Buddhism and The Transformation To Sustainable Economies

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BUDDHISM AND THE TRANSFORMATION TO SUSTAINABLE ECONOMIES

Author(s): PETER DANIELS


Source: Society and Economy , August 2007, Vol. 29, No. 2, SUSTAINABILITY AND
SUFFICIENCY: ECONOMIC DEVELOPMENT IN A BUDDHIST PERSPECTIVE (August 2007),
pp. 155-180
Published by: Akadémiai Kiadó

Stable URL: https://www.jstor.org/stable/41472079

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Society and Economy 29 (2007) 2, pp. 155-180
DOI: 10.155 6/SocEc. 29.2007.2.3

BUDDHISM AND THE TRANSFORMATION


TO SUSTAINABLE ECONOMIES

PETER DANIELS

Senior Lecturer, Griffith School of Environment, Griffith University, Brisbane, Australia;


E-mail: [email protected]

(Received: 31 October 2007; accepted: 12 December 2007)

A major premise of this paper is that Buddhism provides a logic and means to help resolve this t
sion between in-grained economic system imperatives and the changes actually required for ach
ing environmental sustainability. In this simple depiction, we examine the logic inherent wi
Buddhism's Four Noble Truths, and the means proffered in the Eightfold Path, and extend u
these basic ideas with knowledge and experience available from 21st century environmental scien
economics and technology fields. The ultimate goal is to illustrate how this ancient wisdom can h
inform and facilitate the successful transformation to sustainable human economies.

Keywords: sustainability; environment; economy; Buddhism

1. INTRODUCTION

After decades of convenient denial, it is now difficult to reject that the bioph
scale of human activities is having substantial impacts upon conditions f
within the ecosphere. A partial list of evidence includes the human-indu
of fisheries, forests and wetlands, the unprecedented rate of species ex
(since Paleozoic and Mesozoic eras), extensive land degradation through d
fication, soil erosion and salinisation, water quality and availability probl
the ever-growing support for the imminent and severe potential of global war
and peak oil (Rees - Wackernagel 1996). These impacts all stem from the
cance of the material or energy scale of human intervention in natural cy
processes such as carbon, water, nitrogen, and phosphorous cycles and ne
synthesis (Ayres 1993; Bartelmus - Seifert 2003; Millennium Ecosystem
ment Board 2005; Wackernagel et al. 2006).
1 588-97 26/$20.00 ^ 2007 Akadév liai Kiadó, Budapest

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156 PETER DANIELS

To some extent, human societ


of environmental stress. Many
are underway. Efforts include
waste emissions plus new activ
tems (under ISO-14001) and car
found changes in terms of vol
tion behaviour by citizens (in
widespread adoption of the imp
social responsibility
p goals for
These trends are promising. I
economics), attitudes and relate
ment-oriented "consumer sove
sustainability. However, it see
the globalising socioeconomic s
to sustainable resource use. Sat
marily defined and pursued th
control of resources (and, in s
and achieve does have gratis
eco-efficiency gains and ecolog
positive trends and outcomes
ment and its control, and the o
kin to consume more.
Hence, there is a tension or dissonance between the development of positive
environmental attitudes and knowledge, and the structural influences that drive
the global consumer/market economy. This tension is not well-addressed by most
existing paradigmatic solutions such as ecological modernisation with its ten-
dency to retain consumption maximisation imperatives (Carolan 2004).
A major premise of this paper is that Buddhism provides a logic and means to
help resolve this tension between in-grained economic system imperatives and the
changes actually required for achieving environmental sustainability. In this sim-
ple depiction, we examine the logic inherent within Buddhism's Four Noble
Truths, and the means proffered in the Eightfold Path, and extend upon these basic
ideas with knowledge and experience available from 21st century environmental
science, economics and technology fields. The ultimate goal is to illustrate how
this ancient wisdom can help inform and facilitate the successful transformation
to sustainable human economies.
While a focus upon Buddhism to help guide this process may seem idealistic,
its world view is subject to increasing interest, relevance and feasibility with re-
spect to contemporary global challenges such as sustainable development. This
claim is supported by recent developments such as

Society and Economy 29 (2007)

