เศรษฐศาสตร แนวพ ทธ (Buddhist Economics) พระพรหมค ณาภรณ (ป. อ. ปย ต โต P.A. Payutto)

Transcription

1 เศรษฐศาสตร แนวพ ทธ (Buddhist Economics) พระพรหมค ณาภรณ (ป. อ. ปย ต โต P.A. Payutto)

2 เศรษฐศาสตร แนวพ ทธ / Buddhist Economics พระพรหมค ณาภรณ (ป. อ. ปย ต โต) / Phra Brahmagunabhorn (P. A. Payutto) Translated into English by J.B. Dhammavijaya ISBN ฉบ บภาษาไทย พ มพ คร งแรก พ.ศ. ๒๕๓๑ (ม ลน ธ โกมลค มทอง) (ในการพ มพ คร งท ๗ พ.ศ. ๒๕๔๓ ได จ ดปร บร ปแบบเน อหาเด มและเข ยนส วนเพ มต อท ายเป น บทพ เศษ) ฉบ บ ๒ พากย ไทย อ งกฤษ พ มพ คร งแรก พ.ศ. ๒๕๓๗ (คณะกรรมการเอกล กษณ แห งชาต ) พ มพ คร งท ๙ ม นาคม ๒๕๔๘ (เปล ยนแบบต วอ กษร และปร บปร งเพ มเต มเล กน อย) พ มพ คร งท ๑๕ มกราคม ๒๕๕๙ ๓,๐๐๐ เล ม (เพ มเต มเน อหาแปลภาษาอ งกฤษของ บทพ เศษ โดย Robin Moore) - งาน ว สาขบ ชา พ ทธบารม ประจ าป ๒๕๕๙ (ข อม ลสถ ต การพ มพ อย ระหว างการรวบรวมข อม ลเก า ต วเลขท ใช เป นจ านวนข นต า เท าท ปรากฎหล กฐานในป จจ บ น) พ มพ เผยแผ เป นธรรมทาน โดยไม ม ค าล ขส ทธ หากท านใดประสงค จ ดพ มพ โปรดต ดต อขออน ญาตท ว ดญาณเวศกว น ต.บางกระท ก อ.สามพราน จ.นครปฐม ๗๓๒๑๐ พ มพ ท

3 อน โมทนา (เปล ยนท กคร งท ม การพ มพ ใหม )

4 ความเป นมาของหน งส อ เศรษฐศาสตร แนวพ ทธ น เด มเป นปาฐกถาธรรม ซ งได แสดงในมงคลวาร อาย ครบ ๗๒ ป ของ ศาสตราจารย ดร.ป วย อ งภากรณ ท มหาว ทยาล ยธรรมศาสตร เม อว นท ๙ ม นาคม ๒๕๓๑ ม ลน ธ โกมลค มทองได ขออน ญาตต พ มพ เป นเล มหน งส อ คร งแรกในช วงกลางป เด ยวก นน น ต อมา พระภ กษ ชาวอ งกฤษร ปหน งม ความพอใจได แปลเป นภาษาอ งกฤษในช อ เร องว า Buddhist Economics โดยขอใช นามบาล เป นช อผ แปลว า J.B. Dhammavijaya (เจ.บ. ธ มมว ช ย) แล วมอบถวายแก ผ เร ยบเร ยง และม ลน ธ พ ทธธรรมได ขออน ญาต พ มพ เผยแพร คร งแรกในช วงกลางป ๒๕๓๕ เก ดเป นฉบ บพากย ไทย ก บฉบ บพากย อ งกฤษแยกต างหากก น จนกระท งคณะกรรมการเอกล กษณ แห งชาต ได ขอพ มพ ท งสอง พากย รวมเป นเล มเด ยวก นเม อกลางป ๒๕๓๗ ใกล ก นน น Mr. Bruce Evans ชาวออสเตรเล ย และ Mr. Jourdan Arenson ชาวอเมร ก น ม ฉ นทะอยากจะให เร อง Buddhist Economics ครอบคล มเน อหาธรรม ด านเศรษฐก จท ม ในงานเล มอ นของผ เร ยบเร ยงด วย จ งได ขออน ญาตขยายหน งส อ Buddhist Economics น น โดยได ร วมก นเล อกแปลเน อหาบางตอนจากผลงานของผ เร ยบเร ยง ๕ เร อง ในหน งส อ ๔ เล ม นามาจ ดร อยเร ยงให กลมกล นต อเน องเป นเร องเด ยวก น เร องบางส วนท รวมจากหน งส อ ๔ เล มน น มาจาก Buddhist Economics ฉบ บเก า หน งส อพ ทธธรรม คาบรรยายเร อง ทางออกจากระบบเศรษฐก จท ครอบงา ส งคมไทย (ย งต องค นหา พ.ศ. ท พ ด) และข อเข ยนเม อคร งไปเป นว ทยากรท Harvard University ซ งได บรรยายในการประช มทางว ชาการท University of California at Berkeley เม อป 1981 เร อง "Foundations of Buddhist Social Ethics" ท ผ จ ดพ มพ ในอเมร กาขอนาไปพ มพ เป น Introduction ของหน งส อ Ethics, Wealth and Salvation (พ มพ เผยแพร โดย University of South Carolina Press ในป 1990) ผลงานใหม น ผ รวบรวมท งสองจ ดทาเป น 2 nd edition ของหน งส อช อเด มค อ Buddhist Economics แต เต มช อรองลงไปว า A Middle Way for the market place และม ลน ธ พ ทธธรรมได ขออน ญาตพ มพ เผยแพร ในช วงกลางป ๒๕๓๗

