Buddhist perspectives on economic growth : a buddhist-based sustainable investment model within market economy

Abstract

Economic theories strive to develop a reliable and holistic model to explain, predict, and guide decision-making in the economy. Financial crises and economic instabilities in the last century, however, have shown that market economic theories appear to be theoretically and empirically inadequate to address the lack of predictability, stability, and sustainability of economic growth. Buddhism has attempted to respond to these problems through a new field of study called Buddhist Economics, which is not represented by a unanimous school of thought. It is a wide field of studies and orientations, which comprises the introduction of an entirely new mode of “economic” activities focusing on holistic developments, offering a compromise or trade-off approach between material and spiritual growth, and exploring the relevance and contribution of Buddhist teachings to economic pursuits.

This research analyzes Buddhist perspectives on economic growth and introduces a “Buddhist-based Sustainable Investment Model” (hereafter “BSIM”) for adopting Buddhist understandings within the market economy. With reference to recent studies on economic growth and decision-making, this research aims to illustrate how people at an individual and societal level can adopt and practice Buddhist teachings within a market economy. This research focuses on the investment decision-making process because it is one of the key activities in market economy involving the resource allocation and better decision-making for sustainable outcomes.

BSIM is built upon an integrated understanding of the world-views of the market economy and Buddhism. It offers Buddhist perspectives on: (1) the key building blocks of economic growth; (2) understanding economic growth process not as a static but as an evolutionary process; and most importantly (3) how Buddhist teachings can be adopted and practiced despite our pursuit for economic prosperity. The core envisioned contributions of BSIM are: (1) the integration of material economic and non-material developments in the pursuit of economic growth; (2) the integration of development at both the individual and societal level; and (3) the application of Buddhist understanding of the “doctrine of dependent arising,” “selflessness,” and the Threefold Training. The Threefold Training, comprising moral discipline, mental concentration, and wisdom, can serve as the core pillars for decision-making, understanding human psychology and guiding sustainable investment decision within a market economy.

BSIM attempts to bridge the divide between our spiritual and material needs and aims to reconcile the apparent conflicts between doing well and doing good. The BSIM offers a potential path and recommended practices to drive changes required for the integrations of the individual, social and environmental well-being, monetary and non-monetary values, material and spiritual developments, sustainable and non-sustainable costs and benefits within a market economy. It also offers a theoretical and empirical basis for further research in analyzing and quantifying the potential impact of BSIM.