Download prevention of global economic crisis in perspective of applied

PREVENTION OF GLOBAL ECONOMIC CRISIS
IN PERSPECTIVE OF APPLIED BUDDHISM
ANKUR BARUA, DIPAK KUMAR BARUA,
M. A. BASILIO
Hong Kong, 2010
Background: Dr. Ankur Barua had graduated with distinction from the University of
Hong Kong (MBuddStud, 2009). He had also completed two other Master Degrees, one
from Sikkim Manipal University (MBAIT, 2007) while the other from Manipal University
(MBBS-2000, MD in Community Medicine - 2003) and presently working as Associate
Professor of Community Medicine at Melaka-Manipal Medical College in Malaysia.
Dr. Dipak Kumar Barua was the earlier Dean of the Faculty Council for Postgraduate
Studies in Education, Journalism & Library Science in the University of Calcutta (19871991) and the Director of Nava Nalanda Mahavihara, Nalanda (1996-1999). He is also
the pioneer in developing the concept of applied Buddhism.
Ms. M.A. Basilio is a nursing professional who has also a keen passion for research on
religion and science.
First Publication on 17th January 2010
Buddhist Door, Tung Lin Kok Yuen, Hong Kong
Copyright © Ankur Barua, Dipak Kumar Barua and M.A.Basilio
Communication Address of Corresponding Author:
Dr. ANKUR BARUA
Block – EE, No.-80, Flat No.-2A,
Salt Lake City, Sector-2,
Kolkata - 700091, West Bengal, INDIA.
Email:
[email protected]
Mobile: +91-9434485543 (India), +60122569902 (Malaysia)
Prevention of Global Economic Crisis in Perspective of Applied Buddhism
Page 2
Acknowledgements
The authors would like to extend their sincere thanks to Ven. Dr. Jing Yin,
Professor of Buddhist Studies and Director of the Centre of Buddhist Studies in
the University of Hong Kong for his kind support, inspiration, encouragement
and timely advice during the compilation of this book.
The authors would like to express their sincere gratitude and indebtedness to
Prof. Y. Karunadasa and Ven. Dr. Guang Xing, the eminent professors at the
Centre of Buddhist Studies in the University of Hong Kong for their constant
encouragement, constructive criticism, personal attention and valuable
guidance throughout this work.
Prevention of Global Economic Crisis in Perspective of Applied Buddhism
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PREVENTION OF GLOBAL ECONOMIC CRISIS
IN PERSPECTIVE OF APPLIED BUDDHISM
Abstract
Globalization is the latest expression of a long-standing
strategy of development based on economic growth and
liberalization of trade and finance. Globalization leads to
the globalization of economy and the homogenization of
culture. It can undermine local cultures and disrupt
traditional relationships in a society with the assumption
that free trade will also to lead to a more democratic
society.
Prevention of Global Economic Crisis in Perspective of Applied Buddhism
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Modern Buddhism has become an intrinsic part of a
globalized world. With its philosophy of the way of life, it
takes special place in human and cultural identity.
Buddhism in modern times had already incorporated
either other genuine Asian traditions or Western traditions
and merged with the socio-cultural backgrounds of many
countries across the world. Buddhism stresses the
principle of interdependence which is also the foundation
of globalization in economic interest.
An important truth is that no economic system is valuefree. Every system of production and consumption
encourages the development of certain values and
discourages others. So, it is not possible for economics to
be free of values when, in fact, it is rooted in the human
mind.
Prevention of Global Economic Crisis in Perspective of Applied Buddhism
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The economic process begins with want, continues with
choice and ends with satisfaction. All of these are
functions of the mind. We need to give up our
attachments to material wealth and conquer greed and
obsession for social recognition at individual level in order
to make the economy value free. The practice of ‘Dāna’ or
‘giving’ is the traditional Buddhist way of redistribution of
wealth. Dāna is selfless giving. It is giving in the spirit of
Non-clinging. Non-clinging is the Wisdom of Insight into
the Insubstantiality (Anattā; Nairātmya) or Emptiness
(Śūnyatā) of all things. The emphasis on ‘Dāna’ and meritmaking is the Buddhist contribution to the healthy and
uniform economic globalization.