5 พระพรหมค ณาภรณ (ป. อ. ปย ต โต) ถ งตอนน จ งม Buddhist Economics ๒ ฉบ บ ซ งม เน อหาตรงและเท าก บ พากย ไทยเด มเฉพาะฉบ บ 1 st edition ส วนฉบ บ 2 nd edition ม เน อหาเพ มเต ม ต อมา สาน กพ มพ Fischer Media ในเยอรมน ได ส งหน งส อภาษาเยอรม นเล ม หน งมาถวาย พ มพ ในป 1999 ช อว า Buddhistische Ökonomie แปลโดย Dr. Mirko Frýba ปรากฏว าแปลจาก Buddhist Economics น นเอง (ฉบ บ 2 nd edition) ทางสาน กพ มพ ไม ได ขออน ญาตก อน คงค ดว าเจ าของไม หวงล ขส ทธ ทาเสร จแล วค อยบอกก ได (ท จร งไม หวงค อไม ร บค าตอบแทน แต ก ต องขอร กษาความถ กต องแม นยา) และต อมาส งเอกสารมา ให ด ว าหน งส อน นได เป น Top Seller (เร ยกตามคาเยอรม น) แต ทางเราย งจะต องตรวจด อ ก ความเปล ยนแปลงสาค ญ ค อ เม อ พ.ศ. ๒๕๔๓ ผ เร ยบเร ยงเองได ปร บปร ง และเพ มเต ม เศรษฐศาสตร แนวพ ทธ ฉบ บเด มพากย ไทย พ มพ คร งท ๗ โดยจ ดปร บ ร ปแบบในเน อเล มเด ม และเข ยนส วนเพ มต อท ายเป น บทพ เศษ: หล กการท วไปบาง ประการของเศรษฐศาสตร แนวพ ทธ (เศรษฐศาสตร ม ชฌ มา) ทาให หน งส อพากย ไทยท พ มพ ใหม น ม เน อหามากกว าฉบ บแปลภาษาอ งกฤษเด ม แต ก ไม เก ยวเน องก บ Buddhist Economics ฉบ บ 2 nd edition อย างใดเลย ต อมาในป ๒๕๔๖ บร ษ ท ส อเกษตร จาก ด ได ขอพ มพ เศรษฐศาสตร แนวพ ทธ รวมในหน งส อช อ สลายความข ดแย ง น ต ศาสตร -ร ฐศาสตร -เศรษฐศาสตร แนวพ ทธ โดยคงเน อหาตามฉบ บพ มพ คร งท ๗ น บว าเป นการพ มพ คร งท ๘ ส วนในการพ มพ คร ง ใหม น (ท ๙/๒๕๔๘) ได ถ อโอกาสปร บปร งเพ มเต มเล กน อย โดยเฉพาะในท าย "บทพ เศษ" รวมความว า เวลาน หน งส อ เศรษฐศาสตร แนวพ ทธ และ Buddhist Economics ของผ เร ยบเร ยง ม หลายฉบ บ ซ งม เน อหามากน อยไม เท าก น ขอทาความเข าใจว า เศรษฐศาสตร แนวพ ทธ เล มท ท านผ อ านถ ออย น ค อฉบ บท ปร บปร ง-เพ มเต มในการพ มพ คร งท ๗ (๒๕๔๓) และคร งน (ท ๙/๒๕๔๘) ส วน Buddhist Economics เป นฉบ บเด ม 1 st edition ท แปลโดย J.B. Dhammavijaya (๒๕๓๕) พระพรหมค ณาภรณ (ป. อ. ปย ต โต) ๑๔ ก มภาพ นธ ๒๕๔๘ ค

6

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9 เศรษฐศาสตร แนวพ ทธ (ฉบ บพ มพ ใหม เร มจาก พ.ศ. ๒๕๔๘)

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45 (.. ) leisure work labor leisure - * * work "Einstein is not... merely an artist in his moments of leisure and play, as a great statesman may play golf or a great soldier grow orchids. He retains the same attitude in the whole of his work. He traces science to its roots in emotion, which is exactly where art is also rooted." - Havelock Ellis ( ), British psychologist. The Dance of Life, ch. 3 (1923). "Industrial man a sentient reciprocating engine having a fluctuating output, coupled to an iron wheel revolving with uniform velocity. And then we wonder why this should be the golden age of revolution and mental derangement." - Aldous Huxley ( ). Bruno Rontini s notes, in Time Must Have a Stop, ch. 30 (1944). "Work to survive, survive by consuming, survive to consume: the hellish cycle is complete." - Raoul Vaneigem (b. 1934), Belgian Situationist philosopher. The Revolution of Everyday Life, ch. 7, sct. 2 (1967; tr. 1983). [ The Columbia Dictionary of Quotations, 1993]

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99 Buddhist Economics Phra Brahmagunabhorn (P. A. Payutto) Translated by J.B. Dhammavijaya

100 Buddhist Economics by Phra Brahmagunabhorn (P. A. Payutto) translated by J.B. Dhammavijaya ISBN Wat Nyanavesakavan This book is available for free download at: You are free to copy, distribute, transmit, or display this work under the following conditions: the work must be attributed to the author and the translator; you may not alter, transform, or build upon this work. If you are interested in reprinting or publishing this work, or translating this work into another language, please contact: Wat Nyanavesakavan Bangkratheuk, Samphran, Nakhonpathom, Thai edition first published: 1988 English edition first published: 1992 (by the Buddhadhamma Foundation) Revised original English edition first published: 2016 Typeset in: Crimson, Gentium, Open Sans and TF Uthong. Cover design by: Phrakru Vinayadhorn (Chaiyos Buddhivaro) Layout design by: Phramaha Supapong Dhammadinno Printed by:

