●A new economics for a new civilization

A speech made on September 22, 2001 at the Sun 21 meeting in Basel

                      Mitsuhei Murata

Professor at Tokai Gakuen University



The world seems to have lost ideals. The goal of democracy which should be the greatest happiness of the greatest number is forgotten, and in the actual process of globalization, the greatest happiness of the strongest is being pursued. The present material civilization is based on greed and, if it is allowed to last, it will increasingly threaten the future of the globe and humanity.


The so-called GDP economics is largely responsible for having brought about the present situation. It totally ignores what cannot be quantified, which includes such precious values as culture, traditions, family, and social justice. Moreover, GDP economics makes the serious mistake of considering natural resources as an income, and not as a capital that requires conservation measures. It is for this reason in particular, that economic growth fueled by natural resources is being allowed to bring about the destruction of the environment.


GDP economics has stirred up greed that hides in human nature and has incited the present generation to build prosperity at the expense of future generations. The present generation has thus lost the sense of ethics, yielding to egoism. This lack of a sense of ethics, together with the lack of a sense of responsibility and justice, constitute the major cause of serious concern for the future of the globe and humanity.


Based upon the foregoing understanding, I am engaged in a plea for a new civilization, based on ethics and solidarity that respects the environment and the interests of future generations. Such a new civilization calls for a conversion from material to the spiritual priorities, and it also necessitates a new economics that replaces GDP economics.


I would propose to call it the economics of contentment, or eco-economics and would like to outline its basic ideas consisting of three premises and 13 principles.


The first premise of eco-economics is about contentment. It means knowing what one really needs and wanting only what is essential. This philosophy originates from Gautama Buddha, but is not geographically limited to Asia. Stoicism in ancient Greece, Michelangelo in Italy, or Schumacher, author of Small is beautiful, published in the United States in 1973, share the same view.


The second premise is that, while GDP economics aims to maximize consumption by increasing wealth, eco-economics aims to maximize happiness by reducing desires. This can be shown by the numerical formula expressing the Buddhist way of thinking that happiness equals wealth divided by desire.


The third premise is the reappraisal of non-quantifiable values. They include family, community life, security, environment, nature, justice, harmony, beauty, health etc. Cultural activities in its broadest sense should not be forgotten.


Based upon these premises, I would like to enumerate 13 principles.


1. Producers should not produce unnecessary goods.

Goods must be made so as to last as long as possible.


2. Consumers should not buy unnecessary goods.

Goods must be used with as much care as possible.


3. In view of the ecological function that agriculture fulfills, agriculture should be given a higher priority than industry.


4. The greatest importance must be given to securing job opportunities. The pursuit of mechanization and efficiency must be so regulated as to avoid the abuse of natural resources and the increase of unemployment.


5. In view of unavoidable human mistakes that could engender catastrophes, as is the case with nuclear reactors, priority must be shifted from giant technology to intermediate technology as suggested by Schumacher.


6. In view of the fact that the market, if controlled solely by demand and supply, fails to take into account the human welfare, the market must be controlled by citizens to ensure their well-being and safety.


7. The liberalization of economic regulations must be promoted, but the social regulations, such as restrictions on hazardous chemical compounds, must be strengthened for the good of the general interest.


8. A total ban on protectionism means the abandonment of responsibilities by leaders. Selective protectionism must be maintained and strengthened where necessary.


9. Local production using local resources must be encouraged as well as the local consumption of locally produced goods.


10. Measures must be taken against excessive urbanization and restriction must be introduced on further endless development underway in some industrialized nations.


11. A clear distinction between renewable and non-renewable resources must be made in order to conserve the latter. We must aim to live within the limits of renewable bounty provided by solar input, which is the spirit of the Sun 21 movement.


12. Science and technology must be guided by a moral direction.


13. In order to achieve the shift from the material civilization to the spiritual one, governments are called upon to actively introduce such necessary taxes as a green tax, environmental tax, fuel tax, energy tax, carbon tax etc.


As you will have noticed, the gap between the ideal of new eco-economics and the realities of G.D.P. economics is extremely wide. But, to save humanity from its extinction, we need some power that can bring the realities closer to the ideal. Science cannot prove the existence of this power, but the lessons of history from time immemorial including the rise and fall of civilizations, seem to provide supporting evidence of the existence of a supernatural order that allows us not to give up hope for the future of the globe and humanity.


The 20th century has committed the great sin of destroying the environment to an unpardonable degree. This new century should therefore be a century of redemption. With the increased awareness of human responsibility and duties, we should launch a new civilization by means of a new economics. Success or failure will depend on the strengthening of cooperation between civil society and government to establish a global ethic that is indispensable to construct a better world.


I am firmly convinced that the conscience of civil society emanating from belief in a supernatural order and the common ethical codes of major religion could be integrated into such a global ethic.



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