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 57

(a) the widespread and profound respect and influe


other Buddhist leaders and institutions;
(b) the growth in affiliation with Buddhism;
(c) increasing interest in Buddhist activities, literature
brations and practices (including meditation, retre
tance, community work and interest groups);
(d) the substantive inputs of Buddhism to the strong "
lifestyle and Eastern philosophy shift in Western e
(e) a surge in academic study on the socioeconomic ap
ciples and in economic progress, and welfare measur
foundations and the deeper analysis of "ultimate en

The paper begins with a review of key dimensions of


that describes the roots of environmental problems an
move towards sustainability. The main section outlines
acteristics and changes required for an economy deri
views (hereafter noted as BISEs or "Buddhist-inspired
This includes changes involving citizens both as consu
hood or producer roles (the latter being the focus of th
on Buddhism and economics - Schumacher 1973). Fina
views the main points and briefly discusses the viabili
ing and applying Buddhist wisdom in the quest for su

2. BUDDHISM AND THE ROOTS OF UNSUSTAIN ABILITY

In this section, some of the basic metaphysics and logical premises of Budd
are examined in order to help identify the primary sources of human pre
upon the natural environment. In turn, this helps identify the adaptive resp
that may reduce this impact to sustainable levels. The First and Second No
Truths of Buddhism provide the basis for understanding the "drivers" or ess
causes that have shot humans into a trajectory that is not just unsustainable,
proving ineffective in improving welfare beyond basic material requisites.
Third and Fourth Noble Truths (especially the Eight-fold path embodied in
latter) establish the "response" in the form of individual psychological, be
ioural and institutional changes that could direct personal and socioecon
change towards sustainability.
In general, sustainability is about ensuring the conditions for "acceptable"
fare levels of all people extended across spatial (intra-generational) and tem
(inter-generational) dimensions. These conditions require maintenance (som

Society and Economy 29 (2007)

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158 PETER DANIELS

gue, constant levels) of vario


of produced and natural asset
and services for human welf
tained for sustainable develo

(1) produced or manufacture


rial means of satisfying ne
(2) natural capital for direct
sustainability); and
(3) social capital or strong so
forms of sustainability (so

The notion of social capital


and belonging are all vital fo
proach, social capital's suppo
ability tends to be stressed rat
sic notions of socio-psycholo
This is unusual, given that it
mate end target of "developm
in the three capitals or "trip
the three aspects are obviou
heavily shaped by the older
to satisfaction, and that soci
other outcomes are primarily
jective) well-being of human
range of mental and physica
between the self, society and
The metaphysics and world
tive basis for a more complet
the fundamental sources of
ble Truths are an ideal starti
Buddhist teachings to develo
levels of well-being - though
to say directly about the pow
and population growth. The F
source of most forms of hum
fering" is seen to be a fundam
cal pain, dukkha is probably
stein 2005). This seemingly d
tive experiences in life invo

Society and Economy 29 (2007)

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 59

posits that the totality of life is imperfect and infuse


fering because of the impermanent nature of all an
of the conditions and sources of those conditions from
piness.
The Second Noble Truth develops the explanation further. The origin of
dukkha, or the suffering we experience, is not intrinsically derived from change
but from the craving for worldly phenomena that we habitually attach or cling to
in the belief that they are our overriding, and reliable, sources of happiness. These
transient phenomena include ideas as well as all the animate and inanimate objects
of our perception (including the people and other animate entities we love and our
social and economic roles, success and status). Suffering results because these
phenomena change and we constantly crave and seek to attach to some other, in-
trinsically provisional, foundation of happiness. Much of human life activity is di-
rected by this craving and we are effectively "hardwired" and bound by thoughts
and actions derived from an "incorrect theory of happiness" (Ash 2007). In Bud-
dhism, this ignorance about the nature of cause and effect relations that permeate
reality keeps us trapped in Samsara or the endless cycle of birth, suffering and
death. This ignorance is not easily overcome despite repeated empirical experi-
ence of its fruitless nature, and the suffering that results from desired external
sources of happiness.
The prevalence of dukkha or pervasive dissatisfaction has profound economic
consequences because it is associated with the existence of an eternal gap between
what people want, and the satisfaction they receive, from biophysical reality.
There are minimum needs that must be met to avert physiological deprivation, but
in Western consumerist economies, the desire to satisfy systemic, constantly re-
generated wants is a major motive of our lives, thoughts and actions, and perme-
ates almost every aspect of society. Arguably, we really seek sustained satisfac-
tion (and not the creation of new desires) but, instead, are attracted to and become
"addicted" to an irrational process of short-term satisfaction of dynamic and end-
less wants. A substantial part of the global market economy is predicated upon,
and reproduced by, stimulating desire and maintaining the want-satisfaction gap
- closure of this hiatus would certainly call for a major transformation in the na-
ture and distributional outcomes of the economy as it now stands.
The environmental harm of the want-satisfaction roundabout and associated
treadmill of production is closely linked to at least two of the major "forms" of de-
sire conceived in Buddhism. At the most obvious level, this harm or disturbance
results from extensive biophysical intervention in the ecosphere in search of mate-
rials and energy for the extraction, manufacture, transport and services that ex-
pand economic activity and feed the relentless drive for new want satisfaction. In
Buddhism, the first form of desire underlying this intervention is kama tanha or