101 Anumodanā

102 Origin of this Book The Thai version of Buddhist Economics (เศรษฐศาสตรร แนวพพ ทธ) was originally a Dhamma Talk given on the auspicious occasion of Prof. Dr. Puey Ungpakorn s 72 nd birthday celebration at Thammasat University on 9 March The Komol Keemthong Foundation asked permission to print it as a book for the first time in the middle of that same year. Later, an English bhikkhu, using the pen name J.B. Dhammavijaya, translated the text into English under the title Buddhist Economics, and offered this translation to the original author. The Buddhadhamma Foundation asked permission to publish this English version for distribution in There were thus two versions: a Thai version and an English one. In 1994, the Committee of National Identity asked to print a bilingual edition of this text. Around the same time, Mr. Bruce Evans from Australia and Mr. Jourdan Arenson from the United States expressed the wish for the book Buddhist Economics to incorporate teachings on economics contained in some of my other books. They therefore asked permission to expand this book, by jointly translating five sections from four separate books and compiling it into one integrated text. This extra material came from the following books: the original Thai text of Buddhist Economics; two sections from Buddhadhamma; and A Way Out of the Economic Bind on Thai Society (ทางออกจากระบบเศรษฐกก จทท ครอบ งา สส งคมไทย). Other material came from a lecture I wrote while spending time at Harvard University as a guest speaker, and which I presented at an academic conference at the University of California, Berkeley in 1981 under the general theme of Foundations of Buddhist Social Ethics. The publishers in America asked to publish this lecture as the Introduction in the book Ethics, Wealth and Salvation (University of South Carolina Press, 1990).

103 This new work prepared and compiled by these two individuals became the 2 nd English edition of the book Buddhist Economics, with the subtitle A Middle Way for the Market Place. The Buddhadhamma Foundation again asked permission to print and distribute it, in There are thus two English editions of Buddhist Economics. The first one contains the same material as the original Thai edition; the second one contains additional material. At a later date, the publishing house Fischer Media in Germany sent us a German book published in 1999 titled Buddhistische Ökonomie translated by Dr. Mirko Frýba. It turns out that they had translated this text from the 2 nd English edition of Buddhist Economics. The publishing house had not asked permission; they probably assumed that the original author was not possessive of the copyright; it would thus be okay to publish first and then inform the author. (It is true that I am not possessive, i.e. I do not receive remuneration, but it is important to maintain integrity and precision in these matters.) They later sent a document showing that this book had been a best seller, although we have yet to substantiate this claim. In 2000 some major changes were made to the Thai version of Buddhist Economics, which was revised and added to. The 7 th impression to this text was reformatted and it contained an appendix: General Principles of Buddhist Economics Middle-way Economics. As a consequence, the Thai version was larger than the 1 st English edition, but it had nothing to do with the 2 nd English version. In 2003 the Ag Mass Media Company asked to publish the complete updated Thai version of Buddhist Economics as part of the larger Thai book titled Dispelling Discord: Buddhist Jurisprudence, Political Science, and Economics (สลายความขส ดแยย ง: นก ตก ศาสตรร แนวพพ ทธ-รส ฐศาสตรร แนวพพ ทธ- เศรษฐศาสตรร แนวพพ ทธ). This text can thus be considered the 8 th impression of Buddhist Economics. In this latest impression (9 th impression; 2005)

104 small revisions and additions were made, especially to the appendix. In sum, the book Buddhist Economics, both the Thai and the English versions, has many editions, with varying length and content. Note that this book that you now have in your hands contains revisions made to the Thai version in 2000 and 2005, whereas the English version is identical to the 1 st English edition translated by J.B. Dhammavijaya in * Phra Brahmagunabhorn (P. A. Payutto) 14 February 2005 * Note that the appendix to the English version was translated by Robin Moore in 2015.

105 Translator s Foreword These days Buddhist meditation techniques are well-known in the West and Buddhist insights into the human condition are, at least in academic circles, exerting a growing influence. Unfortunately the popular image of Buddhism is often an overly-austere one and many people still consider it to teach a denial or escape from worldly concerns into a private, hermetic realm of bliss. However, if we take the trouble to go to the words of the Buddha himself, we find a full and rich teaching encompassing every aspect of human life, with lots of practical advice on how to live with integrity, wisdom and peace in the midst of a confusing world. Perhaps it is time for such teaching to be more widely disseminated. In this small volume, Tan Jow Khun Phra Debvedi (Bhikkhu Payutto) offers a Buddhist perspective on the subject of economics. While not seeking to present a completely comprehensive Buddhist economic theory, he provides many tools for reflection, ways of looking at economic question based on a considered appreciation of the way things are, the way we are. I hope that by making this work available in English it may go at least a short way towards resolving what has been called the current 'impasse of economics', and to awaken readers to the wide-reaching contemporary relevance of the timeless truths that the Buddha discovered and shared with us. Dhammavijaya Bangkok May 1992

