APPLICATION OF BUDDHIST ECONOMICS IN PREVENTION OF GLOBAL CREDIT CRISIS

APPLICATION OF BUDDHIST ECONOMICS IN PREVENTION OF GLOBAL CREDIT CRISIS


ANKUR BARUA, DIPAK KUMAR BARUA, M.A. BASILIO


The Centre of Buddhist Studies, The University of Hong Kong &
Buddhist Door, Tung Lin Kok Yuen, Hong Kong



Address of Corresponding Author:
Dr. ANKUR BARUA
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Email: ankurbarua26@yahoo.com


APPLICATION OF BUDDHIST ECONOMICS IN PREVENTION OF GLOBAL CREDIT CRISIS


Abstract


Globalization is the latest expression of a long-standing strategy of development based on economic growth and liberalization of trade and finance. Globalization leads to the globalization of economy and the homogenization of culture. It can undermine local cultures and disrupt traditional relationships in a society with the assumption that free trade will also to lead to a more democratic society.


An important truth is that no economic system is value-free. Every system of production and consumption encourages the development of certain values and discourages others. So, it is not possible for economics to be free of values when, in fact, it is rooted in the human mind. The economic process begins with want, continues with choice and ends with satisfaction. All of these are functions of the mind. We need to give up our attachments to material wealth and conquer greed and obsession for social recognition at individual level in order to make the economy value free.
Modern Buddhism has become an intrinsic part of a globalized world. With its philosophy of the way of life, it takes special place in human and cultural identity. Buddhism in modern times had already incorporated either other genuine Asian traditions or Western traditions and merged with the socio-cultural backgrounds of many countries across the world. Buddhism stresses the principle of interdependence which is also the foundation of globalization in economic interest.


The practice of ‘Dāna’ or ‘giving’ is the traditional Buddhist way of redistribution of wealth. Dāna is selfless giving. It is giving in the spirit of Non-clinging. Non-clinging is the Wisdom of Insight into the Insubstantiality (Anattā; Nairātmya) or Emptiness (Śūnyatā) of all things. The emphasis on ‘Dāna’ and merit-making is the Buddhist contribution to the healthy and uniform economic globalization.


Key words: Dāna, Globalization, Buddhism, Applied, Redistribution, Wealth, Economy.

APPLICATION OF BUDDHIST ECONOMICS IN PREVENTION OF GLOBAL CREDIT CRISIS



Introduction
Globalization leads to the globalization of economy and the homogenization of culture. It can undermine local cultures and disrupt traditional relationships in a society with the assumption that free trade will also lead to the formation of a more democratic society.1,2 The concept of globalization is important for Buddhism because Buddhism is a global, world faith. Buddhism in modern times had already incorporated either other genuine Asian traditions or Western traditions and merged with the socio-cultural backgrounds of many countries across the world. Buddhism stresses the principle of interdependence which is also the foundation of globalization in economic interest.1,2


A Buddhist Perception of Globalization
Globalization is the latest expression of a long-standing strategy of development based on economic growth and liberalization of trade and finance. This results in the progressive integration of economies of nations across the world through the unrestricted flow of global trade and investment. The mainstream approach is generally rooted in the underlying assumption that globalization brings jobs, technology, income and wealth to societies. In order to make this strategy of globalization successful, all the societies must be willing to submit to the principles of the free market—limiting public spending, privatizing public services, removing barriers to foreign investment, strengthening export production and controlling inflation. However, this is very difficult task to achieve within a short span of time. As a result, most often, globalized production has led to a litany of social and ecological crises: poverty and powerlessness of the majority of people, destruction of community, depletion of natural resources and unendurable pollution.1,2,3



Application of Buddhist Economics in Prevention of Global Credit Crisis
The traditional Buddhist teachings have many important social implications. Buddhism does not separate economic issues from ethical or spiritual ones. The notion that economics is a "social science" related to discovering and applying impersonal economic laws always obscures two important truths. First important truth is that the concept of who gets what and who does not depends on moral considerations. So, production and distribution of economic goods and services should not be left only to the supposedly objective rules of the marketplace. If some people have much more than what they need while others have much less, some sort of redistribution is necessary.1,2,4,5


Thus, the practice of ‘Dāna’ or ‘giving’ is the traditional Buddhist way of redistribution of wealth. Dāna is selfless giving. It is giving in the spirit of Non-clinging. Non-clinging is the Wisdom of Insight into the Insubstantiality (Anattā; Nairātmya) or Emptiness (Śūnyatā) of all things. The emphasis on ‘Dāna’ and merit-making is the Buddhist perspective on the economic globalization.1,2,4,5