Key words:
Dāna, Globalization, Buddhism, Applied,
Redistribution, Wealth, Economy.
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PREVENTION OF GLOBAL ECONOMIC CRISIS
IN PERSPECTIVE OF APPLIED BUDDHISM
Introduction
The issue of globalization is directly or indirectly affecting
all our lives. Globalization leads to the globalization of
economy and the homogenization of culture. It can
undermine
local
cultures
and
disrupt
traditional
relationships in a society with the assumption that free
trade will also lead to the formation of a more democratic
society. Unfortunately, the effects of the globalization of
business
and
trade
are
often
disastrous
for
underdeveloped nations.1,2
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These nations provide the raw materials and cheap labor
which are necessary to make globalization prosperous for
the more developed nations. Though there are successes
in the process of globalization, there is much unrest in the
poor and underdeveloped nations which are deep in debt
and suffer internal conflict, poverty, droughts and
famines.1,2
The concept of globalization is important for Buddhism
because Buddhism is a global, world faith. Buddhism in
modern times had already incorporated either other
genuine Asian traditions or Western traditions and merged
with the socio-cultural backgrounds of many countries
across the world. Buddhism stresses the principle of
interdependence which is also the foundation of
globalization in economic interest.1,2
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A Buddhist Perception of Globalization
Globalization is the latest expression of a long-standing
strategy of development based on economic growth and
liberalization of trade and finance. This results in the
progressive integration of economies of nations across the
world through the unrestricted flow of global trade and
investment. The mainstream approach is generally rooted
in the underlying assumption that globalization brings
jobs, technology, income and wealth to societies. In order
to make this strategy of globalization successful, all the
societies must be willing to submit to the principles of the
free market—limiting public spending, privatizing public
services, removing barriers to foreign investment,
strengthening export production and controlling inflation.
However, this is very difficult task to achieve within a short
span of time.1,2,3
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As a result, most often, globalized production has led to a
litany of social and ecological crises: poverty and
powerlessness of the majority of people, destruction of
community,
depletion
of
natural
resources
and
unendurable pollution.1,2,3
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Buddhism and the Problem of Global Economic Crisis
When we evaluate an economic system, we should
consider not only how efficiently it produces and
distributes goods, but also its effects on human values,
and through them its larger social effects. The collective
values that it encourages should be consistent with the
individual Buddhist values that reduce the Dukkha. As the
individual and social values cannot be delinked, the crucial
issue remains as whether our economic system is
conducive to the ethical and spiritual development of its
members.
Much of the philosophical reflection on economics has
focused on questions about human nature. Those who
defend market capitalism argue that its emphasis on
competition and personal gain is grounded in the fact that
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humans are fundamentally self-centered and selfinterested. Critics of capitalism argue that our basic nature
is more cooperative and generous that is, we are naturally
more selfless.3,4
Buddhism avoids that debate by taking a different
approach. The Buddha emphasized that we all have both
unwholesome
and
unwholesome
traits
(kusala
/
akusalamula). The important issue is the practical matter
of how to reduce our unwholesome characteristics and
develop the more wholesome ones. This process is
symbolized by the lotus flower. Although rooted in the
mud and muck at the bottom of a pond, the lotus grows
upwards to bloom on the surface, thus representing our
potential to purify ourselves.5
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Our unwholesome characteristics are usually summarized
as the "three poisons" or three roots of evil: lobha - greed,
dosa - anger and moha - delusion. The goal of the Buddhist
way of life is to eliminate these roots by transforming
them into their positive counterparts: greed into
generosity (Dāna), anger into loving-kindness (metta), and
delusion into wisdom (prajna).5,6
Economists talk about demand, but their concern to be
objective and value-neutral does not allow them to
evaluate different types of demand. The "engine" of the
economic process is the desire for continual profits and in
order to keep making those profits people must consume
more. Harnessing this type of motivation has been
extraordinarily successful depending on your definition of
success.3,4
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According to the Worldwatch Institute, more goods and
services were consumed in the forty years between 1950
and 1990 (measured in constant dollars) than by all the
previous generations in human history. According to the
United Nations Human Development Report for 1999, the
world spent at least $435 billion the previous year for
advertising, plus well over $100 billion for public relations
and marketing. The result is 270 million "global teens" who
now inhabit a single pop-culture world, consuming the
same designer clothes, music and soft drinks.3,4
While this growth has given us opportunities that our
grandparents never dreamed of, we have also become
more sensitive to the negative consequences such as its
staggering ecological impact and the worsening maldistribution of this wealth.