106 Table of Contents Buddhist Economics...1 Limitations of Economic Theory in the Industrial Age...4 (1) Specialization...4 (2) Not free of ethics, but inattentive to them...6 (3) Unable to be a science, but wanting to be one...11 (4) Lack of clarity in its understanding of human nature...17 (a) Want...18 (b) Consumption...22 (c) Work and working...22 (d) Competition & Cooperation...25 (e) Contentment and Consumerism...26 The Major Characteristics of Buddhist Economics...31 (1) Middle-way economics: realization of true well-being...31 (2) Not harming oneself or others...36 Technology...37 Summary...38 Appendix: General Principles of Buddhist Economics (Middle-way Economics) Wise Consumption Freedom from Self-harm and from Oppression of Others Economy as a Support Harmony with Human Nature Integration with the Unity of Nature...64

107 Buddhist Economics In a discussion of Buddhist economics the first question that arises is whether such a thing as Buddhist economics actually exists, or whether it is even a possibility. At present the economics that we are acquainted with is a Western one. When talking of economics or matters pertaining to it, we use a Western vocabulary and we think within the conceptual framework of Western economic theory. It is difficult to avoid these constraints when coming to talk about a Buddhist economics. So perhaps we will find ourselves in fact discussing Buddhism with the language and concepts of Western economics. At any rate, by reflecting on this matter we may at least get some food for thought. Even if it is not a true Buddhist economics that is put forth here, it may provide some Buddhist perspectives on things that may be usefully employed in economics. In the mid- 70 s a Western economist, E.F. Schumacher, wrote a book called Small is Beautiful, the fourth chapter of which dealt with the subject of Buddhist economics. The book as a whole, but especially that chapter, gave many people, both in the East and the West, an interest in those aspects of the Buddhist teachings that relate to economics. We owe a debt of gratitude to Mr. Schumacher for creating that interest. However, if we consider the point more deeply, we may see that both the writing of Small is Beautiful, and the subsequent interest in Buddhist economics shown by Western academics, took place in response to a crisis. At the present time, Western academic disciplines and conceptual structures have reached a point which many feel to be a dead end, or if not, at least a turning point demanding new paradigms of thought and methodology. It is felt that the presently existing disciplines are unable to completely resolve the problems now facing the world new ways must be found. Such feelings have prompted a number of people to search for ways of 1

108 Buddhist Economics thought outside of their own disciplines, which has led in turn to the interest in Buddhism and other traditional Asian philosophies which is so apparent at this time. In his essay on Buddhist economics Mr. Schumacher looks to the Buddhist teaching of the Noble Eightfold Path to make his case. He affirms that the inclusion of the factor of Right Livelihood in the Eightfold Path, in other words the Buddhist way of life, indicates the necessity of a Buddhist economics. This is Mr. Schumacher s starting point. However the nature of his views, and of Buddhist economics as he sees it, are subjects that I would like to leave for the moment. I would first like to relate a story that appears in the Buddhist scriptures. In fact it is an event which took place in the Buddha s lifetime. It indicates many things about Buddhist economics, which the reader may be able to work out for himself. The story goes like this: one morning while the Buddha was residing in the Jetavana monastery near the city of Sāvatthī, he was able to perceive with his psychic powers that the spiritual faculties of a certain poor peasant living near the city of Āl avī were mature enough for him to understand the teachings, and that he was ripe for enlightenment. It would be appropriate to go to teach him. So later that morning the Buddha set off walking to Āl avī, some 30 yojanas (about 48 km.) away. The inhabitants of Āl avī held the Buddha in great respect and on his arrival warmly welcomed him. Eventually a place was prepared for everyone to gather together and listen to a discourse. However, as the Buddha s particular purpose in going to Āl avī was to enlighten this one poor peasant, he waited for him to arrive before starting to talk. The peasant heard the news of the Buddha s visit, and since he had already been interested in the Buddha s teaching for some time he wanted to go and listen to the discourse. But it so happened that one of 2

109 Phra Brahmagunabhorn (P. A. Payutto) his cows had just disappeared. He wondered whether he should go and listen to the Buddha first and look for his cow afterwards, or to look for the cow first. He decided to look for the cow first and quickly set off into the forest to search for it. Eventually the peasant found his cow and drove it back to the herd, but by the time everything was as it should be, he was very tired. The peasant thought to himself, time is getting on, if I go back home first it will waste a lot of time. I ll just go straight into the city to listen to the Buddha s discourse. Having made up his mind, the poor peasant started walking into Āl avī. By the time he arrived at the place set up for the talk, he was exhausted and very hungry. When the Buddha saw the peasant s condition he asked the city elders to arrange some food for the poor man. When the peasant had eaten his fill and was refreshed the Buddha started to teach and while listening to the discourse the peasant realized the fruit of Stream Entry, the first stage of enlightenment. The Buddha had fulfilled his purpose in travelling to Āl avī. After the talk was over the Buddha bade farewell to the people of Āl avī and set off back to the Jetavana monastery. During the walk back the monks who were accompanying him started to critically discuss the day s events. What was that all about? The Lord didn t quite seem himself today. I wonder why he got them to arrange food for the peasant like that, before he would agree to give his discourse. The Buddha, knowing the subject of the monks discussion turned back towards them and started to tell them his reasons, and at one point in his explanation the Buddha said, when people are overwhelmed, and in pain through suffering, they are incapable of understanding Dhamma. Then the Buddha went on to say that hunger is the most severe of all illnesses and that conditioned phenomena provide the 3

