solutions to benefit individuals, society and the environment. We propose a set of interconnected guiding principles based on an expanded economic perspective that integrates all three perspectives, to enable water and sanitation services for developing countries to align with sustainability.

Buddhist economics as a new paradigm towards happiness

While the mainstream economics — also known as — capitalism considers capital as the mode of production, Buddhist economics suggests that pañña , or the ability to understand everything in its own nature be the mode of production. The economy under this mode of production is known as pañña -ism. Buddhist economics, argues that sukha — happiness, defined here as the opposite state to pain, which implies peace and tranquility, rather than the usual meaning of prosperity, pleasure and gratification — is the result of the emergence of pañña . Therefore, Buddhist economics is the most efficient economics in term of resources used. It is the kind of economics that advocates sustainable development, especially in the world, which is now close to the blink of catastrophe from global warming due to inefficiency in consumption, the concept that cannot be clearly understood in the mainstream economics. The most difficult part in Buddhist economics is how to cultivate pañña for as many people as possible.

Western economics versus Buddhist economics

The paper explores Buddhist economics as a major alternative to the Western economic mindset. Buddhism is centred on want negation and purification of the human character. Buddhist economics, developed by Schumacher, Payutto, Welford and others, challenges the basic principles of modern Western economics: (1) profit-maximisation, (2) cultivating desires, (3) introducing markets, (4) instrumental use of the world, and (5) self-interest-based ethics. Buddhist economics proposes alternative principles such as minimising suffering, simplifying desires, non-violence, genuine care, and generosity. It is suggested that Buddhist economics is not a system but a strategy, which can be applied in any economic setting.

Sufficiency economy, the King’s philosophy: an application of Buddhist economics to develop Thai local pharmaceutical industries for sustainable well-being

This article is developed from a policy research carried out to study the impacts on local pharmaceutical industries in case that the Thai government decides to accept the free trade agreement (FTA) on pharmaceutical products proposed by the US government. Despite that the US-Thai FTA is unfair, the Thai government is likely to accept the agreement due to international political pressures and a globalized discourse claiming free trades. Therefore the research recommended applying “Sufficiency Economy”, the King’s Philosophy as a survival strategy for both local industries and Thai people. Sufficiency Economy, as a part of Buddhist Economics, comprises of three principles and two fundamental conditions. The principles are moderation, rationality and self-immunity to changes , while the two conditions include wisdom or abilities to understand things properly and morality or a moral commitment not to put burden on others. The article proposed that there are three levels of all kinds of development according to the application of the principle of moderation. If applied at the first level, it means that the local industries are supposed to build their own capabilities and put emphasis on internal potentials or resources rather than external ones. The second level concerns with the other companies’ survival. If applied, the local companies are supposed to support, not compete against each other. Then, it would lead to network building and increasing strength of local industry groups. However, the two levels may be perceived as concerning only on business benefits. The third level concerning with survival of all involved is therefore the most required approach, where the local companies would run business with a truthful devotion for real health needs of Thai people. That is, the third level is for the well-being of all people. However, this level is less likely to be implemented; most local industries still lack right understanding on sufferings of patients, and its relationship with their survival. As “suffering” was the central strategy proposed by the Buddha, the article proposes that the local industries should learn from patients’ sufferings. Sufferings from sickness are common burdens of life, it is morally wrong to increase any burdens to anyone, even ourselves. In case that the multinational pharmaceutical companies earn excess profits and put more burdens on poor patients, the local companies would contribute to minimise these sufferings. The approach concerning patients’ sufferings would help local companies gain more supports from Thai patients and it may call for more understanding from other people over the world. Sooner or later it may change the world a better place for everyone to live happily and healthy.

Business within Limits. Deep Ecology and Buddhist Economics20073Edited by Laszlo Zsolnai and Knut Johannessen IMS. Business within Limits. Deep Ecology and Buddhist Economics. Oxford: Peter Lang 2006. 1098 pp.

Business within Limits. Deep Ecology and Buddhist Economics20073Edited by Laszlo Zsolnai and Knut Johannessen IMS. <i>Business within Limits. Deep Ecology and Buddhist Economics</i>. Oxford: Peter Lang 2006. 1098 pp.

