11th Issue (March, 2009) Distinction between Buddhist Economics and Classical Economics Wong Weng Hon IntroductionThe Buddhist Economics was first developed and put forwards by Ernst Schumacher in 1995. Ernst Schumacher was an Economic consultant to the Burmese Prime Minister U Nu. He was the renowned author of the work ‘Small is Beautiful: Economics as if People Matter’. Buddhist Economics was first popularized by the political leaders of Bhutan . Bhutan mooted the birth of Gross National Happiness (GNH) which supplements the classical GNP (Gross National Product) by fulfilling its missing dimension. The missing dimension is the obvious omission of the measurement of the well-being human society and the preservation of the quality of the natural environment in terms of the happiness of the citizentry and their children of future generations. Core AttributesBesides GNH as the key distinction of Buddhist Economics, the other core attributes of Buddhist Economics are enumerated as follows :
Modern EconomicsConversely, the western classical Economics measures only the level of production of economic goods and services ignoring the positive and negative impacts on the natural environment and the social and personal well-being of the human society. The western classical economics is the product of evolution from early classical Economics postulated by Adam Smith’s ‘The Wealth of Nations’ in 1776 and subsequent neo-classical Economics in Britain commencing around 1970 (Source: Wikipedia). Western classical Economics emphasizes competition, consumption and maximization of profits and wealth. It emphasizes a short-term interest of materialistic value instead of the long-term interest of spiritual value. It is capitalistically centred. It perceives the scarcity of natural resources and encourages stiff competition fueled by the motivation of the theory of survival of the fittest. The economic ideology is not compassionate as it is self-centred or ego-centred. It encourages consumption in order to increase production of goods and services to maximize personal profit or income. Consequently, its economic development is unsustainable and sacrifices the interests of future generations. The producers and consumers interact as separate entities in terms of selfish interest at market places driven by monetary gains. Only tangible items, which can be financially quantified, are included in the calculations of the overall value of classical GNP. The contigent conditions for economic production of wealth are perceived as discrete entities fueling personal selfishness and cravings. ConclusionAs the term Buddhism and Economics were non extant during the time of Gotama Buddha in ancient India of 6th century B.C.E , the Buddha’s doctrine of Economics (Householder’s economy) was scattered here and there in the Buddhist Canons (Suttapițaka). Depending on the Buddhist ethics on Economics and the Buddhist Process Thought of dynamic process becoming , the term ‘Buddhist Economics’ was developed by Buddhist scholars, such as E.F. Schumacher , P. A. Payutto and other Buddhist savants. The Buddhist ideology of GNH was introduced by the 4th King of Buttan and developed by other Buddhist scholars subsequently. Though Bhutan, the founder of GNH is poor economically, their citizentry are generally happy. Their economic impoverishment is not rooted in Buddhist Economics but originates principally from lack of natural resources and financial deficiency to develop their scientists and engineers through research and development . Japan is a supermodel in the operating of GNH known as ‘Net Satisfaction Index’ (NSI) introduced by the Japanese Prime Minister in 1994. Japanese work culture and its resultant economic miracle has been perfumely influenced and moulded by her operation of NSI .Its NSI has been emulated by South Korea, Taiwan, Singapore and Malaysia in particular in her “Look East Policy”. In the 1990 survey, the city-folks in Japan were ascertained to be one of the top cities to score in economic attainment as well as in the social well-being of the labour force. Japanese concensus decision making, harmonious employer-employee relationship, non-confrontational in-house union, appreciative whole-life employment, intimate social intercourses in cafes after work hours and other excellent fringed benefits are mirrored in their excellent economic and social indicator of NSI. Japan is actually a supermodel on the implementation and operation of NSI. NSI is Japanese version of Buddhist model of GNH. Its execution and practice are facilitated by the Japanese culture of Buddhism, Confucianism and Taoism which were all imported from imperial China. The December 7, 1981 issue of Japanese Times reported thus:
If GNH is applied and operated in USA, European Union, Russia, Australia, Brazil, Korea and so forth, I have a strong conviction that their citizenry will elevate themselves to be much more progressive economically and happier spiritually . As GNH is non-sectarian and promotes life satisfaction from better quality of life, it is universally applicable in all countries. GNH is merely an improvement upon the classical GNP in measuring economic performance and happiness of the citizentry. Dharma generates happiness; happiness generates concentration; concentration engenders insight. Insight deepens happiness and motivates more active economic concrescence or collective economic growth. When the world resonates with Dharma, Tao or the knowledge of God, the concrescence of the world is absolutely assured. It is the sole way to get out from the deep