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160 PETER DANIELS

the craving for pleasure, excit


covers a wide range of "consum
uli, travel and locomotion, sex
heroine), and most forms of jo
sensual pleasures usually leads t
form of desire is bhava tanha o
will boost one's ego or bring s
one's perceived importance, rec
worldly success in the eyes of o
and influence upon others. This
competitive market econom
sense-based talents are key det
The impact of these desires up
from Buddhist cosmology and
three spheres of human existen

(1) the individual realm (cover


(2) the collective interrelations
(3) the rest of the natural wor

In this universal ecology, the


realm directly spill over into t
tally -, and bounce back upon
the a growing overall societal t
work is highly compatible with
(for example, ecological econ
natural health - Bookchin 1 993
towards the primacy of nature a
and built environment, within th
causal reciprocation views that
An intrinsic part of the prim
ciety and nature is to be found
- the law of karma. Derived fr
"deed"), the term "karma" is v
Buddhism, the basic premise w
tion (or cause or event) will in
"pleasant" or "unpleasant" for
event's "skilfulness" (good) o
ness" is gauged by the extent t
are embodied in the underlying

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 6 1

Figure 1. Interconnectedness between the spheres of human


the views of Buddhism and ecological economics

Source : Adapted from Batabyal et al. 2003; Yamamoto 2003;

tal component is critical here - deliberate, wilful ac


fulness. In Buddhism, the significance of consequen
ramifications far beyond the primary target of the
back upon the initial agent), is closely aligned with
over effects" or "externalities" in contemporar
thought (Daniels 2003).
Hence, action and associated worldly intervention
bhava tanha leads to unpleasant disturbance back on
derlying beliefs that positive personal outcomes will
on self-want direct and immediate satisfaction fuel
sire behind much action. Across the vast field of soc
man motives, choices and behaviour are often cent
agency" debate (Hay 2001). In Buddhism, there appea
uted to agency in terms of the potential to change p
spite accumulated karmic life conditions that influe
moment in time. The desire impetus is under individ
structural (or at least external) cultural forces that
nomic and broader life roles, motives and status. A
work here including the media, state, financial syste
stitutional structures, and technological and infrastruct
inforce the treadmill of production and consumptio
fixed on tanha). This is augmented by a yearning fo

Society and Economy 29 (20

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162 PETER DANIELS

and pleasures to fill the voi


community bonds.
However, a more positive vi
"fatalism" (Jones 1979). The
pathway to deliberately and
(and the supportive underlyi
sis for enhancing interconne
the premise that clinging an
in fact they are posited as the
not considered as the root of s
tion that is anticipated. Th
Through reflective life exper
of this habit and have a real
correct theory of happiness. In
well-being is established. The
clinging (Dalai 1997). The aim
developing the ability to fa
imperturbation. Hence, suff
training, and appropriate act
hensible state of Nirvana wh
all anxieties, complexes, fab
So, the essential Buddhist p
ment via understanding the tr
sequently adopting the relev
guideline to is not to attach
and other conditions of imm
clear with knowledge, reflec
mic cause-effect relations an
The Fourth Noble Truth is
found by following the Eigh
eted nature of changes in un
and actions and behaviour th
ing (Sangharakshita 2007). T
(right understanding and rig
tion and livelihood) to menta
tration) but they are present
sary linear sequence. The fo
Buddhist cosmology or expl
experience and observed out
intelligence" provides the tra

