Issue

11th Issue (March, 2009)

The Birth of GNH as the Showcase of Buddhist Economics

Wong Weng Hon

Introduction

The 1972 dire Asian financial crisis created economic turmoils in Asia. Currently the 2008  financial meltdown is battering United States and Europe respectively. The aftermath of the dire 2008 financial crisis continues to batter global economy in 2009. It heaves and ripples globally. Many other countries are currently affected .The economic tiger of Asia, Japan has also severely been affected. Japanese export sales have plummeted gravely especially her car industry.

 These two aforementioned  financial woes have corroborated  the wisdom of Gross National Happiness (GNH) of Frank Dixon. Frank Dixon is the blue chip savant on GNH, and  a business and government consultant on Sustainable Development, Total Corporate Responsibility (TCR) and System Change. His paper on ‘Gross National Happiness: Improving Unsustainable Western Economic Systems’ was presented in an international conference  in Thimphu, Bhutan in February 2004. His process wisdom has generated much interest on the subject of GNH among the Buddhist scholars  as well as non-Buddhist scholars. One of the agenda of GNH strategy is to actualize sustainable development. Penetrating into the wisdom of the political ideology of GNH,  the United Nations certainly supports sustainable development visioned by the Buddhist Economists on the ideology of GNH.

Today, the operationalization of GNH is gaining momentum in countries, such as Japan, Thailand, Canada, Laos, Sri Lanka, Vietnam, and  Myanmar. Four international conferences on GNH had or have been conducted in Bhutan (2004), Canada (2005), Thailand (2007) and Bhutan (2008). Even though Gotama Buddha has not personally expounded GNP, the  GNH innovated by Buddhist thinkers  is acceptable in Buddhist countries because the GNH objectives  concur with the Buddhist ethics and principles. As it is non-sectarian, it is of universal application. Buddhism expounds  Dhamma  which is the Law of Nature. What is Dhammic is,  in truth,  non-sectarian.  The ultimate Dhamma is empty (‘sūnya) of forms (nimittas). Therefore, it is designationless and denominationless. Thus, it is of universal application. The universe is sustained by only one communal Truth. This communal Truth is sought by all religious faith adherents. Whether one is religious or non-religious believer, everyone is equally affected by the same Truth (Dhamma).

Buddhist Economics

Frank Dixon’s work on GNH is an insightfully penetrative  wisdom which can serve as a lucid and constructive road map to mitigate or remediate the current global financial crisis and ecocrisis. The GNH mirrors not only the wisdom of Buddhist economics, but also it sheds light on the communal Truth of dependently co-arisen non-dual Unity of contigent conditions. Non-dual Unity is cosmic or universal Unity of one human family symbiotically related to the surrounding eco-systems. This Truth of non-dual Unity is the Buddhist  insightfully penetrative  vision of Emptiness (‘Sūnyatā) or Formlessness (animitta). Emptiness is not nothingness or nihilism. Negatively put, it connotes that no individual or entity exists autonomously. Positively put, it connotes that all beings or entities are interconnected and relationally inseparable.

Thus , we see that Emptiness is the harmonious unity of parts of interdependent and interconnected existence in any total system. The system may be  economic as well as non-economic. Frank Dixon wisely depicts it as a total system perspective. Total system is the Buddhist concept of Process Reality of dynamic process becoming (sanāta dharma). Process Reality is western concept of process or perennial philosophy. It is non-sectarian. The total system concept is expounded in the doctrine of identity and interdependence (dharmadhātu-pratī̄tyasamutpāda) in the Avataṃsaka-sūtra of Mahāyāna tradition. All human beings and the external natural environment are organically co-rrelated . All elements (beings or things)  in the entire cosmos are conditioning and are being conditioned without exception.

More Comprehensive

The GNH of Buddhist Economics is a more comprehensive economic performance indicator than GNP (Gross National Product). It is  modelled on the basis of classical Economics minus its pitfalls. In its calculation of national income , the GNH accounting includes the tangible and quantifiable economic factors, such as the production of tangible goods and services in monetary measurement as well as the qualitative and intangible aspects factors related positively or negatively to the quantitative factors. In other words, during the process of production of economic goods and services, the impacts of economic production on natural environment and social well-being of human society or human happiness are also accountable quantitatively. Hence, GNH mirrors the health of national economy as well as the happiness of the citizentry.

