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ECONOMIC CRISIS
ANKUR BARUA
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APPLIED BUDDHISM IN PREVENTION OF GLOBAL
ECONOMIC CRISIS
Abstract
on economic growth and liberalization of trade and finance. Globalization leads to the
cultures and disrupt traditional relationships in a society with the assumption that 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
3
An important truth is that no economic system is value-free. Every system of production
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. 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
on ‘Dāna’ and merit-making is the Buddhist contribution to the healthy and uniform
economic globalization.
Economy.
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APPLIED BUDDHISM IN PREVENTION OF GLOBAL
ECONOMIC CRISIS
Introduction
The issue of globalization is directly or indirectly affecting all our lives. Globalization
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.
Unfortunately, the effects of the globalization of business and trade are often disastrous
for underdeveloped nations. These nations provide the raw materials and cheap labor
which are necessary to make globalization prosperous for the more developed nations.
Though there are successes in the process of globalization, there is much unrest in the
poor and underdeveloped nations which are deep in debt and suffer internal conflict,
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
5
A Buddhist Perception of Globalization
on economic growth and liberalization of trade and finance. This results in 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
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
unendurable pollution.1,2,3
When we evaluate an economic system, we should consider not only how efficiently it
produces and distributes goods, but also its effects on human values, and through them
its larger social effects. The collective values that it encourages should be consistent
with the individual Buddhist values that reduce the Dukkha. As the individual and social
values cannot be delinked, the crucial issue remains as whether our economic system
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Much of the philosophical reflection on economics has focused on questions about
human nature. Those who defend market capitalism argue that its emphasis on
competition and personal gain is grounded in the fact that humans are fundamentally
self-centered and self-interested. Critics of capitalism argue that our basic nature is
more cooperative and generous that is, we are naturally more selfless.3,4
Buddhism avoids that debate by taking a different approach. The Buddha emphasized
that we all have both unwholesome and unwholesome traits (kusala / akusalamula).
The important issue is the practical matter of how to reduce our unwholesome
characteristics and develop the more wholesome ones. This process is symbolized by
the lotus flower. Although rooted in the mud and muck at the bottom of a pond, the lotus
grows upwards to bloom on the surface, thus representing our potential to purify
poisons" or three roots of evil: lobha - greed, dosa - anger and moha - delusion. The
goal of the Buddhist way of life is to eliminate these roots by transforming them into their
positive counterparts: greed into generosity (Dāna), anger into loving-kindness (metta),
Economists talk about demand, but their concern to be objective and value-neutral does
not allow them to evaluate different types of demand. The "engine" of the economic
process is the desire for continual profits and in order to keep making those profits
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people must consume more. Harnessing this type of motivation has been extraordinarily
Institute, more goods and services were consumed in the forty years between 1950 and
1990 (measured in constant dollars) than by all the previous generations in human
history. According to the United Nations Human Development Report for 1999, the
world spent at least $435 billion the previous year for advertising, plus well over $100
billion for public relations and marketing. The result is 270 million "global teens" who
now inhabit a single pop-culture world, consuming the same designer clothes, music
While this growth has given us opportunities that our grandparents never dreamed of,
we have also become more sensitive to the negative consequences such as its
staggering ecological impact and the worsening mal-distribution of this wealth. A child in
the developed countries consumes and pollutes 30 to 50 times as much as a poor one
in an undeveloped country, according to the same UNHDR. Today 1.2 billion people
survive on less than a dollar a day and almost half the world's population live on less
than two dollars a day. The 20% of people in the richest countries enjoy 86% of the
world's consumption, the poorest 20% only 1.3%. Thus, the gap of globalization is
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From a Buddhist perspective, the fundamental problem with consumerism is the
delusion that genuine happiness can be found this way. If insatiable desires (tanha) are
the source of the frustration (dukkha) that we experience in our daily lives, then such
consumption, which distracts us and intoxicates us, is not the solution to our
unhappiness but one of its main symptoms. That brings us to the final irony of this
Americans who considered themselves happy peaked in 1957, despite the fact that
consumption per person has more than doubled since then. At the same time, studies of
U.S. households have found that between 1986 and 1994 the amount of money people
think they need to live happily has doubled. That seems paradoxical, but it is not difficult
to explain. When we define ourselves as consumers, we can never have enough. For
reasons we never quite understand, consumerism never really gives us what we want
from it; it works by keeping us thinking that the next thing we buy will satisfy us.4,5,7,8
Higher incomes have certainly enabled many people to become more generous, but this
has not been their main effect, because capitalism is based upon a very different
principle: that capital should be used to create more capital. Rather than redistributing
our wealth, we prefer to invest that wealth as a means to accumulate more and spend
more, regardless of whether or not we need more. In fact, the question of whether or not
we really need more has become rather quaint; you can never be too rich.4,5,6,8
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This way of thinking has become natural for us, but it is uncommon in societies where
advertising has not yet conditioned people into believing that happiness is something
you purchase. International development agencies have been slow to realize what
anthropologists have long understood. In traditional cultures, income is not the primary
criterion of well-being and sometimes it is not even a major one. The person who is
Our obsession with economic growth seems natural to us because we have forgotten
the hierarchy of "needs" that we often take for granted. We project our own values when
we assume that a person must be unhappy by presuming that the only way to become
Buddhism. This is expressed better in a Tibetan Buddhist analogy. The world is full of
thorns and sharp stones (and now broken glass too). What should we do about this?