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 63

suffering (Zohar 2002; Zsolnai 2007). The behavioural


morality set (or sila) within the Eightfold Path relat
while samadhi or concentration (together with right
the internal, mind disciplines.
A permeating and definitive theme throughout the Eig
ple of moderation or "the Middle Way". As learned fr
periences in seeking the appropriate mental and beh
wards Nirvana, the effective path lies between the ex
dulgence and sensual pleasure, and excessive self-m
(Gunasekara 1982). Accordingly, the Eightfold Path c
that directly shape the motives and nature of the human
world, and has great relevance for the potential creat
systems. These connections will be enunciated in the

3. CREATING SUSTAINABLE ECONOMIC SYSTEMS - CONTRIBUTIONS


FROM THE BUDDHIST WORLD VIEW

In this section, we attempt to outline some of the main characteristics


able economic systems as inspired by the wisdom of the Buddhist wor
includes a parallel discussion of the nature of appropriate changes re
"economic system" is depicted here as the human arrangements that
with the material environment in order to obtain welfare from materi
that are ultimately derived from nature. Welfare can also be provided
and affective (and spiritual) sources and, while these are undoubtedly
fluences upon economic outcomes, by definition they tend to lie outs
of economics.
In any social systems where people are not completely self-sufficient in terms
of useful produce from nature, three essential components of economies are pro-
duction, exchange and consumption. The changes required for sustainable econo-
mies have been primarily grouped into those associated with consumption and
production. This helps provide order to the approach but there is often strong con-
ceptual (and definitely an operational) overlap between the two. Exchange as-
pects are only considered indirectly in the discussion.

Consumption

We start with the assumption that a Buddhist-inspired sustainable economy


(BISE) is oriented towards producing high levels of well-being for its wider soci-

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164 PETER DANIELS

ety. From this, the key point


and levels of consumption ar
BISEs, choices about what we
is, demand or desired consum
choices on our long-term (su
ous but, from the Buddhist
knowledge about the appropr
tentment. People repeatedly
nomena does not bring lastin
son that suffering cannot be
"reality". The popular but sar
apy" stands as a case in poin
If an individual's preference
this condition can be describ
tween actual and true prefer
that represent those that rea
(Tomer 1996; 2002).
At least part of this diverge
tion about the unintended co
resource base. Nonetheless, t
rary societies is a "double wh
failing to induce sustained we
studies of subjective well-bei
sured by traditional yardsticks
consider themselves "very sa
over a period of more than
Figure 2 for the U.S. data).
Secondly, whole systems ar
relentless efforts to satisfy v
on nature as the essential m
positive but adverse relations
duce welfare and require yet
given levels of demand. This
tive ecological restructuring
demands per unit of (monet
Daniels 1999). However, few
environmental instability fr
the economic welfare and env
least two of the three pillars

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 65

Figure 2. The relationship between average income and ha

Source: Myers 2000; Gardner 2006.

In order to address the inherent unsustainability


dhism can be seen to provide a series of necessary
terns and behaviour. All of these proposals draw u
connectedness and karmic law, and a prevailing the
tervention and disruption upon the wider social an
universal nature of interconnectedness, no-harm is

The need to modify the level and nature of consum

The first consumption change for movement towa


the level and nature of consumption. While consum
any unequivocal quantitative sense, the axiom of
gests that there is a general need to reduce the des
lation and associated use of resource inputs, and e
sumption. However, while this reduction in con
dance with the renunciation of fervent want-fulfilment as an effective source of
long-term satisfaction, a more important aspect in terms of environmental ramifi-
cations is the need to change the nature of consumption. This requires a shift in
what is consumed towards goods and services that have a minimum intervention

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166 PETER DANIELS

or no-harm quality (Koller -


turbance on nature and socie
and society). For example, a
and hiking would probably h
fects per unit leisure time. S
shaping of actual preference
The level of consumption, in
consumed, would affect ove
sumption have no intrinsic
mands. While not witnessed
of consumption and growth
changes are not intensively

