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The impact of the concepts of human nature on the goal and field of humanistic economics & religious motivated streams of economics (Buddhist, Islam and Christian) Anna Horodecka, PhD Warsaw School of Economics, Poland (Grant NCN: UMO-2011/03/D/HS4/00849 [email protected] First World Congress of Comparative Economics Rome Tre University, Rome, June 25-27) 1 Agenda 1. Introduction 2. Humanistic economics and religious motivated streams of economics (Buddhist, Islam and Christian) - setting 3. The concept of human nature in the humanistic economics 4. The impact of concept of human nature on the goal of economics 5. The impact of the concept of human nature on the field of economics 6. Conclusion 2 Introduction • The goal • to demonstrate the impact of assumptions we make about the human nature on the way the humanistic school of economics and religious motivated economic schools understand its fundaments: goal and field. • The method • a content analysis of crucial works representing the humanistic economics. • Topic (limitation) • The religious motivated schools of economics: Christian, Islam and Buddhist • Model of analysis of the concepts of human nature (CHN) 3 Concept of human nature - model Dimensions Mind Levels Worldview (Sense) Soul (Motivation) Social world Body (Behavior) Individual world 4 1. Introduction 2. Humanistic economics and religious motivated streams of economics (Buddhist, Islam and Christian) - setting 3. The concept of human nature in the humanistic economics 4. The impact of concept of human nature on the goal of economics 5. The impact of the concept of human nature on the field of economics 6. Conclusion 5 2. Humanistic economics and religious motivated streams of economics (Buddhist, Islam and Christian) - setting Humanistic economics? Religious motivated economics – Narrow: Humanistic psychology (Maslow, Rogers) – Buddhist (Schumacher, Payutto) – Wide: humanistic tradition in – Christian (eg. Catholic Social the philosophy and religion Teaching, Protestant Ethics) (human is in the center of considerations) SOCIAL ECONOMICS < HETERODOX ECONOMICS – Islamic (Kushid Ahmad, Waterbury, Gian Maria Piccinelli) 6 a) Characteristic of the CHN in humanistic tradition • critique of homo economicus (neoclassical rationality concept, the domination of egoism, lack of values) on following levels – normative (negative impact on real actors), – positive (explanative power of model based on such assumptions), – descriptive (discrepancy with the reality) • suggesting to be replaced by the model considering more following aspects – Complexity of human nature (other levels and dimensions): Values, ethical aspects, the role of natural environment 7 b) CHN – detailed view (WORLDVIEW) • Anthropocentric view on world: a person is in the centre of the world, the world is his reflection • evolution of society and culture • harmony with God (prayer), people (fasting as in selfrestriction ability) and nature is important • task of the world is to support the development of human 8 c) CHN – detailed view (SOCIAL WORLD) • Respect, acceptance, equal rights, altruism • The role of religious community (Ecclesia, Ummah, Sangha) and the active participation in the community the individual exists • The role of responsibility for others, helping others: alms, zakat and pilgrimage 9 d) CHN – detailed view (INDIVIDUAL WORLD) • Body – Positive way, but there is no absolutisation of this level; perceived in dependence of other levels – Subordinated to the higher instances like soul and mind (Buddhist: to right motivation; Christian: love of neighbors and self; Islam: rules of Qur’an) • Soul – Values & needs hierarchically ordered (altruistic, social, self-vs. mutual-interest; truth, fairness; right motivation) – Basic value: life [see: World Parliament ] • Sense – Self-realization; self –transcendence; place of putting values in order; – Role of education in order to decide right and being able to behave according to it (ethics; in religions: consciousness; Gods rules) 10 e) World Parliament of Religions • Values are no more a matter of private preferences but a matter of survival of societies • Basic elements of a common ethos: – The principle of humanity – The Golden Rule of reciprocity – Commitment to non-violence, justice, truthfulness, and the partnership of man and woman • Ensured by: – – – – Dialogue of religions and cultures (knowledge of similarities) Cross-cultural values education Ethical and intercultural competence in business enterprises International policy cooperation and integration instead of military confrontation 11 1. Introduction 2. Humanistic economics and religious motivated streams of economics (Buddhist, Islam and Christian) - setting 3. The