110 Buddhist Economics basis for the most ingrained suffering. Only when one understands these truths will one realize the supreme happiness of Nibbāna. All the major points of Buddhist economics appear in this tale. They will be elaborated on below. Limitations of Economic Theory in the Industrial Age (1) Specialization At the present time economists consider economic activity in isolation, without reference to other forms of human activity or to other academic disciplines. This specialization is one of the characteristics of development in the Industrial Age. Consequently, when looking at human activity, economists try to eliminate all noneconomic aspects or standpoints from their considerations and concentrate on a single perspective: that of their own discipline. The isolation of economic questions from their wider context may be taken to be the primary cause of many of the problems that currently beset us. In Buddhism, economics is not separated from other branches of knowledge and experience. In efforts to remedy the problems of the human race, economic activities are not abstracted from activities in other fields. Economics is not seen as an independent, self-contained science but as one of a number of interdependent disciplines working within the whole social/existential matrix. Ostensible economic activities are looked at from a number of different perspectives. Advertising may be taken as an example; speaking in purely economic terms, advertising consists of methods used to persuade people to buy things. It leads to a rise in sales but as costs are increased makes goods become more expensive. But advertising is also bound up with popular 4

111 Phra Brahmagunabhorn (P. A. Payutto) values: advertisers must draw on common aspirations, prejudice and desires in order to produce advertisements that are appealing. Social psychology is employed to utilize popular values for economic ends. Advertising also has an ethical significance because of its repercussions on the popular mind. The volume of advertising may cause an increase in materialism, and inappropriate images or messages may harm public morality. On the political plane, decisions have to be made regarding policy on advertising should there be any control, and if so, of what kind? How is one to achieve the proper balance between moral and economic concerns? Education is also involved. Ways may have to be found to teach people to be aware of how advertising works, to reflect on it, and to consider how much of it is to be believed. Good education should seek to make people more intelligent in making decisions about buying goods. So the subject of advertising demonstrates how activities prevalent in society may have to be considered from many perspectives, all of which are interrelated. Specialization can be a great benefit so long as we don t lose sight of our basic goal. The various disciplines are intended to be different constituents of a complete response to human problems. If the extent of each discipline s responsibility is fully determined, then that responsibility can be fulfilled and the point of contact between disciplines be more clearly defined. Then a more concerted effort to relieve human suffering will be possible, one which will have better results than are being achieved at present. The error lies in our pride, taking our own discipline to be capable of solving all difficulties by itself. Not only is it a mistaken notion but it prevents a successful solution of the problems at hand. If this point is accepted then we must find exactly where economics connects with other sciences, disciplines, and human activities. Where does economics connect with 5

112 Limitations of Economic Theory in the Industrial Age education, and ethics, in dealing with human problems? If these points of contact can be clarified then it would be possible to find the true value of specialization. Mr. Schumacher s point that the existence of Right Livelihood as one of the factors of the Eightfold Path necessitates a Buddhist economics has further implications. Firstly, it indicates that Right Livelihood (or economics) must be considered of great importance in Buddhism for it to be included as one of the path factors. It shows that Buddhism accepts the significance of economics. Secondly, and conversely, it means that economics is taken to be merely one amongst a number of factors (traditionally eight) that comprise a right way of life, i.e. one capable of solving the problems facing humanity. (2) Not free of ethics, but inattentive to them A solution to the problems facing humanity requires the presence of many contributing factors, one of which is ethics, a subject of particular relevance to myself as a Buddhist monk. I would like to discuss ethics here in light of its relationship to economics, so that it may serve to illuminate the connection between the different components of a right way of life. We have already seen the great importance of this relationship on a general level, so let us now take a look at some particular cases that illustrate the nature of this relationship and its significance. Ethics (or the lack of them) affect economics both directly and indirectly. If, for example, a particular area is unsafe, if there are robbers, and a lot of violence, and if lines of communication are unsafe then it is obvious that businesses will not invest there, tourists will not want to go there, and so on. The economy of the area is thus adversely affected. This is a phenomenon that is easily observed. 6

113 Phra Brahmagunabhorn (P. A. Payutto) In a public transport system, if the staff, the ticket-collectors and the passengers are all honest then not only will the government receive its full revenue, but it may also be able to save on inspections. If the passengers honesty can be relied upon, then it may be possible to substitute ticket machines for collectors. When people are selfdisciplined and help to keep their surroundings clean and litter-free the municipal authorities may not have to waste so much of their funds on trash-collection and other cleaning operations. Conversely, if businesses are overly greedy and attempt to fatten their profits by using sub-standard ingredients in foodstuffs, e.g. putting cloth-dye as a coloring in children s sweets, substituting chemicals for orange juice, or putting boric acid in meatballs (all of which have occurred in Thailand in recent years), consumers health is endangered. The people made ill by these practices have to pay medical costs. The government has to spend money on police investigations and the prosecution of the offenders. Furthermore, people whose health has suffered work less efficiently, causing a decline in productivity. In international trade, those who pass off shoddy goods as quality merchandise risk losing the trust of their customers and foreign markets as well as the foreign currency obtained through those markets. The freedom of the free market system may be lost through businesses using unscrupulous means of competition; the creation of a monopoly through influence is one common example, the use of thugs to assassinate a competitor a more unorthodox one. The violent elimination of rivals heralds the end of the free market system, although it is a method scarcely mentioned in the economics textbooks. 7