Acceptanceof the need for i


consumption in decision-ma

The next requirement for B


changes in consumption. Th
can only attained if the "sp
rated in consumer, marke
course, the key to effectivel
chain of environmental or so
If the full social costs and be
sistent with the longstandin
ecological) economics (for
internalisation of social and environmental externalities via markets would not be
the only motive option in the Buddhist view. The availability of more complete in-
formation about the consequences of one's choices (for example, regarding the
use of fossil fuels) would also be considered to have a strong volitional influence
when backed by an understanding of the welfare interdependency implicit in
Right Understanding and Right Aspiration. The "distancing" of the consumer
from the upstream and downstream ecological and social consequences of the
commodity and resource chains associated with their choices would detract from
such logical and ethical assessment (Princen et al. 2002). Broader institutional and
collective decisions that were fully informed and concerned about minimising in-
tervention or disturbance consequences would also help overcome social prac-
tices and behaviour that have been "locked in" from the structure and nature of
past institutions, infrastructure and customs (Röpke 2001; Spaargaren 2003).

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 67

The allocation of substantial societal resources for under


consequences of alternate consumption patterns and tech

Decisions based on the full intervention impacts of individ


quire appropriate information. Hence, acceptance of this
entail another BISE change related to consumption - the a
societal resources into processes identifying, measuring
lating information about life-cycle impacts of alternate co
associated technologies. The benefits of this type of resear
cognised over the past few decades. This is evident in th
development and application, of an assortment of techn
(some with integrated social aspects) for "mapping the m
and their activities or artefacts. This array of "physical e
be divided into those (1) looking at resource flows induc
bance) from spatial, settlement or overall cultural sources
functional basis and examine material, energy and other
fied products, services or technologies (Daniels - Moor
range of methodologies such as substance, and other for
ergy, flow analysis or accounting, resource flow analysis
industrial ecology as well as numerous related sustainabi
ecological footprint and sustainable process index, envir
terial intensity per unit service (MIPS), to name a few. A
adoption of key principles and phenomena such as inter
effects and chain management so that the extended eff
considered over time and space.
One major direct drawback of this laudable goal is the v
assessing extensive webs of consequences of human a
This is clearly apparent in the formidable task of estim
nomic consequences of increases in the concentration of c
mosphere. Biophysical and ecological processes are extrem
man understanding is still very limited at best (Ekins et
just financial but places extra demands upon labour, mater
related adverse intervention effects. However, collecting
formation seems to be an increasingly viable endeavour w
tion technology capabilities; experience, expertise and ac
pressure to reduce carbon-based energy and likely consum
reflect interest and concern for the consequences of their
Full environmental consequences of consumption optio
rial and energy transformation or translocation, toxicit
pacts and other forms of environmental disturbance. Wit

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168 PETER DANIELS

eral guide to decision-makin


tionary approaches involvin
version and
intervention in
the BISE. Although environm
environmental impact is a crit
is to make consumption sust
ish the available supply of r
(DesJardins 2006: 124).
Chain management techniq
have the greatest impact upo
ual). They also provide a me
severely compromising cri
sustainability and natural res
ual and societal consumption
high income economies, wou
housing and urban form, tra
terns, recreation, and educat
tabolism of the economy to
bound effect", or growth in
cies and economic growth, h
ciency trends (Binswanger 2
rebound effect will be instr

The development and implem


well-being

Yet another essential consum


rate measures of human we
ment of societal goals, prior
old gross domestic product m
and advanced substantially i
largely remain sovereign at
of the existence of a promisi
cators of well-being include
Happiness; the vital activity
or happiness (including the
other models and approaches
man welfare, motives and ro

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 69

ing measures that attempt to include environmental


non-market welfare conditions (for example, the Gen
man Development Index and Index of Sustainable Eco
al. 1999; Gintis 2000; Layard 2005).
An overriding view implicit in these efforts is the i
consumption measured by monetary exchange values
the key index of well-being. Again, the development a
rior measures of welfare will require concerted gover
to support scientific research into "happiness", and h
physical conditions are actually connected to lasting
This research would not dictate, but rather, inform p
pand the material-economic evaluation criteria curren
social institutions. A more central role for a more acc
outcomes in human choices is fundamental for creat
liver what people actually want - sustained happines
explains that well-being is attained not via a process o
satisfaction, but through compassion, concentration
minimisation of the "ripples" or disturbances of hum
fects through the three realms. The more intensive analy
timate ends and desirable means and time use will su
that lead to satisfaction. It is quite irrational to evalua
success (GDP per capita or even just GDP growth rat
relation to personal well-being - especially when it e
system that is environmentally unsustainable.

