Economic woes and Buddhist view

It may be opportune to look at alternatives to neo-liberalism when the global poverty is on the rise and the rich are exploiting labour and environment to accumulate wealth. Sri Lanka too is in the grip of an economic crisis and has become totally dependent on foreign aid for existence. There is the looming danger of it being made into a colony/military base of the powerful countries. Sri Lanka must try and stand on its own feet and achieve self-sufficiency as far as possible in the areas of essentials for life. What the Buddha said about management of finances of individuals as well as countries could be relevant today as it was in his time.

The economy in the developed countries, particularly in the West, seems to be in deep crisis and its repercussions are felt worldwide. Some say this is due to poor management and wrong government policy. Others say there is an intrinsic fault in capitalism which needs to be dismantled if solutions are to be found (R.A. Postner, P. Mattick, J Sachs). Sri Lankan Prof. J. W. Wickramasinghe in his book titled “End of Economic Science and beginning of people friendly economics” draws heavily from Buddhist Discourses to support his views on how Buddha argued that greed was the cause of all economic ills like income inequality, poverty, conflict and wars all of which are rampant today. It is time the Buddhist point of view in this regard is taken into consideration.

First, let us look at what Richard Posner has to say about this matter. He is one of the most respected judges in the US, famous for his advocacy of free–market. Posner was at one time considered the late Daniel Patrick Moynihan’s successor as the country’s leading proponent of free-market capitalism. Posner has changed his posture after realising the ills of capitalism.

In his book titled “Failure of Capatalism” (2009), he calls for the development of alternatives to capitalism. His thesis is not that government, politicians or bankers primarily caused the depression, but rather that the capitalist system is to blame for its own fault. He says quite categorically ‘the financial crisis is indeed a crisis of capitalism rather than a failure of government.’ Paul Mattic, whose book titled “Business As Usual – The Economic Crisis and The Failure of Capitalism” has been acclaimed as the best written about the present crisis expresses similar views. Jeffry Sachs (2011) one of America’s best-known economists has commented on greed in his new book, “Price of Civilization…”. He says lot of pent up greed has been released in the American society resulting in harmful consumerism.

From the Buddhist point of view, however, it is human greed which is the primary causative factor and not capitalism. Capitalism is the effect rather than the cause. Western thinkers say the opposite; capitalism is the cause and greed is the result. This is a misconception and solutions based on it are bound to fail. Marxism which was an alternative to capitalism failed because the basic fault had not been identified. Human greed is not a secondary character that comes to occupy the mind due to environmental factors. Rather it is a primary feature that is entrenched in the consciousness (vijnana) which according to Buddhism needs to be got rid of to achieve enlightenment.

The greed for, and the attachment to, arise not only for sense, pleasures, wealth and power, but also for ideals, theories and conceptions like capitalism which had led to war. Greed has one force as its effect – the force to continue. Greed that cannot be satisfied or contained is the result. The acquisitive culture that is seen in the world at present is the result of this force.

According to Buddha’s analysis all the troubles and strife in the world, from little personal quarrels to great wars arise out of greed (Majjhima Nikaya). From this point of view all economic political and social problems are rooted in this selfish greed (Walpola Rahula).

Distribution of wealth in the form of donation and other kinds of sharing is the cornerstone of Buddhist economics. In his book mentioned above Wickramasinghe quotes the Sedaka Sutta (Sanyuktta Nikaya) to say that protection of others is the protection of oneself, since it obviates the need for measures to protect one’s wealth and person. “Apart from the mental satisfaction one derives from a donation, it reduces the cost of enjoying wealth,” he observes.

The Buddha laid out four principles for the use of wealth:

1. To make one’s mother and father, children and wife, servants and workmen, and friends and comrades, happy and cheerful.

2. To make oneself secure from misfortunes.

3. To make offerings to relatives, guests, the ancestors and deities.

4. To give gifts to ascetics and Brahmins.

From the above it is clear that Buddha had a policy for the equal distribution of wealth. Dana (alms) in Buddhism should be practiced not to accrue merit for the next birth as modern-day Buddhists do but as the first step in the three measures Dana, Seela, Bhavana that should be practiced to get rid of Loba (greed). The social relevance of Buddha’s advice is clear, his economic policy was socialist, Dana and also Seela to some degree have socialist elements and if deligently practised by individuals, corporate world and governments the present ills, evil and cruelty that ravages the world would abate. A system of economics could be developed in each country based on these principles.

Sri Lanka in the past in its rich civilisation had such a system, details of which have been well elucidated in Dr. Gunadasa Amarasekera’s”Sabyathva Rajyak Kara (Towards a Civilisational State). Our civilisation is based on Buddhism and its tenets were reflected in every aspect of life in the past including most importantly the economy. Though things have changed due to colonisation it may not be too late to revive the systems that existed in the past and develop our own National Economy based on those principles. That is the only way to escape from the “debt trap”, the two words that forbode a grim future for us as well as the whole world.

The Buddha did not advise the removal of the material world from the six senses of the being as a solution to the problem. Rather he advocated the development of a detached attitude towards the temptations of the material world. The major part of his preaching, the way of life he showed by example and the ‘sanga samajaya’ he developed were aimed at producing a nonattached person and consequently a nonattached society. This dhamma is more relevant to the world today than at any other time, engulfed as it is in an all-consuming capitalism with all its evils grown to their zenith.

N. A. de S. Amaratunga