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The 3rd World Conference on Buddhism and Science (WCBS)
Buddhist Economic Prescription for Sustainable Development
Kumar Mukesh, Gaya College
Abstract
The Buddha's teachings give us more than just ethical guidelines for a virtuous
life. His teachings offer a grand insight into the nature of reality. Given the twofold
meaning of the term Dhamma, it follows that an economics inspired by the Dhamma
would be both attuned to the grand sphere of causes and conditions and, at the same time,
guided by the specific ethical teachings based on natural reality. In other words, Buddhist
economists would not only consider the ethical values of economic activity, but also
strive to understand reality and direct economic activity to be in harmony with "the way
things are."
To be ethically sound, economic activity must take place in a way that is not
harmful to the individual, society or the natural environment. In other words, economic
activity should not cause problems for oneself, agitation in society or degeneration of the
ecosystem, but rather enhance well-being in these three spheres. While modern economic
thinking rejects any subjective values like ethics, the influence of ethics in economic
matters is all too obvious. If a community is unsafe -- if there are thieves, the threat of
violence, and the roads are unsafe to travel -- then it is obvious that businesses will not
invest there, tourists will not want to go there, and the economy will suffer. On the other
hand, if the citizens are law-abiding, well-disciplined and conscientiously help to keep
their community safe and clean, businesses will have a much better chance of success and
the municipal authorities will not have to spend so much on civic maintenance and
security. In place of the basic Western economics such as profit-maximization,
cultivating desire, introducing markets, instrumental use of the world and self-interest
based ethics, the Buddhist Economics proposes the principles of minimize suffering,
simplifying desires, non-violence, genuine care and generosity. It is not a system but a
1
strategy, which can be applied in any economic setting. The Buddhist Economics
provides a rational, ethical, and ecological value background, which promotes happiness,
peace and permanence.
Thus, an economics inspired by Buddhism would strive to see and accept the truth
of all things. It would cast a wider, more comprehensive eye on the question of ethics.
Once ethics has been accepted as a legitimate subject for consideration, ethical questions
then become factors to be studied within the whole causal process. But if no account is
taken of ethical considerations, economics will be incapable of developing any
understanding of the whole causal process, of which ethics forms an integral part.
While the importance of the relationship between Development and the
Environment is obvious, our understanding of how these twin dynamics interact remains
weak. The purpose of this study is to explore the environmental roots and contexts of
development and to see how the global peace and prosperity is ensured by the Buddhist
ideals. The present paper explores the aspects and possibilities of application of the
Buddhist economic thoughts in the present materialistic Global order. A modest attempt
has been made to inject ''sustainability'' goals into an otherwise value-neutral social
science. It seeks to suggest that moral behavior, ethics, and consideration of the larger
good, should not be tacked on or sidelined in economic analysis, but integrated.
Economics cannot be separated from Dhamma, because all the activities we
associate with economics emerge from the Dhamma. Economics is just one part of a vast
interconnected whole, subject to the same natural laws by which all things function.
Dhamma describes the workings of this whole, the basic truth of all things, including
economics. If economics is ignorant of the Dhamma -- of the complex and dynamic
process of causes-and-effects that constitutes reality -- then it will be hard pressed to
solve problems, much less produce the benefits to which it aims. Yet this is precisely the
trouble with modern economic thinking. Lacking any holistic, comprehensive insight and
limited by the narrowness of their specialized view, economists single out one isolated
portion of the stream of conditions and fail to consider results beyond that point. By
contrast, an economics inspired by Dhamma would be concerned with how economic
activities influence the entire process of causes and conditions. While modern economics
confines its regard to events within its specialized sphere, Buddhist economics would
investigate how a given economic activity affects the three interconnected spheres of
human existence: the individual, society, and nature or the environment. The present
paper explores the aspects and possibilities of application of the Buddhist economic
thoughts in the present materialistic Global order. A modest attempt has been made to
inject ‘sustainability’ goals into an otherwise value-neutral social science. It seeks to
suggest that moral behavior, ethics, and consideration of the larger good, should not be
tacked on or sidelined in economic analysis, but integrated.