Production

Buddhist wisdom also has much to offer for private and public sector "business"
or livelihood activity and decisions from individual and small business, to corpo-
rate and government levels.

A shift towards the production of minimum intervention goods and services as a


response to changes in the nature and level of demand

One major change in production aspects for a Buddhist-inspired sustainable econ-


omy (BISE) would be the consumer sovereignty effect of an automatic shift to-
wards the production of minimum intervention goods and services as a response
to changes in the nature and level of demand as outlined in the previous section.

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170 PETER DANIELS

Changes in the pattern of cons


from the inclusion of full s
spillovers) into prices as well a
enhanced information and awar
assertion does underemphasise
sumption choices. Examples of
form and nature of housing, s
tions, and media-created wants
istence of at least a structurati
set of "social practices" shaped
style choices and (2) the instit
artefacts (Spaargaren - van V
would be cognisant of pervasiv
effects of their production ch
away from the creation or sha

The promotion of informed an


no-harm principles in their ro

Secondly, change towards a BI


decisions by individuals to foll
Again, a certain freedom is as
the specific firm, occupation,
institutional work context. Wh
critical guide for well-being in
not harm, deprive or exploit o
in the Eightfold Path). Inform
certainly reinforce the capabi
understanding and awareness o
would help prevent denial and
maximising returns and mater
loving kindness principles from
strong organisational commun
that engender economic and e
ered actions focused solely upo

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 7 1

Strong support for research and technology innovatio


on eco-efficiency and reduced pressures upon the natur

At the enterprise or organisational level, a BISE would b


damental redirection of research and technology innov
wards eco-efficiency and reduced pressures upon the n
process of ecological modernisation - perhaps the domin
ability transformation in Western consumer economie
with this pattern of change. It espouses that it is possib
high levels of economic welfare with less pressure on th
logical advances (and related embodying investment) t
tion of resources by increasing efficiency of resource u
from nature) (Spaargaren 2000). There has been an ong
course about the required role for strategic collective ac
voke this technological "greening" of production, but s
bly emerged in favour of the need for considerable gov
logical modernisation has also been criticised for an app
preoccupation with incremental changes in production r
radical social changes and change in the overall level, n
consumption (Carolan 2004). The negligence of consump
mine the optimistic predictions of ecological modernis
ability to account for the historical increase in overal
from consumption growth, outpacing productive eco-
cussed, the importance of changing the nature of consu
technologies - in a combined quantitative and qualit
pressure on the environment be reduced - is vital for
wards sustainability. The claimed lack of emphasis on
modernisation studies is being addressed in more rece
Spaargaren 2003).
The minimum intervention, no-harm philosophy of
with technology change that reduces the societal metab
logical modernisation towards greater eco-efficiency a
and consumption (Daniels 2003). Chain management tec
flow analysis are again very useful for identifying an
counting of the economic and environmental effects of
tions and directions. Ekins (1998: 285) unintentionally
view for minimum intervention technology change:
the transition [to environmental sustainability] will require a re
bring in a new generation of technologies for energy, industry, ag
make use of natural systems in ways that reflect, rather than d
cesses.

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172 PETER DANIELS

By integrating basic theme


original view, "Right Techn
impacts on the individual, s
newability, non-violence, an

Investment decisions by hou

Another important area of p


citizens' investment decision
tures of the resulting produ
ate BISEs, investment decisio
the promotion of minimum
technologies). This would re
management information ab
ciety's metabolic links to na
ability and its environmenta
cial sustainability impacts is
economic focus of societal m
will, in turn, help stimulate
provements in welfare.

Impetus for producer-side c

The impetus for this suite of


of BISEs would be derived fr
cursive and practical consc
change. From external sourc
dence-conscious consumer an
nance representation. These
other volitional action for r
cost-competitiveness gains a
and impacts. A related impet
vantages of an implicit bu
no-harm world view and mo
of social capital, and other a
are well known as very signi
systems (North 1990). Finall
structure towards sustainabi

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BUDDHISM AND SUSTAINABLE ECONOMIES 1 73

with a trend towards regulation, market-based instruments an


icy targeted at sustainability.
However, with an economy imbued by the world view
Buddhism, a key internal impetus for change from busin
would simply come from the realisation and knowledge th
fare was vitally dependent upon the economic, social and
quences of their choices and activities.