114 Limitations of Economic Theory in the Industrial Age Western companies send medicines to third-world countries that they are forbidden from selling in their own countries. Those so-called medicines endanger the health and lives of any who consume them. In economic terms, it causes a decline in the quality and efficiency of labour while also necessitating increased expenditure on health care, which is a drain on the nation. Businesses use advertising to stimulate desire for their product. Advertising costs are included in capital outlay and so are added to the price of the product itself. Thus people tend to buy unnecessary things at prices that are unnecessarily expensive. There is much waste and extravagance. Things are used for a short while and then replaced, although still in good condition. This is a waste of economic resources and its existence is related to the common penchant for flaunting possessions and social status. Businessmen are able to exploit such desires to make more money out of their customers because people who like to show off their possessions and status tend to buy unnecessarily expensive products without considering their quality. They take snob-appeal as their criteria, considering expense no object. Worse than that there are people in Thailand today who, unable to wait until they have saved enough to afford some new product, rush off and borrow the money, plunging themselves into debt. Spending in excess of earnings has serious ill-effects. Eventually the person s status that the object is meant to exalt, declines, along with the country s economy as its balance of trade with other countries goes into the red. A person in the business world once said to me that in Thailand if one saw a Sikh riding on a motorbike one could safely assume that he was a wealthy man. If he was driving a car one could take it for granted that he was a millionaire. But if one was to go into the provinces one would find that 50% of the Thais who ride motorbikes have bought 8

115 Phra Brahmagunabhorn (P. A. Payutto) them on credit. This economic phenomena is also a matter of social values. It is the same with the purchase of cars. Quite poor people buy cars on borrowed money or pay for them in installments. So there are cars everywhere, which gives rise to the problem of traffic congestion with all its attendant ill effects on the economy until eventually there is turmoil. Economics cannot be divorced from social matters. The love of flaunting and ostentation is prominent in Thailand. Some people, although reasonably well-off, will refuse to pay a few dollars for a ticket to a show. In order to show off their connections they will find a way to get a complimentary ticket. Then they will swagger into the show flashing their free ticket. On such occasions they are not willing to part with even a dollar or two. But the same people, in order to show off their prestige or social standing, may arrange a lavish party for a huge number of people and spend thousands of dollars. This character trait, or this sort of value system, has a great effect on the economy. Sometimes when Western economists come to Thailand and encounter this phenomena they say that it just knocks them flat. They can t see how to solve the country s economic problems. When they meet these strange new mental sets and ways of behavior they are baffled as to how to find a solution. In economic matters we must consider the various factors that have come to be involved with them, an important one of which is confidence or belief. We need to have confidence in the banks, confidence in the stock market. At any time when there is a loss of confidence then the stock market may crash and banks go into liquidation. Even confidence in the sense of belief in the claims of advertisors has effects on the economy. But confidence is also conditioned by other factors. Its presence or absence is often the result of deliberate manipulation by business interests. 9

116 Limitations of Economic Theory in the Industrial Age In the workplace, if the boss is responsible, capable and kind, and commands the confidence and affection of his or her employees, and the employees are harmonious, diligent, and committed to their work, then production will be high. There have been cases where the employer has been such a good person that when their business failed and came close to bankruptcy, the employees sympathetically made sacrifices and worked as hard as possible to make the company profitable again. In such cases, employees have sometimes been willing to take a cut in wages, rather than just making demands for compensation. So abstract human values become economic variables. We can clearly see that industriousness, honesty, devotion to work and punctuality have great effects on both productivity and efficiency. Conversely, boredom, cheating, dishonesty, discrimination, discouragement, conflicts, even private depressions and anxieties have adverse effects on productivity, and this point is important. On a broader level, nationalism is significant. If a sense of patriotism can be instilled into the people, they may be led to refuse to buy foreign goods, even if those goods are of high quality and there are inducements to buy them. People are able to put aside personal desires out of regard for the greatness of their nation and only use things made within their country. They wish to help production so that their country can prosper and become a major force in the world. It may reach the point, as in Japan, where the government has to try to persuade people to buy products from abroad. Nationalism is thus another value system that affects economics. 10

117 Phra Brahmagunabhorn (P. A. Payutto) (3) Unable to be a science, but wanting to be one The large number of examples I have given so far have been intended to demonstrate the intimate and significant effect that ethics and values have on economics. However ethics, i.e. questions of good and bad are only one aspect of Dhamma. * The relationship of Dhamma to economics is not confined to the sphere of ethics. Another way that Dhamma is connected with economics is with regards to the true nature of things, the natural condition of phenomena. In fact this aspect is even more important than ethics, because it concerns the very heart or essence of economics. The word Dhamma is here used to mean the truth, or in other words the complex and dynamic process of cause-and-effects that constitutes our world. If economics does not fully know, understand and address itself to the whole causal process, economic theory will be unable to produce solutions to problems that arise, or produce the salutary effects that it desires. It will be an economics that is not in harmony with the way things are (Saccadhamma). The way things are refers to the nature of nature, i.e. the true mode of existence of phenomena, and it encompasses all aspects of theory and practice. It is not the subject of any particular branch of knowledge, but is the very essence of science or the essence that science seeks to discover. The contemporary trend towards division and separation of the different aspects of a complex subject, one that has even reached treatments of the Dhamma, is a dangerous one and may lead us to stray from the truth. It is another important point that must be understood. * The teachings of the Buddha or the way things are 11