Buddhism tirelessly advocates the virtues of non-greed, non-hatred and nondelusion in all human pursuits. Greed breeds sorrow and unhealthy consequences.
Contentment (santutthi) is a much praised virtue in Buddhism. 1 The man leading a
simple life with few wants easily satisfied is upheld and appreciated as an exemplary
character. 2 Buddhism advocates a gentle non-aggressive attitude towards nature.
Buddhism offers man a simple moderate lifestyle eschewing both extremes of selfdeprivation and self-indulgence. Satisfaction of basic human necessities, reduction of
wants to the minimum, frugality, and contentment are its important characteristics. Each
man has to order his life on normal principles, exercise self-control in the enjoyment of
the senses, discharge his duties in his various social roles, and conduct himself with
wisdom and self-awareness in all activities. It is only when each man adopts a simple
moderate lifestyle that mankind as a whole will stop polluting the environment. This
seems to be the only way of overcoming the present eco-crisis and the problem of
alienation. With such a lifestyle, man will adopt a non-exploitative, non-aggressive,
gentle attitude towards nature. He can then live in harmony with nature, utilizing its
resources for the satisfaction of his basic needs. The Buddhist admonition is to utilize
nature in the same way as a bee collects pollen from the flower, neither polluting its
beauty nor depleting its fragrance. Just as the bee manufactures honey out of pollen, so
man should be able to find happiness and fulfillment in life without harming the natural
world where he lives.
Buddhism is a dynamic principle moving towards the generation of Complete
Social Harmony in life as a whole. For this it does not believe in dogmatic behavior and
in elaborate systems of rites, rules, or prayers. It rather advocates the ethics of life. It puts
man and his thought processes at the forefront and urges the humans to follow a practical
and rational way of life based on morality (Sila), concentration (Samadhi), and wisdom
(Panna) and culminating in liberating insight. The wisdom is usually developed by the
method of critical reflections in whose practice the value of other species in the universe
becomes quite imminent before the mind. Buddhism locates humans as important
components of the universe who should recognize and respect various aspects of nature
and make serious endeavours to build a coherent approach towards proper utilization of
then natural resources.
Humanity is organically linked with the nature and the nature is directly affected
by the positive or negative traits of our personality. From the point of view of the
Buddha's teaching, environmental pollution is but the external manifestation of man's
internal moral pollution, which has assumed alarming proportions and reached a crisis. A
number of Suttas in the Pali Canon such as the Agga~n~na3, Cakkavattisiihanaada4 and
some in the A"nguttaranikaaya5 express that when moral degeneration becomes rampant
in society, it causes adverse changes in the human body and in our environment. The
legend in the Agga~n~na Sutta states that moral degeneration causes the loss of beauty in
the human personality and depletion of natural food resources in the external world.
These adverse repercussions are proportionate to the extent of moral-degradation.
Buddha always wished to preserve the entire fabric of the world which can be a reality
only when we would be able to behave in a disciplined manner i.e. with self-control,
sincerity and patience in utilizing the natural resources. Today in order to provide
transient pleasure (often mistaken for happiness) we are recklessly abusing and
undermining our relationship with the nature. The only concern that seems gripping the
world over is the race to establish an economic or political dominance to exploit the
developing or the underdeveloped corners of the world. This tendency is drifting us
towards catastrophe and destruction of the whole world. Every act of misusing, abusing
or encroaching upon the nature will have the telling blow on humanity which cannot exist
if the ecological balance is disrupted. Unprecedented rain, flood, famine, cyclone etc
have already been ravaging the life on earth. The problem of global warming, lack of
fresh air and water, soil infertility etc is the other serious concern added to our blues. In
such a situation as this we are left with no choice but to look for the Enlightened Vision.
Buddhism believes that moral consciousness/the human mind, the human body,
the external world consisting of fauna and flora, and society are intricately interconnected
through an all-embracing network of cause and effect, to make one whole
psychologically sensitive and responsive ecosystem. It is this fact that the Buddha
succinctly summarizes it as: ‘Cittena niyyati loko cittena parikissati Cittassa
ekadhammassa sabbeva vasam anvaguu ti’ i.e. ‘The world is led by the mind; it is
dragged hither and thither by the mind. The mind is one reality under the power of which
everything goes’.6 If we loosely translate the phrase cittena niyyati loko as ‘the world
operates through human ideas,’ we can see at a practical level how the face of the earth
has been changed with advancing human ideas/knowledge during the course of history.