Buddhist economics ancient teachings revisited

The views and values of Buddhist economics play a growing role in the present discourse on 'green' economics. These ancient teachings represent an alternative paradigm and holistic concept of economic action opposed to the reductionist mainstream economics. In this paper, the main content and assumptions of Buddhist economics as laid down in the canonical scriptures are introduced and contrasted with those of western economics. The Buddhist concept of happiness, and of economic action in general, the recommendations on right livelihood as well as the corresponding notions about the source of wealth, its proper use and distribution are reviewed and discussed. It is shown that these ancient teachings share many common facets with the ecological movement and its approach to economics. Particular attention is given to review the actual impact of Buddhist economic ethics on the social and economic history of Asian Buddhist countries.

Examining, discussing and suggesting the possible contribution and role of Buddhist economics for corporate social responsibility

Key principles of Buddhist economics are discussed in relation to the private sector's role in contributing to sustainable development. It is suggested that many aspects of a Buddhist approach are consistent with recent developments in the field of corporate social responsibility. But a more radical approach to that concept is required if we are to attain anything close to sustainable development. That approach is well informed by notions of Buddhist economics.

Can corporate social responsibility resolve the sanitation question in developing Asian countries?

The existing state of sanitation in developing Asian countries fails to deliver a level of service that is adequate for meeting the human right to a standard of living consistent with dignity and health, or for sustaining the capacity for future generations to have access to clean water resources and healthy ecosystems. We argue that translating the current neo-centralised technologies and institutional arrangements mainstreamed by industrialised countries would not resolve the problem in the context of developing countries. Instead it is necessary to ‘leap frog’ to the emerging technological and institutional arrangements that are responsive to current needs and contexts and to potential risks. The sustainability focus and often decentralised technologies of this emergent stage in sanitation present many opportunities for new actors to enter the urban sanitation industry. At the same time, there are many barriers to entry, particularly from the perspective of conventional business management focused on increasing shareholder value. We propose that perspectives from the corporate social responsibility discourse have the potential to provide both the ‘pull’ for seizing the business opportunity for profit while serving social needs, and the ‘push’ to overcome the barriers in order to serve a wider social purpose for corporations. The wealth of nations, at least as reported in ubiquitous GDP terms, has greatly increased through the activities of corporations driven by a profit motive; but the increased poverty, injustice and ecosystem degradation that have resulted from economic activity suggest that corporations perhaps ought to have regard for broader concerns beyond shareholder value. We explore how the alternative relational view of a corporation, as a metaphorical person within society who adopts a moral code consistent with both Buddhist economics and Adam Smith's philosophy, may facilitate profitable corporations that provide better economic, ecological and social outcomes in serving the need for sustainable sanitation services in developing Asian countries.

A Buddhist economic approach to the development of community enterprises: a case study from Southern Thailand

This study was undertaken to observe the development process and key success factors in three community enterprises adopting a Buddhist economic approach to development. The enterprises were established by weavers, farmers and housewives from three communities in the south of Thailand. Data were obtained through in-depth interviews and observation with representatives of the groups and their supporters as they participated in community activities. Buddhist economics differs significantly from neoclassical economics in its recognition of ethic and moral issues. In addition to the objective of production or consumption to optimise profit or utility value, Buddhist economics also recognises that many non-financial factors which contribute to an individual's quality of life are important. The key success factor in the community enterprises which were studied was the process of ‘good thinking’, or the constructive use of wisdom among leaders and group members through the processes of ‘right understanding’ and ‘right thought’. Economically efficient activities were developed through the use of an external factor—a ‘good friend’, comparable with social capital—and an internal factor—the employment of analytical thinking by members, comparable to the use of human capital. Neither factor can be created from physical capital but is derived from the process of learning and reviewing.

Economic systems and the Buddhist world view: the 21st century nexus

The possibility of a fruitful dialogue between Buddhism and economics has generally been repudiated in Western social science discourse. This situation is now changing in recognition of the key role of both social norms and beliefs, and economic matters, in current global political and military tensions, environmental problems, and efforts to change institutions and economies to bring higher levels of welfare. Even within mainstream economics, there are increasing efforts to incorporate socio-cultural influences into the assumptions and analysis of economic behaviour and activities. These developments provide a new basis for mutually beneficial exchange between studies of the economic dimensions of society, and the offerings of the Buddhist world view, logic and potential problem-solving approach. This paper describes some key features of “Buddhist economics” and builds upon Schumacher's original ideas and other more recent work concerned with the close correspondence between economic (or “livelihood”) aspects of human life and the philosophy, world view, and practice of Buddhism. A systematic comparison of the relevant dimensions of Buddhism and neoclassical economics demonstrates that Buddhist philosophy has intrinsic economic implications and highlights the potential relevance and value of integrated socio-economic analyses for application in the contemporary global context.