The negative impacts are to be accounted for as anti-benefits which reduce the overall value of the classical GNP. For instance, the degradation and  depletion of the natural environment, such as pollution, deforestation, forest-fires, global warming, climate change, cyclones, hurricanes, floods, snow-storms, soil erosion, landslides, inefficient technology and lack of health care and insurance service are considered the anti-benefits. They should be monetarily quantified  as anti-benefits to be deducted from the overall value of Buddhist GNP. This final and more accurate  net GNP mirroring the more actual and farer  position of national economy and citizentry’s happiness  is Buddhist concept of  GNH (Gross National Happiness). The macro-economic of GNH is considered to be Buddhist Economics because Buddhist ethical values and the Buddhist principle of Process Reality are incorporated in the GNH to sanctify pure secular living.  

Conversely, the positive impacts on the natural environment and the social well-being of human society  are to be accounted for as the additional benefits. They should also be monetarily quantified so that their  corresponding quantitative values are added into the value of GNP. The additional benefits include measures to protect the natural environment before occurrence of natural disasters or catastrophes,  the costs to mitigate natural disasters or catastrophes and general benefits after they have occurred. Other humanitarian services, such as free Dharma or educational talks to the public, humanitarian aids, generous givings or charity works, informal unpaid economy of caring, sharing, nurturing of the young, volunteering services and mutual aids should also be quantified and accounted for in the GNH. Succinctly  put, Buddhist GNH encompasses both secular output of commodities as well as the spiritual output of happiness. Therefore, the Buddhist GNP is more comprehensive and contains more data and information than those of the classical GNP.

In this way, the overall calculation of the classical GNP is more revealing and more accurate. It reflects a more actual and farer position of the national development of a particular nation.  After both the anti-benefits as well as the benefits are accounted for appropriately, the net value of classical GNP is more justified and sanctified into Buddhist  GNH. The benefits include both quantitative as  well as qualitative contigent conditions. For instance, the regular monthly income from a working husband is quantitative. The service of a full time house- wife is qualitative. Its benefit  to the family should be quantified and added into the national income. The cost of mitigating air and water pollution should be deducted from the national income so that the profit margins are not artificially over inflated.

 The government of Bhutan operates Buddhist economics and measures their economic performance according to the economic indicator of GNH. The people of Bhutan are relatively much happier than other citizentry whose nations measures their national incomes using  the classical GNP system of economic indicators. The Buddhist economic indicator of GNH is universally applicable because  virtues, respect for the fundamental human rights, sustainable development, the well-being of human society and the protection & preservation  of eco-systems, ethical governance  and happiness of citizentry  are universally righteous  demands .

 In addition, modern management gurus teach and motivate entrepreneurs  to adopt private victory and public victory to create a win-win situation of smart partnership. The educational and psychological benefits of these motivational or self-improvement courses should also be quantified and  accounted for in GNH calculation.  Such management ideology is consonant with the concept of Buddhist Economics  of right livelihood and Buddhist GNH indicator. Therefore, the happiness of the those regular meditation yogis  should also be a plus factor in the calculation of GNH.

GNH as Saviour

The greatest shortcoming of the classical economic performance indicator of GNP is that its value may be high in an economically advanced nation but her citizentry may not be correspondingly happy or relatively happier. For instance, in the aftermath of the 2008 financial crisis, eco-crises and  wars in Iraq and Afghanistan, many Americans are relatively unhappy even though the GNP of United States is the highest in the world. As a Buddhist religionist, I strongly recommend the implementation of Buddhist GNH over the classical GNP because it brings an oasis to the spiritual desert of a secular state. Buddhist GNH is non-sectarian. It can be easily modified to suit the multiculturalism of any secular and cosmopolitan state. Anyway, Dhamma applied in GNH is the Law of Nature which is non-sectarian and non-denominational. The Dhamma of  law of moral accountability and process philosophy is universally acceptable. In fact, all major world’s religions promulgate the moral law of causality and process Reality. Therefore , the introduction of Buddhist GNH is not a hidden agenda to convert  other faith adherents.

Modern Economics

It is dhammically jubilant to perceive that modern Economics of GNH is moving closer to the Dharma which is universal Truth for all.  It integrates economic activities with the holistic organic system in which everyone is part of the Whole or Totality. No one is excluded from the unity of contigent conditions or totality. Individualism opposes societal interests or public interests.