118 Limitations of Economic Theory in the Industrial Age Economics has been said to be the most scientific of the social sciences. Indeed, economists are proud of how scientific their subject is: that they take only those things which can be measured and quantified into their considerations. It has even been asserted that economics is purely a science of numbers, a matter of mathematical equations. In its efforts to be a science, economics tries to eradicate all questions of abstract values as unquantifiable, and seeks to be valuefree. But in opposition to this trend, some critics of economics, even a number of economists themselves, say that actually, of all the social sciences, economics is the most value-dependent. It may be asked how it is possible for economics to be a value-free science when its starting point is the perceived needs of human beings, which are a function of the value-systems of the human mind. Furthermore, the end-point or goal of economics is to answer those perceived needs to peoples satisfaction and satisfaction too is an abstract value. So economics begins and ends with abstract values. Economic decisions concerning production, consumption, etc. are largely value-dependent, as for example in debates over the granting of mining concessions in national parks. Consequently, it is impossible for economics to be value-free, and it is this dependence on values that disqualifies economics from being a complete science. Two further points may be made in this connection, the first being that economic principles and theories are full of unverified assumptions, and that a science cannot be so based. It is an important objection. Secondly, it is not such a good thing for economics to be a science anyway. Science has too many limitations to be able to solve all the problems of humanity. It shows only one side of the truth, that which concerns the material world. If economics actually became a science then it would be pulled along the same pathway as science, and then would be restricted in its ability to remedy human suffering. 12

119 Phra Brahmagunabhorn (P. A. Payutto) The best attitude for economics is to see and accept the truth of things. The attempt of economics to be scientific (i.e. exact and precise) is one of its good points and should be maintained. However, at the same time, for any real or effective answer to human suffering, particularly at the present time which is a turning point for human society, economics should surely open itself up to co-operation with other disciplines. It should cast a wider, more comprehensive eye on the question of values. As soon as values have been accepted as legitimate objects for consideration, then they become factors to be studied in accordance to their proper status, enabling the whole causal process to be seen. But if values are not studied then economics can never be scientific because it cannot develop any understanding of the whole causal process of which values form an integral part. At present economics only accepts certain sorts or aspects of values as being relevant to it. It does not study the whole range of value systems. Errors are made, for instance, in economic forecasting, when the factor of values comes into play at a much more significant level than economics is willing to allow for. To give an example: one principle of economics is that people will only agree to part with something when they can replace it with something that will afford them equal satisfaction. Here an objection might be made that this is not invariably true. Sometimes we can experience a sense of satisfaction by parting with something without getting anything tangible in return, as when parents out of love for their children may give them something as a gift without expecting anything back. They feel satisfied, more so perhaps than if they had received something in return, the cause being of course, the love they feel for their children. If human beings could expand their love of others, not confining it to their own families, but feeling love for all other people then they 13

120 Limitations of Economic Theory in the Industrial Age might be able to part with things without receiving anything in return, and experience more satisfaction than before. They would not only not be deprived of satisfaction, or just receive a compensatory amount, but they would actually experience much more satisfaction. This too is an example of how values can affect economic matters. Another economic principle states that when prices go down, people buy more; when prices go up, people buy less. That is generally the way that things happen. If prices are lowered, peoples purchasing power increases. They buy more, and the number of consumers increases. But that is not always the case. If one knows that the members of a society are given to ostentation and flaunting of possessions as statussymbols, then one can make use of that tendency to induce people to think of expensive goods as trendy. People are led to believe that whoever is able to buy such and such an expensive object will stand out from the crowd and be a member of high society. Then it occurs that the more that one raises the price, the more people buy that commodity, because of their desire to be fashionable or to be identified with a certain social group. In fact, there are numerous examples which economics itself uses to demonstrate how the values of a society determine prices, one of which concerns two men shipwrecked on a desert island. One man has a sack of dried rice and the other a hundred gold necklaces. Ordinarily a single gold necklace would be enough, more than enough, to buy a whole sack of dried rice. But now the two men find themselves stranded on an island with no means of escape and no guarantee of any ship coming along to rescue them. The value of the goods changes. Now the person with the rice might purchase all one hundred gold necklaces for a mere portion of the rice, or he might refuse to make the exchange at all. So the value of goods is a function of demand. 14

121 Phra Brahmagunabhorn (P. A. Payutto) However, what I wish to point out here is that economics must distinguish between the various kinds of demand and deal with the question of the quality of demand. Economics replies that it is not our business, we are only interested in demand, its quality does not concern us. But in fact the quality of demand or want does affect economics. In the example given above there are other possibilities besides trade. The man with the gold necklaces might take advantage of a time when the owner of the rice is not present to steal some or he might just kill the owner in order to get the whole sack. On the other hand, the two men might become friends and help each other out, so that there is no need for any buying or selling or bartering at all; they might just share the rice until it s all gone. It could happen in any of these ways. So factors such as personal morality or emotions such as greed and fear can affect the economic outcome. A demand that does not balk at violence or theft will have different results from one that recognizes moral restraints. In order to show that economics is a science, that it is objective and doesn t get mixed up with subjective feelings and values, economists will sometimes give various examples to back up their arguments. They say, for instance, that a bottle of alcohol and a pot of Chinese noodles may have the same economic value, or that going to a night club may contribute more to the economy than going to listen to a Dhamma discourse. These are truths according to economics. They take no values whatsoever into account. Economics will not look at the benefits or harm that come from a particular commodity, activity, production, consumption, or trade. Neither the vices associated with the frequenting of night clubs nor the knowledge and wisdom arising from listening to a Dhamma talk, are its concern. Others may look at things from those standpoints but economics will have nothing of it. 15