pit of global woes of financial crisis, ecocrisis , wars in Iraq and Afghanistan, international terrorism, violent street demonstration, and internecine conflicts. The internecine conflicts divide ethnic and social groups disrupting peaceful co-existence in many apparent peaceful developing and underdeveloped countries in Africa and Asia. Even Japanese TDK company’s overseas branches have been severely affected by the 2008-2009 financial crisis in U.S and E.U. The current global economic recession has resulted in the negative concrescence of the world. A multitude of renowned Japanese companies are being eroded financially by the financial meltdown in U.S. Generally, global economic concrescence is being retarded . The Buddhist law of Dependent Co-arising teaches that when A is present , B is also present; when A is absent; B is also absent. Therefore , the Truth of Process Reality , the cornerstone of GNH, should be seriously considered as one of the economic packages to rescue the victims of current financial meltdown. Eventually , the key idea of sustainable development conceived in the Buddhist Economics is adopted by the United Nations. It is not amazing that U.N has followed up and has been helping promote and foster the political ideology of sustainable development. Sustainable development is one of the offsprings of Buddhist economics of GNH to save our mother planet and our future generations. I always conceive UN as the chief political backyard ‘bodhisattva’ of the modern world . The unity of UN is sacred and dear as it is the unity of the ‘ best and brightest heads and altruistic compassionate hearts of the world supported by a large team of U.N savants, scholars or intelligentsia. Buddhist economics and GNH are non-sectarian as it is constructed upon the communal truth of dependently co-arisen non-dual unity of existence – the interrelatedness and interconnectedness of the global village of the earth community. All economic activities are never alienated from the mother earth and its inhabitants of human family and non-human family. This concept of universal unity of all beings, biotic or abiotic is Buddhistly designated as the Dharma realm of Unity of cosmic Self (Dharmadhātu-pratītyasamutpāda). Monotheistically put, the universal unity of existence (Ara.: Tawḥīd; waḥdat al wujūd) is God. This cosmic Unity of the earth community is the communal Truth of Wisdom expounded by all world’s major religions, such as Hinduism, Taoism, Buddhism , Christianity , Judaism and Islam . Instead of being designated as the GNH of Buddhist Economics, it can alternatively be designated as Vedāntin Economics, Taoist Economics, Christian Economics, or Muslim Economics. The designations may be dissimilar exoterically. However, esoterically, they are identical in quintessence of the Process Reality. It may be more comfortably and communally designated as the Universal Economics striving for a more wholesome planet free from financial crisis, ecocrisis, wars, terrorism,, extremism, sectarianism, violence and demonization of others . Most importantly, Universal Economics of GNH liberates us from greed, hatred, delusion, pride, doubt and conceit – the six causes of human epi vexation and anguish . The secularists generally misconstrue that economics (secularity) and religion (spirituality) can not mix well just like water and oil. I have reiterated often in the Deer Park and Bodhi Journal that secularity and spirituality are not mutually impeded. They mix well like water and milk. Their interrelationship is like the metaphor of waves and the ocean. In actuality, they interpenetrate if one has developed the wisdom of Truth - Emptiness or knowledge of God . H.H.Dalai Lama corroborates my reiteration thus : Finding a way to connect economics and altruism is most difficult. However, these two fields can and should meet on global and individual levels. Esoteric knowledge of religion is perfection of wisdom. Secularity is food for the spirituality; spirituality is food for secularity. The world of earth is bipolar Process Reality of interdependence and integration between the secularity and spirituality. Even monks or nuns who have renounced and have gone forth from home to homeless cannot abandon the secular life. Devotees’ offerings of the four important requisites of food , robes, shelter and medicine are secular activities . Furthermore, interaction with lay devotees, travels, dhamma , computer, transport, books, health, preaching the Dhamma, chanting, assemblies and so on are secular activities of the Saṅgha members . Without development of penetrative wisdom of the knowing the Truth or Principle, all secular activities are our foes. With the penetrative wisdom of Truth or Principle, the foes become our friends supporting us all along everywhere at all times. In the world of economic activities in which the mesmeric money, wealth and power dwell mesmerizing us. Without the insightful wisdom of Truth or Principle, we can fall into the pit of global crisis. In fact, the world has already been plunged into the pit of financial crisis and faltering global economy. The downfall is caused human divorce from the eternal Truth or Principle of Interconnected co-existence. Gotama Buddha and all first class saints or gnostics preach that secularity and eternal Principle interpenetrate and co-exist. Separating secularity from spirituality is sinful or unskillfully kammatic. Separation from the Truth or Principle invites vexation and suffering. References :
Supportive Wisdom:
   
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