One solution is to pave over the entire earth, but a simpler alternative is to wear shoes.
"Paving the whole planet" is a good metaphor for how our collective technological and
we will not be satisfied even when we have used up all the earth's resources. The other
solution is for our minds to learn how to "wear shoes," so that our collective ends
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Our evangelical efforts to economically "develop" other societies, which cherish their
own spiritual values and community traditions, might be viewed as a contemporary form
limited but our desires are infinitely expandable. As we know, desire leads to frustration
and it is a major cause of anger and hatred. Without self-limitation desire also becomes
a cause for conflict. From a Buddhist point of view, our economic emphasis on
competition and individual gain encourages the development of anger and hatred in the
mind rather than cultivating the loving-kindness. A society where people do not feel that
they benefit from sharing with each other is a society that has already begun to break
down. The Buddha warned against negative feelings such as envy (issa) and avarice
(macchariya). Issa becomes intense when certain possessions are enjoyed by one
section of society while another section does not have the opportunity to acquire them.
Macchariya is the selfish enjoyment of goods while greedily guarding them from others.
The globalization of market capitalism is a victory for "free trade" over the inefficiencies
of protectionism and special interests. Free trade seems to realize in the economic
sphere the supreme value that we place on freedom. It optimizes access to resources
and markets. But despite its success, it is only one historically-conditioned way of
understanding and reorganizing the world. However, if we view "free trade" from a
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helps us to see presuppositions usually taken for granted. The Buddhist critique of a
inevitable.1,2,3
The critical stage in the development of market capitalism occurred during the industrial
revolution (1750 1850 in England), when new technologies led to the "liberation" of a
critical mass of land, labor, and capital. They became understood in a new way for
commodities to be bought and sold. The world had to be converted into exchangeable
"resources" for market forces to interact freely and productively. But it was strongly
resisted by most people at the time and was later successfully implemented only
because of strong government support for it. For those who had capital to invest, the
industrial revolution was very profitable. But for most people industrial commoditization
seems to have been experienced as a tragedy. The earth became commoditized into a
work time and was also priced according to supply and demand. All these became
From a religious perspective, when things become treated as commodities they lose
between humans and the rest of the world. All value is created by our goals and
desires. The rest of the world has no meaning or value except when it serves our
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purposes. This now seems quite natural to us, because we have been conditioned to
think and live this way. For Buddhism, however, such a dualistic understanding is
delusive. The world is a web; nothing has any reality of its own apart from that web,
challenges our usual sense of separation from the world. The feeling that ‘I am here and
the world is out there’, is at the root of our Dukkha and it alienates us from the world
where we live. This non-dual interdependence of things was experienced by the Buddha
when he became enlightened. The Buddhist path works by helping us to realize our
interdependence and non-duality with the world and to live in harmony with it.5,6,7,8
The traditional Buddhist teachings have many important social implications. Buddhism
does not separate economic issues from ethical or spiritual ones. The notion that
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.1,2,5,8
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Thus, the practice of ‘Dāna’ or ‘giving’ is the traditional Buddhist way of redistribution of
(Śūnyatā) of all things. The emphasis on ‘Dāna’ and merit-making is the Buddhist
The second important truth is that no economic system is value-free. Every system of
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
mental qualities, despite the fact that these will always have a bearing on economic
concerns.1,2,5,8
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
the world. Because economic localization means an adaptation to cultural and biological
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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
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. In some communities, Local Exchange and Trading
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
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
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
sharing the risk with the farmer. In others, shares of the harvest are purchased in
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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
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
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. 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
interact with others and with nature in a wise, compassionate and sustainable way.5,6,8
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Conclusion
Buddhism shows us the possibility of a better way of leading a stress-free life. 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. However, from a materialistic perspective and the "social science" of
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. Some
scholars recommend ‘Post-Buddhism’ as a proper term for the new infusion of ideas
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References
1. Quang, T.T. 2009. Buddhism and Globalization. Bliss and Growth. Blag Biz.
5. Payutto, P.A. 1994. Buddhist Economics: A Middle Way for the Market Place.
Buddhadhamma Foundation.
6. Sizemore, R.F., Swearer, D.K., ed. 1990. Ethics, Wealth and Salvation: A Study
Carolina.
7. David R. Loy, "The Religion of the Market" in Visions of a New Earth: Religious
and Dan Maguire (Albany, New York: State University of New York Press, 1999.
8. Hodge, H.N. 2009. Buddhism in the Global Economy. Berkeley, US: ISEC.
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