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A child in the developed countries consumes and pollutes
30 to 50 times as much as a poor one in an undeveloped
country, according to the same UNHDR. Today 1.2 billion
people survive on less than a dollar a day and almost half
the world's population live on less than two dollars a day.
The 20% of people in the richest countries enjoy 86% of
the world's consumption, the poorest 20% only 1.3%.
Thus, the gap of globalization is increasing and not
decreasing.3,4
From a Buddhist perspective, the fundamental problem
with consumerism is the delusion that genuine happiness
can be found this way. If insatiable desires (tanha) are the
source of the frustration (dukkha) that we experience in
our daily lives, then such consumption, which distracts us
and intoxicates us, is not the solution to our unhappiness
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but one of its main symptoms. That brings us to the final
irony of this addiction to consumption: also according to
the 1999 UNHDR, the percentage of Americans who
considered themselves happy peaked in 1957, despite the
fact that consumption per person has more than doubled
since then. At the same time, studies of U.S. households
have found that between 1986 and 1994 the amount of
money people think they need to live happily has doubled.
That seems paradoxical, but it is not difficult to explain.
When we define ourselves as consumers, we can never
have enough. For reasons we never quite understand,
consumerism never really gives us what we want from it; it
works by keeping us thinking that the next thing we buy
will satisfy us.4,5,7,8
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Higher incomes have certainly enabled many people to
become more generous, but this has not been their main
effect, because capitalism is based upon a very different
principle: that capital should be used to create more
capital. Rather than redistributing our wealth, we prefer to
invest that wealth as a means to accumulate more and
spend more, regardless of whether or not we need more.
In fact, the question of whether or not we really need
more has become rather quaint; you can never be too
rich.4,5,6,8
This way of thinking has become natural for us, but it is
uncommon in societies where advertising has not yet
conditioned people into believing that happiness is
something you purchase. International development
agencies have been slow to realize what anthropologists
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have long understood. In traditional cultures, income is
not the primary criterion of well-being and sometimes it is
not even a major one. The person who is sometimes
ranked as poorest by the common people in a community
is often a man who is probably the only person receiving a
salary.6,7,8
Our obsession with economic growth seems natural to us
because we have forgotten the hierarchy of "needs" that
we often take for granted. We project our own values
when we assume that a person must be unhappy by
presuming that the only way to become happy is to start
on the treadmill of a lifestyle increasingly preoccupied
with consumption.
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However, the importance of self-limitation, which requires
some degree of non-attachment, is an essential human
attribute to remain happy according to Buddhism. This is
expressed better in a Tibetan Buddhist analogy. The world
is full of thorns and sharp stones (and now broken glass
too). What should we do about this? One solution is to
pave over the entire earth, but a simpler alternative is to
wear shoes. "Paving the whole planet" is a good metaphor
for how our collective technological and economic project
is attempting to make us happy. Without the wisdom of
self-limitation, we will not be satisfied even when we have
used up all the earth's resources. The other solution is for
our minds to learn how to "wear shoes," so that our
collective ends become an expression of the renewable
means that the biosphere provides.5,6,8
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Our evangelical efforts to economically "develop" other
societies, which cherish their own spiritual values and
community traditions, might be viewed as a contemporary
form of religious imperialism. Conventional economic
theory assumes that resources are limited but our desires
are infinitely expandable. As we know, desire leads to
frustration and it is a major cause of anger and hatred.