At the dawn of civilization when man was hunting and gathering food, nature remained
almost undisturbed. During the age of settled agricultural life, irrigation schemes were
developed and the face of nature was modified to a certain extent. The industrial
revolution brought about further changes with excessive exploitation of natural resources
and mass production.
According to a discourse in the Anguttara Nikaya, when profligate lust, wanton
greed, and wrong values grip the heart of man and immorality becomes widespread in
society, timely rain does not fall. When timely rain does not fall crops get adversely
affected with various kinds of pests and plant diseases. Through lack of nourishing food
the human mortality rate rises.7 Thus several suttas from the Pali canon show that early
Buddhism believes there to be a close relationship between human morality and the
natural environment. This idea has been systematized in the theory of the five natural
laws (pañca niyamadhamma) in the later commentaries.8 According to this theory, in the
cosmos there are five natural laws or forces at work, namely utuniyama (lit."seasonlaw"), bijaniyama (lit."seed-law"), cittaniyama, kammaniyama, and dhammaniyama.
They can be translated as physical laws, biological laws, psychological laws, moral laws,
and causal laws, respectively. While the first four laws operate within their respective
spheres, the last-mentioned law of causality operates within each of them as well as
among them.
One of the most profound lessons of the Buddha's teachings is the truth that
internal, subjective values are directly linked to the dynamic of external objective reality.
This subtle realization is at the heart of all ethical questions. Unfortunately, most people
are only vaguely aware of how their internal values condition external reality. According
to the Buddhist view, however, ethics forms a bridge between internal and external
realities. In accordance with the law of causes and conditions, ethics act as "subjective"
causes for "objective" conditions. This should be obvious when we consider that, in
essence, ethical questions always ask, "Do my thoughts, words and deeds help or harm
myself and those around me?" In practice, we rely on ethics to regulate the unwholesome
desires of our subjective reality: anger, greed, hatred. The quality of our thoughts, though
internal, constantly conditions the way we speak and act. Though subjective, our ethics
determine the kind of impact our life makes on the external, objective world. In contrast,
economics is focused only on material development. Values, which are the domain of the
mind, are outside its scope. At the heart of economic theory and practice is the
assumption that happiness is an experience that can be achieved from matter and in
dependence of material resources. The state of mind is not relevant. From a Buddhist
viewpoint, the contribution of economics and material development is nothing more than
providing an external condition allowing people to devote time and energy to embark on
the more rewarding path of spiritual development. ‘The idea of competition, natural
selection and the survival of the fittest, which purports to explain the natural and
automatic process of evolution and development, still dominates the minds of educated
people today’9.
Unfortunately, as it stands, economics is grossly out of touch with the whole
stream of causes and conditions that constitute reality. Economics, and indeed all the
social sciences, are, after all, based on man-made or artificial truths. For example,
according to natural laws, the action of digging the earth results in a hole. This is a fixed
cause and effect relationship based on natural laws. However, the digging which results
in a wage is a conventional truth based on a social agreement. Without the social
agreement, the action of digging does not result in a wage. While economists scrutinize
one isolated segment of the cause and effect process, the universe manifests itself in an
inconceivably vast array of causes and conditions, actions and reactions. Focused as they
are on the linear progression of the economic events that concern them, economists forget
that nature unfolds in all directions. In nature, actions and results are not confined to
isolated spheres. One action gives rise to results, which in turn becomes a cause for
further results. Each result conditions further results. In this way, action and reaction are
intertwined to form the vibrant fabric of causes and conditions that we perceive as reality.
To understand reality, it is necessary to understand this process.