 Fundamentally, religion is Dhammically socialist  and cares for the interest of the Whole or public interests. However, capitalism emphasizing individual development and accomplishment should not be  rejected  totally. The distinct advantage of capitalism is that it encourages the development of innate, unlimited  human potentialities to actualize them into diverse possibilities known as the creative advance of modern civilization. This concurs with the infinite potentialities of Buddha-nature (or God-head)  existing innately in all human beings.

All world’s regions recognize the innate supremacy of Man which is the Buddha-nature or   God immanence  in all human  beings . Capitalism caters to self-development and Socialism caters to public interest. The syncreticism between Capitalism and Socialism is the Middle Path economics. This Middle Path Economics is designated by modern Japan Buddhist thinkers as Buddhist Economics. The mixed economy of Capitalism and Socialism propel the concrescence of the world expanding global economic cake and diffusing more happiness.

Middle Path

The current rapid rise of  mainland China is the wisdom of their modern political leaders who have harmoniously syncretized Socialism and Capitalism in their economic reform and open policy. The open policy is significant as it integrates with the concrescence of the rapidly growing global economy. Such open policy integrates with the Process reality of the globalization and liberalization. Such practice of open  policy resonates with economic Process Reality of the global village. The current political and economic system of mainland China concurs with the Chinese philosophy of Tao. Any economic system resonating with Tao will bring about economic concrescence.  Tao is the Process Reality of the flow of Unity of causes and conditions. 

Interdependent globalized and liberalized economics is Buddhist Economics . Taoistically put, China has reconnected herself with  the global process unity of Tao. Whoever concurs with the Tao ascends. Whoever opposes the Tao descends. Tao is Buddhist concept of Process Reality of dynamic becoming (sanātana dharma) of dependently co-arisen Unity or Non-duality. Buddhist Economics resonates with the Process Reality of  Tao (Path of Process Reality).  

Only economically  developed and accomplished  person can contribute economic generosity to others in need. Private victory is individualism; public victory is socialism. Individual success promotes and fosters public success. The philosophy of Middle Path of Buddhism recommends an optimum application of capitalism and socialism in economic development. If GNH is operated on the basis of the wisdom of Middle Path, GNH is a true gift to the world .

Japanese Economics

Japan  is a supermodel of adopting the middle path of GNH to develop their world class economy. Modern Japan prime ministers set a brilliant example of GNH because they are prepared to resign readily if their citizens or their own political parties  are not happy with their leadership. Japanese industrial culture of consensus decision making, duty consciousness, harmonious employer-employee relationship,  in-house union and zero defect, QCC, TQM, whole life employment and other conducive contigent  business conditions mirror that Japanese work culture emphasizes harmonious relationship and cohesive co-existence of unity. This unity and cohesion in the Japanese work environment concur with the flow of Tao which is  perennial wisdom. Perennial wisdom is the perfection of wisdom (prajñāapā̄ramitā) of Japanese Zen culture.

Conclusion

Any altruistically compassionate nation can operate the non-sectarian GNH without any conflict with their respective faiths. GNH is the Buddhist economic model of Process Reality of dynamic becoming.  Process Reality is non-sectariansm and non-denominationism. It is universally applicable to all people at all times.  Ultimately, all world’s religions promulgate the perennial philosophy of the Process Reality. The Dharma of Process Reality is actually the Buddhist doctrine of  Emptiness (‘Sūnyatā). Emptiness is the  dynamic unity of contigent causes and conditions. God is also the dynamic unity of contigent causes and conditions. Therefore, Emptiness equals God philosophically and theosophically. Therefore, the Process Reality is one and the only absolute Truth of the cosmos. It is the universal or cosmic Self. When an individual or national economy integrates the economic activity or practice  with the Process Reality of cosmic Self, there is arisen concrescence and accomplishment in the world. This is the quintessence of Buddhist Economics or the non-sectarian GNH.

 The GNH is modelled on the basis of non-sectarian principle because most nations today are multi-cultural, multi-religious, multi-racial and consequently  cosmopolitan. Most nations are cosmopolitant because of the active mutual flow of direct foreign investments. It is intensified further by immigration or emigration  to participate in the flow of Process Reality of the borderless global village. Most importantly, the impacts on the well-being of society and the natural environment are taken into  consideration in the economic model of GNH . At the summit of spirituality, all world’s religions are non-sectarianism and non-denominationism. All religions are reconciled metaphorically at the borderless Ocean to which all rivers converge. We are all the waves and the Process Reality is the borderless Ocean. The moving global village is like the Titanic on its voyage. We all travel or sink together. There is no third alternative.