An Introduction to Buddhist Ethics: Foundations, Values and Issues

1. Shared foundations of Buddhist ethics: sources of guidance to Buddhists Rebirth and karma The four noble truths Philosophy of action 2. Key Buddhist values giving Keeping the lay precepts Monastic values Ethics of inter-personal relationships Loving kindness and compassion Social ethics 3. Mahayana emphases and adaptations: the path of the Bodhisattva The ethics of the Bodhisattva Skilful means and overriding precepts Specific strands of Mahayana thought and practice Mahayana reassessment of monasticism 4. Attitude to and treatment of the natural world Humanity's place in nature Non-harming of animals Positive regard, and help, for animals Plants, trees and forests Conservation and environmentalism 5. Economic ethics Lay economic ethics The monastic economy Buddhism and capitalism: Weber's 'Protestant Ethic' thesis 'Buddhist economics' Buddhism and economics in the modern world 6. War and peace Buddhist analyses of the causes of conflict Solutions to conflict Non-violent reflections on a violent world The position of the soldier Buddhist 'justifications' of and involvement in, violence Buddhist action for peace in the modern world 7. Suicide and euthanasia considerations and arguments against suicide Suicide and the precepts Euthanasia 8. Abortion and contraception Embryonic life Abortion and Buddhist principles Contraception Abortion in Buddhist cultures Anti-abortion but pro-choice?: the relationship between morality and law 9. The status of women: women in early Hinduism the effect of Buddhism The spiritual potential and achievement of women Gender, rebirth and the status of women Views on spiritual statuses unattainable by women Images of wise and wayward women Ascetic wariness of the opposite sex The ordination of women Nuns and other female religious roles in Buddhist cultures Lay women in Buddhist texts Lay women in Buddhist cultures 10. Homosexuality and other forms of 'Queerness' Sex change Hermaphrodites Pandakas Homosexual acts Homosexuality in Buddhist cultures.

Buddhist economics and the environment

The reduction of the “metabolism” of the human economy has become one of the central themes of recent environmental and economic research and policy focused upon paths for achieving global sustainable development. Since the late 1980s, there has emerged a diverse array of “physical economy” approaches that utilise some form of material flow analysis (MFA) to quantify the pattern of flows of material and energy into, within, and out of the economic system. In principle, the reduction of the human socioeconomic metabolism, and appropriate changes in technology and consumption, are highly consistent with Buddhist economics. Indeed, MFA may be one of the most valuable devices for encouraging and implementing a global “green” technoeconomic paradigm that helps realize the type of benefits proffered under the vision of Buddhist economics. This paper describes the links between methodology or potential application of MFA and the central themes of the Buddhist economic path to the long‐term, harmonious co‐existence of humans within the natural environment.

Environmental Philosophy and Ethics in Buddhism

Author's Preface Foreword Alastair S. Gunn Introduction Environmental Philosophy of Buddhism Buddhist Ethics Moral Dilemmas, Moral Weakness and Deception Buddhist Environmental Ethics Ecological Sensibility and Pedagogy Green Economics and Buddhist Economics Putting the Threads Together References Index

Ancient futures: papal and Buddhist economics

This study compares traditional, neoclassical economics with two religiously‐based economic paradigms. The first relies on an application of the teachings of Buddhism. The second, of more recent vintage, is based on Christian principles, and is grounded in the social justice teachings of the Catholic Church of the past 100 years. The exercise of comparing neoclassical economics with these two religiously‐based paradigms is not meant to replace the former with one of the latter, but to provide a pair of prisms through which neoclassical economics can be viewed and fine tuned.

Gandhi, Deep Ecology, Peace Research And Buddhist Economics

The central importance of Gandhi to nonviolent activism is widely acknowledged. There are also other significant peace-related bodies of knowledge that have gained such popularity in the West in the relatively recent past that they have changed the directions of thought and have been important in encouraging social movements - yet they have not been analysed in terms of antecedents, especially Gandhian ones. The new environmentalism in the form of deep ecology, the discipline of peace research and what has become known as `Buddhist economics' very closely mirror Gandhi's philosophy. This article analyses the Mahatma's contribution to the intellectual development of three leading figures in these fields: Arne Naess, Johan Galtung and E. F. Schumacher and argues that those who want to make an informed study of deep ecology, peace research or Buddhist economics, and particularly those who are interested in the philosophy of Naess, Galtung or Schumacher, should go back to Gandhi for a fuller picture.

Buddhist Economics and Community Development Strategies1

Buddhist Economics and Community Development Strategies¹