E.P. Schumacher, writing on ‘Buddhist Economics,’ 10 stated that since ‘'Right
Livelihood' is one of the requirements of the Buddhist Noble Eightfold Path . . . there
must be such a thing as Buddhist Economics.’ He held, for example, that ‘the Buddhist
point of view takes the function of work to be at least threefold: to give a man a chance to
utilise and develop his faculties; to enable him to overcome his egocentredness by joining
with other people in a common task; and to bring forth the goods and services needed for
a becoming existence.’ It is especially noteworthy that in the pursuit of Right Livelihood
what is enjoined is the practice of blameless and honourable occupation. Forms of
employment involving trade in armaments (sattha vanijja), slaves (satta vanijja),
intoxicants and narcotics (majje vanijja) and poisons (visa vanijja) are to be avoided. If
achievement of full employment is one basis for accomplishing global economic justice,
‘the very start of Buddhist economic planning would be planning for full employment . . .
for everyone who needs an 'outside' job. It would not be the maximization of
employment, nor the maximization of production. . . . While the materialist is mainly
interested in goods, the Buddhist is mainly interested in liberation’ and the path is to be
traversed along the "middle way" eschewing the extremes of material comfort-seeking
and mortification of the human body. Schumacher further held that the ‘marvel of the
Buddhist way of life is the utter rationality of the pattern of amazingly small means
leading to extraordinarily satisfactory results.’ More than expenditure for the
advancement of human welfare, it is the waste on armaments that has contributed greatly
to the debt and inflation problems that plague the world today and doubtless will become
increasingly intolerable in the future. This is aggravated by the ecological deficits that
will further endanger the prospect of human survival. It needs to be emphasized that the
‘social philosophy of the Buddha is grounded on the basic concept of the fundamental
oneness and unity of humankind. Buddhist social ethics therefore has a universal appeal
which gaily transcends all geographic, ethnic and temporal barriers. . . . The fundamental
teachings of the Buddha, with their universal and timeless appeal and validity constitute
the structure of Buddhist culture. . . . The Buddha has emphasized the inseparable
connection between ethics and politics and the desirability of conducting public life in a
manner consistent with moral values.’ Today's situation does substantiate to a
considerable extent the analysis of the causality of suffering in society as propounded in
the Chakkavatti Sihanada Suttanta, already referred to. The realisation should dawn upon
us before it is too late that the proper development of society requires that ‘economic
socialism must necessarily harmonise itself with political democracy, so that both could
together provide the freedoms and liberties for the realisation of the ultimate aims of
individual betterment and perfection.’ Buddhist economics and politics together,
consistently applied and in conjunction with Buddhist ethics, can help uplift human
society from its present predicament.
Managers of all sorts of social enterprise (nonprofit, public, commercial, coop,
whatever) often find themselves stuck between the laws of economics and the goals of
social good. Economic theory explores the mechanics of value creation and value transfer
among individuals and throughout social systems. As such, it certainly should inform our
strategies and tactics in advancing our organization's work. But economics often sets
aside the ‘values’ that bring us to our jobs each day -- truth, beauty, fulfillment of
personal potential, social justice, human expression, and human dignity. If economists
were to stop evading the issue of moral values, they would be in a better position to
influence the world in a fundamental way and to provide solutions to the problems of
humanity and the world at large. Ideally, economics should play a part in providing
mankind with opportunities for real individual and social growth rather than simply being
a tool for catering to selfish needs and feeding contention in society, and, on a broader
scale, creating imbalance and insecurity within the whole global structure with its
innumerable ecosystems.
Buddhism does not reject matter and wealth as inherently evil, but considers them
useful. First, material wealth prevents us from poverty and, second, it allows us to
practice generosity; which causes 'merit' and a more happy society. Buddha himself
made it very clear: real happiness does not come from acquiring or consuming material
things. Happiness is essentially a state of mind, and mind is distinct from matter. Thus,
Buddhism considers the path of mental or spiritual development superior to that of
material development. What really matters is to psychologically detach oneself from
matter, and strive for liberation and enlightenment, which is considered the ultimate state
of happiness and fulfillment. This is achieved by the cultivation of values within one's
mind, such as insight, compassion, tolerance and detachment. Only this will bring true
happiness, both for the individual and society.11
In so-called modern economic system ethical considerations are not merely
irrelevant, they are seen as an actual hindrance. Economists may assert that economics
only concerns itself with demand, not its ethical quality, but in fact ethical considerations
do affect demand.12 But Amartya Sen defines economic development in terms of freedom
of basic necessities such as education and healthcare. He observed that as long as the
contemporary world denies elementary freedoms to the majority of the world population,
planning for economic development is of no use. In doing so, he has restored an ethical
dimension to the discussion of development. According to him, ...‘Along with the
working of markets, a variety of social institutions contribute to the process of
development precisely through their effects on enhancing and sustaining individual
freedoms. The formation of values and social ethics are also part of the process of
development that needs attention…’13
Development is more than growth, or quantitative change. It has been defined as,
‘the modification of the biosphere and the application of human, financial, living and
non-living resources to satisfy human needs and improve the quality of human life’.