Without self-limitation desire also becomes a cause for
conflict. From a Buddhist point of view, our economic
emphasis on competition and individual gain encourages
the development of anger and hatred in the mind rather
than cultivating the loving-kindness. A society where
people do not feel that they benefit from sharing with
each other is a society that has already begun to break
down.3,5,6,7,8
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The Buddha warned against negative feelings such as envy
(issa) and avarice (macchariya). Issa becomes intense
when certain possessions are enjoyed by one section of
society while another section does not have the
opportunity to acquire them. Macchariya is the selfish
enjoyment of goods while greedily guarding them from
others. A society in which these psychological tendencies
predominate may be materially wealthy but it is spiritually
poor.3,5,6,7,8
The globalization of market capitalism is a victory for "free
trade" over the inefficiencies of protectionism and special
interests. Free trade seems to realize in the economic
sphere the supreme value that we place on freedom. It
optimizes access to resources and markets. But despite its
success, it is only one historically-conditioned way of
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understanding and reorganizing the world. However, if we
view "free trade" from a different perspective provided by
Buddhism, we shall understand that such an idea helps us
to see presuppositions usually taken for granted. The
Buddhist critique of a value-free economics suggests that
globalizing capitalism is neither natural nor inevitable.1,2,3
The critical stage in the development of market capitalism
occurred during the industrial revolution (1750 1850 in
England), when new technologies led to the "liberation" of
a critical mass of land, labor, and capital. They became
understood in a new way for commodities to be bought
and sold. The world had to be converted into
exchangeable "resources" for market forces to interact
freely and productively.3,4
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But it was strongly resisted by most people at the time and
was later successfully implemented only because of strong
government support for it. For those who had capital to
invest, the industrial revolution was very profitable. But
for most people industrial commoditization seems to have
been experienced as a tragedy. The earth became
commoditized into a collection of resources to be
exploited. Human life became commoditized into labor or
work time and was also priced according to supply and
demand. All these became means which the new economy
used to generate more capital.3,4
From a religious perspective, when things become treated
as commodities they lose their spiritual dimension. The
commoditized understanding induces a sharp duality
between humans and the rest of the world. All value is
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created by our goals and desires. The rest of the world has
no meaning or value except when it serves our purposes.
This now seems quite natural to us, because we have been
conditioned to think and live this way. For Buddhism,
however, such a dualistic understanding is delusive. The
world is a web; nothing has any reality of its own apart
from that web, because everything is dependent on
everything
else.
The
concept
of
interdependence
challenges our usual sense of separation from the world.
The feeling that ‘I am here and the world is out there’, is at
the root of our Dukkha and it alienates us from the world
where we live. This non-dual interdependence of things
was experienced by the Buddha when he became
enlightened. The Buddhist path works by helping us to
realize our interdependence and non-duality with the
world and to live in harmony with it.5,6,7,8
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Application of Buddhist Economics in Prevention of
Global Credit Crisis
The traditional Buddhist teachings have many important
social implications. Buddhism does not separate economic
issues from ethical or spiritual ones. The notion that
economics is a "social science" related to discovering and
applying impersonal economic laws always obscures two
important truths. First important truth is that the concept
of who gets what and who does not depends on moral
considerations. So, production and distribution of
economic goods and services should not be left only to the
supposedly objective rules of the marketplace. If some
people have much more than what they need while others
have
much
less,
some
sort
of
redistribution
is
necessary.1,2,5,8
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Thus, the practice of ‘Dāna’ or ‘giving’ is the traditional
Buddhist way of redistribution of wealth. Dāna is selfless
giving. It is giving in the spirit of Non-clinging. Non-clinging
is the Wisdom of Insight into the Insubstantiality (Anattā;
Nairātmya) or Emptiness (Śūnyatā) of all things. The
emphasis on ‘Dāna’ and merit-making is the Buddhist
perspective on the economic globalization.1,2,5,8
The second important truth is that no economic system is
value-free. Every system of production and consumption
encourages the development of certain values and
discourages others. The economic process begins with
want, continues with choice and ends with satisfaction. All
of these are functions of the mind.1,2,5,8
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Abstract values are thus the beginning, the middle and the
end of economics. So it is impossible for economics to be
value-free. Yet many economists avoid any consideration
of values, ethics or mental qualities, despite the fact that
these
will
always
have
a
bearing
on
economic
concerns.1,2,5,8
At present, without the help from government and
industry for boosting a new direction in policy, people are
starting to change the economy from the bottom up
towards more human-scale structures which are more
consistent with the Buddhist viewpoint. This process of
localization has begun spontaneously, in countless
communities all around the world.3,4
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Because economic localization means an adaptation to
cultural and biological diversity, no single strategy would
be applicable everywhere.3,4
The range of possibilities for local grassroots efforts is as
diverse as the locales in which they take place. In many
towns community banks and loan funds have been set up,
thereby increasing the capital available to local residents
and businesses. This system is promoting people to invest
in their neighbors and their community, rather than in a
faceless global economy. In other communities, ‘buy-local’
campaigns are helping locally owned businesses survive
even when pitted against heavily subsidized corporate
competitors.3,4
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These campaigns not only help to keep money from
leaking out of the local economy, but also help educate
people about the hidden costs in purchasing cheaper, but
distantly produced products. In some communities, Local
Exchange and Trading Systems (LETS) have been
established as an organized, large-scale bartering system.