Other Supporting Economic Changes

A selection of other changes that would promote Buddhi


economies (BISE) are worth noting. Many of these are clos
tial consumption and production changes outlined in the
One additional feature of a BISE would be the expanded
ductive enterprises and organisations that produce "comp
nomic output that minimises environmental disturbance a
tive spillover effects upon society. Correct pricing based
benefits of economic activity would naturally encourage t
cro level. However, an ethical shift towards an emphasis o
turns and essential interconnectedness over maximum profit
would also spur them on. There are many examples of suc
Phra Sekhiyadhamma network of monks in Thailand and
movement for improving rural village life in Sri Lanka
In order to support the informational needs of many of the
sumption changes, substantial expansion of appropriat
capital development would be necessary for the skills an
stand and minimise economic disturbance through the th
interconnectedness of existence calls for interdisciplinary
late ecological, economic, psychological and spiritual kno
cipline" of ecological economics would seem to be a step
Some other crucial areas of change would involve the hu
tion of work or labour from a perceived cost to positive
standing and re-allocation of time so as to enhance life sa
found incorporation of Buddhist principles of compassion
arena of international trade, aid and other relations. The
opens a potentially huge and very critical area of discuss
tween Buddhism, economic systems and well-being, but is
in the area.

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174 PETER DANIELS

4. CONCLUSIONS

The aim of the paper has been to illustrate how Buddhism can help in
provide a logical and ethical basis for the substantive changes required f
ing sustainable economies. This contribution can be identified in produc
sumption and lifestyle, and many supporting aspects of the socioecon
tem. Regarding demand-side aspects of the economy, the two main
stones provided by Buddhism include:

(1) an understanding of the consequences of the relative level and patt


consumption upon the highly interconnected social and natural rea
back on oneself; and
(2) being able to identify the links between consumption and actual ch
well-being.

The first condition asks for very substantive societal efforts towards
ing for social and natural externalities of human choices. The second tas
intensive effort towards the systematic study of the nature of "happin
how it is affected by the externalities associated with forms of intent and a
Global society must move away from a model that is not only having
and unsustainable negative externality and resource impacts upon natur
also generally failed to deliver perceptible gains in life satisfaction. W
dhism's universal interdependence context and karmic law depiction of
and action, the changes required are simply a matter of getting our pr
right; so that we demand and pursue activities and goals to a level and f
genuinely yield life satisfaction. Choices that reflect non-violence, mod
demands, minimum intervention and disruption with regard to natural
quintessential features of the BISE (Payutto 1994). Appropriate producti
ity flows from such changes in consumption patterns but also requires
of interconnection" to guide motives and decisions of people in their
roles as the managers and workers in productive enterprise.
For a BISE, collective societal strategic action can help reshape asp
lifestyle choices and habits, and modify the social context and physical
human settlements, to align outcomes with true long-term welfare and
mental sustainability. In practice, these efforts are all interrelated and i

- the creation of methodologies and comprehensive and accessible info


systems to measure and store data on the chain of effects resulting f
sumption forms and associated technologies;

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BUDDHISM AND SUSTAINABLE ECONOMIES 175

- policies that help create market prices that embody a


fare impacts of these interconnection effects;
- full support for education and awareness about the
and impact on welfare, to shift preferences and promo
tions of status and respect founded upon interdepen
tion and more accurate understanding of the path t
- the direct distribution and redistribution of output
source use to reduce adverse environmental impact
- changes in urban, transport and other physical infra
dissipate existing "structures" that tend to lock-in h
mental activity;
- strong support for research into the nature and sou