concept of human nature in the humanistic economics 4. The impact of concept of human nature on the goal of economics 5. The impact of the concept of human nature on the field of economics 6. Conclusion 12 3. The CHN in the humanistic economics: worldview Humanistic In the center of the world there is a human being Buddhist The relation towards the nature has to be marked by compassion, karma is providing here further motivation Islam Christian Judaism Human being is a crown of the creations, although is made from the clay. The Nature is subordinated to the human being but has to be respected Moral order has to be kept, which roots in God’s Word and can be found respectively in Torah, Bible (Old and New Testament) and Qur’an Ecological conscience has its roots in the Bible, but is motivated socially, it was developed much later, since the ecological problems 13 emerged 3. The CHN in the humanistic economics: social world Humanistic Altruism, solidarity with the humanity Buddhist Responsibility, compassion for/towards other, sangha (community) Islam Solidarity, zakah, riba, pilgrimage, common prayers, umma Christian Solidarity, alms, pilgrimage, prayers, church (ecclesia) Mutual help within and outside the community Judaism Solidarity, care for the poor, common prayers and synagogue (the chosen nation differentiated from goim) 14 3. The CHN in the humanistic economics: individual world Humanistic Buddhist Islam Christian Judaism Body (material sphere) Basic needs, not: wants Subordinated to higher levels, especially mind Submission of all deeds to the Law of God (Quran, Bible, Torah), and to the two higher levels like soul/mind Soul (Motives, Feelings) Diverse motives, values, dualself Diverse drives Human being has good and bad drives, which are differently explained in those religions; common is the view that human being can freely choose among those drives; there is a tendency to Goodness, due to fitrah (in Islam), to the heart (‘lew’ in Judaism), or the soul as place of conscience, which enables the right choice Mind (moral sphere) Ethical mind Mind and practice of Eightfold Path in order to overcome the Nature Conscience and Law (Bible, Quran, Torah) are helpful in order to be able to choose in a right way. The education of moral law and daily practice are considered as important for taking the right decisions. The mind can be perceived as the combination between the knowledge (of particular moral law) and the conscience, interrelated 15 1. Introduction 2. Humanistic economics and religious motivated streams of economics (Buddhist, Islam and Christian) - setting 3. The concept of human nature in the humanistic economics 4. The impact of concept of human nature on the GOAL of economics 5. The impact of the concept of human nature on the field of economics 6. Conclusion 16 4. The impact of CHN on the GOAL of economics • Humanistic/Religious CHN – self-transcendence (material, social needs, environment, development) – challenges towards the economic system • Efficient use of resources is important but not on the first place, economic goals are subordinated to social and ethical ones • Economic growth replaced by idea of human wellbeing (individual and society): focus on needs perceived in form of hierarchy, interdisciplinarity, multilevel, social development, sustainability, just/fair distribution • Freedom (positive/negative) aspects (skepticism towards a free market) • Economic system, which supports such goals 17 Parallels: Social economics & CSR SASE goals: (socioeconomics association) 1. to advance the understanding of economic behavior across a broad range of academic disciplines; 2. to support the intellectual exploration of economic behavior and its policy implications within the context of societal, institutional, historical, philosophical, psychological, and ethical factors; and 3. to balance inductive and deductive approaches to the study of economic behavior at both micro and macro levels of analysis. CSR – ethical approach (1) normative stakeholder theory, (2) universal rights (3) sustainable development; (4) common good approach, see: Garriga, Mele 2004 18 4.1 Buddhist economics • Individual goal: freedom of sorrow • Gandhian economics: humanistic order, non-violence, freedom of exploitation, spiritual/moral order, dependency on social/natural world • Consequence of CHN: socially/culturally embedded, motivated by higher goals, ethical, altruistic, oriented on cooperation, respectful towards life and nature • Instead of GDP HNP • Consumption: not max, but moderate, toward non-material, societal assessment • Goals are not only end-states but processes, integration of common goals into an economic analysis 19 4.2 Catholic Social Teaching • Dignity of human being, who is creator, goal, and