Generally it is rated on the basis of technological progress and the nature of power as
well as amenities being entertained by the people. However, technological progress has
also caused ecological problems like disturbance in the natural setting of the
environment, interruption in the natural drainage system, soil erosion, landslides and loss
of natural sources of water. The state of environment is a major worldwide concern today
and its protection has now become the main objective of development. The objective of
technology is not to disturb nature but to enrich the environment and make it a better
place to live in through the efforts of sustainable development. The Sustainable
Development debate is based on the assumption that societies need to manage three types
of capital (economic, social, and natural), which may be non-substitutable and whose
consumption might be irreversible. Natural capital can not necessarily be substituted by
economic capital. While it is possible that we can find ways to replace some natural
resources, it is much more unlikely that they will ever be able to replace eco-system
services, such as the protection provided by the ozone layer, or the climate stabilizing
function of the Amazonian forest. Sustainable development implies economic growth
together with the protection of environmental quality, each reinforcing the other. In fact
natural capital, social capital, and economic capital are often complementarities and,
there is an impending need to maintain a delicate balance between the human need to
improve lifestyles and feeling of well-being as well as preserving natural resources and
ecosystems, on which we and future generations depend.
From the Buddhist perspective both the anthropocentric elements and the belief in
progress are basic wrong views. In Buddhism the concept of inter-relatedness is essential.
If we seriously consider this, human beings cannot be the ‘centre of the universe.’ We are
just one among many species and our well-being depends on the well-being of other
species and the natural environment. The belief in progress moves us away from the
‘present moment.’ The causes and conditions of staying in the ‘present moment’ or the
‘moment of reality" are, for Buddhism, of prime importance in the art of coping with
suffering. Under the’progress’ ethos we are led to expect that things will be better in the
future at the cost of the present reality. This belief in progress is a kind of myth as it
promises something that will never be completely fulfilled—indeed the striving to fulfil
this myth is an aspect of the tanhaa. ‘It is clear, therefore, that Buddhist economics must
be very different from the economics of modern materialism, since the Buddhist sees the
essence of civilisation not in a multiplication of wants but in the purification of human
character. Character, at the same time, is formed primarily by a man's work. And work,
properly conducted in conditions of human dignity and freedom, blesses those who do it
and equally their products.’14
To be ethically sound, economic activity must take place in a way that is not
harmful to the individual, society or the natural environment. In other words, economic
activity should not cause problems for oneself, agitation in society or degeneration of the
ecosystem, but rather enhance well-being in these three spheres. While modern economic
thinking rejects any subjective values like ethics, the influence of ethics in economic
matters is all too obvious. If a community is unsafe -- if there are thieves, the threat of
violence, and the roads are unsafe to travel -- then it is obvious that businesses will not
invest there, tourists will not want to go there, and the economy will suffer. On the other
hand, if the citizens are law-abiding, well-disciplined and conscientiously help to keep
their community safe and clean, businesses will have a much better chance of success and
the municipal authorities will not have to spend so much on civic maintenance and
security. 15 In place of the basic Western economics such as profit-maximization,
cultivating desire, introducing markets, instrumental use of the world and self-interest
based ethics, the Buddhist Economics proposes the principles of minimize suffering,
simplifying desires, non-violence, genuine care and generosity. It is not a system but a
strategy, which can be applied in any economic setting. The Buddhist Economics
provides a rational, ethical, and ecological value background, which promotes happiness,
peace and permanence.
