Buddhist economy as a model

As an alternative to capitalist and socialist materialism Buddhist economy presents a value based economic framework broadly hovering around the ideas of sustainability, human creativity, human skills, restrained development or middle path. It claims that economic progress derived from use of non-renewable resources is not possible. E.F. Schumacher (1973) is amongst the most known proponents of value based economics which he calls by the name of Buddhist economics.

Schumacher is inspired by the eightfold path of Buddha one has to follow to attain the ultimate goal of life. This includes right livelihood (Figure 17.1) among the eight paths. According to Buddha a man has to earn a livelihood but it should be done legally and peacefully. Dealing in weapons, dealing in living beings, working in meat production and butchery, and selling intoxicants and poisons should be avoided.

In Buddhist economy a man produces and consumes only as much as is necessary and leaves the rest of his time for artistic creativity, moral development and self improvement. The reliance is more on renewable rather than non-renewable resources.