The second important truth is that no economic system is value-free. Every system of production and consumption encourages the development of certain values and discourages others. The economic process begins with want, continues with choice and ends with satisfaction. All of these are functions of the mind. Abstract values are thus the beginning, the middle and the end of economics. So it is impossible for economics to be value-free. Yet many economists avoid any consideration of values, ethics or mental qualities, despite the fact that these will always have a bearing on economic concerns.1,2,4,5


At present, without the help from government and industry for boosting a new direction in policy, people are starting to change the economy from the bottom up towards more human-scale structures which are more consistent with the Buddhist viewpoint. This process of localization has begun spontaneously, in countless communities all around the world. Because economic localization means an adaptation to cultural and biological diversity, no single strategy would be applicable everywhere.3,6
The range of possibilities for local grassroots efforts is as diverse as the locales in which they take place. In many towns community banks and loan funds have been set up, thereby increasing the capital available to local residents and businesses. This system is promoting people to invest in their neighbors and their community, rather than in a faceless global economy. In other communities, ‘buy-local’ campaigns are helping locally owned businesses survive even when pitted against heavily subsidized corporate competitors. These campaigns not only help to keep money from leaking out of the local economy, but also help educate people about the hidden costs in purchasing cheaper, but distantly produced products. 3,6


In some communities, Local Exchange and Trading Systems (LETS) have been established as an organized, large-scale bartering system. Thus, even people with little or no ‘real’ money can participate in and benefit from the local economy. LETS systems have been particularly beneficial in areas with high unemployment. The city government of Birmingham, England, where unemployment hovers at 20%, is a co-sponsor of a highly successful LETS scheme. These initiatives have psychological benefits that are just as important as the economic benefits. A large number of people, who were once merely ‘unemployed’ and therefore treated as ‘useless’, are becoming valued for their skills and knowledge.3,6


One of the most exciting grassroots efforts is the Community Supported Agriculture (CSA) movement, in which consumers in towns and cities link up directly with a nearby farmer. In some cases, consumers purchase an entire season’s produce in advance, sharing the risk with the farmer. In others, shares of the harvest are purchased in monthly or quarterly installments. Consumers usually have a chance to visit the farm where their food is grown, and in some cases their help on the farm is welcomed. While small farmers linked to the industrial system continue to fail every year at an alarming rate, CSAs are allowing small-scale diversified farms to thrive in growing numbers. CSAs have spread rapidly throughout Europe, North America, Australia and Japan. In the United States, the number of CSAs has climbed from only two in 1986 to 200 in 1992, and is closer to 1,000 today.3,6


Buddhism provides us with both the imperative and the tools to challenge the economic structures that are creating and perpetuating suffering the world over. We cannot claim to be Buddhist and simultaneously support structures which are so clearly contrary to Buddha’s teachings, unethical to life itself. The economic and structural changes needed should involve rediscovering the deep psychological benefits of joy of being embedded in the community and this fundamental shift would also involve the reintroduction of a sense of connection with the place where we live. Buddhists in China also faced with this same reality earlier.4,5,7

Thus, over the time Buddhism became more focused to become engaged. However, as the Buddha taught, our spiritual awakening comes from making a connection to others and to the nature. This requires us to see the world within us and to experience more consciously the great interdependent web of life. In this way the principles of impermanence and interdependence exhort us to interact with others and with nature in a wise, compassionate and sustainable way.4,5,7



Conclusion
Modern Buddhism has become an intrinsic part of a globalized world. With its philosophy of the way of life, it takes special place in human and cultural identity. Buddhism shows us the possibility of a better way of leading a stress-free life. However, from a materialistic perspective and the "social science" of economics, such philosophical and spiritual understanding of life are considered as superstitious and escapist.4,5,7 The teachings of the Buddha are based on a different way of understanding the relationship between ourselves and the world. From the Buddhist perspective, economic growth and consumerism are unsatisfactory alternatives because they evade the basic problem of life, which is suffering, by distracting us with symbolic substitutes such as money, status and power.


References

1. Quang, T.T. 2009. Buddhism and Globalization. Bliss and Growth. Blag Biz.
2. Loy, D. 2007. A Buddhist View of Globalization. Buddhist Peace Fellowship. Japan: Bunkyo University.
3. Power, G. 1997. Globalization and its Discontents in Development. The Journal of the Society for International Development 40(2).
4. Hodge, H.N. 2009. Buddhism in the Global Economy. Berkeley, US: ISEC.
5. Payutto, P.A. 1994. Buddhist Economics: A Middle Way for the Market Place. (translated by Dhammavijaya and Bruce Evans) Second Edition. Bangkok: Buddhadhamma Foundation.
6. Schumacher, E.F. 1975. Small is Beautiful: Economics as if People Mattered. New York: Harper.
7. Sizemore, R.F., Swearer, D.K., ed. 1990. Ethics, Wealth and Salvation: A Study in Buddhist Social Ethics. Columbia, South Carolina: University of South Carolina.