Buddhist Economics by Prof. Damien Keown (2022)

Chapter Five: Economics

Politics and Economics

• Politics and economics are interconnected ideologically (e.g., Marxism).

• Focus in this chapter is purely on economic questions.

• Overview of dominant Western economic theories.

• Historical evolution of Buddhist economics is traced, alongside major contributors.

• Foundational principles highlight equitable resource distribution and environmental concerns.

• Distinction between ‘Buddhist economics’ (normative) and ‘the economics of Buddhism’ (descriptive).

Introduction to Buddhist Economics

• Aim: Construct a model supporting Buddhism’s core objective of reducing suffering and enhancing well-being.

• Challenges Western economics which is centered on:

  • Rational, selfish behavior

  • Profit maximization

  • Exploitation of the environment

• Buddhist economics promotes:

  • Interdependence

  • Altruism

  • Well-being and environmental care.

• Goal: Achieve ‘shared prosperity in a sustainable world with minimal suffering’ (Brown, 2018).

• Connects highest Buddhist ideals with the material lives of individuals.

• Interconnectedness in Buddhist economics emphasizes collective well-being.

Contrast Between Economic Theories

Summary Table between Modern Western Economics and Buddhist Economics

Historical Developments in Economics

• Current economies focus on short-term profits within free-market capitalism.

• Economics, derived from Greek 'oikonomikos', originally meant household management, evolving to include global economic systems.

Theories of Economics

• Division of two main theories: Capitalism and Socialism.

• Capitalism: Dominant model emphasizing private ownership and individual labor ownership.

• Class divisions between capitalists (owners) and workers.

• Benefits observed such as increased opportunities for individuals.

• Critics argue unregulated capitalism leads to exploitation and wealth gaps.

Capitalism Details

• Characterized by:

  • Private ownership over state control.

  • Markets serve as trade mechanisms for labor and goods.

  • Class divisions impact economic participation:

    • Ranges from wealth elites to the homeless.

  • Proponents emphasize wealth accumulation potential for all citizens.

Socialism Overview

• Socialism advocates collective ownership for equality in material goods.

• Emphasizes democracy, individual freedom based on fulfilled needs, and solidarity.

• Critiques capitalism for exploitation, alienation, and environmental harm.

The Role of Buddhism in Economic Context

• Modern-day Buddhism influenced by capitalism and socialism post-World War II.

• Common misinterpretations view Buddhism as disengaged from worldly matters (Max Weber).

• Historical Buddhist practices reveal deep economic realities intertwined with spiritual teachings.

Economic Practices at Buddha’s Time

• Transitional period in Northern India with economic advancements leading to social changes.

• Rise of merchants and changes in societal structure with increased trade.

Buddhism Beyond India

• In regions like Tibet, monasteries evolved into significant economic and political institutions.

• Developed practices such as money lending and trading.

Evolution of Buddhist Economics

• Two formative phases:

  • E.F. Schumacher: Coined 'Buddhist economics' critique of Western models (1960s).

  • Payutto: Integrated scriptural teachings into economic thought.

Schumacher’s Contributions

• Advocated for a human-centric, community-oriented economic model:

  • Threefold justification of work: developing abilities, fostering connection, and creating goods/services.

  • Suggested nature-centered principles for local economic engagement.

Payutto’s Insights

• Integrated traditional teachings into contemporary economic challenges.

• Differentiated between taṇhā (selfish desire) and chanda (wholesome desire).

• Advocated for moderation and ethical development in economic activities.

Modern Expressions of Buddhist Economics

• Examined three movements:

  1. Sarvōdaya Śramadāna in Sri Lanka: Focused on community development.

  2. Santi Asoke in Thailand: Advocates minimalist lifestyles and community-based living.

  3. Patagonia: An ecological clothing company promoting sustainability.

Conclusion

• Buddhist economics offers an alternative path amid capitalism and socialism.

• Emphasizes the need for values that connect humanity with nature and each other.

• Historically shaped and continuously evolving in modern contexts.

• Potential future directions within changing economic paradigms.