Many of these directions are consistent with existin


in the environmental and social sciences linked to ur
economics, engineering and policy. A transition tow
be in accordance with the fundamental economic and
reduce the driving forces behind rising C02, climate
and other problems associated with the destructive a
existing consumer economies on fossil fuels.
Despite these positive aspects, most commentators w
that the BISE is neither a realistic nor a feasible altern
transformation that advocates the moderation of cons
less material intervention-based "output" is bound to
ductions in the demand for goods and services, wide
economic depression. Under current notions abou
"health", suppressing consumption based only upon
sive and high-intervention output might lead to dire
stances. However, such fears are based on two commo
the economy and its role.
Firstly, a reduced need for labour is not an evil in
specious neoclassical economic assumption that time s
tive activity is necessarily undesirable, and a cost bor
demand for human productive effort is only problem
quate total "output" for enhancing societal well-being,
tributional distortions that prevent people from inad
hood activities and consequent income and access to
Secondly, a shift in demand towards less material-
and services does not imply a reduction in employme
ergy-intensive physical good production tends to be

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176 PETER DANIELS

throughout much of its prod


There can still be vital econo
based on non-violence, comp
Noble Truths and the Eightf
time, effort or labour, and s
new system that focuses on
gies that directly contribute
cilitate minimisation of adve
triple bottom line approaches
consumerism", and the incre
natural resource scarcity is
change), all indicate that eco
areas of focus (Elkington 19
While such developments m
process appears to be occurr
"growth". The notion that t
has practically been dismisse
the more "heretical" models
ernisation theories, societa
Schumpeterian economics an
(Fischer-Kowalski 1997; Fre
have become a strong alterna
ingly explain economic dyna
and economic changes in st
more sustainable economic and environmental conditions. All of these influential
new theories share the contention that the reduction in material and energy
throughput (often as eco-efficiency gains) is absolutely vital for the maintenance
of long-term welfare for human societies (the assumed goal of economic sys-
tems).
Hence, it is proposed that a BISE cannot only provide sufficient output and ap-
propriate livelihood activity to avoid economic adversity, but comprises a more
sustainable and well-being enhancing economy. It would involve relative and ab-
solute reductions in material- and energy-intensive activity, and also moderation
and reduction in implicitly consumerist-based activity. However, existing techno-
logical capabilities and access to resources can easily accommodate a healthy
economy where citizens are gainfully employed and produce adequate and appro-
priate output to enhance well-being (given conducive distributional conditions).
Reductions in external "labour" time are likely but this change has potential posi-
tive outcomes in light of the social burden of increasing working hours in many
higher income economies (Hochschild 1997). The primary task for a more sus-

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BUDDHISM AND SUSTAINABLE ECONOMIES 177

tainable, happy economy is to adaptively change t


livelihoods, what we demand from the livelihoods
time "consumption". Technology has also provide
duction with vast direct and external benefits, and w
ginal social cost (which incorporates costs of all c
and energy demands). Examples include the m
internet-based developments in information, com
audiovisual entertainment.
Although it is beyond the scope and aims of this paper, Buddhism can (and
probably already has) helped to overcome the theory-practice divide and instigate
and promote change towards sustainable economies. Some of the mechanisms for
bridging this gap include:

- the institutional example and dissemination of the dhamma (teachings) from


Buddhist-based organisations;
- charismatic inspiration and leadership;
- example from the laity;
- education and contact with society highlighting the relevance of Buddhist
views in mitigating the conflict and adversity of a host of global environmen-
tal, cultural, social and economic problems.

Such hopes are not Utopian. There is already a panoply of nascent pro-sustain-
ability developments in higher-income nations covering diet and food production;
consumption behaviours (with downshifting, voluntary simplicity and LOHAS -
Lifestyles of Health and Sustainability); meditation, yoga and other activities ori-
ented towards nonmaterial-based satisfaction; and ethical investment. Such trends
have a strong intellectual foundation in the arena of scientific knowledge (with
consistent developments across philosophy, sociology, economics to ecology and
physics). The emergent social and intellectual developments share much in com-
mon with the Buddhist view of the nature of reality and path to well-being, and
they sit very comfortably together in their adherence to the necessary conjugation
between (1) reducing society's metabolism (and hence nature intervention levels)
and (2) the intrinsic interconnectedness of human existence and interaction with
the broader social and natural worlds. Arguably, this is the only adaptive response
to the world's, now very clear, future environmental and social challenges. It
would be surprising if the existing interplay between Buddhism and related
ethical bases, and sustainable behaviour and social systems, does not continue to
flourish into the future.

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178 PETER DANIELS

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