The prescription is the practice of the Noble Eight-fold Path which can make the
mind pure and guide a person to think in a rational way. Buddha was the One who never
asked to follow him out of regard.16 He vehemently encourages us to apply our own
proper understanding to analyse a thought.17 Only then a man would be able to work for
his salvation by diligence.18 As a man alone is responsible for his deeds, and he is alone
in his pursuit for freedom,19 the reason will help him to concentrate on the ideas that have
been tested in the spirit of rationalism.
Let us come back to the Buddha's statement: cittena niyyati loko i.e. the world
operates through the human mind. So long as the human mind is motivated by morally
wholesome intentions, man can lead a comparatively happy life and nature would be
manageably hospitable. When the motivational roots are evil, man experiences misery as
is maintained by the first two verses in the Dhammapada. Now it appears that evil is so
widespread that even nature has been adversely affected, rendering it more inhospitable.
The environmental crisis has to be treated as the result of a moral crisis. Man has to
cultivate a morally wholesome attitude and lifestyle for a change for the better and this
has to be accepted as a survival imperative.
Economics inspired by Buddhism would strive to see and accept the truth of all
things. It would cast a wider, more comprehensive eye on the question of ethics. Once
ethics has been accepted as a legitimate subject for consideration, ethical questions then
become factors to be studied within the whole causal process. But if no account is taken
of ethical considerations, economics will be incapable of developing any understanding
of the whole causal process, of which ethics forms an integral part. Buddha, thus,
presents a unique moral world order to respect all in the universe i.e. to respect the
equilibrium – social, economic, political and environmental. Human beings, nature and
the universe are but one complex integral whole in which every component is crucial and
all are interdependent. It is our bounden duty to ensure a balanced relationship amongst
all its components. “Being an integral part of then nature, trees and animals can live
without man, but man cannot live without them”. In fact the sermons of the Lord Buddha
to human beings to understand the interconnections pervading the entire fabric of the
world to forbid indulgence in destruction are essential to maintain the beauty and
bounties of nature. The constructive messages for the healthy preservation of the human
ecology can help us to lead a happy, prosperous, and blissful life.
Notes and References:
1
. Dhammapada. v. 204.
. Anguttara Nikaya. IV, 2, 220, 229.
3
. Dighanikaya. III. 80.
4
. Dighanikaya III 58.
5
. A"nguttaranikaaya, I. 160; II. 75.
6
. Sa"myutta-nikaaya, I. 39
7
. Anguttara Nikaya. I, 160.
8
. Atthasalini, 854.
9
. Payutto, P.A., Buddhist Economics; op. cit.
10
. Schumacher, E.F., Small is Beautiful; op. cit.
11
. The Dalai Lama and Howard C. Cutler, the Art of Happines, Coronet Books, UK, 1998
12
. Payutto, P.A., Buddhist Economics, op. cit..
13
. Sen, Amatya, Development as Freedom, Alfred Knopf, New York, 1999.
14
. Schumacher, E.F., Small is Beautiful op.cit.
15
. Schumacher, E.F., Small is Beautiful op.cit.; Payutto, P.A., Buddhist Economics, op. cit.
16
. Complete Works of Swami Vivekananda Mayawati Memorial Edition, Calcutta, 1962-65, Vol. V,
p.309.
17
. Tattvasangrah Verse No. 3587, Dwarikadas Shastri, Varanasi, 1958, p.1115.
He said, “…do not believe in what you have heard says the great Buddha, do not believe in doctrine
because they have been handed down to you through generations, do not believe in anything because it
was followed blindly by many, do not believe because some old sage makes a statement, do not believe in
truth to which you have become attached by habit, do not believe merely on the authority of your teacher
and elders, give a deliberation and analyse, and when the results agrees with reason and conduces to the
good of one and all accept it and live up to it.”
18
. Herman Odenberg, (Tr.) by William Hoey, Buddha: His Life, His Doctrine, His Order, William and
Norgate, London and Edinburgh, 1882,p.72.
19
. G. D. Bond, Meditation on Death and Symbolism of Initiatory Death, International Encyclopaedia of
2
Buddhism, Vol.27, p.2666.
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