Transcript Slide 1
Dr. Sauwalak Kittiprapas International Research Associates for Happy Societies (IRAH) Paper presented for international conference on “The Meaning of Sufficiency economy: Theory and Practice in Society, Economy, and Business”, February 16-17, 2012, Bangkok. 1) The differences between mainstream economics and alternative approaches: happiness, Buddhist economics, and sufficiency economy. 2) How happiness in Buddhist perspective can lead to the world peace and effective sustainable development. 3) The contributions of sufficiency economy to add values to mainstream economics SE. and Buddhist economics principle: selfreliance, contentment, moderation, the Middle Path way of life, reasonableness, knowledge/wisdom, interrelationship of human and nature. SE. broader meaning: having enough and being satisfied with the situation (at a moderate level)=> happiness in mind Happiness and Buddhist economics: happiness developed from lower to highest levels Key differences Mainstream economics Utility component Neo-classic theory of utility excluded subjective aspects, feelings, happiness/ subjective wellbeing. Happiness, Buddhist economics and sufficiency economy Happiness economics concerning subjective wellbeing, apply utilitarianism include happiness in the utility: “the greatest happiness principle” to maximize the Utilities based on choices total utilities of individuals of goods/ services. aiming for the greatest happiness for the greatest no. of people, or max. the net happiness of the whole society. The modern happiness economics theories also apply this concept Key differences Mainstream economics Happiness, Buddhist economics and sufficiency economy Self vs non-self focus Self-interest, with the assumption that humans are rationale. Selfless (emptiness / impermanent in Buddhism). Reduce selfishness, greed Development values Add values for spiritual wellbeing, ethic, goodness, giving, concerns about nature and subjective aspects. Wisdom or insight is essential Materials / economic prosperity: more consumption/ services and production Key differences Mainstream economics Happiness, Buddhist economics and sufficiency economy Development driven by Competition, specializations Cooperation\ compassion; moderation, diversification for self-immunization; integrated approach Narrow and broad meanings of happiness Higher consumption => higher utilities (used as happiness ), higher satisfaction of needs and happiness Life satisfaction. Satisfaction is the state of mind. Happiness from lower to higher levels depends on materials, mind, and wisdom, respectively. Development upto mind and wisdom based happiness lead to real and sustainable happiness. Key differences Mainstream economics Happiness, Buddhist economics and sufficiency economy Key analytical factors Limited to only objective indicators and choices Open for subjective wellbeing determinants and processes Development Indicators/ Measurement Development measurement based mainly on economic indicator – GDP Development measurement should also be include happiness/ well-being or alternative indicators Key differences Mainstream economics Happiness, Buddhist economics and sufficiency economy Perspectives Human well-being depends on material wealth. More limited to assumptions to explain human mind and societal well-being. Broader perspectives of human well-being (not limited to material wealth), more holistic and balanced development. Realize interdependence of human-human and human-nature, moral, peace of mind, etc. Key differences Mainstream economics Happiness, Buddhist economics and sufficiency economy Goal Economic growth Results Can have social conflicts and unsustainable development Balanced growth, State of mind happiness, livings in harmony between human beings and nature, social/global peace. Social benefits from peace and sustainable development The development of happiness into higher levels (more mind and wisdom based) Less dependence on materials: resources can be saved or released to help other needy people Appropriate use of resources and not over-exploited Societal happiness increase The diminishing marginal return of happiness to income/ materials At the same level of income/materials, some individual happiness lines can be higher than the others. At the same level of happiness, some can utilize less resources than the others. Can release more resources to help others and societies. Increase happiness from mind-based. Happiness of givers and receivers increase. Lead to the increased in societal happiness M M1 Figure 2. The relationship between happiness and materials (in case of excessive materials) Over time, the continued higher income cannot lead to the rise in happiness, as evident in the case of US. and others (i.e., Easterlin, 1974), Japan (Kusago, 2007), and recent study of both developed and developing countries including transitional countries, Easterlin et. al., 2010). “Were we to use more than 1% of my claim checks on ourselves, neither our happiness nor our well-being would be enhanced. In contrast, that remaining 99% can have a huge effect on the health and welfare of others. That reality sets an obvious course for me and my family: Keep all we can conceivably need and distribute the rest to society, for its needs”. “In 2006, I made a commitment to gradually give all of my Berkshire Hathaway stock to philanthropic foundations. I couldn't be happier with that decision. Now, Bill and Melinda Gates and I are asking hundreds of rich Americans to pledge at least 50% of their wealth to charity. More than 99% of my wealth will go to philanthropy during my lifetime or at death”. Excessive amount of materials are not necessary to bring in more happiness and can be a waste use of resources (or burden & problems of ‘having too much’) •Increased happiness can come from non-income factors. • Higher level of happiness in mind and the feeling of contentment lead to social happiness/ sustainable development . •More resources can be saved and released to help others in needed. •Use resources with awareness and goals more usefully and efficiently • • The implications from both cases: • We have to be moderate and reasonable in consumption, needs, and accumulations, which is in line with SE. concept. •The peak point of happiness reflect that we should know what level of material accumulation is “enough” or “appropriate” for happy living, middle way of life style that can bring in happiness. need knowledge and wisdom to realize. • SE. life style makes sense. Excessive gain in materials may not be necessary. •“ To have enough to live on, of course, means sufficiency economy. If everyone has enough to live on. Everything will be all right…… In the past, there was enough to live on, but today impoverishment is creeping in. We must, therefore, implement a policy of sufficiency economy, so that everyone will have enough to live on.” •“Sufficiency is moderation. If one is moderate in one’s desires, one will have less craving. If one has less craving, one will take less advantage of others. If all nations hold this concept, I don’t mean sufficiency economy- this concept of moderation, without being extreme or insatiable in one’s desire, the world will be a happier place •………..Thus, sufficiency also means moderation and reasonable thinking.” Sustainable happiness approach and sufficiency economy concept offer a new way to a balanced and sustainable development for both individual and social levels. More human and nature concerns Add values for spiritual and subjective aspects middle-path and balanced life / development economic growth with caution and security Living in harmony with nature and people. Lead to sustainable development To reflect these contributions in today mainstream economics teaching and development To reflect QOL. & subjective/ spiritual well-being in development indicators Wide ranges of community, national, international development indicators. Different sets of indicators to measure different purposes. Design to fit with each community/ country/ culture… Make a national priority and do it! Thank you Have a happy living !