New Economic Model

This ambitious name is temporarily used because it helps to illustrate the nature of this project. Any attempt we can make to modify the status quo of the economic system in place, whether successful or not, is worth the effort.  It might not offer any significant contribution, but may be a source of inspiration, or even show another road that should not be traveled. 

In any case it is undeniable that contained in it should be a message that needs to be spread.  The increasing level of violence is becoming the language of the economic power, and is growing in direct proportion to it. Real PEACE will be attained when ahimsa, non-violence, becomes a major component of it.  Non-violence is the maximum expression of love and compassion; they are values of the soul.  Non-violence should be understood as non-injury at the physical and mental levels, that means, in action, word, and thought.

            Violence is rooted in the struggle for survival. Its obvious expression is the “Law of the Jungle,” operating in the animal kingdom, and unfortunately transposed to the human realm under different disguises.  The struggle for survival in the human species takes place at different levels, the lowest being those suffering from malnutrition for lack of resources, and the highest, amongst the ones struggling for power to be attained through their financial resources.  Whether it is the lack of resources or the excess of them, it is the capacity for acquisition of resources which is the source of the struggle and it inevitably ends up being translated into economic terms.  It also means that the economy more and more determines human behavior and is shaping society.  For this reason no societal transformation or improvement of the human condition can be expected without factoring in the economic impact on individuals’ lives.

It is fair to recognize a deepening dichotomy between economic theory and practice. A quick observation of the different religions shows a similar trend. As time goes by the original principles and values that were upheld by such religions become slack and a process of corrosion seems to take place and the practice moves farther and farther away from its original inception to the point that it cannot even be recognized, and on the contrary, it becomes a source of erosion and destruction of societal principles, instead of elevating or supporting humankind in its efforts to improve their condition.  Therefore there seems to be a need for periodically revisiting and reinstating fundamental principles, thoughts, and ideas in order to offer an opportunity to coalesce those sectors of the population who are able to maintain their ideals and are willing to join their efforts for the improvement of society.

An economic model based on spirituality needs to emerge to bridge the gap caused by failed political, economic, and religious experiments done so far. Spirituality doesn’t mean the dogmatic blind faith belief system characteristic of most religions but rather refers to the spirit within the heart of every single being whether an atheist, convicted criminal, or recognized saint.  This spirit tries to express itself through every heart: it is our mental, psychological, and emotional constraints which thwarts its message, translating it into a selfish, violent, and unkind expression.  But we have repeatedly seen that all the original messages of the spirit, as it has happened with most religions at their inception, resonates in the hearts of people who heed the call, and they work hard to overcome their limitations and commune in an effort to live those ideals.  A spiritually based economic model therefore will only be accepted by the majority at a time when human beings, despondent from the social, economic, and political conditions, begin questioning themselves and searching for answers beyond the materialistic frame of reference, the source of all dissatisfaction.  That time seems to be approaching closer and closer.  The new model, though, should be designed, tested, and propagated long before its time of implementation.  

What are the fundamental elements that need to be revised?

Given that Capitalism is the prevalent system, we will take it as our point of departure.  Its main construct, competition, should be replaced by cooperation; separation and isolation, that are the result of competition, are not compatible with human nature. Cooperation, that brings union and warmth, is a more human and divine approach, which leads to unity.  Unity in diversity is an ancient yogic dictum.   But cooperation, to be truly significant, must be based on the most ideal and highest ethics that can come of the human soul.  For example, a gifted individual should have enough awareness and compassion to shoulder a heavier burden than those who are lacking.  Selfless action should be the motivation that replaces the so-called “incentive”.  One of the main propellers of many economic models, the “incentive” is greed stimulating and totally opposed to the virtue of selfless action.  The human being’s highest self should be the propeller of actions. Michael Lerner in Spirit Matters (7) gives an excellent argument in favor of this approach.  Dr. Monzer Kahf (6) in The Islamic Economy gives us a picture of Islamic society’s approach in this matter, not only in the motivation for the action but of the nature of the action itself. It says:  “First, products which deprive the human being of his moral values as established in the Qur’an are prohibited.  Also prohibited are all types of industrial activity and relations which degrade the human being or make him party to vices for the sake of economic gain.” Cooperation, therefore, will develop a society based on ties of love, respect, compassion, and understanding amongst fellow human beings. 

  The principle of scarcity that gives origin to competition and degrading practices for the survival of the fittest should be replaced by the principle of abundance, where a fair trade based on people’s capacities will tend to level to meet the fundamental needs of the majority of the people that, once satisfied, could offer opportunities for challenging endeavors to satisfy the demand of the more apt and daring.

Therefore, an economic model ideally would include all the different aspects of human existence, looked at from a spiritual point of view, so that the result of its implementation brings about the satisfaction of material needs without any kind of discrimination against any human being. The frame of spiritual values will give the human being the opportunity to fulfill its role in creation.

In the Western world there are two main economic systems: Capitalism and Communism. At present it seems that Communism has lost its ground and shows continuous decline.  Capitalism is the prevalent system; it is the source of tremendous discrimination and unyielding use of power, and consequently the cause of widespread suffering of human beings. It is this economic system that is reshaping society and establishing patterns of behavior that are, as Gandhi says, based purely in materialism, and are undermining spiritual values which guarantee the existence of a noble society.