122 Limitations of Economic Theory in the Industrial Age Thoroughly reflecting on the leading cases above one sees that the scientific nature and objectivity of economics is rather narrow and superficial. Economists look at just one short phase of the natural causal process, as if just cutting out the part that they are interested in, without paying attention to the whole stream of causes and conditions in its entirety. This is a characteristic of economics in the industrial era which prevents it from being a true science and from being adequately objective. However certain contemporary trends seem to indicate that economics is starting to expand its vision to encompass more of the causal process, and is consequently moving in accordance with reality. The first thing to consider is what economic costs may arise from harm to the consumer s well-being. Let us return to the example of the bottle of alcohol and the pot of Chinese noodles. We can see that, though their market prices may be the same, their economic costs are not equal. The bottle of alcohol may damage the person s health, forcing him to spend money on medical treatment. The distillery which produced the alcohol will probably have released foul-smelling fumes into the air, which can be dangerous to health, causing cold sores, for instance. The pollution of the environment causes a natural degradation that has economic effects. It may force the government to devote resources to remedying environmental problems. The one who drinks the alcohol might crash his car as a result, incurring more economic costs. And of course there are the detrimental social effects: drinking can cause crime, and crime s costs are very high. Also, intoxication will mean that the one who drinks will have poor mindfulness, making him less efficient at work. Every one of the above points is concerned with economics. They imply the necessity of looking at economic costs on a much wider scale 16

123 Phra Brahmagunabhorn (P. A. Payutto) than at present, not just in terms of market prices. There is now a trend towards including environmental costs in calculations of economic cost. Some economists even include them in the price of the finished product. But it is not really enough. In the case of the bottle of alcohol, apart from the environmental costs there are also the social, moral, and health costs (i.e. crime, efficiency of production, etc.) of which all have economic implications. (4) Lack of clarity in its understanding of human nature Having shown how economics is related to other matters, particularly values, and how it is affected by other things we may now turn to another important problem that of an understanding of human nature. It is an extremely important matter. All disciplines must be founded on an understanding of human nature. If any discipline errs with its understanding, then it will be unable to reach the complete truth and be unable to really solve the problems of humanity. So on the matter of human nature, what is the understanding of economics, and what is the understanding of Buddhism and Buddhist economics? I have already mentioned that economics looks at the phenomena of human demand or want, but looks at only one side of it, refusing to take into account the quality of demand. If that is true, and the quality of demand is a natural phenomena then it means that economics refuses to consider a truth that lies within the nature of things. That being so, then one must further question economics as to how it could be a discipline and how it could give a complete answer to human problems. The only possible defense is that economics is just a specialized discipline that must cooperate with the other relevant disciplines. 17

124 Limitations of Economic Theory in the Industrial Age (a) Want I would like to begin dealing with the subject of human nature by looking at demand or wants. Modern economics and Buddhism both agree that mankind has unlimited wants. There are a great number of sayings of the Buddha concerning this point, e.g. natthi taṇhāsamā nadī - there is no river like craving. Rivers can sometimes fill their banks but the wants of human beings never come to an end. In some places in the Buddhist texts it says that even if money were to fall from the skies like rain, man s sensual desires would not be fulfilled. Elsewhere the Buddha says that if one could magically transform a whole mountain into solid gold ore it would still not provide complete and lasting satisfaction to even one person. Thus, there are a large number of teachings in the Buddhist tradition that deal with the unlimited nature of human want. Here I would like to relate a story that appears in the Jātaka Tales. In the far and ancient past there lived a king called Mandhātu. He was a very powerful ruler, an emperor who is known in legend for having lived a very long life. Mandhātu had all the classic requisites of an emperor; he was an exceptional human being. He had everything that anyone could wish for. He was a prince for 84,000 years, then the heir apparent for 84,000 years, and then emperor for 84,000 years. One day, after having been emperor for 84,000 years, King Mandhātu started to show signs of boredom. The great wealth that he possessed was no longer enough to satisfy him. The King s courtiers saw that something was wrong and asked what was ailing his Majesty. He replied, The wealth and pleasure I enjoy here is trifling: tell me, is there anywhere superior to this? Heaven, your Majesty, the courtiers replied. Now, one of the King s treasures was the cakkaratana, a magic wheel shaped object that could transport him anywhere at his command. So King 18

125 Phra Brahmagunabhorn (P. A. Payutto) Mandhātu used it to take him to the Heaven of the Four Great Kings. The Four Great Kings themselves came out to welcome him and on learning of his desire, invited him to take over the whole of their heavenly realm. King Mandhātu ruled over the Heaven of the Four Great Kings for a very long time until one day he began to feel bored again. It was no longer enough, the pleasure that could be derived from the wealth and delights of that realm could satisfy him no more. He conferred with his attendants and was informed of the superior enjoyments of the Tāvatiṃsā Heaven realm. So King Mandhātu picked up his cakkaratana and ascended to the Tāvatiṃsā Heaven where he was greeted by its ruler, Lord Indra, who promptly made him a gift of half of his kingdom. King Mandhātu ruled over the Tāvatiṃsā Heaven with Lord Indra for another very long time until Lord Indra came to the end of the merit that had sustained him in his high station, and was replaced by a new Lord Indra. The new Lord Indra ruled on until he too reached the end of his lifespan. In all thirty-six Lord Indras came and went while King Mandhātu carried on enjoying the pleasures of his position. Then, finally he began to feel dissatisfied, half of heaven was not enough, he wanted to rule over all of it. So King Mandhātu began to think of how to kill Lord Indra and depose him. But it is impossible for a human being to kill Lord Indra, because humans cannot kill deities, and so his wish went unfulfilled. King Mandhātu's inability to satisfy this craving made it start to rot the very root of his being, and caused the aging process to begin. Suddenly he fell out of Tāvatiṃsā Heaven down to earth, where he landed in an orchard with a resounding bump. When the workers in the orchard saw that a great king had arrived some set off to inform the Palace, and others improvised a make-shift throne for him to sit on. By now King Mandhātu was on the verge of death. The 19