center of economic life (Gaudium and Spes) • Production factors: Capital and nature subordinated to the human being, but: a shift towards treating nature more equally like ‘sister’ (Laudato si) • Economic system: Freedom from + towards – ‘no’ for neoliberal system, looking for other system – growing social/environmental concern • Employment: Work is not exchange from freedom for income – source of self-development/participation in creation 20 4.3 Islam Economics • CHN – Moslem (his self-interest is constrained by Shariah, and a motivation derived from the belief in Hereafter) • Economic system: not only the outcome, but the way – following shariat • Goals derived from definition of IE: enabling humans to perform obligations toward Allah + providing falah (satisfaction, success, well-being): soul, body, external goals [ie. wealth], grace • Social justice, elimination of poverty, reduction of income inequalities, freedom of corruption, zakah, no-interest, no-debt, ecological issues, just social order, covering needs of all (adequacy) • Meta-goal: seeking pleasure of Allah 21 1. Introduction 2. Humanistic economics and religious motivated streams of economics (Buddhist, Islam and Christian) - setting 3. The concept of human nature in the humanistic economics 4. The impact of concept of human nature on the GOAL of economics 5. The impact of the concept of human nature on the FIELD of economics 6. Conclusion 22 5. The impact of CHN on the FIELD of economics • Wider, interdisciplinary (because of complex CHN) • Socio-economics (cooperation economics-society; ASE: ethics, social values, social justice) – what economic conditions are requisite for a good society and how can they be achieved; – how do social and moral values influence economic behavior; – how does social interaction affect economic outcomes; – what are the ethical implications of economic theory and policy; – how do different social institutions contribute to a sustainable, just, and efficient economy • Production (but: purpose, effects on the society, moral components) [Human - not just labor force, Land - much more], • Institutions, culture, values, ethics, social relations • Intrinsic value of Work 23 • Socio-economic development 5.1 Buddhist economics • Field must be wider: values, motivation in order to understand the reasons for economic problems • Livelihood – work not only economic outcome, but means, process and social context • Economic, social, political system (shift from share-towards stakeholder), ownership, global order, return to localities • Integration of economics with spiritual, moral, natural dimension, reveling concern for social, economic and political issues 24 5.2 Catholic Social Teaching • Good/Bad – criteria (ethical principles; economic ethics instrument to evaluate bahvaiour, structure, institutions and their impact) • Human dignity, human as part of a particular community • Issues: – – – – – – – Ownership Work Exchange (commerce ethics) Saving and consumption Social distribution International economics Natural environment 25 5.3 Islam Economics • Micro-level: human behavior and its motives, viewed in the light of Quran; human being has good and bad inclinations, therefore the good ones have to be encouraged by economic system, values, rationality, optimality • Macro-level has encourage good sides in human being - like ecological issues, the question of distribution of income, poverty elimination; income distribution; consumer behavior; fiscal policy and socio-economic development in the context of a just monetary and economic system) 26 1. Introduction 2. Humanistic economics and religious motivated streams of economics (Buddhist, Islam and Christian) - setting 3. The concept of human nature in the humanistic economics 4. The impact of concept of human nature on the GOAL of economics 5. The impact of the concept of human nature on the field of economics 6. Conclusion 27 6. Conclusion • CHN in the humanist economists and in the religious motivated streams of economics goal, field of economics • common aspects of the CHN: social and cultural embedding of the person; ethical or/and religious principles, person - able for good and bad, with the inclination to choose the good; the society, and social and economic system can and should support the individual; normative view on economics • Goals: human wellbeing (not only material, social and ethical), social justice, covering real needs of the persons and the society, ecological issues, and support for the moral behavior of individuals. • Field: wider, and encompasses far more issues, than standard economics, greater concern about the economic system. Interdisciplinarity: ethical, social, cultural issues. 28 …..any questions? THANK YOU FOR YOUR ATTENTION [email protected] 29