It is not necessary to analyze the Communist system since its lack of spiritual content invalidates it as a means of giving man the opportunity to fulfill his role in creation.  As stated by Gandhi, again, Capitalism is very successful in satisfying materialistic conditions, unfortunately at the expense of human and spiritual values; Gandhi’s perception is well presented in his grandson’s account, Legacy of Love (5), of practical lessons given to him by his grandfather.  A simple observation of the basic tenets of Capitalism can demonstrate Gandhi’s assertion.  As said before, the principle of competition, equivalent to the survival of the fittest-- clearly the law of the jungle—is adequate for the survival of our brothers in the animal kingdom who haven’t reached the state of human existence. Similarly, the principle of “incentives” stimulates greed, while that of “scarcity” stimulates fear, hallmarks of the animal nature.  

Globalization, with its inherent component, mega-transnational- corporations dehumanized by their only-for-profit shareholder owners, are constantly demonstrating the application of the law of the jungle with its devastating consequences. Paul Hawken graphically describes the effect of corporations on society.  Capital, used as a source of power, i.e., the capacity to impose, and eventually translates into the use of military strength.

Fortunately, some extraordinary thinkers, entrepreneurs, and concerned individuals have been dedicating time and effort to create a vision of a better world (with which we must identify ourselves); they have repeated once and again that a new vision and a new economic model are needed.  Their work provides an invaluable background and innovative ideas that can serve as the foundation for such a new economic model. Some of those ideas are being presented in this document, from which hopefully an outline can be drawn to develop the model.

We start with Paul Hawken’s Dreams of a Livable Future (1), a very passionate picture of the present situation, with simple and clear language which leads to reflection, and aims to stir the conscience of the people.  Then, Fritjof Capra’s book The Web of Life, (2) which provides a basic framework, with the concept of “Deep Ecology—a new paradigm”; as the title of the book says, it covers all aspects of life, economics being amongst the most important ones. It turns to nature’s wisdom as the source of a template for societal models.   The speech of Jerry Mander to the World Affairs Council (3) illustrates the concept sustained by Fritjof Capra, that “a major clash between economics and ecology derives from the fact that nature is cyclical, whereas our industrial systems are linear…”; also it expresses the need for redefining values as the means of attaining a new paradigm, and reports on a growing movement that could be recognized as “Deep Ecology”, reflected in the international meetings of the International Forum on Globalization (IFG). The report of the Worldwatch Institute 2003 (4) says, “ Failure to meet the needs of the world’s poorest citizens threatens long-term global stability,” which confirms all the aforementioned assertions.

From the academic world we include the examples of the work being done by Stephen Marglin at Harvard, introducing Behavioral Economics (8), and Jeff Gates, president of Shared Capitalism Institute (9), who seems to be borrowing the concepts of Deep Ecology as a blood transfusion to sustain the Capitalistic model.  William Easterly in The Elusive Quest for Growth (10) confirms how the academia believe they are really concerned about poor people’s conditions, yet-- though recognizing the failure of the present systems-- divert the blame onto factors which are part of the system, but are absolved by redirecting the responsibility onto the “subjects” of the experiments.

These last commentaries are not intended as a “put down” to academia but rather to confirm Fritjof Capra’s saying: “ Ecological literacy includes the knowledge that both sides of a conflict can be important, depending on the context, and that the contradictions within a community are signs of its diversity and vitality, and thus contribute to the system’s viability.” We also have James Weaver, Michael T. Rock, and Kenneth Kusterer’s Achieving Broad Based Sustainable Development (11) approach, which seems to be pioneering the “sustainability” concept of Fritjof Capra, and translates it so pragmatically into a usable model for the organization of society.

Since peoples’ main concern is with survival, and satisfaction of “materialistic” demands as a result of the present economic system, they are not drawn to reflect or ponder on the reasons for the present violent state of the world. To draw people’s interest away from purely materialistic concerns and more into vital matters for the condition of society, “New Age” thinkers such as Da Vid of the Light Party (12) use a fundamental notion for the birth of an ecological community, a matter that is drawing people’s attention and concern, and that may—as it usually does—guide people into developing further interest, not only in themselves, but in their surroundings as well.  That is the topic of health, and it’s corollary, consciousness.

Many more individuals are certainly contributing with their ideas based on the same or similar ideals; what is important is to continue building alternatives that can lead to a better world.  A new economic model can certainly be a step in that direction.  This document is intended to be a source of inspiration and a starter to plant the seed for such a model. 

This is a first draft, intended to serve as a source of discussion towards designing a NEW ECONOMIC MODEL, a project of Global Coalition for Peace. Spreading the concept of non-violence is part of the mission of GCFP. Identifying the sources of violence and finding ways to correct them is what leads us to look into the prevalent economic system, and is the reason for this project.

The documents included in this paper are exclusively for the purpose of this study. Any other use of them should be authorized according to copyright rules.

 

                               Om Shanti,

                                Vyasa (Victor  Landa)

                               Washington D.C., Oct 31, 2003

 

The Concept

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Aparigraha: A New Economic Paradigm

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