Thus, even people with little or no ‘real’ money can
participate in and benefit from the local economy. LETS
systems have been particularly beneficial in areas with
high unemployment. The city government of Birmingham,
England, where unemployment hovers at 20%, is a cosponsor of a highly successful LETS scheme. These
initiatives have psychological benefits that are just as
important as the economic benefits. A large number of
people, who were once merely ‘unemployed’ and
therefore treated as ‘useless’, are becoming valued for
their skills and knowledge.3,4
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One of the most exciting grassroots efforts is the
Community Supported Agriculture (CSA) movement, in
which consumers in towns and cities link up directly with a
nearby farmer. In some cases, consumers purchase an
entire season’s produce in advance, sharing the risk with
the farmer. In others, shares of the harvest are purchased
in monthly or quarterly installments. Consumers usually
have a chance to visit the farm where their food is grown,
and in some cases their help on the farm is welcomed.
While small farmers linked to the industrial system
continue to fail every year at an alarming rate, CSAs are
allowing small-scale diversified farms to thrive in growing
numbers. CSAs have spread rapidly throughout Europe,
North America, Australia and Japan. In the United States,
the number of CSAs has climbed from only two in 1986 to
200 in 1992, and is closer to 1,000 today.3,4
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Buddhism provides us with both the imperative and the
tools to challenge the economic structures that are
creating and perpetuating suffering the world over. We
cannot claim to be Buddhist and simultaneously support
structures which are so clearly contrary to Buddha’s
teachings, unethical to life itself. The economic and
structural changes needed should involve rediscovering
the deep psychological benefits of joy of being embedded
in the community and this fundamental shift would also
involve the reintroduction of a sense of connection with
the place where we live. Buddhists in China also faced with
this same reality earlier. Thus, over the time Buddhism
became more focused to become engaged. However, as
the Buddha taught, our spiritual awakening comes from
making a connection to others and to the nature.5,6,8
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This requires us to see the world within us and to
experience more consciously the great interdependent
web of life. In this way the principles of impermanence
and interdependence exhort us to interact with others and
with nature in a wise, compassionate and sustainable
way.5,6,8
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Conclusion
Buddhism shows us the possibility of a better way of
leading a stress-free life. The teachings of the Buddha are
based on a different way of understanding the relationship
between ourselves and the world. From the Buddhist
perspective, economic growth and consumerism are
unsatisfactory alternatives because they evade the basic
problem of life, which is suffering, by distracting us with
symbolic substitutes such as money, status and power.5,6,8
Modern Buddhism has become an intrinsic part of a
globalized world. With its philosophy of the way of life, it
takes special place in human and cultural identity.
However, modern Buddhism has showed its potential to
transcend the crucial problems of modernity.
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Bunkyo
University.
3. Power, G. 1997. Globalization and its Discontents in
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The Journal of the Society for
International Development 40(2).
4. Schumacher,
E.F.
1975.
Small
is
Beautiful:
Economics as if People Mattered. New York:
Harper.
5. Payutto, P.A. 1994. Buddhist Economics: A Middle
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Dhammavijaya and Bruce Evans) Second Edition.
Bangkok: Buddhadhamma Foundation.
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6. Sizemore, R.F., Swearer, D.K., ed. 1990. Ethics,
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7. David R. Loy, "The Religion of the Market" in
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Harold Coward and Dan Maguire (Albany, New
York: State University of New York Press, 1999.
8. Hodge, H.N. 2009. Buddhism in the Global
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